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Abstract from the IVA Newsletter - August 2018:

Dear VAT professionals,

In this issue:

1. Register for the IVA Autumn Conference in Stockholm
2. Welcome to our latest IVA Members
3. IVA Webinar
4. Important VAT/GST Information
4.1. Brexit Update: UK issues no-deal VAT guidance notice
4.2. Germany - Federal Fiscal Court: Postal address on invoice permitted – no bad faith despite domicile address
5. European VAT News
6. World VAT/GST News
7. News from Accountancy Europe

2. Welcome to our latest IVA Members

Please welcome the latest new members of the International VAT Association:

Association des Praticiens de la TVA Européenne (France), represented by Ariane Beetschen
EUVAT1 (Netherlands), represented by Alice Rijnders-Verkuilen
ZeroComa S.L. (Spain), represented by Alejandro Allende

4. Important VAT/GST Information

4.1. Brexit Update: UK issues no-deal VAT guidance notice

The UK Government has recently issued a range of guidance notices informing both the public and businesses of what the implications would be in the unlikely event that the UK leaves the EU next year without any replacement arrangements to cover trade, customs and taxation (amongst other issues) being put into place.
One of the notices released covers what the VAT implications will be for businesses if there are no new arrangements in place before the Brexit date of 29 March 2019 at midnight CET.

Businesses importing goods into the UK from the EU

The UK will introduce a postponed import VAT regime. This will allow all UK VAT registered businesses to avoid having to pay VAT on the clearance of their goods (from the EU or from outside the EU) into the UK. Instead, the import VAT amounts will be postponed to the VAT returns and will be entered in the same way as a reverse charge transaction.
The UK government hope that this will help companies who buy goods from outside of the UK avoid cash flow problems relating to the reclaiming of their UK import VAT.
The current low-value consignment stock relief of £15 will be removed. Currently, non-EU E-commerce merchants of goods can import low-value packages of up to £15 into the UK VAT free. However, if the UK leaves the EU with no deal this will be removed.
A new technology based solution will be implemented to account for VAT collected on parcels being sent into the UK with a value of up to £135. If no deal is reached, HMRC will expect overseas businesses selling e-commerce goods into the UK with a value of up to £135 to register for a new digital service. This will allow businesses to charge VAT at the point of purchase. Once registered the non-resident supplier will then be able to account and pay the VAT collected directly to HMRC.

For goods worth more than £135 that are sent as parcels by non-EU companies, VAT will continue to be collected from UK recipients in line with current procedures for parcels received from non-EU countries.

Businesses exporting goods to the EU

EU member states will treat goods coming from the UK in the same way as from any other non-EU country. This will mean that import VAT and duties would become due on arrival of the goods into the EU from the UK and will apply to both sales and movements of own goods.
Distance selling VAT rules/thresholds will cease to apply to sales of goods to consumers in other EU countries where goods move directly from the UK to that customer. This will lead to all UK e-commerce retailers involved in these types of transactions having an immediate liability to VAT register in the EU member state of their customer to account and pay for VAT accordingly.
Distance selling rules allow suppliers selling from the UK to consumers in another EU country to charge UK VAT up until certain thresholds in the customer’s country are reached. Once the threshold is met, the supplier has an obligation to VAT register in that country and charge VAT locally.

6. World VAT/GST News


From 1 January 2019, the Russian parliament approved a rise in the standard rate of VAT from 18% to 20%.

The reduced rate of 10% will remain unchanged.

The above information was kindly provided by Fiscal Solutions (UK),; contact:


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What Companies need to know to prepare for Brexit

The United Kingdom will leave the European Union (EU) at 11:00 pm of 29 March 2019...

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News from IVA members

Federal Fiscal Court: Postal address on invoice permitted – no bad faith despite domicile address

In an invoice issued for the purpose of input VAT deduction, the supplier’s address is not required to be the place of his or her economic activity. This was decided by the German Federal Fiscal Court in two judgments of 21 June 2018 (V R 25/15 and V R 28/16). The German Federal Fiscal Court thus follows the EUCJ in the German rulings in Geissel and Butin – C-374/16 and C-375/16...

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News from EC

News from Accountancy Europe September 2018

Luxembourg has adopted a new VAT grouping regime (article 11 of Directive 2006/112/EC refers). It replaces a previous regime which was restricted to entities only engaged in activities in the public interest...

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Disclaimer:  The information contained in the present page is general and does not constitute legal advice. Before taking any decision or action on the above information you should take the appropriate professional advice.