VATupdate Newsletter Week 39 2020

• Federal Financial Court: No input tax deduction due to the lack of an invoice
• No input tax refund in case of late submission of refund applications

BELGIUM

• Circular 2020/C/121 on VAT treatment of vouchers
• Customs: Note on a No-Deal Brexit
• VAT as the most sustainable source of state revenue in Belgium by 2025

CYPRUS

• Recent changes: COVID-19 measures, implementation Quick Fixes, ….
• VAT Law amendments published on the 20th of August 2020 to improve collection and fight fraud

EUROPEAN COURT OF JUSTICE

• CJEU’s preliminary VAT ruling on the provision of vehicles by Luxembourg employers to staff members residing abroad: Advocate General’s opinion…
• ECJ C 420/19 (Heavyinstall OÜ vs. Estonia) AG Opinion: Mutual assistance, requesting Member State court is bound by understanding of…
• ECJ C-324/20 (Finanzamt B) Questions: Tax point for one-off services that are billed in phases (further background info)
• ECJ C-334/20 (Amper Metal Kft. vs HU) Questions: Input VAT deduction for purchases that are not (or barely) useful for the business
• ECJ C-610/19 (Vikingo Fővállalkozó Kft.) – Order – Right to deduct VAT even if invoices cannot be considered credible
• ECJ rules that Dutch adjustment of input tax recovery at moment of first use is allowed (C-791/18)
• EU VAT refund 2019 – claims must be submitted before 30/09/2020! – ECJ case CHEP Equipment Pooling NV

EUROPEAN UNION

• Changes and key issues in the case of a (hard) Brexit
• DAC 7: online platforms, key players-to-be inthe European tax transparency framework?
• Digital Taxes not as vital as other reforms, EU official says
• EU Expecting COVID-19 Dent In 2020 VAT Collections
• EU’s Package for fair and simple taxation: Proposal for the VAT Committee to act by qualified majority (instead of unanimity)
• European Commission wants to introduce digital taxation in 2021
• European Parliament adopts the Council decision on the system of own resources of the European Union
• European VAT Refund Guide 2020
• Fiscalis conference on real time reporting and e-invoicing for VAT Sept 23-25, 2020 … more to come
• New VAT rules applying to B2C E-Commerce trades in the European Union as of 1 July 2021
• Online event hosted by Commissioner Paolo Gentiloni on Sept 21, 2020 – “Fair and Simple Taxation”
• Your four-step Brexit checklist for VAT and Customs

FRANCE

• France Lowers Threshold For Tourist VAT Refunds

GERMANY

• Federal Ministry of Finance: administrative guideline on the invoice correction/incorrect invoices with retrospective effect
• Refusal of input tax deduction or tax exemption due to tax fraud and “need to know” – current developments
• Retroactive effect of the invoice correction to the time of the original issue and input tax deduction without possession of a proper invoice

GREECE

• Extra six months of reduced VAT rate on transport, coffee, non-alcoholic beverages, cinemas and tourist services

HUNGARY

• Changes announced in view of extension to real-time invoice data reporting obligation
• Link to the Online Invoice Sytem & Info for System Providers
• Version 3.0 XML file gives invoice issuers a range of e-invoicing opportunities as of April 1, 2021

IRELAND

• Hairdressers want VAT rate in industry clipped to 5%
• Retailers pass on temporary VAT cut with great fanfare

ITALY

• Clarification 372: Exemption & composite supply of financial investment services
• Clarification 373: VAT number of the VAT Group to be mentioned on invoices
• Clarification 386: Sums due as a result of the conclusion of a judicial conciliation
• Clarification 390: VAT rate applicable to renovation and expansion of a property
• Guidance 378: split payment – recovery of duplicate VAT payment
• Resolution 53: 10% threshold – Split payment and reverse charge – Transparency tax and group VAT settlement

MACEDONIA

• North Macedonia: Increase of the VAT registration threshold to Denar 3 million as of 2022 & VAT rate changes

