VATupdate Newsletter Week 24 2020

• How LEGO Put the Pieces Together to Simplify Sales Tax
• The road to VAT (indirect tax) automation – What to automate?

WORLD

• COVID–19 Grant Thornton: Global VAT/GST measures (Update June 6)
• COVID-19: Global measures taken on VAT rate reductions, exemptions and donations (Status June 9, 2020)
• COVID-19: The impact on VAT/GST systems
• EY COVID-19 Customs and Excise Considerations Tracker – Updated till May 28
• EY Global Tax COVID-19 Response Tracker – updated till June 4, 2020
• Global developments on VAT liability on supply of Digital Services – UPDATE June 12, 2020
• ICC – Customs measures to save our SMEs
• Mind the gap – why operational transfer pricing must include customs
• OECD releases the Platform for Collaboration on Tax toolkit on taxation of offshore indirect transfers of assets
• VAT rate changes are enforced or debated around the world

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• Albanian President Refuses to Decree Tax Exemptions for Yachts

AUSTRIA

• VAT rate reduced to 5% for café, restaurant and similar hospitality services, and entrance to cultural, cinema, sporting and other live venues

BELGIUM

• Authorities updated VAT Commentary – Chapter 16, section 9: Intra-EU Chain Transactions & Triangulation
• Belgium – VATupdate.com series on major developments & trends in 2020 (Status June 10)
• Circular 2020/C/66 on the VAT exempted transport of certain categories of persons
• Government agrees to reduce VAT from 21 to 6% for restaurant and catering sector
• Monthly VAT refund for “starters”
• No longer extension of VAT deadlines
• Organization of congresses abroad – The VAT administration changes its position

BULGARIA

• Reduced 9% VAT Rate for Books, Restaurant Services and Diapers for Babies Adopted

CYPRUS

• The Cyprus VAT Association (CYVA) has realised its first webinar ‘VAT: Measures against the pandemic’

CZECH REPUBLIC

• Czech coalition agrees 5% digital tax aimed at global internet giants
• Reduction of the VAT rate to 10% (from 15%) would apply to accommodation services, entrance fees for cultural and sports events
• Reduction of VAT, road tax rates (COVID-19)
• Refund of the undisputed part of the VAT excessive deduction in the Czech Republic – Part 2?

DENMARK

• The export VAT system – cash optimisation

EUROPEAN COURT OF JUSTICE

• Agenda of the ECJ/CJEU – Week 24 till 28 – 3 Judgments expected on Thursday June 11, 2020
• ECJ case C-146/19 (SCT) – Judgment – Reduction taxable amount, definitive non-payment, failure by vendor to take proper steps
• ECJ case C-242/19 (CHEP Equipment Pooling) – Judgment – Deemed supply of own goods; cross-border VAT refund
• ECJ case C-43/19 (Vodafone Portugal) – Judgment – Termination fees subject to VAT?

EUROPEAN UNION

• Brexit and the Northern Ireland protocol
• Covid-19 and VAT Impact of Amendment and Cancellation Payments
• Ecofin report on tax issues, incl. VAT & the definitive VAT regime
• EU Customs Code – update of the Implementing Regulation 2015/2447
• EU executive says new corporate tax would target below 0.2% of turnover
• Free Trade Agreement between the European Union and the Socialist Republic of Vietnam
• Registered Exporter System Becomes Available for Exports from EU to Eastern and Southern African States

FINLAND

• Finland Announces Fourth Supplementary Budget Proposal Including VAT Exemption for PPE

GERMANY

• Activities of board members outside the scope of VAT even in cases of variable remuneration
• Deutsche Bahn to pass VAT saving directly onto customers
• German VAT rate decrease – Cabinet decision on VAT on Friday June 12, 2020
• Holding company’s input VAT deduction for procured services passed on to subsidiaries
• How to implement the temporary reduced value-added tax rates for Germany in SAP Business ByDesign
• Postponement of due date of import sales tax
• Update VAT rate changes/import VAT
• VAT changes and practical aspects to be considered

GREECE

• Greece Clarifies Application of the Discount for Timely Payment of VAT in Relation to Payment Deadline Extension for May 2020
• Long-Awaited the Greek SAF-T is on The Home Stretch Now with MyDATA
• Lower VAT for Greece’s Transport to also Apply to Taxi Fares

HUNGARY

• Changes in the Rules of Invoice Data Disclosure and Invoicing
• Hungarian Opposition Party LMP Proposes Reducing VAT On Basic Foodstuffs
• Invoice data reporting still to be expanded from 1 July – no deferment!
• Reduced scope of the EKEAR – applicable for risky products only
• VAT penalty relief, invoice reporting requirements effective 1 July 2020 (COVID-19)
• VAT Talks – Zsolt Szatmari (Hungarian VAT fraud and real-time invoice reporting)

IRELAND

• KPMG calls for zero rate VAT as data shows slow pick up in economic activity

ISLE OF MAN

• Isle of Man Issues Notice to VAT Registered Traders on Deferral of VAT Payments

