The National Revenue Agency clarified that, when two or more entities are carrying out an activity in the same commercial place, the turnover generated by all the entities involved in the last 12 months should be taken into account when calculating the turnover for mandatory VAT registration (threshold of 50 000 BGN)…
Bulgaria
The National Revenue Agency clarified that, when two or more entities are carrying out an activity in the same commercial place, the turnover generated by all the entities involved in the last 12 months should be taken into account when calculating the turnover for mandatory VAT registration (threshold of 50 000 BGN).
France
From January 2021, France will drop all requirements on businesses who are entitled to use the Import Value-Added Tax (VAT) Postponed Accounting regime in the country.
This regime allows VAT registered businesses to apply to the French tax authorities for authorization to use a reverse charge at import. Once accepted, it then removes the requirement to pay import VAT when goods are cleared into France, and instead the VAT is deferred to the importing businesses’ VAT return.
Currently, the requirements to use the Import VAT Postponed Accounting regime are different for European Union (EU) and non-EU businesses, and can be seen below:
EU established companies who have:
- completed at least four import operations in the EU Customs Union in the previous 12 months;
- the ability to be able to demonstrate that they have a management/control system for their customs and tax entries;
- had no tax or customs infringements in the past 12 months; and
- had good financial standing in past 12 months.
Companies not established in the EU:
- have to request the application via their customs representative (normally their shipper) who are established in the EU. The customs representative should also have authorised economic operator (AEO) status, which means they have met certain criteria set out by EU customs authorities to get preferential treatment and speed up their clearances across the EU.
By dropping these requirements, the French customs authorities hope to allow more businesses to take advantage of this simplification and save on shipping (cashflow) costs.
Greece
Through ministerial decision, the application of the reduced VAT rates to the five islands Leros, Lesbos, Kos, Samos and Chios has been extended until 30 June 2020.
Hungary
From January 2021, Hungary has confirmed they will extend their real time invoice-reporting regime to cover Business to Consumer (B2C) invoices.
Currently, all businesses involved in Business to Business (B2B) sales made in Hungary, with a Value-Added Tax (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.
From January next year, this process will apply to all invoices and it is hoped that this will go a step further to preventing VAT fraud in the country.
Italy
The Italian Tax Authorities have recently clarified that a taxable person can deregister and cancel its VAT number, only upon all obligations deriving from its sales and purchases having been duly performed and completed, such as the payment or the issuance of invoices.
Luxembourg
The Budget Law for 2020 foresees the application of a super-reduced VAT rate of 3% for services provided by writers, composers and performers in the exercise of their professions.
Romania
With effect from 1 February 2020 the VAT split payment mechanism in Romania was abolished. It used to be applicable on a mandatory basis to insolvent or VAT indebted suppliers however, following the EU Commission’s warning that the measure was incompatible with the EU VAT Directive as it was disproportionate to the aims which it wanted to achieve, this mechanism was withdrawn by the Romanian government.
United Kingdom
The UK Chancellor of the Exchequer (Finance Minister) announced last week the following items in relation to UK VAT.
1. Zero-rating of e-publications from 1 December 2020
a. E-books
b. E-newspapers
c. E-magazines
d. Academic e-journals
There will be a consultation on the legislation ahead of implementation
2. Zero-rating feminine hygienic products from 1 January 2021
3. Postponed accounting from 1 January 2021
a. Will apply to all imports, including from the EU
b. Account for VAT on the VAT return
4. Consultation on tax and duty free post transition period
5. Set up of a group to look at imposing VAT on banking and insurance services
6. Set up of a group to examine impact of VAT on investment funds
7. Adoption of the directive Quick Fix!!
8. Possible modifications to partly exempt businesses…
9. Adoption later this year of reverse charge in the construction sector – deferred from last year.
10. Modification of the Flat rate scheme for farmers!
11. Report on the operation of the MTD regime.
The above information was kindly provided by:
- Fiscal Solutions (UK), www.fiscalsolutions.co.uk; contact: [email protected]
- Essentia Global Services Ltd (UK), http://vatlife.co.uk/country-updates, contact: [email protected]
- EY Switzerland, contact: [email protected]
- Marosa (Spain), https://marosavat.com; contact: [email protected]
- Ryan VAT Systems (France), www.vatsystems.eu; contact: [email protected]
- ICAEW – UK section. [email protected]
