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European VAT News

European VAT News – April 2021

By April 29, 2021December 22nd, 2021No Comments

Announced by the Minister of Finance in Austria in January, companies established outside of the EU that are not VAT registered in Austria will not be able to recover input VAT on fuel…


Announced by the Minister of Finance in Austria in January, companies established outside of the EU that are not VAT registered in Austria will not be able to recover input VAT on fuel purchases. This is not the case for EU-established companies or non-EU companies with an Austrian VAT number. They will still be able to recover this VAT on their periodic VAT returns. 


Czech Republic

Due to the Covid-19 pandemic, the Czech Minister of Finance has recently announced that taxpayers are waived from certain VAT penalties and late payment interest charges, such as the penalty for the late filling of the February 2021 VAT return and the penalty for failure to submit the February 2021 VAT control statement, provided that they are submitted by 15 April 2021.


The European Commission approved the Danish tax deferral scheme for small and medium sized enterprises in the amount of 34.3 million EUR, which allows such companies to benefit from an interest-free credit in order to pay the VAT that is due in March 2021.



The Council of the European Union extended until 31 December 2024 the authorization period for Estonia to apply a higher threshold, for small businesses, of 40 000 EUR.



France has recently updated the list of Non-EU jurisdictions regarding which taxable persons established there, and performing taxable transactions in France, are not obliged to appoint a VAT representative in this country. The list of jurisdictions added are: Antigua and Barbuda, Armenia, Bosnia and Herzegovina, Cabo Verde, Cook Islands, Dominica, Ecuador, Grenada, Jamaica, Kenya, Kuwait, Nauru, Niue, North Macedonia, Pakistan, Turkey, United Kingdom and Vanuatu.

This list became effective on 27 February 2021.



The Greek Tax Authorities have recently clarified that the provisions of the Greece – Netherlands Income and Capital Tax Treaty (1981) do not cover VAT issues insofar as VAT had not been enacted in Greece when the treaty was ratified by Greece and that such treaty is also not relevant for determining whether a permanent establishment exists in Greece.

Due to Covid-19 complications, Greece has announced that mandatory e-invoices and e-books would be delayed again. The intended implementation date is 1 July 2021. Companies who took action and were prepared for the previous deadlines may start submitting their e-invoices now, however it will not be obligatory until the postponed date. Data that was generated during the first half of 2021 can be submitted until October 2021.

Other countries that have introduced similar tax technology obligations include Spain, Hungary, Italy, and Portugal.



Revenue updated the definition of “qualifying vehicle” under the partial recovery relief for VAT on qualifying passenger motor vehicles.

In this context, the previous definition will only apply to motor vehicles that were registered until 1 January 2021. As from this date, only motor vehicles that have a CO2 emission of less than 140g/km (currently 156g/km) are allowed to deduct until 20% of the VAT incurred on the purchase, hiring, intra-Community acquisition or importation of such vehicles.



The Italian tax authorities confirmed that taxable persons established in the United Kingdom and liable for VAT in Italy may continue to directly register for VAT purposes in Italy, instead of appointing an Italian VAT representative. In case of UK operators, which were already directly registered for VAT purposes in Italy before 1 January 2021, the existing Italian VAT number may also continue to be used.



The waiver of VAT on certain respirator supplies has been extended until 30 June 2021.


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