In Bulgaria, as from 1 January 2020 the following conditions became also mandatory for the application of the 0% VAT rate to Intra community supplies…
As from 1 January 2020 the following conditions became also mandatory for the application of the 0% VAT rate to Intra community supplies:
- The customer must provide its VAT number;
- The intra community supply must be correctly reported in the respective EC Sales List declaration; and
- The suppliers must have a document, such as an invoice, for the intra community supply and a document evidencing the transport of the goods to the other EU Member State.
The Council Implementing Decision (EU) 2019/1903 was published in the Official Journal of the European Union and authorized the Czech Republic to apply the Generalised Reverse Charge Mechanism. However, it has not yet been transposed into the national legislation.
On 29 November 2019, the Federal Council approved the draft bill with the following amendments related with VAT:
- Implementation of the EU Directive 2018/1910, specifically by (i.) including a provision on the call-off stock arrangements, (ii.) harmonizing the rules on chain transactions and (iii.) providing rules that clarify that the inclusion of the respective invoice in the EC Sales List declaration is a mandatory requirement for the application of the VAT exemption on intra community deliveries of goods.
- Implementation of a provision that foresees that the fact that any of the taxable persons involved in an intra community acquisition knew or ought to have known that in the chain transaction was committed VAT fraud, will preclude the right to deduct the respective VAT or the application of the VAT exemption.
- Application of the reduced VAT rate to electronic books.
The Public Revenue Authority has recently published circular A.1439, which provides clarifications regarding the application of the reverse charge mechanism, namely regarding the set up for the use of the electronic application which determines whether the recipient is a taxable person with the right to deduct input VAT.
Hungary has proposed the withdrawal of the threshold to report invoices under their real-time invoice-reporting regime.
Currently, all businesses involved in business to business (B2B) sales transactions made in Hungary, with a VAT amount above HUF 100,000 (approx.€320), have to declare their invoices to the Hungarian tax authorities at the same time as they are issued to their business customers.
If this proposal is accepted, then the threshold will be discontinued and all B2B invoices will have to be reported on a real-time basis, regardless of value.
If accepted, this will apply to resident businesses from 1 July 2020 and to non-resident businesses from 1 July 2021.
In an effort to reduce VAT fraud, the Italian government are planning to launch a lottery based on VAT compliant receipts issued to consumers.
From 1 January 2020, most VAT receipts issued in Italy will show a unique code which will be automatically entered into a regular cash-prize draw organised by the government.
It is hoped the scheme will encourage Italian consumers to ask for VAT receipts in order to be entered into the draw as these receipts can only be generated by secure e-registers provided by legitimate VAT registered businesses. This new scheme could help to stop fraudulent activities such as evading VAT on cash payments.
This follows Greece, Portugal, Poland, Slovakia and Malta who already operate a similar VAT lottery.
The EU Directive 2018/1910 on harmonization and simplification of VAT for cross-border trade was approved and is effective from 1 January 2020. Some of the measures foreseen are related to specific rules that attribute the intra-Community transport of the goods to a concrete supply within a chain of transactions, introduction of requirements for the application of the VAT exemption on intra EU supplies and are also related with simplification measures related to call-off stock arrangements.
The recently published Council Implementing Decision 2019/2210 authorised Luxembourg to apply a VAT registration threshold of 35 000 EUR to locally incorporated businesses.
The above measure consubstantiates a specific derogation of article 285 of the VAT Directive and was granted to Luxembourg until 31 December 2022.
The requirement for non-EU companies to either establish their own Dutch company or appoint an EU established indirect customs representative to export goods from the Netherlands has been postponed until 1 April 2020.
This requirement follows recent clarification released by the EU Commission, stating that only EU businesses (or EU established indirect customs representatives) can export from the EU.
Similar export requirements have been confirmed in several EU member states, including Belgium, Italy, Czech Republic, Hungary, Lithuania, Latvia, and most recently Germany.
From 1 January 2020, Slovenia will cut the VAT rate applicable to e-books from 22% to 9.5%.
This follows the EU Council’s proposal to allow EU member states to cut rates on electronic publications, to match their printed equivalents.
As from 1st January 2020, the interest rate stays at 4% to tax arrears and to VAT refunds. However, for advance payments the interest compensation will be 0%.
UK rules on call off stocks from 1 January 2020 can be found here: https://www.gov.uk/government/publications/changes-to-the-rules-for-call-off-stock-arrangements-between-member-states/changes-to-the-rules-for-call-off-stock-arrangements-between-member-states
The above information was kindly provided by:
- Fiscal Solutions (UK), www.fiscalsolutions.co.uk; contact: [email protected]
- Ryan VAT Systems (France), www.vatsystems.eu; contact: [email protected]
- The VAT Practitioners Group (UK), contact Ruth at: [email protected]