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: 24-12-2016 |
| Description of measure | Change | Date |
| A 6 months extension was granted, until 30.6.2019, for the reduced tax rates for the islands of Leros, Lesbos, Kos, Samos and Chios | Rate decrease |
Legislation: 3-12-2018 |
| Effective 1 January 2017: reduced tax VAT rate of 13% to farm supplies and to services from retirement houses | Rate decrease |
Legislation: 19-05-2017 |
| A 6 months extension was granted, until 30.6.2018, for the reduced tax rates for the islands of Leros, Lesbos, Kos, Samos and Chios | N/A |
Legislation: 22-12-2017 |
| Reduced tax VAT rate of 6 % to concert tickets | Rate decrease |
Legislation: 24-12-2018 |
| Reduced tax VAT rate of 6 % to white/electronic sticks and Braille note taker/typewriters intended to be used from people with visual impairment | RaRate decreasete decrease |
Legislation: 18-12-2018 |
| Description of measure | Change | Date |
| VAT rate for cinema tickets reduced from 21 % to 10 % | Rate decrease | Announcement: 03-04-2018 Legislation: 04-07-2018 In force from: 05-07-2018 |
| VAT rate on cultural services provided by individuals reduced from 21 % to 10 % | Rate decrease | Announcement: 28-12-2018 Legislation: 29-12-2018 In force from: 01-01-2019 |
| Description of measure | Change | Date |
| The measure foresees that legally autonomous entities may constitute a group as single VAT taxpayer. Those involved must have economic and organizational relationships and mainly a common control by direct or indirect participation. This implies that transactions within the VAT group are excluded from the scope of VAT. | Base decrease |
Legislation: 11-12-2016 |
| As from 1 January 2019, a standardized system of mandatory electronic invoicing is introduced. The measure is applied partially as from July 2018. | Neutral |
Legislation: 27-12-2017 |
| Description of measure | Change | Date |
| According to article 2 of the Procedure of Settlement of Overdue Taxes amending Law 65(I)/2018, 03.01.2019 was defined as the last date of submitting application for instalment plan, for existing tax debt. | Neutral |
Announcement: 2010-06-29 |
| Per article 3b of amending Law 157(I)/2017 published on 13.11.2017, as from 02.01.2018, VAT is imposed on land sold by a business that can be developed. The amendment was made to be in line with EU acquis. | Rate increase; base increase |
Announcement: 13-11-2017 |
| According to article 2 of the Assessment and Collection of Taxes amending Law 50(I)/2018, Tax Tribunal may publish its decisions, preserving individual’s anonymity, if requested. | Neutral |
Announcement: 2018-06-08 |
| Per article 2 of the VAT amending Law 60(I)/2018, 9% VAT is imposed on provision of services and supply of goods by retirement homes, provided those transactions are not exempted. | Rate decrease |
Announcement: 2018-06-27 |
| According to article 3 of the VAT amending Law 121(I)/2018, VAT is imposed on transfer of the right to dispose immovable property (long term lease). | Rate increase |
Announcement: 2018-07-30 |
| According to article 2 of the VAT amending Law 121(I)/2018, the lease that transfers the right to the lessee to dispose immovable property is defined as supply of good and not provision of services. | Neutral |
Announcement: 2018-07-30 |
| According to article 3 of the Procedure of Settlement of Overdue Taxes amending Law 65(I)/2018, 31.12.2018 was defined as the last date of submitting tax returns concerning periods for which settlement is allowed and set as prerequisite in order to proceed to a new instalment plan in the future. | Neutral |
Announcement: 2010-06-29 |
| Description of measure | Change | Date |
| Introduction of the reduced VAT rate of 5 % to vegetables, fruits and berries that are specific to Latvia | Rate decrease |
Announcement: 06-12-2017 |
| The expansion of the reverse VAT charge mechanism to supplies of building materials and household appliances and introduction of the reverse VAT charge mechanism to supplies of metal products. | Neutral |
Announcement: 08-08-2017- |
| Reduction of the threshold for disclosing individual invoices from EUR 1 430 to EUR 150 | Base increase | Announcement: 08-08-2017- Legislation: 27-07-2018 In force from: 01-01-2018 |
| Reduction of VAT registration threshold from EUR 50 000 to EUR 40 000 | Base increase | Announcement: 08-08-2017- Legislation: 27-07-2018 In force from: 01-01-2018 |
| Description of measure | Change | Date |
