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.

Italy to introduce a transition period after a ‘no deal’ Brexit with VAT implications.

According to the Law Decree 25 March 2019, n.22 published in the Italian official gazette and considering a ‘no deal’ Brexit scenario, the Italian government would introduce a 18 months transition period “to ensure safety, financial stability and market integrity” as well as the “protection of the freedom of residence of Italian citizens and those from the United Kingdom”. The decree, mainly aimed to banks, insurances companies and financial institutions, establishes that current dispositions (where the UK is considered part of the EU) will remain effective from the date of a‘no deal’ Brexit until the end of the 18-month transition period. In addition, in the Tax provision section, the decree states that EU directives or regulations with regard to VAT and excise duties will continue to apply during the 18-month transition period as long as they are compatible with the new regulations. The Ministry of Economy and Finance will issue one or more decrees in order to establish the...

VAT for Brexit – Warning to online sellers

Important warning for online sellers from all countries, including all European countries, Australia, Canada, China, India and US, selling goods to the UK! If there is a no-deal Brexit, on 12 April 2019: All B2C sales of goods of a value of GBP 135 or less sent as parcels are subject to UK VAT All B2B sales of goods of a value of GBP 135 or less sent as parcels are subject to UK VAT The import VAT can be paid by either: using the online service to report and pay the import VAT due to HMRC paying a parcel operator that offers a service to pay import VAT to HMRC  In order to comply all non-UK sellers of these goods have to: instruct a parcel operator that offers a service to pay import VAT to HMRC, or get an Import VAT Reference (IVR) number and: > report and remit quarterly the VAT collected from UK customers > issue correct VAT invoices to UK businesses so they can recover the VAT > mention the IVR number on shipping documentation and import declaration If you do not...

Brexit impact analysis

Global VAT Compliance Brexit impact analysis Below we outline the immediate thing to think about in order to be prepared if the UK leaves the EU without a deal and therefore there is no transitional period. If the UK leaves the EU on 29 March 2019 without a deal, the government’s aim will be to keep VAT procedures as close as possible to what they are now. This will provide continuity and certainty for businesses. However, if the UK leaves the EU with no agreement, then there will be some specific changes to the VAT rules and procedures that apply to transactions between the UK and EU member states. Before 29 March 2019, under current VAT rules: • VAT is charged on most goods and services sold within the UK and the EU. • Goods sold B2C to the UK from other EU country are subject VAT in the country where the goods are shipped from or subject to UK VAT if the distance selling threshold is exceeded or if the seller opts to be taxed in the UK. • Goods sold B2B to the UK from other EU...

UK VAT MOSS after Brexit

Brexit’s date is approaching and UK business are being warned under the likelihood of a ‘no deal’ scenario. EU governments are suggesting UK businesses to implement a series of measures in order to be able to keep with their cross-border operations with the EU. Mini One Stop Shop (MOSS) MOSS is an online service that allows EU businesses that sell digital services to consumers in other EU member states to report and pay VAT via a single return and payment in their home Member State. Non-EU businesses can also benefit from this simplified system by registering in an EU Member State. If the UK leaves the EU with no agreement, businesses will no longer be able to use the UK’s MOSS portal to report and pay VAT on sales of digital services to consumers in the EU and will need to register under the VAT MOSS non-EU scheme. For those businesses currently using UK VAT MOSS portal to declare their sales of digital services, they will be able to do so for 1Q 2019. This return shall include...

Brexit consequences: Fiscal Representation to be required in Belgium for UK businesses

Brexit is approaching and EU governments are getting ready for a ‘no-deal’ scenario which means that the UK will be treated as a third-country for the EU and the rules and regulation which now govern the traffic of goods and services will no longer apply. Under this scenario, taxable persons established in the UK will have to fulfill the VAT obligations which are imposed on all the taxable persons who are not established in the EU. As for Belgium respects, there will be the requirement for all UK businesses to appoint a Fiscal Representative for VAT purposes in order to continue conducting operations in Belgium. This means UK businesses will not be able to benefit from their direct VAT registration after Brexit is effective.   File your request to appoint a Fiscal Representative before Brexit date to get 6-month grace period The request to appoint a Fiscal Representative for VAT purposes must be filed to the Belgian tax authority before 30-03-2019 or a postponed Brexit date....

German Tax Authority has updated information regarding Tax Certificate

The German Bundesministerium der Finanzen (Federal Ministry of Finance) has issued a letter on the  21 February 2019 whit new and updated information regarding the German Tax Certificate which was introduced in the new German Tax Legislation put into effect the first of January 2019. According to  this new law, all electronic marketplaces are jointly liable for the unpaid VAT with their sellers as of 1 of March 2019. To avoid any monetary setbacks, marketplaces asked all their sellers to provide a copy of the Tax Certificate before mentioned date in order to continue trading through their platforms, otherwise they would block their accounts. As the deadline approaches and most of sellers have not been able to receive the Tax Certificate, the German Ministry of Finance has stepped in issuing a letter with new information. According to the letter, all sellers using electronic marketplaces such as Amazon, eBay, etc., will be given a deadline extension to present the German Tax...

Poland allowed to apply a VAT split payment mechanism

The European Union Council has authorized Poland to introduce a special measure to fight and prevent VAT fraud. Starting 1 March  2019 until 28 February 2022, Poland is allowed to introduce a special statement that VAT shall be paid to the separate and blocked VAT bank account t of the supplier on invoices issued in relation to the supplies of goods and services susceptible to fraud. This split VAT payment mechanism will only apply to B2B supplies made by electronic bank transfers. The mentioned separate VAT account of a supplier (taxable person) can be used for restricted purposes only, for example payments of the VAT liability to the tax authority or the payment of VAT on invoices received from suppliers. Poland has already taken measures to avoid fraud, and this new mechanism to split VAT payments is another attempt to keep improving in that regards. As always we will keep you updated regarding all VAT news from Poland, Europe and around the world. If you have any comment you can...