News from Accountancy Europe - June 2019

Commission launches new tool to help fight VAT fraud – 15 May 2019

The European Commission has launched a so-called Transaction Network Analysis (TNA) tool to assist in the fight against VAT fraud.

TNA will allow tax authorities fast access to cross-border transaction information, enabling quick action when potential VAT fraud is flagged. It will also allow much closer cooperation between EU’s network of anti-fraud experts (‘Eurofisc’) when it comes to jointly analysing information so that VAT carousel fraud can be detected and intercepted as fast and effectively as possible. And finally, it will boost cooperation and information exchange between national tax officials, allowing Eurofisc officials to cross-check information with criminal records, databases and information held by Europol and OLAF, the EU’s anti-fraud agency, and to coordinate cross-border investigations

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Commission refers Austria to the Court for its failure to align with EU VAT rules for travel agents – 6 June 2019 

The Commission decided on 6 June to refer Austria to the Court of Justice of the EU for not applying special VAT rules for travel agents correctly.

The special VAT scheme for travel agents means that VAT should be applied only on the margins made from sales of travel services to consumers. In return, however, travel agents cannot deduct VAT they pay while buying services from other businesses.

However, Austria does not correctly apply this rule, because it currently excludes travel services sold to other businesses from the scheme. Such an exclusion is not allowed under current EU rules, and can lead to a distortion of competition.

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Council

Romanian Presidency blames Commission for not doing enough on VAT fraud 

A recent Council meeting saw some drama  as the Romanian Presidency accused the European Commission for not doing enough to curtail carousel fraud.

In response, a Commission official reminded that the Commission proposed already in 2017 to move to a so-called VAT definitive regime – a destination-based VAT system. The proposal, if adopted, would go a long way in curtailing carousel fraud in the EU. However, it currently remains blocked in the Council by opposition from Germany and a lack of enthusiasm from a number of other Member States. 

 

Court of Justice of the EU – Ruling

C‑235/18: VAT exemption on service granting credit

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News from the Board

IVA Meeting with the Portuguese Tax Authorities

The International VAT Association (IVA), represented by its President, Stephen Dale, and Board Member, Fátima Gouveia, met with the representatives of the Portuguese Secretary of State for Tax Affairs and of the Portuguese VAT Authority on the 9th of July 2019, in Lisbon. The IVA thanked the authorities for meeting with us at short notice.

Download the full Communique soon available.

News from IVA members

Mexico proposes the implementation of VAT on e-commerce supplies

The Mexican senate is proposing to levy VAT at 16%, on digital e-commerce supplies provided to consumers by non-resident online platforms...

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News from EC

News from EU - August 2019

Cross-border rulings (pilot project) – Update July 2019

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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.