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European VAT News

European VAT News – October 2019

By October 25, 2019July 10th, 2021No Comments

After an inoperative period, due to a security data breach, the access to the electronic service for filing VAT refund claims by non-EU established taxable persons has been restored by the Bulgarian National Revenue Agency…


After an inoperative period, due to a security data breach, the access to the electronic service for filing VAT refund claims by non-EU established taxable persons has been restored by the Bulgarian National Revenue Agency.

As the service was available again from the 17th September 2019 claimants only had until 30th September to file their VAT refund claims for 2018.



Croatia plans to reduce its VAT rate on hospitality services to 13%. In addition, as of 01.01.2020, the standard VAT rate is to be reduced from 25% to 24%.



The Tax Department issued Circular 235, which clarified several aspects regarding the VAT Treatment of Vouchers. According to the above circular, a voucher is an instrument which contains an obligation to accept it as a total or partial consideration, for a supply of goods or services.



The French Tax Authorities clarified the VAT treatment of public offerings of cryptocurrencies, namely of initial coin offerings and of initial token sales.

According to the clarifications provided, when the tokens are used by their owners to acquire a particular good or service from the issuing company, the supply of the good/service is subject to VAT. On the other hand, such supply will not be subject to VAT:

  • if the tokens only give the buyer the possibility to benefit from the supply of goods or services; or
  • if the tokens give to the buyer the right to take part in the decisions of the issuing company and dividend distribution.



As from 1 July 2019, the VAT exemption became applicable only to the supplies rendered to seagoing vessels that were already “approved”. According to the previous rules, the VAT exemption was applicable from the moment the vessel was launched or floated in dry dock.



The Public Revenue Authority has clarified that the transfer of immovable properties by general partners in a partnership could only qualify them as taxable persons for VAT purposes if a tax audit establishes that the transfer of immovable properties occurs on a systematic basis and represents an independent economic activity.



A special VAT suspension scheme has recently been introduced for supplies of automotive fuel which is stored within an excise duty warehouse and is therefore under an excise duty suspension.

In light of the above, the VAT due will be only settled when the fuel is removed from such excise duty warehouse.



The State Revenue Service (SRS) recently clarified that input VAT incurred on fuel expenses or repairs of “executive luxury vehicles” can only be deducted if it has one of the purposes specified in the Article 100 of the VAT Act, such as, being a vehicle for transport or car rental services.



As of 01.01.2020, SAF-T will be introduced in Norway for companies with turnover in excess of NOK 5 million. However, SAF-T will only have to be provided to the tax authorities as a result of their explicit request, e.g. as part of a tax audit. The required SAF-T data will be gradually expanded over time. In a first phase, only accounting information, in particular information on the service provider and recipient as well as VAT ID numbers, will have to be included in SAF-T.



The Financial Administration has recently published guidance which clarifies that the place of supply, for VAT purposes, of digital services supplied by non-residents, is the supplier’s place of registration when the following conditions are met: i) the supplier does not have a permanent establishment in Slovenia, ii) the total value of services provided does not exceed 10 000 EUR and iii) the services are supplied to other EU Member States. 

In such a scenario, the service provider can register for the MOSS arrangement or proceed with a VAT registration in other EU member countries.



In the case Marks and Spencer Plc [2019] UKUT 0182 (TCC), the Upper Tribunal (UT)

agreed with the understanding of the previous court (FTT). The UT held that in a case where a Taxpayer offers to its customers a bottle of wine when three more items are bought, the VAT is also due for the free bottle and the total price paid should be split between all of the goods in the promotion.

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