Estonia
During December 2024, the Estonian tax authorities published an update on its proposed mandatory e-invoicing rollout, confirming a new launch date for domestic B2B transactions, from 2027.
The new mandatory real-time invoice reporting regime will only apply to resident businesses’ B2B transactions in Estonia and will force them to declare these sales to the Estonian tax authorities via a new e-invoicing platform. The tax authority will check and approve these invoices, before they are sent to the customer directly via the new system.
It is hoped this new invoice reporting regime will reduce common errors on these types of invoices and help prevent VAT fraud in the country.
Romania
Romania has announced that it will extend its electronic invoicing regime (eFactura) to business-to-consumer (B2C) transactions for both VAT-registered resident and non-resident businesses from 1 January 2025.
Effected businesses have voluntarily been able to issue B2C invoices electronically from 1 July 2024 via the national e-invoice system. As with B2B invoices, these e-invoices must be sent to the Romanian tax authorities for verification. However, suppliers will still need to send the invoices directly to their customers too.
The Romania tax authorities have confirmed a soft-landing period for penalties relating to eFactura e-invoicing infringements until 31 March 2025.
Slovakia
A reminder that from 1 January 2025, the standard Value Added Tax (VAT) rate in Slovakia will increase from 20% to 23%.
In addition to the standard rate rise, the reduced VAT rate of 10% will be abolished and a new reduced rate of 19% will apply. There will be no change to the super reduced rate of 5%.
The Slovakian government also confirmed that the VAT rates will change from:
10% to 5% on basic foodstuffs, medicines and medical devices, accommodation, books and printed materials, fitness centres, sports events and catering services consisting of food preparation.
20% to 19% on other foodstuffs other than basic foods and domestic electricity.
Switzerland
Switzerland’s Federal Tax Administration will impose “deemed supplier rules” from 1 January 2025 on digital platforms (such as Amazon) to charge, collect and remit VAT on sales of low value imported goods by non-resident suppliers.
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 system susceptible to VAT fraud as many non-resident companies are ignoring these requirements.
Switzerland has confirmed that the deemed supplier regime will not be extended to the sale of digital services.
The above news was kindly provided by Fiscal Solutions (UK), www.fiscalsolutions.co.uk; contact: [email protected].