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.

VAT on Digital Services 2020

The Digital Economy is changing the landscape of international taxation and countries around the world are trying keep up with the new challenges. An increasing number of countries are taxing VAT or GST on digital services supplied from abroad to consumers. 2020 brings some new countries to the list of the ones that are already taxing companies who deliver digital services remotely. Coming from South-East Asia, find below the countries where you will need to be compliant with VAT/GST on Digital Services new regulations.   Country Standard VAT/GST rate Levy eServices from Type of VAT  registration Threshold Malaysia 6% 01-Jan-20 Service Tax on Imported Digital Services None Singapore 7% 01-Jan-20 GST registration via Overseas Vendor Registration (OVR) -1. Have an annual global turnover exceeding SGD$100,00; and – 2. Make B2C supplies of digital services in Singapore exceeding SGD$100,000. Thailand 10% 01-Jan-20 VAT on eServices None Vietnam 10% 01-Jul-20 The obligation to collect...

VAT rates for eBooks 2020

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 witnessed several VAT rate updates for e-publications where numerous countries have reduced the levy on eBooks. In this new year 2020 new countries started or are planning to apply a reduce rate for eBooks. Country Previous rate New rate Date Austria 20% 10% 1 January 2020 Czech Republic 21% 10% 1 April/May 2020 Germany 19% 7% 1 January 2020 Netherlands 21% 9% 1 January 2020 Spain 21% 4% 1 January 2020 In addition to the countries that have or will introduce a reduce VAT rate on eBooks, there are other countries that have already established the same approach back in 2019. Find below these countries and the applicable VAT rate. Country Previous rate New rate Date Belgium 21% 6% 1 April 2019 Croatia 25% 5% 1 January 2019 Finland 24% 10% 1 July 2019 Ireland 23% 9% 1 January 2019 Luxembourg 17%...

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

 andEvery 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...

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...

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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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