| Reduced VAT rate for newspapers, magazines and other periodicals further reduced to 5 % (was 9 % previously). | Rate decrease |
Legislation: 11-12-2018 |
| Reduced 9 % VAT rate introduced for firewood and wood products for burning for residential purposes. | Rate decrease |
Legislation: 11-12-2018 In force from: 01-01-2019 |
| Introduction of a 5 % reduced rate for non-compensated prescription medicines | Rate decrease |
Legislation: 12-12-2017 |
| Description of measure | Change | Date |
| VAT grouping: legally independent persons established in Luxemburg who are closely bound to one another by financial, economic and organisational links may request to be regarded as a single taxable person | Neutral |
Legislation: 06-08-2018 |
| Description of measure | Change | Date |
| VAT rate on fish decreased from 27 % to 5 % | Rate decrease | Announcement: 13-06-2017 Legislation: 19-06-2017 In force from: 01-01-2018 |
| VAT rate on edible offal of swine decreased from 27 % to 5 % | Rate decrease | Announcement: 13-06-2017 Legislation: 19-06-2017 In force from: 01-01-2018 |
| VAT rate on restaurant meals decreased from 18 % to 5 % | Rate decrease; base decrease | Announcement: 07-06-2016 Legislation: 15-06-2016 In force from: 01-01-2018 |
| VAT rate on Braille-displays and printers decreased from 27 % to 5 % | Rate decrease | Announcement: 31-10-2017 Legislation: 10-11-2017 In force from: 01-01-2018 |
| The individual exemption for VAT was increased from HUF 8 million to HUF 12 million per year. | Base decrease | Announcement: 13-11-2018 Legislation: 23-11-2018 In force from: 01-01-2019 |
| VAT rate on ESL and UHT milk decreased from 18 % to 5 % | Rate decrease | Announcement: 20-07-2018 Legislation: 25-07-2018 In force from: 01-01-2019 |
| VAT rate on internet access decreased from 18 % to 5 % | Rate decrease | Announcement: 13-06-2017 Legislation: 19-06-2017 In force from: 01-01-2018 |
| Description of measure | Change | Date |
| VAT Reduction for SMEs. Increase in the threshold below which SMEs will be allowed not to charge VAT . | Rate decrease; base decrease | Announcement: 09-10-2017 In force from: 01-01-2018 |
| Description of measure | Change | Date |
| Increase of the reduced VAT-rate of 6 % by 3 pp to 9 % | Rate increase | Announcement: 10-10-2017 Legislation: 18-12-2018 In force from: 01-01-2019 |
| Increase of an exemption on VAT for sports organisations and sports clubs. Implementation of the Bridport and West Dorset Golf Club Limited arrest. Although the base is decreased the measure leads to an increase of tax revenues. | Base decrease | Announcement: 19-12-2013 Legislation: 18-12-2018 In force from: 01-01-2019 |
| The special treatment of agricultural entrepreneurs in the VAT will be abolished. | Base increase | Announcement: 19-09-2017 Legislation: 19-12-2017 In force from: 01-01-2018 |
| Description of measure | Change | Date |
| Accommodation in hotels and comparable places is taxed at the reduced rate of 10 % instead of 13 %. | Rate decrease |
Legislation: 14-08-2018 |
| Description of measure | Change | Date |
| Extension of the scope of taxable persons obliged to submit a unified format (the Single Audit File for VAT – JPK) to the tax authority by electronic means on a monthly basis. JPK is a set of information on purchases /sales for the period in question facilitating audit checks. Large firms have had to provide JPK since July 2016 and SMEs since January 2017. As of 2018 nearly all taxable persons (including micro enterprises), except those benefiting from exemption for the so called small enterprises or carrying out only transactions exempt from VAT, have to submit JPK. |
Neutral | Announcement: 14-06-2016 Legislation: 2016-05-13 In force from: 01-07-2016 01-01-2017 01-01-2018 |
| Maintain the current level of VAT rates. | New tax | Announcement: 21-12-2018 Legislation: 22-11-2018 In force from: 01-01-2019 |
| Increasing the VAT rate on specific products (i.e.. certain hygienic or pharmaceutical articles) from 8 % to 23 %. | Rate increase | Announcement: 11-01-2018 Legislation: 14-12-2017 In force from: 19-01-2018 |
