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Our professionalized and specialized VAT team is always informed with the latest VAT updates and regulations from around the world. Here you will find all you need to know regarding VAT news and information.

BREXIT: EU & GB Deliveries to and from Northern Ireland

Deliveries to and from Northern Ireland after BREXIT  For Northern Ireland (NI), a temporary protocol applies on the basis of the Withdrawal Agreement between the UK and the EU. This special arrangement will enter into force on 1 January 2021. The Protocol will be in force for at least four years from 1 January 2021, subject to periodic review. The UK tax authority HMRC is responsible for the administration and collection of EU VAT and excise duties in NI. In short, the scheme means that NI is lagging behind in the EU with regard to the levying of VAT. To report transactions between NI and Irish or other EU companies, the EU will issue VAT identification numbers to NI companies. VAT identification number EU Northern Ireland XI and XU  To enable reporting by NI companies on their transactions with Irish or other EU based companies, the European Commission (EC) has proposed to introduce a special VAT identification number. This will make it easier for NI and EU companies to correctly...

BREXIT: Shipments of goods involving an Online Marketplace (OMP)

VAT & Online Marketplaces after BREXIT For VAT purposes, from 1 January 2021, all sales of goods by a foreign seller facilitated by an OMP will be treated as a "supply of the goods in the UK to the UK consumer by that OMP" if those goods: Are entered and the value of the shipment is less than GBP 135 Delivered from a UK location, value of the delivery is irrelevant. As a result, the OMP is responsible for collecting and paying VAT on the sale to a UK customer. The supply from the foreign seller selling through the OMP will not be treated as a supply to a UK consumer. Instead, if the goods are already in the UK (i.e. for which import VAT has already been paid), the supply of the goods to the OMP is assumed to have taken place at a zero VAT rate. Therefore, the foreign supplier must register for UK VAT in order to reclaim any import VAT incurred when importing shipments of goods (over GBP 135 in total value) into the UK. For UK VAT, the delivery will be treated as follows: If no...

BREXIT: Shipment of goods with a value in excess of GBP 135 after Jan 1st 2021

Brexit transition period comes to an end. Brexit is now really going to happen. On December 31, 2020, the transition period will end and by January 1, 2021, Great Britain (GB) will also leave the regulations of the European Union (EU) and GB will no longer form part of the VAT and customs territory of the EU. This has the necessary consequences for EU entrepreneurs. In this series of articles we will explain the most important developments from a VAT and customs perspective. What should be taken into account in the context of the applicable regulations? It is important to note that in terms of goods regulation, GB is leaving the EU, not the UK. The UK is formally called The United Kingdom of Great Britain and Northern Ireland. It is precisely the last area, Northern Ireland (NI), to remain behind in the EU for a while when it comes to at least the supply of goods. Shipments to the UK from January 1, 2021. With effect from 1 January 2021, shipments to the UK will no longer count as...

BREXIT: VAT deferment on imports after January 1st 2021

From January 1, 2021 all goods shipped from the EU will be taxed with import VAT and there is a risk that British entrepreneurs would see this as a large claim on their working capital. At present, these goods are still acquired intra-Community. The VAT reverse charge mechanism applies to this, so in general no VAT has to be paid. Until now, the UK has not had a VAT deferment mechanism for imports. However, such a deferment will be in place from 1 January 2021. This means that in most cases the VAT does not have to be paid on import. From 1 January 2021, entrepreneurs can declare VAT on import on their VAT return by means of VAT deferment. When VAT deferment is applied on import, the following applies: • The imported goods are intended for use in the business of the entrepreneur; • The importer gives his UK EORI number starting with "GB" on the customs declaration; • The importer states his VAT number in the customs declaration. For parties not registered for VAT, there is still the...

BREXIT: Services offered between the UK and EU after the 1st of January 2021

For services between the UK and the EU, the same rules will apply as with other third countries. In principle, services between EU and British businesses take place without VAT (unless an exception applies). The entrepreneurs no longer need to include these transactions in the ICP Statement. Services by British entrepreneurs to private individuals in the EU will only be taxed with EU VAT if it concerns services such as TBE or digital services. British entrepreneurs must register in an EU country for the One Stop Shop for digital services (Non-Union Scheme). VAT on these services is payable in the Member State where the consumer resides. The UK will also levy VAT on digital services provided by foreign businesses to private individuals. A regular VAT registration is required for this. VAT MOSS Corrections  EU entrepreneurs submitting a VAT MOSS declaration should take into account that any corrections to the figures for the UK can be corrected until 20 January 2022 at 11 p.m. using...

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Moldova: New Platform designed for the registration of e-service providers

Digital Services Update As per our previous article found here, Moldova introduced VAT tax on Digital Services for all non-resident companies starting April 2020. Since then, all non-resident companies providing B2C services to the resident individuals in the Republic of Moldova through electronic networks  have to calculate and pay VAT for these services. The same rules apply to non-resident intermediary companies that collect payments from Moldovan consumers for receiving electronic services. In order to help these companies and simplify the process of VAT registration, declaration and payment for VAT, the Moldova State Tax Service designed a special platform. VAT reporting for these companies is quarterly and it is necessary to be submitted by STS's electronic reporting methods which is done by using the approved forms provided. Payments must be made either in MDL, USD or EUR no later than the date set for the submission of the tax return. Fiscal representation is not necessary in...

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