The government’s likely Budget Day tax proposals included in the 2024 Tax Plan package. Other 2024 tax law amendments will be discussed as well.
VAT Aspects
- The Small Business Scheme Directive will be implemented from 1 January 2025, allowing small entrepreneurs in a Member State other than where they are established to apply the small business scheme of that other Member State.
- The Payment Services Directive (Implementation) Act, effective from 1 January 2024, provides for more extensive audit options for tax authorities by using data of cross-border payments.
- The VAT on virtual services will be charged in the Member State where the customer is established from 1 January 2025.
- The government is considering an adjustment option on conversion services to prevent short stay arrangements subject to VAT for a short period.
- From 2024, a new first bracket will be introduced in the energy tax on both natural gas and electricity, and measures will be taken to make the energy tax rate structure less degressive.
- The energy tax exemption for the consumption of natural gas in mineralogical and metallurgical processes is expected to be eliminated in the 2024 Tax Plan, and the reduced energy tax rate for greenhouse horticulture may also come to an end.
Source Deloitte
