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: UK trade agreements with non-EU countries

As things stand, the UK is due to leave the European Union on 31 October 2019 at 23:00 GMT. This means that after this date and under a no deal Brexit scenario, all trade agreements the UK is part of as an EU member states will no longer apply. Therefore HMRC is back on releasing guides to keep updated the general public and those who may be affected by this situation.In its last press released (1), HMRC lists all countries or trade blocs for which they have already signed Trade Agreements, those who are still in discussion and the Mutual recognition agreements. Trade agreements that have been signed Andean countries Andean countries CARIFORUM trade bloc Central America Chile Eastern and Southern Africa (ESA) trade bloc Faroe Islands Iceland and Norway Israel Liechtenstein Pacific states Palestinian Authority South Korea (agreed in principle and expected to sign shortly) Switzerland Trade agreements still in discussion Albania (Western Balkans) Algeria Andorra and San Marino Bosnia...

European Commission releases VAT Table Reforms

The European Commission has released a table with all VAT reforms announced, legislated and implemented during 2018 that were not published in the last year’s report (1). Below you will find a summary of all the VAT related reforms for each EU Member State. Description of measure Change Date Optional tax liability for real property lease. Base increase Announcement: 27-03-2018 Legislation: 31-07-2018 In force from: 01-10-2018 Increase of the excise duty on sugar sweetened and artificially sweetened beverages. Base increase Announcement: 28-07-2017 Legislation: 25-12-2017 In force from: 01-01-2018 Increase of specific excise duty on tobacco products. Base increase Announcement: 28-07-2017 Legislation: 25-12-2017 In force from: 01-01-2018 Description of measure Change Date Basic allowance reform: second round effects Base increase   Legislation: 24-12-2016In force from: 01-01-2018 Description of measure Change Date A 6 months extension was granted, until 30.6.2019, for the reduced...

Poland: Split Payment mandatory from 1 November 2019

Polish Parliament has approved the mandatory Split Payment Mechanism and it will come into force November 1, 2019. After being postponed earlier this year from July to September, the SEJM had voted in favor and passed the measure (1). The Split Payment Mechanism is another attempt from the Polish Government to fight VAT fraud and will replace Reverse Charge. Under the new mechanism, Polish tax payers, including non-resident companies, will be required to open a special VAT account with Polish banks where the invoiced VAT amount should be deposited. This split VAT payment mechanism will only apply to B2B supplies made by electronic bank transfers. The mentioned special VAT account 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 (2). The mandatory requirement will only apply to transactions above PLN 15,000 (€3,500 approximately) for the following products: Steel products,...

Croatia to reduce standard VAT rate in 2020

Last Friday, July 26, 2019, the Prime Minister of Croatia Andrej Plenkovic and the Finance Minister Zdravko Maric, presented the latest tax reforms, among which there are some VAT rate cuts, which would reduce tax burden by HRK 3.75 billion (EUR 500 million approximately). One of the reforms is to reduce the VAT rate in the hospitality industry for food preparation and serving to 13%, matching the already reduce VAT rate for hotel accommodations. The current rate for Food & Beverage in hotels is 25% (1). Besides, at was previously announce (2), the standard VAT rate will be reduced by 1%, from 25% to 24% from January 2020. Among others tax reforms we can mention the proposal to reduce income tax by 100% to people under 25 year-old and by 50% to those between 26-30 years and a tax on soft drinks. If you believe these developments impact your business and would like further advice on your next steps do not hesitate to contact us.Related services:

Super reduced data set for low value consignments from January 2021

According to the Official Journal of the European Union released on July 5, 2019, it will be possible from 1 January 2021 to declare goods up to EUR 150 using a customs declaration that requires 3 times less data than a standard declaration. Right now, consignments of goods into the EU that are worth less than EUR 22 (set at GBP 15 in the UK) are exempt from VAT. Since this measure, also known as Low Value Consignment Relief (LVCR), will disappear in January 1, 2021, all import into the EU will have to be declared at the border using an electronic customs declaration. Besides, considering that Customs Duty is not due for goods, provided directly to the buyer when their value does not exceed EUR 150 (GBP 135 in the UK), and the enormous volume of low-value consignments imported into the EU which makes it difficult for customs IT system to process, this measures by the European Commission should mitigate the impact of the increase in the number of custom declarations. This is...

