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.

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...

Italy: Online marketplaces will be liable for VAT due on low-value imports

Italy has recently approved a law making online marketplaces liable for the VAT due on sales below €150 by non-EU sellers. The measure aims mainly to electronic goods such as mobile phones, tables, PCs and laptops, games consoles and video games, etc being imported from non-EU, third countries. Before this law, non-EU sellers were responsible for VAT reporting under distance selling or import rules in the Member State in which the goods were sold. Now, under the new legislation, online marketplaces will first purchase the goods from the seller (B2B), a nil rated transaction, and then re-sell the goods to the final customer. This last transaction will account for output VAT under the normal Italian rules so marketplaces will then be accountable for charging, collecting and remitting VAT to the Italian tax authorities. This law does not affect the fact that non-EU business have to appoint a Fiscal Representative in Italy. More clarification regarding the how and the when of the...

Ireland to increase VAT rate on food supplements to 23%

The Revenue Commissioners has decided to change the applicable rate to food supplements such as vitamins, probiotics and fish oils and raise it to the standard VAT rate of 23%. Currently this type of food is Zero rated but it is supposed to change from 1 March. The obvious consequence will be the instant raise on prices and shops are worried not only because a diminish on sales would affect them, but closure of their shops or lay-offs are also possible. Related services:

Transitional Simplified Procedures simplifies importing from the EU before a ‘no deal’ Brexit

HMRC announces Transitional Simplified Procedures for customs by writing to 145.000 VAT registered businesses trading with the EU while preparing themselves for a ‘no deal’ Brexit. Transitional Simplified Procedures (TSP) for customs will make importing easier for an initial period of one year to allow businesses time to prepare for usual import processes. Once businesses are registered for TSP, they will be able to transport goods from the EU into the UK without having to make a full customs declaration at the border, and will be able to postpone paying any import duties. HMRC is also reminding businesses to get an Economic Operator Registration and Identification (EORI) number if they do not already have one. This number is crucial to be able to trade after the UK leaves the EU. You can find more details here. As always we will keep you updated regarding all VAT news from the UK, Brexit and around the world. If you have any comment you can always contact us.Related...

Turkey will cut VAT to zero on books, magazines and newspapers

The Turkish government wants the parliament to discuss a cut in value-added tax on books, magazines and newspaper. The measures intends to cut it to zero in a way to make books and printed media affordable and more competitive to its digital counterparts. As always we will keep you updated regarding all VAT news from Turkey and around the world. If you have any comment you can always contact us.Related services:

Irish Import companies allowed to postpone VAT payments until making their returns

Irish Government allows their companies importing goods from the UK not to pay their VAT obligations until making their VAT returns. This new measure aims to soften the effects of Brexit on businesses’ cash flows where now they are going to be able to hold the VAT payment until they make their returns. As European governments are preparing for the UK leaving the EU, more of this kind of measures are expected. As always we will keep you updated regarding all VAT news from Ireland and around the world. If you have any comment you can always contact us.Related services:

Dutch Tax Authority has issued a letter regarding Brexit

The UK is scheduled to leave the EU on March 29 2019 (the so called Brexit) and governments are starting to give some recommendations to local companies that trade with the UK as this deadline approaches. On 1 February 2019 the Dutch Tax Authority has issued a letter highlighting 3 key points which businesses might have to consider in preparation for Brexit. What the Dutch Government said? The exact consequences of Brexit depend on the withdrawal agreement that is currently ongoing between the UK and the EU, however, it is also possible that no withdrawal agreement will be reached. If there is no agreement on 29 March 2019, the UK will leave the EU on that day without a transition period. With a withdrawal agreement (deal) there will be a transition period. You will then face with customs formalities and customs supervision after the end of the transition period. The precise measures your Company has to take depend on the nature of your business and its activities. It also matters...