# Fiscal Solutions > Global VAT specialists helping businesses trade globally ## Pages - [Home](https://fiscalsolutions.co.uk/): Global VAT specialists helping businesses trade globally - [About us - Fiscal Solutions](https://fiscalsolutions.co.uk/about/): Fiscal Solutions offer a comprehensive and fully aligned VAT service to all those looking to do businesses internationally. - [Fiscal Solutions - International](https://fiscalsolutions.co.uk/country-data/): No matter what the task or the country, Fiscal Solutions can help you solve your business VAT needs - [Legal - Fiscal Solutions](https://fiscalsolutions.co.uk/legal/): At Fiscal Solutions we are committed to maintaining the security and privacy of our customers’ personal data. - [General and limited fiscal representation in the Netherlands](https://fiscalsolutions.co.uk/landing/general-and-limited-fiscal-representation-in-the-netherlands/): Fiscal Solutions provide reliable general and limited fiscal representation in the Netherlands. - [OSS | One-Stop-Shop](https://fiscalsolutions.co.uk/landing/the-one-stop-shop-oss/): The OSS is an electronic portal that allows suppliers to declare and remit VAT on their EU-wide business-to-consumer (B2C) sales. - [IOSS | Import One-Stop-Shop](https://fiscalsolutions.co.uk/landing/the-import-one-stop-shop-ioss/): The IOSS is an electronic portal that allows suppliers to declare and remit the VAT on sales of low-value goods imported and sold to consumers in the EU. - [Goods and Sales Tax (GST) registration in Singapore](https://fiscalsolutions.co.uk/landing/goods-and-sales-tax-gst-registration-in-singapore/): If you’re a non-resident business selling digital/electronic services to consumers in Singapore, you may have an obligation to GST register in Singapore. ## Services - [Services - Fiscal Solutions](https://fiscalsolutions.co.uk/services/): The Fiscal Solutions team provide market-leading national and international support to businesses that have to deal with different rates and rules for VAT. - [International VAT | VAT International Services](https://fiscalsolutions.co.uk/services/international-vat/): Looking to navigate the complexities of international VAT? Fiscal Solutions can help. Get reliable VAT international services and support today. - [International VAT Advisory Services](https://fiscalsolutions.co.uk/services/international-vat-advisory/): Expert international VAT consultancy helping businesses navigate compliance, optimise processes, and streamline cross-border trade worldwide. - [Event VAT - Fiscal Solutions](https://fiscalsolutions.co.uk/services/event-vat/): Admission fees to events are usually classified as taxable in the host country where the event takes place and will oblige event organisers to VAT register. - [Import VAT - Fiscal Solutions](https://fiscalsolutions.co.uk/services/import-vat/): Fiscal Solutions provide trusted and reliable VAT services for businesses importing goods into all EU countries and beyond. - [Ecommerce VAT - Fiscal Solutions](https://fiscalsolutions.co.uk/services/ecommerce-vat/): Find out everything you need to know about ecommerce VAT, including the EU's IOSS and OSS VAT packages. - [Fiscal Representation - Fiscal Solutions](https://fiscalsolutions.co.uk/services/fiscal-representation/): Fiscal Solutions provide trusted and reliable fiscal representation in all EU countries and beyond. - [VAT Refund - Fiscal Solutions](https://fiscalsolutions.co.uk/services/vat-refund/): If your business incurs VAT while trading overseas, in some countries it is possible to have it refunded without the need to register to VAT. - [VAT Registration | VAT Register - Fiscal Solutions](https://fiscalsolutions.co.uk/services/vat-registration/): Looking to VAT register? Fiscal Solutions provide trusted and reliable VAT registration in all EU countries and beyond. - [GST registration - Fiscal Solutions](https://fiscalsolutions.co.uk/services/goods-and-services-tax-gst-registration/): Looking to GST register? Fiscal Solutions provide trusted and reliable GST registration worldwide. - [VAT in the Digital Age: What is ViDA?](https://fiscalsolutions.co.uk/services/vat-in-the-digital-age/): The ViDA initiative modernises the EU VAT system and simplifies obligations for businesses, consisting of three key changes, known as the three ‘Pillars’. - [The Three Pillars](https://fiscalsolutions.co.uk/services/vat-in-the-digital-age/the-three-pillars/) ## News - [News - Fiscal Solutions](https://fiscalsolutions.co.uk/news/): Take a look at the latest global VAT news and updates. - [Belgium approves draft law for near-real-time e-reporting](https://fiscalsolutions.co.uk/news/belgium-approves-draft-law-for-near-real-time-e-reporting-from-january-2028/): July saw the Belgian Council of Ministers approve a preliminary draft law to introduce near-real-time electronic reporting of certain invoice data. - [Luxembourg proposes the introduction of electronic invoicing](https://fiscalsolutions.co.uk/news/luxembourg-proposes-the-introduction-of-electronic-invoicing-for-resident-companies-from-january-2028/): Luxembourg’s Government approved a draft law to introduce mandatory structured business-to-business (B2B) e-invoicing for domestic transactions - [Germany's plan signals move to real-time VAT reporting](https://fiscalsolutions.co.uk/news/germanys-action-plan-signals-move-toward-real-time-vat-reporting-and-ai-driven-tax-enforcement/): Germany has announced a 26-point “Action Plan” against tax and financial crime. - [France provides further guidance on B2B e-invoicing](https://fiscalsolutions.co.uk/news/update-france-provides-further-practical-guidance-relating-to-mandatory-b2b-e-invoicing-and-e-reporting/): France has published a practical guide to support businesses through the launch of e-invoicing and e-reporting, mandatory from 1 September 2026. - [Gibraltar to introduces a new ”Transaction Tax”](https://fiscalsolutions.co.uk/news/gibraltar-to-introduces-a-new-transaction-tax/): Gibraltar has introduced a new “Transaction Tax” on goods as part of the post-Brexit UK–EU treaty arrangements for Gibraltar. - [Country and European Union News July 2026](https://fiscalsolutions.co.uk/news/country-and-european-union-news-july-2026/): The latest updates in the Gibraltar and Sri Lanka - [EU confirms €3 customs duty and VAT treatment for low-value](https://fiscalsolutions.co.uk/news/eu-confirms-3-customs-duty-and-vat-treatment-for-low-value-imports-from-july-2026/): From 1 July 2026, the EU will remove the current customs duty exemption for goods valued at €150 or less. - [UK to remove the customs duty exemption for low-value import](https://fiscalsolutions.co.uk/news/uk-to-remove-the-customs-duty-exemption-for-low-value-imports-from-2028/): Currently, goods imported into the UK with a value of £135 or less can generally be imported without customs duty, although VAT is still due. - [Switzerland plans VAT rise from 2028 to help fund state pens](https://fiscalsolutions.co.uk/news/switzerland-plans-vat-rise-from-2028-to-help-fund-state-pensions/): On 19 June 2026, both houses of the Swiss Parliament approved a proposal to increase the standard VAT rate by 0.4%, from 8.1% to 8.5%. - [UK considers shifting VAT collection to online marketplaces](https://fiscalsolutions.co.uk/news/uk-considers-shifting-vat-collection-to-online-marketplaces-for-uk-based-businesses/): UK considers shifting VAT collection to online marketplaces for UK-based businesses - [Country and European Union News June 2026](https://fiscalsolutions.co.uk/news/country-and-european-union-news-june-2026/): The latest updates in the UK, Norway, France, EU and Spain - [EU council struggles to agree on the removal of the €150 IOS](https://fiscalsolutions.co.uk/news/eu-council-struggles-to-agree-on-the-removal-of-the-150-ioss-threshold-as-part-of-the-2028-customs-reforms/): EU council struggles to agree on the removal of the €150 IOSS threshold as part of the 2028 Customs Reforms - [Austria proposes a €2 customs charge on a per parcel basis f](https://fiscalsolutions.co.uk/news/austria-proposes-a-2-customs-charge-on-a-per-parcel-basis-for-low-value-imports/): Austria proposes a €2 customs charge on a per parcel basis for low‑value imports - [Grenada to introduce VAT on foreign digital services](https://fiscalsolutions.co.uk/news/grenada-to-introduce-vat-on-foreign-digital-services/): Grenada to introduce VAT on foreign digital services - [Brazil confirms VAT on foreign digital services from August](https://fiscalsolutions.co.uk/news/brazil-confirms-vat-on-foreign-digital-services-from-august-2026/): Brazil confirms VAT on foreign digital services from August 2026 - [Country and European Union News May 2026](https://fiscalsolutions.co.uk/news/country-and-european-union-news-may-2026/): The latest updates in Malawi and Rwanda - [Sri Lanka defers non‑resident VAT on B2C e‑services to 1 July 2026](https://fiscalsolutions.co.uk/news/sri-lanka-defers-non-resident-vat-on-b2c-e-services-to-1-july-2026/): Sri Lanka’s Inland Revenue Department (IRD) has announced a further deferral