ITALY

• Cancellation of regional tax on productive activities (IRAP) payments due in June (for calendar-year taxpayers)
• Circular on VAT refund procedure for non-residents
• Clarification 186: Landfill activities subject to reduced rate?
• Clarification 187: Group VAT settlement – majority control requirement
• Clarifications 168 and 169: turnover from peer to peer lending operations
• EU VAT Directive on E-Commerce transposed into national legislation
• Guidance on reporting remote sales by marketplace operators
• Validity of changes made to VAT on Italian charters questioned

LATVIA

• Publishers call for reduced VAT on books
• Rules that help improve cash flows arising from VAT in the COVID-19 emergency

LUXEMBOURG

• Implementation of Various EU VAT Directives Submitted to Parliament

NETHERLANDS

• Answer parliamentary questions about the proposed postponement of new VAT rules for e-commerce
• CEO and CFO acquitted of VAT fraud
• Fine is justified if VAT is not declared, also if input VAT is not reclaimed by customer
• Importance of the correct use of the VAT reverse charge mechanism
• Reduced (9%) VAT rate for the delivery of a special catheter syringe
• State Secretary looks at temporary VAT rate reduction
• Tax authorities have to pay interest in case of the entrepreneur paid too much VAT
• TOGC on transfer of a rented property by project developers?

POLAND

• Change in the VAT regulations related to the simplification in the import of goods
• Court decision: Does a Polish subcontractor performing logistic services lead to a Fixed Establishment?
• New Classification of Products and Services & sending fiscal receipts in electronic form
• Qualified signature in the new JPK environment
• Rollout of B2B electronic invoices for VAT clearance (according to Italian SDI model) as of mid 2021, perhaps only in 2022
• Split payment to be based on invoice value

RUSSIA

• Overview of recent VAT developments

SPAIN

• Spain publishes proposal for indirect tax on non-reusable plastic packaging

UKRAINE

• “Single” VAT payers switch to monthly reporting from July
• Changes to improve VAT administration
• Sale of ​​goods exempt from VAT below the purchase price
• Ukraine wants to abolish VAT on internal flights

UNITED KINGDOM

• Beigebell Ltd: missing trader fraud – necessary “means of knowledge” – appeal allowed
• Brexit – No extension of the transition period
• Brexit round 4 of negotiations … No major progress in the EU-UK negotiations
• Brexit: UK backtracks on full EU border checks amid coronavirus crisis
• CCA Distribution Ltd (FTT): whether appellant’s transactions connected to fraud – yes – whether appellant knew or should have known of…
• Compliance Reviews restart but HMRC offer more Time & Reasonable Excuse criteria
• Domestic Reverse Charge for construction services delayed until 1 March 2021
• Export time limit extension – a relaxation during the pandemic
• FTT: VAT discovery assessments are valid if fair and reasonable, lack of records never a good thing for VAT
• HMRC breaks silence on VAT and solicitors’ disbursements
• HMRC loses VAT challenge on baby scans
• Import VAT C79 Documents – Problem with March Statements
• Importing various good without paying import VAT and Duty
• Input VAT Recovery – Mixed Supplies
• Landlinx Estates Ltd v Revenue & Customs (FTT): release of an option to acquire land – whether an exempt or taxable supply
• Nguyen (FTT): VAT registration (threshold exceeded?)
• Opting to tax land and buildings – extension of time limit to notify HMRC
• Potential to extend payment period for customs/import VAT duty due on 15 June
• Revenue and Customs Brief 8 (2020): change to partial exemption VAT treatment
• Slaymark & Anor (FTT): Property, no rent paid, input VAT credit disallowed
• UK has published its future import tariffs
• UK publishes its FTA proposal and postBrexit tariff regime
• UK to follow Germany with Covid recovery VAT cut?
• UK’s Digital Services Tax: Where Are We Now?
• Upper Tribunal – Whether supplies of alcohol were liable to acquisition VAT in the UK
• VAT Section 55A – Specified Services and Excepted Supplies – Change of Commencement Day and Amendment
• VAT treatment of property search fees charged by solicitors and conveyancers
• William Hill set for £150m windfall over VAT ruling on fixed-odds machines in betting shops
• Withdrawal of VAT-free disbursement treatment for postal searches

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• VAT and the retail sector

SAUDI ARABIA

• Is the VAT increase a game changer?
• Summary of Transitional Provisions for VAT increase
• Transitional Provisions Guidelines of VAT Rate Increase to 15% issued in English

UNITED ARAB EMIRATES

• How tourists can claim their VAT refund in the UAE – everything you need to know
• Importation of Goods by Agents on behalf of VAT Registered persons
• Landmark Court decision relating to UAE Federal Tax Authority penalties
• POS sales and VAT – Thinking beyond Tax invoices!
• VAT on Financial Services in the United Arab Emirates

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