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.

eCommerce in the EU from a VAT perspective

Expanding your eCommerce to Europe and entering into the EU could be a great opportunity for online sellers. Your business will reach millions of additional new customers across the continent adding and diversifying your revenue streams. e-Shoppers are now looking for products offered not only in their home country but from other countries within the EU and from outside the EU and overseas. This shows the importance and potential of cross-border online businesses who have experienced a steady growth during the last 5 years. Cross-border sellers from within the EU have increased their sales almost a 30% and non-EU and overseas sellers have almost double their figures (1). Nevertheless, great opportunities come with complex implications, being one of them the European VAT. Entering into the EU market and VAT related requirements Importing products into the EU When you are importing goods into the EU, you should be able to identify yourself before Customs. For this purposes you should...

MTD deferral for GIANT users announced

When Making Tax Digital (MTD) was made mandatory for those companies whose sales were superior to GBP 85.000 back in April 2019, business had to start keeping digital business records and sending returns through MTD compatible software. Nonetheless, there was a minority group(1) that was deferred to 1 October 2019. This was because HMRC wanted enough time to test the service before obliging them to join. Now, part of this group, specifically the so called GIANT (Government Information and NHS Trust) has been given a new deferral date beyond 1 October. This further deferral is due to a potential reform to VAT refund rules for central government, with the aim of reducing administrative burdens and improving public sector productivity(2). In the meantime, those GIANT users will have to submit VAT returns as they do now. As soon as we receive updated information we will be informing you accordingly.Related services:

Romania to introduce SAF-T files

The new president of ANAF (Romanian tax collection agency) Mirela Călugăreanu, made several announcement regarding the tax system in Romania and among them was the reduction and simplification of the tax system in addition to converting the tax agency into a more transparent and efficient institution. Firstly she would like to reduce the amount of tax related forms, which currently are more than 600, to simplify the system for legal persons. Besides, they would implement a quality measurement system with the goal of improving their system and assistance to taxpayers. (1) Among other important measures, it stands out the implementation of SAF-T (Standard Audit File for Tax) which is an international standard for electronic exchange of reliable accounting data from organizations to a national tax authority. (2)Related services:

Portugal to lower VAT rate on electricity and natural gas

The Portuguese government will drop VAT rates to the reduced rate of 6% on supplies of electricity and natural gas, however this reduction will not apply to all users. Those who will benefit from this measure are the ones that have contracted electricity power not exceeding 3.45 kVA or those whose pressure consumption of gas is not over 10.000 m3 per year (1). These limits aim to grant this reduce VAT rate to low-income households. Besides, the 6% rate will apply in mainland Portugal while a 4% will apply in Azores and 5% in Madeira. The measure will take effect starting 1 July 2019.Related services:

HMRC to increase VAT on solar panels

According to the Independent (1) the British government has decided to increase the VAT rate for solar panels from 5% to 20%, which is a huge hike considering that the Parliament has recently declared an environment and climate change emergency. Not only solar panels will suffer this VAT hike but materials for renewables and battery storage as well. On the other hand, fossil fuels including gas and coal will not suffer any change and their VAT rate will remain at 5%. The new rates will apply from 1 October 2019.Related services:

France to make Electronic Marketplaces to pay sellers’ VAT

France wants to reduce the VAT Gap which was more than EUR 20 billion in 2016(1) by implementing a series of measures to fight VAT Fraud and electronic marketplaces such as Amazon or Alibaba are being aimed by the government. According to LesEchos(2), the main change the new directive that The Minister of Public Action and Accounts, Gérald Darmanin, would introduce is making electronic marketplaces collect and pay VAT in behalf of sellers. Besides, it would also remove the Low Value Consignment Relief (LVCR) which is currently set in EUR 22 for goods entering as parcels to the French territory from non-EU countries. Going even further, Custom duties to goods under EUR150 would now be applicable. Some other measures include tracing logistics flows of goods and implementing electronic invoicing. Global VAT Compliance will keep you updated as this news develops.Related services:

France to introduce a Digital Service Tax

On May 21, 2019, the French senate presented a law project for the creation of a tax on Digital Services(1). Find below the main points of the law project. Taxable companies The tax is aim to large companies in the digital sector whose taxable turnovers exceed EUR 750 million for services provided worldwide and EUR 25 million for those provided in France. Taxable services The provision by means of electronic communications of a digital interface which enables users to interact with each other in order to exchange goods or services. Advertising placed on digital interfaces. These services may include, but are not limited to, purchasing, storing and distribution of advertising; advertising control and performance measurement services; and user data management and transmission services. Sale of data for advertising purposes. Location The digital service tax applies when: If the digital interface allows the exchange of goods and services, when the user is located in France. If the...

eCommerce in the EU from a VAT perspective

Expanding your eCommerce to Europe and entering into the EU could be a great opportunity for online sellers. Your business will reach millions of additional new customers across the continent adding and diversifying your revenue streams. e-Shoppers are now looking for...

read more

MTD deferral for GIANT users announced

When Making Tax Digital (MTD) was made mandatory for those companies whose sales were superior to GBP 85.000 back in April 2019, business had to start keeping digital business records and sending returns through MTD compatible software. Nonetheless, there was a...

read more

Romania to introduce SAF-T files

The new president of ANAF (Romanian tax collection agency) Mirela Călugăreanu, made several announcement regarding the tax system in Romania and among them was the reduction and simplification of the tax system in addition to converting the tax agency into a more...

read more

HMRC to increase VAT on solar panels

According to the Independent (1) the British government has decided to increase the VAT rate for solar panels from 5% to 20%, which is a huge hike considering that the Parliament has recently declared an environment and climate change emergency. Not only solar panels...

read more

France to introduce a Digital Service Tax

On May 21, 2019, the French senate presented a law project for the creation of a tax on Digital Services(1). Find below the main points of the law project. Taxable companies The tax is aim to large companies in the digital sector whose taxable turnovers exceed EUR 750...

read more

IMF report on Saudi Arabia VAT

On May 15, 2019 the International Monetary Fund has issued a concluding statement regarding Saudi Arabia economic development for the year 2018 where it makes comments on the present and future of VAT.(1) The economic reforms implemented by the government have yield...

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