of VAT on digital services supplied through electronic platforms by non‑resident providers to Sri Lankan consumers. This announcement moves the effective date from 1 April 2026 to 1 July 2026, subject to the necessary legislative and administrative steps. Under the new framework, non‑resident suppliers of in‑scope electronic services to Sri Lankan consumers will be required to charge 18% VAT on their sales. The scope is expected to - [Germany provides further guidance on how e-invoicing will wo](https://fiscalsolutions.co.uk/news/germany-provides-further-guidance-on-how-e-invoicing-will-work-in-the-country/): Germany provides further guidance on how e-invoicing will work in country - [Slovakia proposing to extend domestic reverse charge regime](https://fiscalsolutions.co.uk/news/slovakia-preparing-to-extend-domestic-reverse-charge-regime-to-some-services/): Slovakia proposing to extend domestic reverse charge regime to certain services - [France clarifies e‑invoicing and e‑reporting penalties ahead](https://fiscalsolutions.co.uk/news/france-clarifies-e-invoicing-and-e-reporting-penalties-ahead-of-the-2026-27-mandate-1/): France clarifies e‑invoicing and e‑reporting penalties ahead of the 2026–27 mandate - [France clarifies e‑invoicing and e‑reporting penalties ahead](https://fiscalsolutions.co.uk/news/france-clarifies-e-invoicing-and-e-reporting-penalties-ahead-of-the-2026-27-mandate/): France clarifies e‑invoicing and e‑reporting penalties ahead of the 2026–27 mandate - [Spain confirms new timeline for the introduction of mandator](https://fiscalsolutions.co.uk/news/spain-confirms-new-timeline-for-the-introduction-of-mandatory-b2b-e-invoicing/): Spain confirms new timeline for the introduction of mandatory B2B e-invoicing - [EU member states push for the introduction of a €2 small‑par](https://fiscalsolutions.co.uk/news/eu-member-states-push-for-the-introduction-of-a-2-small-parcel-customs-fee/): EU member states push for the introduction of a €2 small‑parcel customs “handling” fee from July 2026 - [Norway to mandate B2B e‑invoicing from 2027 and digital book](https://fiscalsolutions.co.uk/news/norway-to-mandate-b2b-e-invoicing-from-2027-and-digital-bookkeeping-from-2030/): Norway to mandate B2B e‑invoicing from 2027 and digital bookkeeping from 2030 - [France introduces €2 customs charge on a per item basis](https://fiscalsolutions.co.uk/news/france-introduces-2-customs-charge-on-low-value-imports-from-1-march-2026/): France introduces €2 customs charge on a per item basis for low‑value imports from 1 March 2026 - [EU Confirms €3 Flat Rate Customs Duty on Low Value Imports f](https://fiscalsolutions.co.uk/news/eu-confirms-3-flat-rate-customs-duty-on-low-value-imports-from-july-2026/): EU Confirms €3 Flat Rate Customs Duty on Low Value Imports from July 2026 - [Azerbaijan introduces mandatory VAT Registration for foreign](https://fiscalsolutions.co.uk/news/azerbaijan-introduces-mandatory-vat-registration-for-foreign-digital-service-providers/): Azerbaijan introduces mandatory VAT Registration for foreign digital service providers - [Sweden proposes introduction of tougher anti-fraud measures](https://fiscalsolutions.co.uk/news/sweden-proposes-introduction-of-tougher-anti-vat-fraud-measures-from-1-july-2026/): Sweden proposes introduction of tougher anti-fraud measures from 1 July 2026 - [Country and European Union News February 2026](https://fiscalsolutions.co.uk/news/country-and-european-union-news-february-2026/): The latest updates in Croatia, Greece and Belgium - [Welcome to our new VAT Compliance Director, Amar Kanabar](https://fiscalsolutions.co.uk/news/welcome-to-our-new-vat-compliance-director-amar-kanabar/): We are pleased to announce the appointment of Amar Kanabar as VAT Compliance Director, strengthening our commitment to invest in global compliance capabilities and support our clients to navigate an increasingly complex and rapidly changing tax landscape. Tax authorities across the world are frequently releasing new mandates on e-invoicing and real time reporting, fundamentally reshaping how businesses manage VAT. This includes the UK, which has confirmed it will introduce mandatory e invoicing from 2029, a - [Belgium introduces three-month tolerance period for e-invoic](https://fiscalsolutions.co.uk/news/belgium-introduces-three-month-tolerance-period-for-mandatory-e-invoicing/): Belgium introduces three-month tolerance period for mandatory e-invoicing. - [France provides list of authorised agents for mandatory B2B](https://fiscalsolutions.co.uk/news/france-provides-list-of-authorised-agents-for-mandatory-b2b-e-invoicing/): France provides list of authorised agents for mandatory B2B e-invoicing - [Austria to reduce VAT on essential food items from July 2026](https://fiscalsolutions.co.uk/news/austria-to-reduce-vat-on-essential-food-items-from-july-2026/): Austria to reduce VAT on essential food items from July 2026 - [Poland confirms no penalties relating to the introduction of](https://fiscalsolutions.co.uk/news/poland-confirms-no-penalties-relating-to-the-introduction-of-e-invoicing-until-january-2027/): Poland confirms no penalties relating to the introduction of e invoicing until January 2027 - [Bulgaria requires foreign suppliers from other EU countries](https://fiscalsolutions.co.uk/news/bulgaria-requires-foreign-suppliers-from-other-eu-countries-to-vat-register-for-supply-and-install-contracts-from-january-2026/): Latest updates in Belgium - [Member states propose the introduction of handling fees](https://fiscalsolutions.co.uk/news/several-member-states-are-proposing-the-introduction-of-handling-fees-on-low-value-imports/): Several member states are proposing the introduction of handling fees on low value imports - [REMINDER: Bulgaria joined the Eurozone on 1 January 2026](https://fiscalsolutions.co.uk/news/reminder-bulgaria-joined-the-eurozone-on-1-january-2026/): REMINDER: Bulgaria joined the Eurozone on 1 January 2026 - [EU to remove customs duty exemption for “low value” imports](https://fiscalsolutions.co.uk/news/eu-to-remove-the-customs-duty-exemption-for-low-value-imports-from-2026/): EU to remove the customs duty exemption for “low value” imports from 2026 - [Italy introduces €2 Customs charge on low-value imports](https://fiscalsolutions.co.uk/news/italy-introduces-2-customs-charge-on-low-value-imports-from-1-january-2026/): Italy introduces €2 Customs charge on low-value imports from 1 January 2026 - [Country and European Union News January 2026](https://fiscalsolutions.co.uk/news/country-and-european-union-news-december-2025/): Latest updates in Belgium, Slovakia, Spain, Latvia and Lithuania - [Electronic real-time invoicing](https://fiscalsolutions.co.uk/news/e-invoicing-hub/): To help businesses plan we have created a table to provide key dates and information of e-invoicing mandates for non-resident businesses. - [EU finance ministers agree to introduce new customs charge](https://fiscalsolutions.co.uk/news/eu-finance-ministers-agree-to-introduce-new-customs-charge-on-low-value-e-commerce-imports-from-april-2026/): ECOFIN have agreed to introduce a customs charge on low-value parcels valued below €150. - [UPDATE: Swiss government confirms likely delay for the 0.7%](https://fiscalsolutions.co.uk/news/update-swiss-government-confirms-likely-delay-for-the-0.7-increase-to-the-standard-vat-rate/): The Swiss tax authorities have confirmed that the increase in the standard VAT rate from 8.1% to 8.8% will now be postponed until 2028. - [EU to remove €150 customs duty exemption threshold](https://fiscalsolutions.co.uk/news/eu-to-remove-150-customs-duty-exemption-threshold/): EU to remove €150 customs duty exemption threshold - [Country and European News December 2025](https://fiscalsolutions.co.uk/news/country-and-european-news-december-2025/): Cypriot government extends VAT rate cut on essential goods until December 2026 The Cypriot government has again extended the temporary reduction on the 5% and 19% VAT rates applied to certain essential goods until 31 December 2026. The VAT rates have been reduced from: 5% to 0% for milk, bread, eggs, and baby food. 19% to 5% for detergents, fabric softeners, toilet paper, baby and adult diapers, and cleaning supplies. Poland releases free e-invoicing software (KSeF) In November 2025, the Polish Ministry - [Romania confirms fixed levy on low-value e-commerce imports](https://fiscalsolutions.co.uk/news/romania-confirms-fixed-levy-on-low-value-e-commerce-imports-will-apply-from-1-january-2026/): The Romanian parliament has adopted a measure that will introduce a fixed charge on certain low-value consignments, valued under €150. - [Romania Proposes Fixed Levy on Low-Value E-Commerce Imports](https://fiscalsolutions.co.uk/news/romania-proposes-fixed-levy-on-low-value-e-commerce-imports-starting-november-2025/): Romania Proposes Fixed Levy on Low-Value E-Commerce Imports Starting November 2025 - [France Proposes €2 Customs Charge on Low-Value E-Commerce Im](https://fiscalsolutions.co.uk/news/france-proposes-2-customs-charge-on-low-value-e-commerce-imports/): France