Belgium
Summer deadline extensions for VAT compliance submissions apply every year in Belgium. Therefore, new deadlines may apply to the submission of VAT and ESL returns of the following periods: monthly reporting periods of June and July, as well as the second quarter 2023.
Last year, also the Q3 reporting period benefitted from an extended submission deadline, however, this is not the case for 2023.
Cyprus
The Cypriot government has proposed the introduction of a new reduced VAT rate of 3% on the following supplies:
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Books, magazines, and similar products, whether provided physically or in electronic form.
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Stairs, lifts, and wheelchairs for persons with disabilities.
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Orthopedic devices.
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Street cleaning and dog collection services.
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Wastewater disposal and treatment.
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Entry to the debut of theatrical, musical, dance or classical performances.
There is currently no proposed implementation date if this new rate is accepted.
Finland
During June 2023, the Finnish government proposed to reclassify many reduced VAT-rated supplies including:
A VAT rate rise from 10% to 14% on:
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Books
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Hotel services
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Public transport
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Some pharmaceuticals
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Entrance to cultural & sporting events
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Film screenings
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Royalties for television and public radio activities
And a VAT rate reduction from 24% to 14% on:
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Tampons
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Nappies
Liechtenstein
Liechtenstein has confirmed that it will follow Switzerland’s lead and raise its VAT rates from 1 January 2024. The VAT rates will be increased as follows:
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Standard rate from 7.7% to 8.1%
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Reduced rate from 2.5% to 2.6%
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Hotel accommodation rate from 3.7% to 3.8%
Liechtenstein has adopted the VAT law of Switzerland; however, it still has its own VAT administration.
Switzerland
From 1 January 2025, Switzerland will introduce deemed supplier rules, which will require online marketplaces (such as Amazon) to charge, collect and remit VAT on sales of low-value imported goods by non-resident suppliers to consumers in the country.
Current rules allow low-value consignments with a value of up to CHF 65 (approx. £57) to be imported and cleared VAT-free. However, any seller that exceeds CHF 100,000 (approx. £88,000) in sales of low-value goods must VAT register and charge VAT on sales in the country. This leaves the current process susceptible to VAT fraud as many non-resident companies are ignoring these requirements.
It is hoped that the introduction of these new deemed supplier rules will help to level the playing field as it will guarantee that VAT will be collected on the sale of low-value goods via online platforms.
Switzerland has confirmed that the deemed supplier regime will not be extended to the sales of digital services.
The above information was kindly provided by:
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Fiscal Solutions (UK), www.fiscalsolutions.co.uk; contact: [email protected]
Marosa (Spain); contact Pedro Pestana at: [email protected]