MONTENEGRO

• Covid-19 measures, possibility to issue e-invoices and VAT returns to be submitted electronically

NETHERLANDS

• BOVAG fears ‘VAT on bpm’
• Brexit: Apply for an import VAT deferment license before October 15
• Comments from VNO-NCW and MKB-Nederland implementation of the e-Commerce Guidelines
• New registration form for foreign entrepreneurs
• No temporary shortening of the VAT refund period
• Request EU-VAT back before 1 october 2020; no reclaim on food and drinks consumed in the catering industry in the Netherlands
• State has to pay € 137,000 after investigation into VAT carousel fraud
• VAT can only be deducted if the costs are related to current or future VAT-taxed activities
• VAT refund scheme for bad debts not relaxed

NORWAY

• Regulations on amendments to regulations to the VAT Act for real estate

POLAND

• New SAF-T File from October 1st 2020 for all VAT payers
• SLIM VAT as a package of new solutions in Polish law
• Tax authorities more and more often request JPK files during the inspection
• Traditional VAT return will be replaced by the JPK_V7M file

ROMANIA

• PwC: Romania’s budget loses 1/3 of VAT annually, state has difficulties in performing main functions

SLOVAKIA

• Proposed 2021 VAT changes: VAT bad debt relief /correction of the tax base, Implementation EU E-Commerce Directive

SPAIN

• Zero rate of VAT on masks and other medical devices is effective again (even retroactively)

SWEDEN

• Right to deduct VAT in connection with environmental investments for improved water quality

SWITZERLAND

• Mandatory e-filing of VAT returns beginning in 2021

TURKEY

• Turkey increases special consumption tax rates on passenger cars

UKRAINE

• Do VAT tax liabilities arise when writing off fixed assets?
• How to reflect non-VAT transactions in the VAT return?
• Stolen goods: whether to remit VAT?
• Warranty repairs and replacement of one of the parts: what about VAT?
• We buy and sell goods to non-residents abroad – are such transactions subject to VAT?

UNITED KINGDOM

• Avoid the Brexit import VAT trap – Delivered Duty Paid DDP
• Brexit – Customs: The transitional period will end in 100 days
• Brexit – New EU VAT Registration and Fiscal Representation Obligations for UK Businesses
• Brexit & Customs – Analysis of different supply chains between GB, ROI, NI and EU
• Brexit Internal Market Bill – the 3 issues
• Brexit update – UK proposes the Internal Market Bill
• Brexit: fewer than 100 days to go
• Brexit: the UK Internal Market bill and the 8th round of negotiations
• Covid-19 Postponement to certificate of status for 13th Directive UK VAT recoveries
• COVID-19: interest and surcharge rules relaxed for deferred VAT
• Don’t get your Brexit commodity codes or tariffs wrong
• Ending VAT-free shopping ‘will hit UK tourism and retail’
• Extra Brexit VAT registrations to avoid fines and keep trading?
• FTT: Paul Newey v Revenue & Customs – Abuse of Law doctrine
• Hackers attack business owners with Covid VAT deferral scam
• HMRC slips up in skating rink VAT appeal – Composite supplies
• Mitigating landlord property VAT costs during a downturn
• Reasonable Worst Case Scenario for borders at the end of the transition period on 31 December 2020
• Survey shows lack of confidence in VAT returns process
• Transfers of going concerns (TOGCs): additional condition
• UK extends cut in hospitality and tourism VAT to 5% till 31 Mar 2021
• UK issues response on consultation on duty-free and tax-free goods carried by passengers
• UK Publishes Regulations Setting Interest Rates for Over- and Under-Paid Digital Services Tax
• Updated manual: For the reallocation of a VAT number (TOGC) the transferor should not have a VAT debt
• VAT and Customs Duties: How to use a Customs Warehouse
• VAT cut on hospitality and tourism extended from 13 Jan 2021 until 31 March 2021
• VAT refunds to overseas shoppers to go post-Brexit
• VAT reverse charge for construction: Delayed but not dropped
• When we select your goods for inland pre-clearance checks