Proposes €2 Customs Charge on Low-Value E-Commerce Imports - [Ireland to Introduce Mandatory E-Invoicing for Domestic B2B](https://fiscalsolutions.co.uk/news/ireland-to-introduce-mandatory-e-invoicing-for-domestic-b2b-transactions-from-november-2028/): Ireland to Introduce Mandatory E-Invoicing for Domestic B2B Transactions from November 2028 - [Belgium publishes new mandatory structured e-invoicing guida](https://fiscalsolutions.co.uk/news/update-belgium-publishes-new-guidance-relating-to-the-introduction-of-mandatory-structured-e-invoicing-for-vat/): UPDATE: Belgium publishes new guidance relating to the introduction of Mandatory Structured E-invoicing for VAT - [Country and European Union News November 2025](https://fiscalsolutions.co.uk/news/country-and-european-union-news-november-2025/): Latest updates in Slovakia, Germany, Malta and Bhutan - [European Commission publishes plans for rollout ViDA reforms](https://fiscalsolutions.co.uk/news/european-commission-publishes-plans-for-rollout-vida-reforms/): European Commission publishes plans for rollout ViDA reforms - [Sweden to cut food VAT rate from 12% to 6%](https://fiscalsolutions.co.uk/news/sweden-to-cut-food-vat-rate-from-12-to-6/): The Swedish government announced a temporary reduction on the VAT rate applied to most food products - [Sri Lanka to postpone the implementation of non-resident VAT](https://fiscalsolutions.co.uk/news/sri-lanka-to-postpone-the-implementation-of-non-resident-vat-on-b2c-e-services-until-april-2026/): Sri Lanka to postpone the implementation of non-resident VAT on B2C e-services until April 2026 - [Country and European Union News October 2025](https://fiscalsolutions.co.uk/news/country-and-european-union-news-october-2025/): Latest updates on Slovakia, Nigeria, Belgium, Poland and Greece - [Romania confirms increase to VAT rates from August 2025](https://fiscalsolutions.co.uk/news/romania-confirms-increase-to-vat-rates-from-august-2025/): From 1 August 2025, the Romanian government increased the standard VAT rate from 19% to 21% and introduced a new 11% VAT rate, replacing the existing 5% and 9%. - [ECOFIN adopts directive on the 2028 proposed IOSS expansion](https://fiscalsolutions.co.uk/news/ecofin-adopts-directive-on-the-2028-proposed-expansion-of-the-import-one-stop-shop-ioss/): In July 2025, the European Council formally adopted new measures concerning VAT rules for distance sales of imported goods and import VAT. - [EU council agrees on the 2028 Customs Reforms](https://fiscalsolutions.co.uk/news/eu-council-agrees-on-the-2028-customs-reforms/): The Council of the European Union has agreed on a compromise text on the 2028 Customs Reforms proposal. The European Commission’s proposals include: - [Lithuanian VAT rate changes from January 2026](https://fiscalsolutions.co.uk/news/lithuanian-vat-rate-changes-from-january-2026/): The Lithuanian Ministry of Finance has confirmed that from 1 January 2026 it will increase the reduced VAT rate for some supplies, and decrease it for others. - [Belgium Gazettes Decree on Mandatory Structured E-invoicing](https://fiscalsolutions.co.uk/news/belgium-gazettes-decree-on-mandatory-structured-e-invoicing-for-vat/): In July, the Belgian Federal Public Service for Finance published a Decree relating to the mandatory introduction of B2B e-invoicing in Belgium - [Norway launches a consultation on mandatory e-invoicing](https://fiscalsolutions.co.uk/news/norway-launches-a-consultation-on-the-introduction-of-mandatory-e-invoicing-for-b2b-transactions-from-january-2028/): Norway has become the latest European country to propose the introduction of a mandatory electronic invoicing regime for Business-to-Business transactions. - [Philippines delayed implementation of VAT on e-services](https://fiscalsolutions.co.uk/news/philippines-delayed-implementation-of-vat-on-e-services-to-august-2025/): The Bureau of Internal Revenue (BIR) postponed the introduction of VAT on digital services supplied by foreign providers to local consumers until 1 August 2025. - [Slovakia – Import VAT reverse charge effective 1 July 2025](https://fiscalsolutions.co.uk/news/slovakia-import-vat-reverse-charge-effective-1-july-2025/): On 1 July 2025, Slovakia introduced a deferred import VAT scheme available for all resident businesses registered for VAT in the country. - [Chile – Simplified VAT registration rules set](https://fiscalsolutions.co.uk/news/chile-simplified-vat-registration-rules-set-for-non-resident-b2c-sellers-and-marketplaces/): The Chilean Tax Administration has established a procedure for certain non-resident VAT taxpayers to register under a Simplified Tax Regime. - [Romania to increase VAT on most reduced rated supplies](https://fiscalsolutions.co.uk/news/romania-to-increase-vat-on-most-reduced-rated-supplies-from-august-2025/): Romania confirmed that from 1 August 2025 most supplies carrying the reduced VAT rates of 5% and 9% - [Lithuanian reduced VAT rate changes](https://fiscalsolutions.co.uk/news/lithuanian-reduced-vat-rate-changes/): The Lithuanian Ministry of Finance confirmed that it will: Increase the reduced VAT rate of 9% to 12% affecting such services as domestic passenger transport, - [Gibraltar to introduce a 15% sales tax](https://fiscalsolutions.co.uk/news/gibraltar-to-introduce-a-15-sales-tax/): As a result of a post-Brexit agreement between the UK and Spain, the British overseas territory of Gibraltar will introduce a 15% sales tax by 2028. - [Philippines delays implementation of VAT on e-services to Ju](https://fiscalsolutions.co.uk/news/philippines-delays-implementation-of-vat-on-e-services-to-july-2025/): The Bureau of Internal Revenue (BIR) delayed the introduction of VAT on supplies of digital services by foreign providers to local consumers to 1 July 2025. - [Mauritius to implement VAT on foreign digital services](https://fiscalsolutions.co.uk/news/mauritius-to-implement-vat-on-foreign-digital-services-from-1-january-2026/): Mauritius will introduce VAT at 15% on digital services provided by foreign providers to local Mauritian consumers. - [Italy cuts the VAT rate applicable to artwork from 22% to 5%](https://fiscalsolutions.co.uk/news/italy-cuts-the-vat-rate-applicable-to-artwork-from-22-to-5/): During June the Italian Council of Ministers agreed to cut VAT on the sales of art, antiques and collectors’ items from the standard VAT rate of 22% to the redu - [Finland launches consultation on the reduction of the reduce](https://fiscalsolutions.co.uk/news/finland-launches-consultation-on-the-reduction-of-the-reduced-vat-rate/): During June 2025, the Finnish government launched a public consultation on a proposal to reduce its reduced VAT rate from 14% to 13.5%. - [Latvia delays introduction of mandatory e-invoicing](https://fiscalsolutions.co.uk/news/latvia-delays-introduction-of-mandatory-e-invoicing-for-domestic-b2b-transactions-to-january-2028/): The Latvian parliament (Saeima) confirmed that the introduction of mandatory e-invoicing for domestic B2B transactions will be delayed from January 2026 to Jan - [European Commission release 2025 Annual Report on Taxation](https://fiscalsolutions.co.uk/news/european-commission-release-2025-annual-report-on-taxation/): The European Commission recently released the Annual Report on Taxation for the year 2025. - [Croatia will introduce mandatory e-invoicing for domestic](https://fiscalsolutions.co.uk/news/croatia-will-introduce-mandatory-e-invoicing-for-domestic-b2b-transactions-from-january-2027/): Croatia have become the latest EU country to confirm they will introduce a mandatory electronic invoicing regime for B2B transactions, from 1 January 2027. - [ECOFIN agrees a draft directive on the 2028 expansion](https://fiscalsolutions.co.uk/news/ecofin-agrees-a-draft-directive-on-the-2028-proposed-expansion-of-the-import-one-stop-shop-ioss/): During May 2025, the Economic and Financial Affairs Council (ECOFIN) agreed a draft directive relating to the VAT rules for distance sales of imported goods... - [UPDATE: Philippines implements VAT on e-services provided](https://fiscalsolutions.co.uk/news/philippines-implements-vat-on-e-services-provided-by-non-resident-suppliers-1/): The Bureau of Internal Revenue (BIR) recently published Revenue Memorandum Circular No. 47-2025... - [REMINDER: Estonia standard VAT rate increases from 22% to 24% from July 2025](https://fiscalsolutions.co.uk/news/reminder-estonia-standard-vat-rate-increases-to-24-from-july-2025/): From 1 July 2025, Estonia will increase its standard VAT rate from 22% to 24%. The reduced VAT rates will also increase from 9% to 13% and from 5% to 9%. What to do next? If you are selling to customers in Estonia where you are charging VAT, you will need to ensure that the correct rate of VAT is applied on sales from 1 July 2025. We recommend amending your accounting system and current processes to ensure that the higher VAT rates are used on sales invoices issued from this date. - [Italy Confirms VAT Terms for Non-EU