VATupdate Newsletter Week 25 2021

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VAT rates always seem to be a ‘hot topic’. It is the most obvious part of VAT, and the fact that there are so many different rates doesn’t make it easy or simple to explain. Personally, I love the discussions and case law linked to VAT rates: horse riding in the dunes is reduced rated, tennis lessons are standard rated. Kite surfing on the beach is reduced rated, but mountain biking lessons are standard rated. Etcetera.

This week we have quite some news on VAT rates. Poland wants the EU countries to be able to apply standard and reduced rates more flexible, and Greece decided that certain Greek islands are allowed to apply a reduced VAT rate permanently (a measure that was initially introduced as temporary).

As you may know by now, we continue to keep our overviews of the VAT rates up to date, so please make sure that you’re checking our website regularly to follow the latest news and developments.

Other interesting topics this week are the developments on e-invoicing in various countries, and of course e-commerce.

Regarding the latter: You may have seen that Poland proposed to implement the new VAT e-commerce rules three months later. We understood earlier from the EU Commission that they would not allow any delays or postponements for the EU Member States. So make sure you have the popcorn ready and enjoy the show that will come. Because Poland is by far not the only country that is not ready.

Lastly, we just wanted to draw your attention to a German case, where a dog breeder was regarded a taxable person for VAT. Although the dog breeder was keeping the dogs in her private household, the German Court said that she was sufficiently ‘professional’, in the marketing and advertisement and selling of the dogs, and therefore should charge VAT on these sales.