From 1 January 2024, the Belgian tax authority has confirmed that it will combine the existing reduced VAT rate of 12% and the super reduced VAT rate of 6% into a new VAT rate of 9%.
Overall, it is thought that the consolidation will mean a net tax rise for Belgian customers, as there are many more supplies at the 6% VAT rate including:
Entrance to cultural events, amusement parks and similar
Some forms of passenger transport
The Croatian tax authority is proposing to implement e-invoicing on transactions undertaken between VAT registered companies in the country.
If introduced, the new obligation will make it mandatory for all VAT registered companies, including non-residents, to issue their invoices in an electronic format via the government’s e-Račun platform. This will require the taxpayers to validate their business-to-business invoices with the Croatian tax authority before issuing them to customers.
Croatia follows a growing list of EU countries (including France, Hungary, Italy, Poland, Romania, and Slovakia) that have or will be introducing e-invoice systems.
It is hoped this new invoice-reporting regime will prevent common errors on these types of invoices and help prevent VAT fraud in the country.
The Greek tax authorities have confirmed that the VAT rate reduction on public transport, coffee supplies, cinemas, gyms, tourism packages, and non-alcoholic drinks will remain in force until 31 December 2023.
This VAT rate reduction from 24% to 13% is to combat high inflation rates within the country.
The latest draft law for the introduction of mandatory e-invoicing in Poland was published on 17 March 2023 and confirmed a delayed launch date of July 2024.
It also stated that sales to consumers in the country will be excluded, and penalties for not issuing e-invoices for business-to-business transactions will be up to 100% of the invoice value (not just the VAT amounts charged).
When introduced, KSeF will require both resident and non-resident companies that sell to VAT registered businesses in Poland to declare sales to the Polish tax authorities via a new e-invoicing platform. The tax authorities will then digitally verify these invoices and confirm that they can be issued to the customer. This will replace the current process of sending invoices directly to customers.
Poland hopes this new invoice-reporting regime will help to prevent VAT fraud in the country.
Switzerland currently offers a global VAT registration threshold of CHF 100,000 (approx. £88,000) to foreign sellers looking to sell in the country. This allows foreign traders to avoid the need for VAT registration until their taxable sales exceed this threshold in the country.
However, from January 2024 Switzerland plans to follow the EU by removing this threshold. This will oblige non-resident sellers to VAT register from the first sale that they make in the country.
Furthermore, Switzerland also plans to implement VAT obligations on transactions made through online marketplaces, which means the VAT reporting and collection will move from sellers to the digital platforms themselves.