Businesses](https://fiscalsolutions.co.uk/news/italy-confirms-bank-guarantee-requirements-for-vat-registered-non-eu-companies-performing-intra-eu-transactions-1/): The Italian Revenue recently published specific information regarding non-EU companies engaging in intra-EU trade of goods to and from Italy. - [Germany coalition government to reintroduce 7% reduced VAT](https://fiscalsolutions.co.uk/news/germany-coalition-government-to-reintroduce-7-reduced-vat-rate-for-hospitality-from-1-january-2026/): The German government has confirmed the reinstatement of the 7% reduced VAT rate. - [Sri Lanka to apply VAT on B2C e-services](https://fiscalsolutions.co.uk/news/sri-lanka-to-apply-vat-on-b2c-e-services-from-non-resident-providers-from-october-2025/): Sri Lanka will introduce VAT on digital services supplied by non-resident providers to Sri Lankan consumers. - [Finland proposes a reduction to the reduced VAT rate](https://fiscalsolutions.co.uk/news/finland-proposes-a-reduction-to-the-reduced-vat-rate/): The Finnish government have proposed a reduction of their reduced VAT rate from 14% to 13.5%. - [Lithuanian VAT rises to support defence spending](https://fiscalsolutions.co.uk/news/lithuanian-vat-rises-to-support-defence-spending/): These proposals aim to support increased defence spending following the Russian invasion of Ukraine. - [Spain confirms timeline for mandatory B2B e-invoicing](https://fiscalsolutions.co.uk/news/spain-confirms-timeline-for-the-introduction-of-mandatory-b2b-e-invoicing/): In April 2025 the Council of Ministers gazetted a new timetable for the mandatory B2B electronic invoicing regime confirming that this will apply to: Resident Spanish businesses from 1 January 2026. All other taxpayers from 1 July 2026. Currently, the Spanish tax authority receives transactional information from certain taxpayers through the Suministro Inmediato de Información (SII). However, this platform only applies to enterprises with an annual turnover of over €6 million, and companies affected are on - [Slovakia proposes the introduction of mandatory e-invoicing](https://fiscalsolutions.co.uk/news/slovakia-proposes-the-introduction-of-mandatory-e-invoicing-for-b2b-transactions-from-january-2027/): Slovakia has become the latest EU country to propose the introduction of a mandatory electronic invoicing regime for B2B transactions. - [Estonia standard VAT rate increase to 24% from July 2025](https://fiscalsolutions.co.uk/news/reminder-estonia-standard-vat-rate-increase-to-24-from-july-2025/): From 1 July 2025, Estonia will increase its standard VAT rate from 22% to 24%. - [South Africa confirms the removal of VAT charges on supplies](https://fiscalsolutions.co.uk/news/south-africa-confirms-the-removal-of-vat-charges-on-supplies-of-digital-services-to-business-customers-by-non-resident-suppliers/): The South African Revenue Service (SARS) has confirmed that foreign traders who supply electronic services only to business customers in South Africa, will not - [Lithuania reveals plan to increase reduced VAT Rate from 9%](https://fiscalsolutions.co.uk/news/lithuania-reveals-plan-to-increase-reduced-vat-rate-from-9-to-12/): In March 2025, Lithuanian Prime Minister Gintautas Paluckas announced that the government plans to increase the reduced VAT rate in the country from 9% to 12%. - [Slovakia to introduce non-resident import VAT deferment](https://fiscalsolutions.co.uk/news/slovakia-to-introduce-non-resident-import-vat-deferment-from-1-january-2026/): From 1 January 2026, non-resident importers in Slovakia will be able to defer VAT on imports and report it in their VAT return. - [European Public Prosecutor’s Office confirms €13bn VAT fraud](https://fiscalsolutions.co.uk/news/european-public-prosecutors-office-confirms-13bn-vat-fraud-in-the-eu/): The European Public Prosecutor’s office (EPPO) recently released a report revealing that over half of the investigated EU budgetary losses up until December - [Slovenia delays the introduction of mandatory e-invoicing](https://fiscalsolutions.co.uk/news/slovenia-delays-the-introduction-of-mandatory-e-invoicing-for-b2b-transactions-to-1-january-2027/): The Slovenian government have proposed a delay in the mandating of e-invoice reporting for B2B transactions to 1 January 2027. - [Canada: Nova Scotia to decrease its standard Harmonised Sale](https://fiscalsolutions.co.uk/news/canada-nova-scotia-to-decrease-its-standard-harmonised-sales-tax-hst-rate-to-14-from-april-2025/): From 1 April 2025, the Canadian province of Nova Scotia will reduce the HST rate applied in the province from 15% to 14%. - [Nova Scotia to decrease its standard HST rate from April](https://fiscalsolutions.co.uk/news/nova-scotia-to-decrease-its-standard-harmonised-sales-tax-hst-rate-from-april-2025/): From 1 April 2025, the Canadian province of Nova Scotia will reduce the HST rate applied in the province. - [European Commission publishes 2025 Work Programme](https://fiscalsolutions.co.uk/news/european-commission-publishes-2025-work-programme-including-vat-and-customs-initiatives/): The European Commission recently published its 2025 Commission Work Programme outlining progress on the 2028 Customs Reforms. - [EU Parliament gives approval to VAT in the Digital Age](https://fiscalsolutions.co.uk/news/eu-parliament-gives-approval-to-vat-in-the-digital-age-reforms/): The European Parliament approved the Draft Council directive relating to the VAT in the Digital Age reforms (ViDA). - [UK launches public consultation on e-invoicing for B2G and B](https://fiscalsolutions.co.uk/news/uk-launches-12-week-public-consultation-on-electronic-invoicing-for-b2g-and-b2b-transactions/): HMRC and the UK Department for Business & Trade have launched a 12-week public consultation on standardising and possibly mandating B2G and B2B e-invoicing. - [Sri Lanka to apply VAT on B2C e-services](https://fiscalsolutions.co.uk/news/sri-lanka-to-apply-vat-on-b2c-e-services-from-non-resident-providers-in-april-2025/): The Inland Revenue Department of Sri Lanka will implement VAT on electronic services supplied by non-resident companies to consumers from April 2025. - [Burkina Faso introduced 10% VAT on electronic services](https://fiscalsolutions.co.uk/news/burkina-faso-introduced-10-vat-on-electronic-services-from-jan-2025/): As of 1 January 2025, Burkina Faso has introduced VAT on digital services sold to consumers. - [Botswana to apply VAT on B2C e-services](https://fiscalsolutions.co.uk/news/botswana-to-apply-vat-on-b2c-e-services-for-non-resident-providers-from-april-2025/): The Botswanan government has confirmed that it will introduce VAT on digital services provided by non-resident providers. - [Italy confirms bank guarantee requirements](https://fiscalsolutions.co.uk/news/italy-confirms-bank-guarantee-requirements-for-vat-registered-non-eu-companies-performing-intra-eu-transactions/): Italy recently published new regulations affecting non-EU resident companies engaging in intra-EU trade of goods to and from Italy. - [Slovakia considers lowering VAT Rates](https://fiscalsolutions.co.uk/news/slovakia-considers-lowering-vat-rates-and-expanding-the-reduced-vat-categories/): The Slovakian parliament is currently reviewing draft bills that will expand the list of goods eligible for the 5% reduced VAT rate. - [UPDATE: Philippines implements VAT on e-services](https://fiscalsolutions.co.uk/news/update-philippines-implements-vat-on-e-services-provided-by-non-resident-suppliers/): The Bureau of Internal Revenue (BIR) recently executed implementing regulations (Revenue Regulations 003-2025) which will introduce VAT on digital services. - [European Commission grants extension of VAT split payments](https://fiscalsolutions.co.uk/news/european-commission-grants-extension-of-vat-split-payments-in-poland-until-february-2028/): Despite deviating from Article 226 of Directive 2006/112/EC of the EU VAT Directive, Poland has been allowed to carry on using their VAT split payments regime. - [Ecuador mandates VAT registration for non-resident providers](https://fiscalsolutions.co.uk/news/ecuador-switches-to-vat-registrations-from-withholding-vat-for-non-residents-digital-service-providers/): A new law imposes VAT registration obligations for foreign providers of electronic services to consumers. - [Republic of Niger to introduce VAT on electronic services](https://fiscalsolutions.co.uk/news/republic-of-niger-to-introduce-19-vat-on-electronic-services/): The West African country of the Republic of Niger has introduced VAT on the sale of digital services to consumers. - [Norway considers e-invoicing and digital bookkeeping](https://fiscalsolutions.co.uk/news/norway-to-review-options-to-introduce-e-invoicing-and-digital-bookkeeping/): The Norwegian Ministry of Finance launched a study into the introduction of mandatory electronic invoicing for business-to-business (B2B) transactions. - [Slovakia VAT increase from 20% to 23% from 1 January 2025](https://fiscalsolutions.co.uk/news/important-reminder-slovakia-vat-increase-from-20-to-23-from-1-january-2025/): A reminder that from 1 January 2025, the standard Value Added Tax (VAT) rate in