VATupdate Newsletter Week 08 2020

Below you will find all items we published in the past week.

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• 9 FAQ for VAT exemption for small businesses
• Draft law abolishing the certificate for the application of 6% reduced VAT rate for construction works
• More time to reclaim VAT for a non-EU company?
• New rules for VAT revisions, not just for real estate rental

• Relief from interest and penalties for the settlement of overdue VAT

• Czech Financial Administration published a new form of EC Sales List
• Implementation of Generalized Reverse-Charge delayed. Will it ever happen?
• Reduction of the VAT rate on draught beer from 1 May 2020
• VIES Recapitulation Form Update Information for Call Off Stock

• Brexit: Tax consequences of the UK’s withdrawal from the European Union
• Communication from the Commission to the Council, to the European Parliament and the European Economic and Social Committee on an…
• Communication on an Action Plan on the fight against tax fraud
• Details about e-commerce VAT package as from 1 of January 2021
• Digital Services Taxes in Europe – an overview
• ECJ C-48/20 – P vs. PL – Questions – Input VAT recovery relating to unduly invoiced VAT
• ECJ C-604/19 (Gmina Wrocław) – Questions – VAT on conversion of perpetual usufruct into a right of ownership? Details from…
• ECJ C-703/19 (Katowicach) – Questions – Restaurant services and take away dishes (Polish Order details)
• ECJ C-734/19 (ITH Comercial Timişoara) – Questions – Input VAT recovery for goods/services no longer used beyond taxpayer’s control…
• ECJ C-837/19 – Super Bock Bebidas vs. PT – Questions – Input VAT in the event that a planned investment is subsequently abandoned
• ECJ C-846/19 – Administration de l’Enregistrement, des Domaines and de la TVA vs LU – Questions – Mandates in connection with custody and…
• ECJ C-855/19 – Dyrektor Izby Administracji Skarbowej w Bydgoszczy vs. PL – Questions – Intra-Community acquisitions of motor fuels,…
• ECJ/CJEU – C-895/19 – Timing of exercising right to deduct VAT on intra-community acquisitions of goods
• ECJ/CJEU Agenda – Week 8 – 10 – Decisions expected on 6 cases, 3 AG Opinions & 2 hearings
• Ecofin adopts simplified VAT rules for small businesses and rules to facilitate the detection of tax fraud in cross-border e-commerce transactions
• ECOFIN publishes revised list of non-cooperative jurisdictions for tax purposes and adopts two reforms of existing VAT rules
• E-commerce: European Council adopts new rules for exchange of VAT payment data
• EU strategic plan on Data and AI
• European Commission published roadmap to identify issues to solve relating to the digital platform economy
• European Commission report on EU invoicing rules
• European Council adopts simplified rules for small businesses
• FREE Mass VAT number validator – updated version
• Good things to remember … CJEU Joined Cases C 95/07 and C 96/07 (Ecotrade)
• Good things to remember about the CJEU – references for preliminary rulings
• Guide about reforms to the VAT obligations for B2C e-commerce sellers and marketplaces per 1 January 2021
• Increased risk of fixed establishment for VAT purposes
• Legal framework in the EU related to B2C certain services, distance sales of goods and certain domestic supplies of goods
• Member States warned on Quick Fixes for VAT delay
• New Opinion suggests changes for transport or dispatch rules for VAT purposes
• One-stop shop for VAT in e-commerce operations
• Overview of SAF-T regulations in Europe: 13 countries implemented (or will implement), all in a different way
• Risk of creating a fixed establishment for VAT in the EU is increasing
• The wizard of OSS: effective collection of VAT in cross-border e-commerce
• VAT rates applicable in the EU per 1 January 2020
• VAT rates applicable to telecommunication, broadcasting and electronically supplied services
• VAT scheme for Small Businesses
• Visions on digitalization and automatization in Europe
• Voting result COUNCIL DIRECTIVE amending Directive 2006/112/EC as regards introducing certain requirements for payment…
• Watch out for intra-Community transactions: do you have the VAT number of your buyer?

• France drops requirements on Postponed Accounting from 1 January 2021
• Report on Fight against fraud and strengthening tax compliance Results 2019
• Reporting for online platforms operators

• Change to VAT MOSS rate for Germany
• Climate package – VAT on long distance rail journeys from 19 to 7% from January 1, 2020
• Federal Fiscal Court: Transfer of a going concern in cases of share deal and VAT group
• Germany Urged To Ensure Data Sharing On Call-Off Stock Arrangements
• Retroactive correction of invoices is also possible in the input VAT refund procedure
• Supervisory board members are not taxable persons / self-billing document to non-taxable persons does not constitute VAT liability

• Greece published regulation on e-invoicing in the Official Gazette
• Greek Government Decision defines e-invoicing service providers’ obligations

• Hungary amends VAT Act – Real-time reporting affects all

• Circular with clarifications on electronic storage and telematics transmission
• Clarifications regarding recapitulative invoices for supplies of services performed in the same calendar month to the same customer
• First submissions under the new “esterometro” deadline due on 30 April 2020.
• Overview of digital services tax
• VAT deduction on the importation of goods
• VAT payment omitted: does force majeure save from crime?

