VATupdate Newsletter Week 31 2020

• Albania increases VAT Threshold for 2021

AUSTRIA

• The termination of an agreement for compensation follows the VAT treatment of the underlying services

BELGIUM

• Belgium Announces Extension of Customs and VAT Exemption Period on Imports of Goods to Combat COVID-19
• Brexit update: BE VAT registration with the appointment of a fiscal representative for UK companies
• COVID-19: No advance payment of VAT required in December 2020
• Tax provisions in third package of stimulus measures (COVID-19)

BULGARIA

• Cut on hospitality VAT rates to 5% under consideration

CROATIA

• VAT for food products is planned to be cut to 13% from the current 25%

CZECH REPUBLIC

• Most cities have reduced the price of water and sewerage
• VAT payers are entitled to higher interest due to lengthy reviews of excessive deductions

DENMARK

• EU Council extends authorization for Denmark to continue to apply flat-rate scheme for private use of business cars

EUROPEAN COURT OF JUSTICE

• CHEP-case: Can a foreign VAT reclaim be denied without domestic VAT registration?
• Composite Supplies under EU VAT: Closer Encounters of the Third Kind?
• Concept of Fixed Establishment remains a huge concern for businesses …… an overview of recent developments
• ECJ – Customs – C-496/19 Antonio Capaldo SpA – Judgment – EU customs authorities may not preclude the procedure for revision of…
• ECJ C-182/20 Administraţia Judeţeană a Finanţelor Publice Suceava and Others vs. Romania (Questions): Input VAT deduction prior to…
• ECJ C-228/20 I GmbH vs. DE (Questions): VAT exemption for private hospital that is not governed by public law and has no agreements with health…
• Flashback on ECJ/CJEU cases: C-332/15 Astone – No right to deduct VAT in case of failure to submit returns
• Flashback on ECJ/CJEU cases: Volkswagen C-533/16 – VAT may be deducted after expiry of the statute of limitation period
• Taxability of amounts on termination of contracts – A brief note on ECJ ruling in matter of Vodafone portugal and Indian scenario

EUROPEAN UNION

• Changes in the EU Customs law
• Commission launches public consultations on energy taxation and a carbon border adjustment mechanism
• Commission prolongs VAT and customs duties relief for medical equipment imports
• E-Commerce package will be implemented on July 1, 2021 – Confirmed despite request for dealy from the Netherlands and Germany
• EU budget for 2021-2027 – VAT  based own resource – what is this?
• EU Commission tax package includes review of tax law approval process, VAT reform
• EU Green Deal – public consultation is now open, online, closing Oct 14, 2020
• EU Green Deal – Revision of the Energy Taxation Directive
• EU has issued the list of EU imported goods that could be subject to EU retaliatory measures on goods having US origin.
• EU prolongs import duty relief, VAT exemption on medical goods in view of COVID-19
• EU: Agreement for new rules regarding excise taxes on alcohol
• International Accountant – The Shifting Sands of Compliance (tech-enabled VAT reporting and digitisation)
• One-stop shop: Not compatible with trade on Amazon & Co.
• Overview of indirect tax measures in Commission’s fair and simple taxation package
• Save import duties by applying a special customs procedure
• Temporary exemption for certain imports of goods destined to fight against the COVID-19 extended
• The e-commerce VAT package will be implemented on July 1, 2021
• VAT Talks – Interview with Marie Lamensch, discussing VAT fraud
• What Is an EORI Number and Why Do I Need One?

GERMANY

• “Membership” supermarket discount model is subject to VAT at the standard rate
• Annual Tax Act 2020 (part 2): Electronic interfaces (especially online marketplaces) are liable for VAT
• Annual Tax Act 2020 (Part 3): Special arrangements for import of consignments of up to EUR 150
• Annual Tax Act 2020: Changes in VAT rules announced
• CJEU submission on VAT group BFH, resolution of 7 May 2020, V R 40/19
• Construction works: VAT and income tax no longer go hand in hand in Germany?
• Germany publishes FAQs on temporary VAT rate cut
• Retroactive correction of invoices in the case of intra-Community triangular transactions
• VAT treatment of rental and leasing contracts: BMF considers proposals of the German Tax Consultants Association
• Why online traders from third countries hardly ever have to pay VAT

GREECE

• E-book reporting scheme in Greece, explained
• Greece submits transposition of VAT Quick Fixes and other provisions for Public Consultation
• Reduced VAT rate of 13% for sports tickets

HUNGARY

• 2021 Budget law: a 5% reduced VAT rate on the sale of residential property with a floor space of up to a maximum of 150 square meters
• VAT-fraud with sale of sugar and cooking oil in Hungary unravelled

IRELAND

• Administrative cooperation and combating fraud in the field of VAT
• Charities VAT Compensation Scheme – reminder re closing date for submission of claims
• COVID-19: concessional VAT treatment of specific medical products and donations or gifts of goods and meals has been extended to 31 October 2020
• Ireland cuts VAT rate from 23 to 21%
• Ireland joins a list of countries who introduce temporary VAT rate cuts
• Preparing for the VAT rate change – impact on businesses
• Revenue’s position on the “management of special investment funds” following the ECJ decision in GfBk (C-275/11)
• VAT Treatment of eGaming Services
• VAT treatment of the hiring of means of transport

ITALY

• Clarification 228: Special scheme for agricultural producers for VAT and tax purposes
• Clarification 231: correction of the original VAT credit refund request – terms ofpresentation of the supplementary declaration
• Italy enlarges corporate criminal liability to encompass EU VAT Frauds
• Italy publishes decree regarding consumption tax on lubricating oils and preparations
• Place of supply, VAT rules for pleasure boats used outside EU
• Subjects admitted to the subjective perimeter of the VAT Group -Verification of the economic and organizational constraint
• VAT obligations relating to the collection of fees relating to seized properties