Slovakia will increase from 20% to 23%. - [REMINDER: New EU rules for virtual events from January 2025](https://fiscalsolutions.co.uk/news/reminder-new-eu-rules-for-virtual-events-from-january-2025/): From 1 January 2025, the supply of a live virtual event is taxable in the EU country where the consumer purchasing the online attendance resides. - [Switzerland’s new rules for platforms from 1 January 2025](https://fiscalsolutions.co.uk/news/switzerlands-new-rules-for-platforms-from-1-january-2025/): Switzerland’s Federal Tax Administration will impose “deemed supplier rules” from 1 January 2025 on digital platforms such as Amazon. - [Romania extends electronic invoicing to “B2C” transactions](https://fiscalsolutions.co.uk/news/romania-extends-electronic-invoicing-to-business-to-consumer-transactions-from-1-january-2025/): Romania has announced that it will extend its electronic invoicing regime (eFactura) to business-to-consumer (B2C). - [VAT Gap Report - 2022 estimate of lost EU VAT](https://fiscalsolutions.co.uk/news/vat-gap-report-2022-estimate-of-lost-eu-vat-shows-13bn-increase-from-2021/): According to the annual VAT Gap report, an estimated €89 billion in VAT revenue was lost within the European Union (EU) due to non-compliance or non-collection - [Estonia confirm mandatory B2B e-invoicing from 2027](https://fiscalsolutions.co.uk/news/estonia-confirm-mandatory-b2b-e-invoicing-from-2027/): During December 2024, the Estonian tax authorities published an update on its proposed mandatory e-invoicing rollout. - [EU Council agrees VAT in the digital age (ViDA) package](https://fiscalsolutions.co.uk/news/eu-council-agrees-vat-in-the-digital-age-vida-package/): During November the EU Council reached an agreement on new measures that will bring the EU’s Value Added Tax (VAT) rules into the digital age (ViDA). - [2025 SME Scheme sets €100k EU VAT registration threshold](https://fiscalsolutions.co.uk/news/update-2025-sme-special-scheme-introduces-pan-eu-100-000-registration-threshold-to-reduce-foreign-vat-compliance-burden/): From 1 January 2025, significant changes to the EU’s SME scheme will extend VAT registration thresholds for EU companies trading in other EU member states. - [Chile B2C Sellers and marketplaces to charge VAT checkout](https://fiscalsolutions.co.uk/news/chile-b2c-sellers-and-marketplaces-to-charge-vat-in-checkout-on-low-value-consignments-of-goods/): At the end of October, the Chilean Congress enacted the Tax Compliance Bill, introducing VAT on low-value consignments of goods being imported by consumers. - [Philippines implements VAT on e-services](https://fiscalsolutions.co.uk/news/philippines-implements-vat-on-e-services-provided-by-non-resident-suppliers/): Philippines introducing VAT on digital services provided by foreign providers to local consumers. - [Zanzibar implements VAT on e-services](https://fiscalsolutions.co.uk/news/zanzibar-implements-vat-on-e-services-provided-by-non-resident-suppliers/): Zanzibar, has introduced VAT at 15% on the supply of digital services to consumers by non-resident providers. - [Germany to introduce mandatory B2B e-invoicing and reporting](https://fiscalsolutions.co.uk/news/germany-to-introduce-mandatory-b2b-e-invoicing-and-reporting-from-january-2025/): Germany's Ministry of Finance published a new Frequently Asked Questions regarding the first phase of its e-invoicing mandate, which begins on 1 January 2025. - [Cypriot government extends VAT rate cut on essential goods](https://fiscalsolutions.co.uk/news/cypriot-government-extends-vat-rate-cut-on-essential-goods/): The Cypriot government has again extended the temporary reduction on the 5% and 19% VAT rates applied to certain essential goods until 31 December 2024. - [UPDATE: France provides guidance relating to mandatory B2B e](https://fiscalsolutions.co.uk/news/update-france-provides-guidance-relating-to-mandatory-b2b-e-invoicing/): During November 2024, the French tax authorities updated its explanatory guidelines and PDP FAQ’s for the September 2026 B2B e-invoicing launch. - [Slovakia VAT increase from 20% to 23% from 1 January 2025](https://fiscalsolutions.co.uk/news/slovakia-vat-increase-from-20-to-23-from-1-january-2025/): From 1 January 2025, the standard Value Added Tax (VAT) rate in Slovakia will increase from 20% to 23%. - [Swiss government approves an increase to the standard VAT](https://fiscalsolutions.co.uk/news/update-swiss-government-approves-an-increase-to-the-standard-vat-of-0.7/): During October, the Swiss tax authorities approved an increase to the standard VAT rate from 8.1% to 8.8%. - [2025 SME Special Scheme introduces pan-EU €100,000 registration threshold to reduce foreign VAT compliance burden](https://fiscalsolutions.co.uk/news/2025-sme-special-scheme-introduces-pan-eu-100-000-registration-threshold-to-reduce-foreign-vat-compliance-burden-1/): From 1 January 2025, significant changes to the EU’s SME scheme will see VAT registration thresholds extended for use by EU companies trading in other EU member states. This means EU companies trading as non-residents in other EU member states will not have to VAT register if their revenue is below the national threshold set in the EU country of sale, and their annual revenue across the whole of the EU does not exceed €100,000. This initiative aims to encourage more EU based SMEs to trade within the EU sing - [EU still trying to reach an agreement on VAT (ViDA) proposal](https://fiscalsolutions.co.uk/news/eu-still-trying-to-reach-an-agreement-on-vat-in-the-digital-age-vida-proposal/): EU member states’ tax experts and the president of the EU Council are reviewing compromises to the ViDA reforms to try to gain Estonia’s approval. - [UAE to introduce e-invoicing from July 2026 for B2B and B2G](https://fiscalsolutions.co.uk/news/uae-to-introduce-e-invoicing-from-july-2026-for-b2b-and-b2g-invoices/): The United Arab Emirates has updated its guidance on the July 2026 introduction of business-to-business (B2B) and business-to-government (B2G) e-invoicing. - [Foreign B2C digital services in Peru must withhold VAT](https://fiscalsolutions.co.uk/news/foreign-providers-selling-digital-services-b2c-must-withhold-general-sales-tax-and-register-for-vat-in-peru/): From 1 October 2024, the Peruvian tax authority will introduce VAT at 18% on the sale of digital services by non-resident providers to local consumers. - [UK to consult on electronic invoicing for B2G and B2B](https://fiscalsolutions.co.uk/news/uk-to-launch-public-consultation-on-electronic-invoicing-for-b2g-and-b2b-transactions/): UK to launch public consultation on electronic invoicing for B2G and B2B transactions - [Swiss government proposes 0.7% increase to standard VAT](https://fiscalsolutions.co.uk/news/swiss-government-propose-an-increase-to-the-standard-vat-of-0.7/): The Swiss tax authorities are now proposing to increase the standard VAT rate in the country from 8.1% to 8.8%. - [Netherlands increases VAT on certain supplies from Jan 2026](https://fiscalsolutions.co.uk/news/netherlands-increases-vat-rate-on-certain-supplies-from-january-2026/): Netherlands increases VAT rate on certain supplies from January 2026 - [Ukraine changes proposals to end import VAT exemption](https://fiscalsolutions.co.uk/news/update-ukraine-changes-proposals-to-end-import-vat-exemption-entirely/): Ukraine is now proposing to end VAT exemptions on the import of low value goods into the country. - [Foreign providers must register for VAT in Ethiopia](https://fiscalsolutions.co.uk/news/foreign-providers-liable-to-register-and-collect-vat-on-b2c-electronic-services-in-ethiopia/): During September 2024, the Federal Democratic Republic of Ethiopia introduced VAT on the sale of digital services by non-resident providers to local consumers. This was confirmed within VAT Proclamation 1341/2024. Previously, foreign businesses providing digital services to consumers in Ethiopia did not have to charge VAT on their sales. However, to remove the unfair advantage that this gave non-resident companies over resident providers, the Ethiopian government introduced VAT at 15% on these types of tran - [Finland standard VAT rate increase from September 2024](https://fiscalsolutions.co.uk/news/reminder-finland-standard-vat-rate-increase-from-september-2024/): The Finnish standard VAT rate will increase from 24% to 25.5% on 1 September 2024. - [Estonia to end Covid-related reduced VAT rate cuts from 1 January 2025](https://fiscalsolutions.co.uk/news/estonia-to-end-covid-related-reduced-vat-rate-cuts-from-1-january-2025/): Estonia will increase the VAT rate on the following supplies from 1 January 2025: Accommodation services from 9% to the 13% reduced VAT rate. Newspapers both digital and in print from 5% to the 9% reduced VAT rate. - [South Africa scraps low value import VAT exemption](https://fiscalsolutions.co.uk/news/south-africa-scraps-low-value-import-vat-exemption/): On 1 September 2024 the South African Revenue Service (SARS) will scrap its current import VAT exemption on low value goods. This import VAT exemption allows imports up to a value of 500 rand (approx. £21) to be cleared into South Africa VAT free, and once removed it will mean all imported goods will be subject to VAT at 15% when entering the country. The SARS hope that the removal of this exemption will eliminate the unfair advantage it gives to businesses outside of South Africa over resident providers wh - [Peru mandates 18% VAT withholding by foreign digital service providers from October 2024](https://fiscalsolutions.co.uk/news/peru-mandates-18-vat-withholding-by-foreign-digital-service-providers-from-october-2024/): From 1 October 2024, the Peruvian tax authority has confirmed that banks and credit card companies will be responsible for withholding VAT on payments for digital or intangible services by Peruvian consumers to non-resident suppliers. Peru is introducing this new tax at 18% to remove the unfair advantage that non-resident companies have over resident suppliers who charge VAT on their sales.  