Czech Republic
The Czech government has agreed to consolidate the country’s two reduced VAT rates of 10% and 15% into a consolidated rate of 12%, as well as reduce the VAT rate on physical books to zero.
The Bill now requires re-approval in the lower house, and then by the upper senate house in order to be implemented by 1 January 2024.
The two reduced rates currently apply to the following supplies:
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10% – Baby and gluten-free foodstuffs, newspapers, certain pharmaceutical goods and services, accommodation, restaurants and hospitality services, certain books and e-books, and admission to cultural events.
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15% – Certain foodstuffs, non-alcoholic beverages, takeaway food, certain medical goods, certain passenger transport, certain books, e-books, and amusement parks.
There will be no change to the standard VAT rate of 21%.
Denmark
The Danish authorities have started calculating the late payment interest from the day following the original deadline. The 14-day period of grace is not applicable anymore from 1 July 2023.
Prior to 1 July 2023, there was a 14-day deadline for making a correction on the VAT payments, in case you have to pay additional VAT, as well as for the payment of the VAT assessment made by the Tax Agency in case of lack of submission of the VAT return. During this 14-day deadline, no interest was accrued on the tax debt.
From 1 July 2023, interest accrues on the tax debt from the original payment deadline. The annual interest rate is around 8.5 %. Have a look here at the official information.
Being compliant and accurate when filing your VAT obligations in Denmark is more important than ever. Our software solution for EU VAT compliance can help automate the process and avoid manual mistakes.
Estonia
Estonia will increase the standard VAT rate to 22%, instead of 20%, by January 2024. The amendment to the standard VAT rate includes two transitional measures:
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When under the cash accounting scheme, the invoice issued may apply a 20% VAT rate if the supply of goods or services was made effective before 1 January 2024. This only applies to invoices issued until 31 December 2025.
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When under a long-term contract agreed on transactions connected with immovable property, the VAT rate of 20% may still be applicable until 31 December 2025 under certain conditions.
As of 2024, the VAT rates applicable in Estonia will be:
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Standard Rate: 22%, instead of 20%.
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Reduced Rates: 9% and 5%.
Additionally, further changes are planned from January 2025:
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New 13% VAT rate for accommodation services: will be taxed at 13%, instead of the current 9% VAT rate.
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Press publications will be taxed back at 9%, instead of the current 5%. The VAT rate on these products was recently reduced to 5%, you can find here our VAT news on the topic.
France
The French tax authorities responded to growing pressure from businesses, software providers and lobby groups around the short implementation period for the introduction of their mandatory B2B e-invoice and e-reporting regime, by confirming that its introduction will be delayed by at least twelve months.
Although it did not set a new deadline, it is likely that the new launch date for the system will be from January 2026, with a phased introduction depending on the size of the businesses over two years to 2028.
The new mandatory real-time invoice-reporting regime will only apply to resident businesses domestic B2B transactions in the country (France) and will force them to declare their sales to the French tax authorities via a new e-invoicing platform. This is instead of sending invoices to their customers themselves. The French tax authority will then check these invoices, and if correct, it will approve them by applying a digital stamp. It will then send the invoice directly to the customer on behalf of the supplier via the new system.
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.
France joins other countries that have recently announced delays to the introduction of e-invoicing, including Spain, Belgium, and Germany.
Greece
Greece will introduce a B2G e-invoicing mandate starting September 2023. The implementation will be rolled out in phases based on the public administration to whom the invoice is issued.
The obligation will start by 12 September 2023 and will be completed by January 2025, with the mandate to issue e-invoices to all the general state administrative bodies as follows:
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By September 2023, for contracts concerning the Ministries of Infrastructure and Transport, Digital Governance, Immigration and Asylum, the Municipality of Athens, the National Central Authority for Health Procurement (E.K.A.P.Y.), the National Central Procurement Authority of Ministry of Development and Investments, the Information Society S.A., the Athens University of Economics, “Attiko Metro S.A.”, EYDAP S.A. and Egnatia Odos SA.
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By January 2024, for contracts concerning bodies of the rest of the Central Administration.
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By July 2024, for contracts concerning other bodies or authorities.
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By January 2025, businesses must issue e-invoices for all other expenses of the General Government invoiced from that date.
Generally, public contracts or expenses up to EUR 2,500 do not fall within the obligation to issue an electronic invoice.
To determine if you must issue an e-invoice on the B2G transaction, you shall refer to the start date of the contract agreement, instead of the date of invoice issuance.
The e-invoices issued to the public administration must follow the European e-invoicing standard, and Peppol specification (CIUS). Also, suppliers issuing e-invoices for the Greek public administration on behalf of their clients shall be only certified service providers.
If you are already issuing e-invoices on the B2B transactions in Greece, you shall verify if your service provider is also allowed to issue e-invoices B2G.
Finally, please consider that this obligation shall be encompassed with the obligation to report data via the Greek MyDATA platform for established companies.
Find here the official notice dated 12 April, 2023.
Poland
In August 2023, the Polish Ministry of Finance issued amending regulations on the use of the National e-Invoice System (KSeF), which is due to become mandatory from 1 July 2024.
These amendments concern the procedures for group companies, including branches and internal units, to use the system and it is hoped that they will encourage early voluntary adoption of the new regime.
When introduced, KSeF will require 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.
It is hoped that by introducing this system, it will help to prevent VAT fraud in the country.
The above information was kindly provided by:
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Fiscal Solutions (UK), www.fiscalsolutions.co.uk; contact: [email protected]
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Marosa (Spain); contact Pedro Pestana at: [email protected]
