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European VAT News

European VAT News May 2018

By May 10, 2018July 10th, 2021No Comments

From January 2019 the Czech Republic are proposing to amend their VAT legislation. Some of the changes include…

Czech Republic

From January 2019 the Czech Republic are proposing to amend their VAT legislation. Some of the changes include:

  • The adoption of the new EU VAT rules for the treatment of single and multi-purpose vouchers.
  • Non-resident suppliers of e-services not having to charge Czech VAT or produce Czech compliant invoices if their sales to consumers are below an annual €10,000 threshold.

Ice land

From 1 January 2019, Iceland’s Ministry of Finance and Economic Affairs will reclassify electronic books as zero-rated for Value Added Tax.

E-books are currently subject to the reduced VAT rate of 11% in Iceland, however as Iceland is not a member of the European Union (EU) they can decide their own VAT rates which has allowed them to scrap this VAT charge altogether.

EU countries do not have this privilege and are currently obliged to charge the full standard VAT rate on e-books, this is despite printed books of the same matter enjoying the right to a reduced or zero rate of VAT.


The implementation of the VAT treatment for Vouchers, in accordance with Case C-229/15 and the recent amendments introduced to the VAT Directive, was now published in Luxembourg’s Official Gazette.
These new measures will apply to all Vouchers issued after 31 December 2018.


With effect from 1 April 2018 the VAT registration threshold for residents increased to EUR 88 500 in Romania.


The UK tax authorities have issued a further public consultation relating to the adoption of Split Payments for e-commerce transactions in the country.

If introduced it’s hoped that the mechanism will help to prevent online VAT fraud and would require the VAT-element of online sales to be paid directly to the UK tax authorities by the online purchasers at the time of purchase.

Split Payments are already in use on certain transactions in Italy, Romania and Austria. Poland are also planning to introduce the mechanism from 1 July 2018.

  • The above information was kindly provided by:
    Fiscal Solutions (UK),; contact: [email protected]
  • VAT Systems (France),; contact: [email protected]