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.

French Anti-Fraud Act 2020

Greetings from Global VAT Compliance! We are pleased to give you an overview of the new French Anti-Fraud Act 2020 which introduces important changes that you need to be aware of. On 24 October 2018, the French Anti-Fraud Act was published in the Official Journal and was designed to strengthen the measures to fight against taxpayers’ failure to comply with their tax obligations. This Act might require sellers to apply for a French VAT number, so do not hesitate to contact us if you have any consultation regarding VAT registration in France. For further information, please contact us at gvc@amazonvat.eu.REPORTING REQUIREMENTS AND JOINT LIABILITY OF MARKETPLACES Since 1 July 2019, electronic Marketplaces such as Amazon, eBay or others had been imposed certain obligations such as: Provide, for each transaction, honest, clear and transparent information on the tax and social obligations of sellers who carry out commercial transactions through the platform. Send sellers a statement of the...

Spain relaxes requirement to be VAT registered for companies with other EU VAT numbers granted

Every time a non-establish company wanted to get VAT registered in Spain they were required to present a series of Apostilled documentation which made the VAT registration process long and complicated. The good news is that the Spanish Tax Authority has been aware of the difficulties and hassles involved and has decided to relax the requirements to obtain a VAT number.According to the Official Communication issued by the Spanish Tax Authorities the requirements will be as follows: 1. Original certificate of registration for VAT purposes in another EU country, accompanied by an official translation. 2. In the case of legal entities: a. Original certificate of registration at the company’s registry or another comparable official registry, accompanied by an official translation into Spanish, no older than 6 months old. b. Article of incorporation accompanied by an official translation of the main elements such as regulation and identification of shareholders and directors, corporate...

Italy: First Deadline for Remote Sales Goods reporting 31 October 2019

Back in May 2019, the Italian government issued a Decree stating that marketplaces would need to report information related to their sellers activities under certain conditions, if failed to provide such information they would become liable for unpaid VAT1. The first deadline was set to 31 Juyly and then postponed to 31 October 2019.  As the deadline approaches, it is important for those it effects to understand the implications and necessary steps to follow. The deadline applies for all remote sales of any type of goods, irrespective of their unit value. To clarify, this includes sales made in the second and third quarters of 2019. This applies to the remote sales of electronic goods such as mobile phones, video game consoles and laptops, it also extends to the remote sales of imported electronic goods not exceeding €160 made in the period of 13 February 2019 to 30 April 2019. Going forward the reports will be due on a quarterly basis by the end of the month following the quarter in...

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:

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...

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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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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...

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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...

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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...

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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...

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