NETHERLANDS

• COVID-19: What tp dp after the 3 month payment extension period?
• Exporter must be established in the EU
• Former State Secretary of Finance: “Reduce VAT to ease pain of Corona crisis”
• Postponement of VAT returns due to a malfunction at the tax authorities
• Public education no longer qualifies as a public (out of scope) task
• Refund of foreign VAT; take action before 1 October 2020
• Tax authorities satisfied with using iDeal for payment of VAT, pilot extended to income tax
• Tax treatment of bad and doubtful debts

NORTHERN IRELAND

• Brexit, VAT and Northern Ireland
• Brexit: Concerns for EU after latest meeting with UK over Irish Protocol
• EU will grant UK Northern Ireland (NI) businesses an EU VAT identification number to enable them to report goods transactions after 31…

POLAND

• Advance payments for export sales can be made up to six months in advance and benefit from a zero tax rate
• Court decision: Warehousing services by a Polish entity for the account of a Portguese entity leads to a Fixed Establishment
• Handing over a business car to the family, sometimes without VAT
• Improved JPK_VAT test environment with declaration
• Lack of VAT account does not relieve from split payment
• New EC Sales and Purchase List form
• Postponed accounting for import VAT & quick fixes
• Receipts and invoices up to PLN 450 are still problematic
• Split payment indication on the invoice can sometimes be ignored
• Taxpayer “white list” amended
• The EC extended the duty and VAT exemption for protective and medical equipment imported to Poland
• Update on Fixed Establishment (FE)

PORTUGAL

• Extention of the deadline for submission of the 2019 annual return (IES/DA) to 15 September 2020
• Reporting requirements on tax invoices suspended

ROMANIA

• European Commission Proposes to Prolong the Authorization for Romania to Limit the VAT Deduction Right for Motorized Vehicles to 50%
• Temporary VAT exemption for medical equipment

RUSSIA

• Putin signed law on electronic receipts in tax-free system, providing the opportunity of VAT compensation for foreign nationals
• Russia proposes draft bill limiting VAT exemption for foreign entities licensing software and databases
• VAT and sales of software, digital technology

SLOVAKIA

• VAT law changes proposed incl. implementation of E-Commerce Directive

SWEDEN

• Will the VAT rules for e-commerce 2021 be possible to understand and use for electronic marketplaces and other intermediaries?

SWITZERLAND

• 25 years of Swiss VAT – What a journey! Part 2: How it all began or “Whoever invented that was a genius!”

TURKEY

• Covid-19 VAT reduction from 18 to 8% til end of year for events and conferences; cultural events; domestic repairs; accomodation…
• New E-Dispatch Note Application Guide
• Turkey E-Dispatch Note application guide has been updated

UKRAINE

• Do you carry out financial leasing operations: how to calculate VAT?
• Do you provide services for movable property: what about VAT?
• Export of goods under commission agreements: how are such transactions subject to VAT?
• From May 23, contractors and subcontractors can apply the VAT cash method
• From May 23, new conditions for cancellation of VAT registration are in force
• Reducing the price of goods after delivery: what about VAT?
• Risky enterprises are under intensive monitoring
• Taxation of services related to movable property
• The Cabinet of Ministers has adjusted the list of medicines that are exempt from VAT
• The list of goods needed to prevent the spread of coronavirus that are exempt from VAT has been expanded
• Transfer of intellectual property rights by a resident – VAT payer to a non-resident: what about VAT?
• VAT-exempt transactions: how to calculate?

UNITED KINGDOM

• BBPA calls for VAT cut on beer as European Commission gives green light
• Brexit: importation of goods for resale to consumers either directly or through an online market place
• Business Rates Review: Call for Evidence including a proposal for an online sales tax
• Catering, takeaway food (VAT Notice 709/1)
• Draft Finance Bill 2020/21: Extending the Making Tax Digital (MTD) rules to other taxes over and above VAT
• FTT – Whether company entitled to recover input VAT on delivery charges
• FTT – Whether the VAT incurred on the construction of a houseboat could be reclaimed
• FTT: British Telecoms v Revenue – Historical bad debt relief appeal struck out
• Get more information about the Eat Out to Help Out Scheme
• Government urged to cut VAT on beer after Brussels gives green light to tax break
• HMRC issues guidance on temporary VAT rate reduction
• HMRC outlines changes to VAT treatment of imported goods
• HMRC scraps Benefit in Kind Charge on COVID-19 Tests
• Input VAT recovery on legal services fees
• Making Tax Digital for VAT compulsory for all after 1 April 2022
• MTD: VAT scope extended and income tax start date announced
• New UK VAT model for cross-border low-value goods
• Overview of Making Tax Digital
• Pay no import duty and VAT on medical supplies, equipment and protective garments (COVID-19), extension till Oct 31, 2020
• Post Brexit – New rules for low value consignments
• Postponed VAT accounting guidance for imports after the transition period ends
• Revenue and Customs Brief 11 (2020): VAT and Stamp Duty Land Tax when existing leases between landlords and tenants are varied
• Temporary reduced rate of VAT – FAQ by Saffery
• UK mulls 2% ecommerce sales tax and delivery tax
• UK-EEA EFTA states: future relationship negotiations
• VAT as a business-critical process
• VAT scope extended, income tax start date announced (making tax digital)