This will apply to many services including software, access to social networks, streaming or download of media, digit - [Ukraine proposes to lower import VAT exemption threshold to €45](https://fiscalsolutions.co.uk/news/ukraine-proposes-to-lower-import-vat-exemption-threshold-to-45/): Ukraine is proposing a reduction to the VAT exemption on the import of low value goods into the country from €150 (approx. £127) to €45 (Approx. £38). It accepted this will mean all imports above the value of €45 will be subject to VAT at 15%. The import VAT exemption allows imported goods of a low value to be imported free of VAT.   - [Cypriot government cuts VAT rate on essential goods](https://fiscalsolutions.co.uk/news/cypriot-government-cuts-vat-rate-on-essential-goods/): The Cypriot government has extended the temporary reduction on the 5% and 19% VAT rates applied to certain essential goods until 30 September 2024. - [Finland standard VAT rate increase from September 2024](https://fiscalsolutions.co.uk/news/finland-standard-vat-rate-increase-from-september-2024/): The Finnish government has confirmed that its’ standard VAT rate will increase from 24% to 25.5% from 1 September 2024. - [Estonia standard VAT rate increase from July 2025](https://fiscalsolutions.co.uk/news/estonia-standard-vat-rate-increase-from-july-2025/): Estonia’s government has announced that from 1 July 2025, it will increase the standard VAT rate from 22% to 24%. - [Simplify import VAT rules for e-commerce distance sales](https://fiscalsolutions.co.uk/news/european-parliament-proposes-to-simplify-import-vat-rules-for-e-commerce-distance-sales/): In July 2024, the European Parliament published a briefing on the proposal to simplify VAT rules for e-commerce (imports). - [Switzerland launches a consultation relating to new 2025](https://fiscalsolutions.co.uk/news/switzerland-launches-a-public-consultation-relating-to-new-2025-marketplace-vat-deemed-supplier-rules/): Switzerland’s Federal Tax Administration launched a public consultation on its’ plan to impose deemed supplier rules from 1 January 2025. - [Finland proposes changes to its reduced VAT rates](https://fiscalsolutions.co.uk/news/finland-proposes-changes-to-its-reduced-vat-rates/): The Finnish government recently released a draft bill proposing an increase on the reduced VAT rates applied to specific supplieS. - [Slovenia to introduce mandatory e-invoicing for B2B](https://fiscalsolutions.co.uk/news/slovenia-to-introduce-mandatory-e-invoicing-for-b2b-transactions-from-june-2026/): The Slovenian government is proposing to introduce a mandatory electronic invoicing regime for B2B transactions, from 1 January 2026. - [Spain confirms delays to the introduction of its B2B](https://fiscalsolutions.co.uk/news/spain-confirms-further-delays-to-the-introduction-of-its-mandatory-b2b-e-invoicing-regime/): The Spanish government’s plan to introduce a mandatory e-invoicing regime from July 2025 for Spanish resident businesses has been set back and will likely be introduced from 1 January 2026. Currently, the Spanish tax authority receives transactional information from certain taxpayers through the Suministro Inmediato de Información (SII). However, this platform only applies to large enterprises with an annual turnover of over €6 million, and companies affected are only required to upload invoices to the tax - [Luxembourg cuts VAT on artwork to 8% from January 2025](https://fiscalsolutions.co.uk/news/luxembourg-cuts-vat-on-artwork-to-8-from-january-2025/): Luxembourg confirmed that from 1 January 2025, it will reduce the VAT rate on works of art from 17% to 8%. - [Poland releases e-invoice implementation update (KSeF)](https://fiscalsolutions.co.uk/news/poland-releases-e-invoice-implementation-update-ksef/): The Polish Ministry of Finance has confirmed that mandatory KSeF e-invoicing regime in the country will be introduced for: Large taxpayers with a turnover of over PLN 200 million (approx. £39m) per annum in the previous year, from 1 February 2026. All other taxpayers from 1 April 2026. When introduced, KSeF will require resident and non-resident companies that have a fixed establishment in Poland, that sell to VAT registered businesses in the country, to declare sales to the Polish tax authorities via a ne - [2025 SME Special Scheme](https://fiscalsolutions.co.uk/news/2025-sme-special-scheme-introduces-pan-eu-100-000-registration-threshold-to-reduce-foreign-vat-compliance-burden/): To reduce the VAT compliance burden for SMEs in the EU, many member states have implemented an SME Scheme. - [Romania to extend mandatory e-invoicing to B2C transactions](https://fiscalsolutions.co.uk/news/romania-proposes-to-extend-mandatory-e-invoicing-to-b2c-transactions-from-january-2025/): Romania has announced plans to extend its electronic invoicing regime to B2C transactions for both VAT-registered resident and non-resident businesses. - [Senegal introduce VAT on e-services for non-residents sales](https://fiscalsolutions.co.uk/news/senegal-to-introduce-vat-on-e-services-for-non-resident-providers/): The Ministry of Finance has confirmed that it will introduce VAT at 18% on the sale of digital services by non-resident providers to local consumers from 1 July - [EU again fail to reach an agreement on ViDA proposal](https://fiscalsolutions.co.uk/news/eu-again-fail-to-reach-an-agreement-on-vat-in-the-digital-age-vida-proposal/): During June the ECOFIN again failed to reach agreement on the EU Commission’s proposed changes to VAT rules included as part of the ViDA initiative. - [Greece makes VAT rate reduction permanent on key supplies](https://fiscalsolutions.co.uk/news/update-greece-makes-vat-rate-reduction-permanent-on-key-supplies/): Ministry of Finance has announced that the reduced VAT rate of 13% on public transport, coffee supplies and deliveries of non-alcoholic drinks will be permanent - [Latvia to introduce mandatory e-invoicing](https://fiscalsolutions.co.uk/news/latvia-to-introduce-mandatory-e-invoicing-for-b2b-and-b2g-transactions-from-january-2026/): Latvia’s Ministry of Finance is proposing to introduce a mandatory electronic invoicing regime for B2B and B2G transactions, from 1 January 2026. - [Colombia issues changes to SEP rules](https://fiscalsolutions.co.uk/news/colombia-issues-changes-to-significant-economic-presence-rules-that-will-lead-to-taxation-of-foreign-companies/): At the beginning of this year Colombia implemented changes to its Significant Economic Presence (SEP) rules for foreign companies. - [Sri Lanka to apply VAT on B2C e-services for non-residents](https://fiscalsolutions.co.uk/news/sri-lanka-proposing-to-apply-vat-on-b2c-e-services-for-non-resident-providers-from-march-2025/): The Inland Revenue Department of Sri Lanka is planning to implement VAT on electronic services supplied by non-resident companies to consumers from March 2025. - [EU yet to reach an agreement on VAT in the digital age](https://fiscalsolutions.co.uk/news/eu-yet-to-reach-an-agreement-on-vat-in-the-digital-age-vida-proposal/): During May 2024, the Economic and Financial Affairs Council (ECOFIN) failed to reach agreement on the EU Commission’s proposed changes to VAT rules. - [Lithuania considers a standard VAT rate increase](https://fiscalsolutions.co.uk/news/lithuania-considers-a-standard-vat-rate-increase/): Lithuania is currently considering whether to increase its standard VAT rate by 1% from 21% to 22%. - [Brazil introduces indirect tax on digital service providers](https://fiscalsolutions.co.uk/news/brazil-to-introduce-indirect-taxes-on-digital-service-providers-from-2026/): From 2026, Brazil will introduce two new indirect taxes that will replace its old tax system. These two new taxes will work in a similar way to VAT. - [Ireland increases the VAT rate applied on cultural services](https://fiscalsolutions.co.uk/news/ireland-increases-the-vat-rate-applied-on-accommodation-and-cultural-services-to-21/): The Irish government has confirmed that from 1 January 2026, the VAT rate will increase from 9% to the standard rate of 21%. - [UPDATE: Philippines proposes to apply VAT on