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.

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...

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 countries have reduced the levy on eBooks, so in order to clarify the current situation we provide the following summary with the updated rates. Scope: Supply, including on loan by libraries, of books, newspapers and periodicals either on physical means of support or supplied electronically or both (including brochures, leaflets and similar printed matter, children's picture, drawing or colouring books, music printed or in manuscript form, maps and hydrographic or similar charts), other than publications wholly or predominantly devoted to advertising and other than publications wholly or predominantly consisting of video content or audible music;'.  Country Previous rate New rate Date Belgium 21% 6% 1 April 2019 Croatia...

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 electronic publication last year (1) several countries have adopted the measure reducing the levy on eBooks such as Belgium, Ireland, Luxembourg, Malta and Portugal (2) (3) (4). Once the zero rate VAT enters into force for eBooks, newspapers (including e-newspapers), books and electronic books will all be equally VAT rated, ensuring an equal tax-related treatment of printed and electronic media. As usual, Global VAT Compliance will keep you updated with all VAT news around Europe and the world.Related services:

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:

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...

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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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Greece reduces VAT rate on goods and services

The Greek government through the Finance Ministry had reduced the VAT rates for certain categories of goods and services since Monday, 20 May.(1) (2) These cuts come into effect after being announce in previous weeks (3) as part of a tax reduction due to a surplus on...

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TNA: the new anti-VAT fraud tool from EC

On May 15th, the European Commission has issued a press release1 regarding a new tool called TNA to fight VAT Fraud which states “The new system will allow Member States to rapidly exchange and jointly process VAT data, leading to earlier detection of suspicious...

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Avoiding VAT rise “won’t be easy” says Conte

Italian Prime Minister Giuseppe Conte was present at the Rete Imprese Italia 2019 Assembly held at the Palazzo della Cancelleria in Rome. During his speech he admitted that avoiding the VAT rate increase as safeguard for the year 2020 and 2021 “won’t be easy”(1). At...

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Greece to reduce VAT rates

The 2018 budget surplus from Greece was better than expected, 4.4% of their GDP (0.3% above projections)1, which would allow the government to announce some relief measures for 2019. The surplus would mean around 1 billion euros who will be used to benefit pensioners...

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Luxembourg reduced VAT rates as of 1 May 2019

Luxembourg Parliament has agreed to reduce VAT rates to 3% to electronic books, publications and online press and essential hygienic items such as tampons and sanitary pads. Besides, organic agriculture will benefit from a 8% reduced VAT rate for plant protection...

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