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The head of the National Fiscal Administration (hereinafter “Head of KAS”) will receive daily information on the accounts and transactions of qualified entities within the meaning of STIR (i.e. other than personal accounts for private purposes). All information will be sent automatically and electronically via the clearing house. The analysis of the tax fraud risk on the basis of the information provided via the STIR system will be carried out in two ways. The clearing house will analyse the tax fraud risk using algorithms based on banking practice and experience in counteracting money laundering. The result of the analysis of the clearing house will be sent to the Head of the State Treasury in the form of a risk indicator. Based on the bank information provided, as well as risk ratio and other data (i.e. tax data, data provided from the National Court Register and the Central Register and Information on Business) supported by the usage of its algorithms and analytical procedures, the Head of KAS will analyse the risk of tax fraud. Such an immediate analysis will enable a quick response of KAS authorities. The blockade of the account of the qualified entity provided for by the STIR act will prevent transfer of funds from fraudulent activities. The account will be blocked for 72 hours with the option to extend the blockage by 3 months, after meeting strictly defined conditions. The above does not apply to bank accounts of natural persons serving their private settlements. |
Neutral |
Legislation: 29-12-2017 |
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A draft amendment to the Polish Vat Act introducing the new system for registration of retail sales is currently legislated by the parliament. |
Neutral |
Announcement: 2018 |
|
The so called optional Split Payment Mechanism (SPM) that will be applicable to domestic B2B transactions. |
Neutral |
Announcement: 20-12-2017 |
| Description of measure | Change | Date |
| Reduced rate of 6 % for electricity in lower potence contracts (3.45 kVA) and for natural gas in lower pressure contracts (10 000 m3) | Rate decrease | Legislation: 31-12-2018 In force from: 01-01-2019 |
| Description of measure | Change | Date |
| The VAT split-payment mechanism is optional from 1 October 2017, and mandatory from 1 January 2018. | N/A |
Legislation: 27-12-2017 |
| VAT rate reduction for accommodation, restaurants, catering, gyms from 9 % to 5 %. | Rate decrease |
Legislation: 04-10-2018 |
| Description of measure | Change | Date |
| Amendments to the VAT Act simplified VAT payment rules and the issue of invoices for telecommunication, broadcasting and electronic services provided to consumers in other Member States, pursuant to EU Directive. Additional amendments in line with EU Directive applying to the VAT treatment of vouchers were implemented. | Neutral |
Legislation: 18-11-2018 |
| Description of measure | Change | Date |
| Decrease of VAT rate on accommodation services from 20 % to 10 % | Rate decrease |
Legislation: 10-23-2018 |
| Description of measure | Change | Date |
| Transfer the collection of import VAT from Customs to the Tax Administration. | Neutral | Announcement: 04-09-2015 Legislation: 11-08-2017 In force from: 01-01-2018 |
| Description of measure | Change | Date |
| Decreased VAT on the display of natural areas (from 25 % to 6 %) | Rate decrease | Announcement: 20-09-2017 In force from: 01-01-2018 |
| Description of measure | Change | Date |
| VAT registration threshold: maintain at GBP 85,000 for two years | N/A | Announcement: 22-11-2017 Legislation: 01-12-2017 In force from: 01-04-2018 |
| VAT reverse charge: building and construction services | Base increase | Announcement: 29-10-2018 Legislation: 07-11-2018 In force from: 2019-10-01 |
| Offshore: prevent profit fragmentation, extend VAT grouping rules and prevent looping avoidance schemes | Base increase | Announcement: 29-10-2018 Legislation: 07-11-2018 In force from: 01-04-2019 for CT and 06-04-2019 for Income Tax and Class 4 NICs |
| VAT: ensuring proper adjustments | Base increase | Announcement: 29-10-2018 In force from: 2019-09-01 |
| VAT Registration Threshold: maintain at GBP 85,000 for a further two years | Base increase | Announcement: 29-10-2018 In force from: 01-04-2020 |
| Description of measure | Change | Date |
| VAT exemption for EV and PHEV, which has been renewed yearly since 2012, was extended to end-2020. The max. exempted amount is 1.440 thous. ISK for EV and 960 thous. ISK for PHEV. | Base decrease | Announcement: 14-12-2017 Legislation: 30-12-2017 In force from: 01-01-2018 |
| Description of measure | Change | Date |
| Increase the low rate of value added tax from 10 % to 12 % | Rate increase | Announcement: 12-10-2017 Legislation: 20-12-2017 In force from: 01-01-2018 |