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European VAT News

European VAT News October 2017

By October 17, 2017July 10th, 2021No Comments

France

A new requirement for all resident French businesses (and potentially non-residents) that are VAT registered to use certified anti-VAT fraud software when undertaking cash and credit sales to consumers (B2C transactions) will be introduced from 1 January 2018.

France

A new requirement for all resident French businesses (and potentially non-residents) that are VAT registered to use certified anti-VAT fraud software when undertaking cash and credit sales to consumers (B2C transactions) will be introduced from 1 January 2018.

The software introduced will be approved by the French tax authorities and will be designed to prevent VAT fraud by stopping businesses from fraudulently amending the details of their sales transactions. Foreign providers of these types of cash transactions will also be obliged to follow the new requirements and go through the accreditation process if they make cash sales in France.

Poland

Poland recently announced that the introduction of the anti-VAT fraud split payments regime will be delayed until 1 April 2018.

The original proposed implementation date was 1 January 2018 and once introduced the split payment procedure will allow customers to pay the VAT amount of a sale directly into a special supervised bank account. The tax authorities can then make withdrawals directly from this bank account in order to settle the supplier’s VAT liability.

Romania 

The Romanian Government has now passed legislation on the value added tax (VAT) split-payment mechanism which will be introduced on a voluntary basis from 1 October 2017. This is with a view to making it compulsory for all VAT registered businesses from 1 January 2018.

The split payment procedure will require vendors to open a special, secure bank account specifically used for receiving and making VAT payments.  The vendor’s customers will then pay the VAT amounts charged by the vendor directly into this special secure bank account. At the same time, they will have to make a separate payment of the net amount to the vendor’s regular bank account.  The Romanian tax authorities will then be able to monitor the special VAT bank account and reconcile this with the vendors VAT reporting.

Switzerland

The Swiss VAT rate will decrease from 8% to 7.7% From 1 January 2018.

On 24 September 2017 the Swiss population voted to reject a proposal to raise the VAT rate to 8.6% in order to support pension reforms in the country. As a result of this rejection it now means that the previously scheduled VAT reduction to 7.7% will go ahead in its place.

There will be no change to the reduced VAT rate of 2.5% but the special reduced VAT rate on hotels will also fall from 3.8% to 3.7%.

The above information was kindly provided by Fiscal Solutions (UK), www.fiscalsolutions.co.uk; contact: contact@fiscalsolutions.co.uk