e-services](https://fiscalsolutions.co.uk/news/update-philippines-proposes-to-apply-vat-on-e-services/): During May 2024, the Philippines Senate voted in favour in a second reading of Bill No. 2528 imposing VAT on foreign providers of digital services to consumers. - [Cyprus extends VAT rate cuts on essential goods](https://fiscalsolutions.co.uk/news/cyprus-extends-vat-rate-cuts-on-essential-goods/): The Cypriot government has further extended the temporary reduction on the 5% and 19% VAT rates applied to certain essential goods until 30 June 2024. - [Finland confirms standard VAT rate rise to 25.5%](https://fiscalsolutions.co.uk/news/finland-confirms-standard-vat-rate-rise-to-25.5/): The Finnish government has confirmed that its standard VAT rate will increase from 24% to 25.5% and is expected to come into effect sometime in 2024. - [Swiss government considers increasing the standard VAT rates](https://fiscalsolutions.co.uk/news/swiss-government-considers-increasing-the-standard-vat-rate-by-a-further-0.4/): The Swiss tax authorities are proposing a further increase to the standard VAT rate in the country from 8.1% to 8.5%. - [UPDATE: Romania postpones e-invoicing sanctions until 31 May](https://fiscalsolutions.co.uk/news/update-romania-postpones-e-invoicing-sanctions-until-31-may-2024/): Romanian tax authorities have confirmed that the "no sanction period" relating to companies failing to issue electronic invoices has been extended. - [Thai government to remove import VAT exemption on goods](https://fiscalsolutions.co.uk/news/thai-government-to-remove-import-vat-exemption-on-low-value-goods/): Following a mandate from Prime Minister Srettha Thavisin, the Thai government confirmed that it will remove the low value goods Import VAT exemption on goods. - [Poland releases e-invoice update (KSeF)](https://fiscalsolutions.co.uk/news/poland-releases-e-invoice-update-ksef/): The Polish Ministry of Finance has confirmed a 2026 launch of the mandatory KSeF e-invoicing regime in the country. - [Greece proposes a new domestic reverse charge mechanism](https://fiscalsolutions.co.uk/news/greece-proposes-a-new-domestic-reverse-charge-mechanism-to-prevent-vat-fraud-on-construction-services/): During April, Greece’s Ministry of Finance put forward a proposal to introduce a domestic reverse charge on the sale of constructions services in the country. - [B2C sellers and marketplaces to charge VAT at checkouts](https://fiscalsolutions.co.uk/news/b2c-sellers-and-marketplaces-to-charge-vat-at-checkout-on-low-value-consignments-of-goods/): Chile is proposing to extend its VAT system to impose VAT on low-value consignments of goods being imported directly by consumers. - [EC publishes VAT compliance gap due to MTIC fraud report](https://fiscalsolutions.co.uk/news/european-commission-publishes-vat-compliance-gap-due-to-missing-trader-intra-community-fraud-report/): The European Commission (EC) has published a report attempting to analyse missing trader intra-community (MTIC) VAT fraud. - [DRC introduces VAT on e-services for non-resident providers](https://fiscalsolutions.co.uk/news/democratic-republic-of-congo-introduces-vat-on-e-services-for-non-resident-providers/): In January 2024, the Democratic Republic of Congo introduced VAT at 16% on the sale of digital services by non-resident providers to local consumers. - [ZM introduces VAT on e-services for non-resident providers](https://fiscalsolutions.co.uk/news/zambia-introduces-vat-on-e-services-for-non-resident-providers/): During February 2024, the Zambian tax authority published the VAT (Cross Border Electronic Services) Regulations, 2024. - [PL confirms zero VAT rate on basic foodstuffs ends 31 March](https://fiscalsolutions.co.uk/news/poland-confirms-that-the-zero-vat-rate-on-basic-foodstuffs-will-come-to-an-end-on-31-march-2024/): The Polish Ministry of Finance confirmed that the two-year VAT rate cut on basic foodstuffs will end on 31 March 2024. - [UK VAT registration threshold will increase to £90k](https://fiscalsolutions.co.uk/news/uk-vat-registration-threshold-for-resident-sellers-will-increase-to-90-000/): From 1 April 2024, the annual UK VAT registration threshold will see its first increase in over eight years from £85,000 to £90,000. - [Polish Ministry of Finance issues new KSeF regulations](https://fiscalsolutions.co.uk/news/polish-ministry-of-finance-issues-new-national-e-invoice-system-ksef-regulations/): The Polish Ministry of Finance recently announced a round of nine public consultations ahead of a newly proposed July 2025 launch date of KSeF B2B e-invoicing. - [Morocco introduces VAT on e-services for non-residents](https://fiscalsolutions.co.uk/news/morocco-introduces-vat-on-e-services-for-non-resident-providers/): From 14 February 2024, Morocco introduced VAT at 20% on the sale of digital services by non-resident providers to local consumers. - [UPDATE: Belgium confirms the introduction of B2B e-invoicing](https://fiscalsolutions.co.uk/news/update-belgium-confirms-the-introduction-of-mandatory-b2b-e-invoicing-from-january-2026/): In February 2024, the Bill legislating for mandatory B2B e-invoicing in Belgium was gazetted, confirming the introduction of an e-invoicing regime from 1 Jan. - [Senegal introduce VAT on e-services for non-residents](https://fiscalsolutions.co.uk/news/senegal-introduce-vat-on-e-services-for-non-resident-providers/): During the 2023 Finance Act, the Ministry of Finance confirmed that from 1 April 2024 it will introduce VAT on digital services by non-resident providers. - [Botswana introduce VAT on e-services for non-residents](https://fiscalsolutions.co.uk/news/botswana-introduce-vat-on-e-services-for-non-resident-providers/): The Botswanan government confirmed in its 2024 Budget that it will introduce VAT on the sale of digital services by non-resident providers to local consumers. - [UAE proposes the introduction of an ‘e-billing system'](https://fiscalsolutions.co.uk/news/update-uae-proposes-the-introduction-of-a-mandatory-e-billing-system-from-july-2026/): The United Arab Emirates (UAE) Ministry of Finance (MoF) has provided further detail on its proposed implementation of a new mandatory real-time payment. - [Kuwait government rules out the implementation of VAT](https://fiscalsolutions.co.uk/news/kuwait-government-rules-out-the-implementation-of-vat/): Kuwait’s government has recently confirmed a new four-year plan, which rules out the implementation of VAT before 2028. - [Latvia to introduce mandatory e-invoicing for B2B and B2G](https://fiscalsolutions.co.uk/news/latvia-to-introduce-mandatory-e-invoicing-for-b2b-and-b2g-transactions-from-2025/): Latvia’s Ministry of Finance is proposing to introduce a mandatory electronic invoicing regime for business to business and business to government transactions. - [North Macedonia applies VAT on e-services from January 2024](https://fiscalsolutions.co.uk/news/north-macedonia-applies-vat-on-e-services-provided-by-non-resident-companies-from-january-2024/): From 1 January 2024, the North Macedonian Ministry of Finance imposed VAT on digital and telecommunications services provided by non-resident providers. - [Sri Lanka proposing to apply VAT on e-services](https://fiscalsolutions.co.uk/news/sri-lanka-proposing-to-apply-vat-on-e-services-for-non-resident-providers/): The Inland Revenue Department in Sri Lanka is proposing to introduce VAT on the supplies of electronic services by non-resident companies. - [Finland reproposes revision of reduced VAT rates](https://fiscalsolutions.co.uk/news/finland-reproposes-revision-of-reduced-vat-rates/): The Finnish government has reproposed classifications of its reduced VAT-rated supplies in its 2024 budget proposals. - [Spain extends zero VAT rating on essential items to June](https://fiscalsolutions.co.uk/news/spain-extends-zero-vat-rating-on-essential-food-items-to-june-2024/): The Spanish government confirmed it will continue to apply the temporary zero rate of VAT to basic foodstuffs up until at least 30 June 2024. - [Estonia standard VAT rate increase from January 2024](https://fiscalsolutions.co.uk/news/estonia-standard-vat-rate-increase-from-january-2024/): From 1 January 2024, Estonia increased its standard VAT rate from 20% to 22%. There was no change to the reduced VAT rates of 9% and 5%. - [Bulgaria extends the 9% VAT rate reduction on certain goods](https://fiscalsolutions.co.uk/news/update-bulgaria-extends-the-vat-rate-reduction-of-9-on-certain-goods-and-services/): The Bulgarian tax authorities have confirmed that the VAT rate applicable on some goods and services will remain at 9% until the end of 2024. - [Switzerland and Lichtenstein to implement VAT rise](https://fiscalsolutions.co.uk/news/switzerland-and-lichtenstein-to-implement-vat-rise-for-1-january-2024/): From 1 January 2024, the Swiss tax authorities will increase the VAT rates in the country. - [Malaysia release guide relating to the new low-value imports](https://fiscalsolutions.co.uk/news/malaysia-release-a-guide-relating-to-the-new-low-value-import-sales-tax-rules-being-implemented-from-1-january-2024/): The