Belgium extended the application of the temporarily reduced VAT rate for the supply of energy. The rate of 6% on the supply of electricity and natural gas and for district heating networks will continue to apply until 31.03.2023.
Belgium will also prolong the limitation period for assessment in tax matters: Previously, a 3-year period applied to regularly filed tax returns. In the case of fraud, an extended period of 7 years applied. As from 01.01.2023, some of these periods will be extended. In standard cases, it will remain at 3 years. For late or non-filed tax returns, the retroactive declaration period will be extended to 4 years. In circumstances where the Belgian tax administration has received information on facts in Belgium from abroad, the period will be 7 years and in the case of fraud, 10 years. At the same time, late payment interest on taxes will be reduced from 9.6% p.a. to 8.0% p.a.
In addition, as of 01.01.2023, there will be a change regarding the transfer of VAT liability for services related to immovable property. Up to now, the VAT liability was only transferred to the recipient of the service if the supplier was established abroad and the recipient was a taxable person established in Belgium or a foreign taxable person registered for VAT in Belgium via a fiscal representative. In the future, taxable persons not established in Belgium will also be able to invoice services related to immovable property to a taxable person registered for VAT in Belgium using the reverse charge mechanism.
As of 01.01.2023, Croatia will introduce the Euro as its national currency. Until 31.12.2023, companies are obliged to issue invoices displaying prices in both the old national currency Kuna and in Euro. The exchange rate set by the EU Council of 1 Euro = 7,53450 Kuna must be used to convert prices.
Finland has temporarily reduced the VAT rate on the supply of electricity from 24% to 10% starting on 01.12.2022 and ending on 30.04.2023. In addition, the transport of passengers will be temporarily VAT exempt from VAT from 01.01.2023 to 30.04.2023.
From 1 January 2023, VAT will be payable as soon as an advance payment for goods or a deposit is paid within France.
Currently, France states that the VAT is payable only when the chargeable event (the supply) takes place, even if there is a prepayment. In practice, this means that VAT is only payable once the goods are delivered and the ownership is transferred.
However, from January 2023 this will change as VAT will become payable on any advance payments received prior to the delivery of the goods themselves.
As of 01.01.2023, Luxembourg will reduce its VAT rates for a limited period of one year until 31.12.2023. The reduction in the VAT rates is of a general nature. The standard VAT rate will be reduced from 17% to 16%, the medium VAT rate from 14% to 13% and the reduced VAT rate from 8% to 7%. The heavily reduced VAT rate will remain at the current 3%. Companies with taxable transactions in Luxembourg will have to adjust their invoicing at the turn of the year. The Luxembourg tax authorities have already issued a letter dealing with questions of application and practical issues relating to the changes in the tax rates. Experience from the 2020 tax rate reduction in Germany has shown that continuous supplies are, in particular, prone to errors in case of temporary tax rate reductions.
Poland has extended the application of the temporarily reduced VAT rate on food and beverages to 0% for an indefinite period. The application of the temporarily reduced VAT rate of 8% to the supply of energy and fuels will expire as from 2023, so that the standard VAT rate of 23% will apply again as of 01.01.2023. In addition, the VAT rate on agricultural fertilizers will be increased to 8% as from the start of 2023 and will then apply until 31.12.2024. Currently the 0% VAT rate introduced as part of the Corona pandemic support measure is applicable to fertilizers and will remain so until the end of 2022.
The standard VAT rate will increase from 7.7% to 8.1%, the reduced rate from 2.5% to 2.6%, and the special rate for accommodation from 3.7% to 3.8%. This increase will take effect on 01.01.2024 and is planned to be permanent. Businesses with taxable transactions in Switzerland therefore still have some time to adapt their processes to the change in VAT rates. The information letter on this VAT rate change is already in public consultation. The final version of this letter is expected at the beginning of February 2023.
The above information was kindly provided by
KLMZ (Germany); source: https://www.kmlz.de/en/VAT/Newsletter_60_2022#