• eRecognition for filing VAT returns not required in 2020
• Implementation of new definition of “Exporter” in the Dutch Customs Law as per 1 April 2020
• Letter answering Parliamentary questions regarding VAT on the purchase and operation of solar panels by schools
• Marriages by a Dutch celebrity taxed at 21% VAT
• Provision of sports facilities to primary schools by municipality is not an economic activity
• State Secretary sees no reason to adjust SME scheme
• Supplies of single purpose vouchers to private individuals in other EU countries subject to Dutch VAT
• VAT and VAT compensation fund: Facilitating or contracting self-employed persons?

• As of 2020, no VAT exemption of small consignments and exemption will be abolished in two stages, and a new simplified VAT registration…
• VAT on e-commerce

• An incorrect invoice rate does not block the deduction of VAT
• Cash registers in the form of software – a new draft regulation
• Change of interface for sending JPK data
• Court case on Fixed Establishment in Poland already referring to C-547/18 Dong Yang (next to many other ECJ cases)
• Disabling the test environment for sending JPK files
• Excess of input tax over output tax
• Excess VAT may be time-barred
• General interpretation: VAT rate for the storage of financial instruments
• Online cash registers – deadline for implementation
• Overview Polish Court Cases on Fixed Establishments referring to C-605/12 Welmory in 2019
• Poland’s VAT changes – Hints of what’s to come?
• Possibility of issuing e-receipts – the bill was sent to the Sejm
• Recognition of the legitimacy of a VAT refund necessary for its crediting against other taxes
• The fee for breaking the preliminary contract is not subject to VAT.
• The right of deduct VAT should be granted if the taxpayer did not know and could not know he was involved in fraudulent transactions
• Updated JPK_VAT structures published

• Intra-Community transactions – Simplification measures and new recapitulative statement

• Amendments related to the definition of the exporter
• Commission: Romania did not meet collection targets for 2019, partially because of an over-optimistic prognosis
• Cutting edge tax implications for medical devices suppliers in Europe
• Draft amendment to OMFP 103/2016 on the application of several VAT exemptions
• New Format of the European Sales Listing (Form 390) for the Quick fixes
• Romania transposes regulations for EU VAT “quick fixes”

• VAT revenues divided between the federal state and regions (similar to Canada) per 1 January 2021

• Application of VAT in ‘derivatives’
• Digital platforms will collect VAT from companies that sell through them as of 2021
• New criterion for the use and enjoyment rule
• New VAT Measures and Mutual Agreement Procedures (Quick fixes/Resolving EU Tax Disputes)
• Spanish government approves digital services tax targeting large multinationals
• VAT Deduction by a Holding Entity

• Draft law decreases VAT rate from 20 to 17%
• Ukraine considers VAT Rate reduction
• Ukraine plans to tax foreign digital businesses from 2021

• Does a Medical Practitioner provide Medical Service for VAT Purposes or not?
• FTT 3P Telephone company Ltd v Revenue & Customs (VALUE ADDED TAX – input tax credit)
• FTT Ali (t/a Indian Voojan) v Revenue & Customs (VALUE ADDED TAX – assessments for VAT on under declared takings)
• FTT Corte Dilitto Ltd v Revenue & Customs (VAT – ZERO-RATING : Food, etc)
• FTT Logan Technical Resourcing Ltd v Revenue & Customs (VAT – default surcharge )
• FTT Ronald Hull Junior Ltd v Revenue & Customs (Recovery of input VAT – scrap metal trade)
• FTT Workman v Revenue & Customs (VALUE ADDED TAX – claims for repayment of output tax )
• Healthy balls are correctly standard rated for VAT purposes as “confectionary”
• HMRC remove advance UK VAT registrations for EU businesses
• MTD – Fit for Purpose?
• Partial exemption and input VAT recovery
• Revenue and Customs Brief 1 (2020): VAT liability of digital publications – Upper Tribunal in News Corp and Ireland Ltd
• Time for online marketplaces to collect and remit VAT …1-1.5BnGBP lost in 2016/17 (… in 2016/17)
• UK customs and VAT treatment of imports and exports after Brexit transitional period – No postponed VAT Accounting
• UK Parliament considers the Value Added Tax Bill 2019-20
• UK tax authorities check treatment by banks of overseas suppliers
• Value Added Tax Bill 2019-20 – First reading
• VAT and e-publications – Potential scope to recover VAT

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• GCC Indirect Tax Weekly Digest – 18 February 2020

BAHRAIN

• Bahrain VAT Refund deadline approaches
• Related Party Transactions for VAT in Bahrain
• VAT generates $663mln revenue in Bahrain in 2019

• Saudi Customs launches self-correction program for import transactions

• How to De-Register VAT in the UAE
• Reclaiming VAT paid by foreign businesses/ business visitors in UAE
• UAE extends VAT kiosks for tourists to hotels and malls
• UAE VAT Designated Zones
• UAE’s Minister of State for Financial Affairs questioned on the effect of VAT on the economy
• VAT in UAE, Summarizing 2020 updates

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