Romania to reduce VAT rate in 2020

The Romanian Senate has received a legislative proposal on Junes 27, 2019, which states the intention to reduce the standard VAT rate in 2020 (1), which by the way, would be the lowest rate in the EU. If the Senate approves the measure, from January 1, 2020, the standard VAT rate would be reduced from its current 19% to 16%. This means that Romania would have the lowest rate in all the EU zone, even below Luxembourg's VAT rate of 17% (2). According to the latest report from the European Commission which shows the evolution of the VAT Gap in all EU member states from 2012 to 2016, Romania ranked last on all those years (3). Therefore, this measure of lowering VAT rate to 16% aims to improve VAT compliance rates and collection. In addition, a 5% low rate for food would also be introduced. If you think this developments would affect your business, please do not hesitate to contact us.Related services:

France approved Digital Service Tax

The Digital Service Tax (DST) was approved by the French Senate on 11 July 2019 (1), which will tax big technological companies. As previously mention in one of our posts the tax is aimed to large corporations in the digital sector whose taxable turnover exceed EUR 750 million for services provided worldwide for which EUR 25 million are provided in France (2). The French government has argued that such firms headquartered outside the country pay little or no tax (3). In accordance with this position, the European Commission estimates that on average traditional businesses face a 23% tax rate on their profits within the EU, while digital companies typically pay 9.5% (4). The DST, also known as “GAFA tax”, meaning that it is aimed to companies such as Google, Apple, Facebook and Amazon, will levy a 3% tax on revenue from digital services including the provision of digital platforms for selling goods and services, advertising placed in digital interfaces and the sale of data for...

Brexit: UK trade agreements with non-EU countries

As things stand, the UK is due to leave the European Union on 31 October 2019 at 23:00 GMT. This means that after this date and under a no deal Brexit scenario, all trade agreements the UK is part of as an EU member states will no longer apply. Therefore HMRC is back...

read more

European Commission releases VAT Table Reforms

The European Commission has released a table with all VAT reforms announced, legislated and implemented during 2018 that were not published in the last year’s report (1). Below you will find a summary of all the VAT related reforms for each EU Member State....

read more

Croatia to reduce standard VAT rate in 2020

Last Friday, July 26, 2019, the Prime Minister of Croatia Andrej Plenkovic and the Finance Minister Zdravko Maric, presented the latest tax reforms, among which there are some VAT rate cuts, which would reduce tax burden by HRK 3.75 billion (EUR 500 million...

read more

Romania to reduce VAT rate in 2020

The Romanian Senate has received a legislative proposal on Junes 27, 2019, which states the intention to reduce the standard VAT rate in 2020 (1), which by the way, would be the lowest rate in the EU. If the Senate approves the measure, from January 1, 2020, the...

read more

France approved Digital Service Tax

The Digital Service Tax (DST) was approved by the French Senate on 11 July 2019 (1), which will tax big technological companies. As previously mention in one of our posts the tax is aimed to large corporations in the digital sector whose taxable turnover exceed EUR...

read more

VAT rates for eBooks so far (2019)

Since the European Council agreed to allow member states to apply a reduced VAT rate to electronic publications in October 2018 (1), VAT rates for eBooks have changed fast in EU countries. 2019 has witnessed several VAT rate updates for e-publications where numerous...

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Norway: no more VAT on eBooks

Norway will remove VAT from eBooks and all e-publications starting July 1st, 2019. This represents a huge VAT cut since currently they are subject to the standard rate which is 25%. Since the European Council agreed to allow member states to apply a reduce VAT rate to...

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