Royal Malaysian Customs Department issued further information relating to the implementation of sales tax on low value goods in the country. - [Romania proposes to introduce mandatory B2B e-invoicing](https://fiscalsolutions.co.uk/news/romania-releases-a-guide-relating-to-its-mandatory-b2b-e-invoicing-for-all-vat-registered-businesses/): The Romanian Ministry of Finance has issued a user guidance manual for the new mandatory e-invoicing regime being introduced from next month. - [Philippines proposing to apply VAT on e-services](https://fiscalsolutions.co.uk/news/philippines-proposing-to-apply-vat-on-e-services-from-march-2024/): From 1 March 2024, the Philippines House of Representatives are proposing to introduce VAT on the supplies of electronic services by non-resident companies. - [Poland approves extension of VAT rate cuts](https://fiscalsolutions.co.uk/news/polish-council-of-ministers-approves-further-extension-of-vat-rate-cuts-on-basic-foodstuffs/): Despite a decrease in inflation, the Polish Council of Ministers have approved a further extension of the basic foodstuffs VAT rate cut to 30 June 2024. - [Czech government agree to merge the current reduced VAT rate](https://fiscalsolutions.co.uk/news/update-czech-government-agree-to-merge-the-current-10-and-15-reduced-vat-rates/): The Czech government has agreed to consolidate the country’s two reduced VAT rates of 10% and 15% into a consolidated rate of 12%. - [Ireland reduces the VAT rate for electronic and audio books](https://fiscalsolutions.co.uk/news/ireland-reduces-the-vat-rate-for-electronic-and-audio-books/): From 1 January 2024, the Irish tax authorities will reduce the VAT rate applied to electronic and audio books to the zero rate. - [Luxembourg to increase VAT rates from January 2024](https://fiscalsolutions.co.uk/news/luxembourg-to-increase-vat-rates-from-january-2024/): From 1 January 2024, Luxembourg will increase the standard rate of VAT (which applies to most goods and services supplied in the country) from 16% to 17%. - [Luxembourg implements reverse charge on B2B sales of mobiles](https://fiscalsolutions.co.uk/news/luxembourg-implements-a-reverse-charge-on-b2b-sales-of-mobile-phones-tablets-and-other-high-value-goods/): Luxembourg will introduce a domestic reverse charge on supplies of mobile and smartphones, games consoles, computer tablets, laptops & certain precious metals. - [Malaysia to impose sales tax on low-value imports](https://fiscalsolutions.co.uk/news/malaysia-to-impose-sales-tax-on-low-value-imports-from-january-2024/): The Malaysian government recently confirmed that it will remove the Import Sales Tax exemption on goods bought from outside the country. - [Romania increases the VAT rate applied to sugary foods](https://fiscalsolutions.co.uk/news/romania-increases-the-vat-rate-applied-to-sugary-foods-restaurant-catering-and-cultural-services/): From 1 January 2024, the Romanian tax authorities will increase the VAT rate from 9% to 19% on certain items. - [UK Parliament flags ViDA and Customs IOSS reforms](https://fiscalsolutions.co.uk/news/uk-parliament-flags-vida-and-customs-ioss-reforms-as-potential-friction-for-uk-businesses-trading-in-the-eu/): The European Scrutiny Committee has published concerns around the EU’s ViDA 2025 proposals to make the IOSS mandatory and to remove the low value threshold. - [HMRC launches an e-commerce VAT split payment project](https://fiscalsolutions.co.uk/news/hmrc-launches-an-e-commerce-vat-split-payment-project/): In October, HMRC initiated an 18-month proof-of-concept project relating to e-commerce payment processes. - [Ireland holds consultation to modernise VAT invoicing](https://fiscalsolutions.co.uk/news/ireland-holds-a-public-consultation-to-modernise-vat-invoicing-and-reporting-system/): The Irish Department of Finance is holding a public consultation to review the modernisation of the country’s VAT invoicing and reporting system. - [Belgium confirms introduction of mandatory B2B e-invoicing](https://fiscalsolutions.co.uk/news/belgium-confirms-introduction-of-its-mandatory-b2b-e-invoicing-from-january-2026/): The Belgian Council of Ministers released new draft legislation confirming it will introduce a mandatory e-invoicing regime from 1 January 2026. - [UAE implements reverse charge on B2B sales of Mobile phones](https://fiscalsolutions.co.uk/news/uae-implements-reverse-charge-on-b2b-sales-of-mobile-phones-and-tablets/): The UAE has introduced a domestic reverse charge on supplies of mobile and smart phones, computer devices and computer tablets. - [Malta introduces a new reduced VAT rate of 12%](https://fiscalsolutions.co.uk/news/malta-introduces-a-new-reduced-vat-rate-of-12/): Malta has introduced a new reduced VAT rate of 12% and the new rate applies from 6 October 2023 when the change was gazetted. - [VAT Gap Report - 2021 lost EU VAT shows €38bn improvement](https://fiscalsolutions.co.uk/news/vat-gap-report-2021-estimate-of-lost-eu-vat-shows-38bn-improvement/): An estimated €61 billion in VAT revenue was lost within the European Union (EU) due to non-compliance or non-collection of VAT during the year 2021. - [Sierra Leone GST obligations - non-resident digital supplier](https://fiscalsolutions.co.uk/news/sierra-leone-confirms-gst-obligations-for-non-resident-suppliers-of-digital-services/): Sierra Leone has imposed a Goods and Service Tax (GST) at 15% on the sale of electronic services by non-resident suppliers to consumers in the country. - [Côte d’Ivoire launches simplified VAT compliance regime](https://fiscalsolutions.co.uk/news/cote-divoire-launches-simplified-vat-compliance-regime-for-non-resident-sellers/): Ivory Coast has launched a new simplified registration process and VAT reporting portal for non-resident businesses selling electronic services to consumers. - [Singapore guidance on the increase of its GST rate](https://fiscalsolutions.co.uk/news/singapore-issues-new-guidance-on-the-increase-of-its-gst-rate/): The Singaporean Inland Revenue Authority has issued new guidance on the implementation of its GST rise to 9% from 1 January 2024. - [Romania proposes to introduce mandatory B2B e-invoicing](https://fiscalsolutions.co.uk/news/romania-proposes-to-introduce-mandatory-b2b-e-invoicing-for-all-vat-registered-businesses/): Romania has published draft legislation for the launch of e-invoicing for B2B transactions for VAT-registered resident non-resident businesses from 1 Jan 2024 - [Cypriot government extends VAT rate cuts on essential goods](https://fiscalsolutions.co.uk/news/cypriot-government-extends-vat-rate-cuts-on-essential-goods/): The Cypriot government has extended the temporary reduction on the 5% and 19% VAT rates applied to certain essential goods. - [Portuguese government extends VAT rate cuts on basic food](https://fiscalsolutions.co.uk/news/portuguese-government-extends-vat-rate-cuts-on-basic-food-items/): The Portuguese government has extended the temporary reduction on basic food items from 7% to 0% until 31 March 2024. - [Ireland increases the VAT rate on hospitality services](https://fiscalsolutions.co.uk/news/ireland-increases-the-vat-rate-applied-on-hospitality-services-to-13.5/): The Irish government has confirmed that from 1 October 2023, the VAT rate applied to hospitality, hotels, and tourism will rise from 9% to 13.5%. - [European parliament publishes study on trade agreement](https://fiscalsolutions.co.uk/news/european-parliament-publishes-study-on-trade-and-cooperation-agreement-between-the-european-union-and-united-kingdom/): The European Parliamentary Research Service (EPRS) has recently released a comprehensive study evaluating the EU UK TCA. - [France delays introduction of mandatory B2B e-invoicing](https://fiscalsolutions.co.uk/news/update-france-delays-introduction-of-mandatory-b2b-e-invoicing-and-reporting-by-at-least-12-months/): France delays introduction of mandatory B2B e-invoicing and reporting by at least 12 months with no new deadline set. - [Belgium confirms delays on mandatory e-invoicing](https://fiscalsolutions.co.uk/news/belgium-confirms-delays-on-the-introduction-of-its-mandatory-b2b-e-invoicing/): The Belgian government’s plan to introduce a mandatory e-invoicing regime will now likely be introduced from 1 January 2026. - [Spain confirms delays to mandatory e-invoicing regime](https://fiscalsolutions.co.uk/news/spain-confirms-likely-delays-on-the-introduction-of-its-mandatory-b2b-e-invoicing-regime/): The Spanish government’s plan to introduce a mandatory e-invoicing regime will now likely be introduced from 1 January 2025. - [Eu Parliament proposes changes to the Commissions’ reforms](https://fiscalsolutions.co.uk/news/european-parliament-proposes-changes-to-the-commissions-reforms/): The EU Parliament proposed 251 amendments to the European Commission’s VAT in the Digital Age (ViDA) reforms. - [Switzerland to introduce new VAT compliance changes](https://fiscalsolutions.co.uk/news/switzerland-to-introduce-new-vat-compliance-changes-from-1-january-2025/): The Swiss parliament has approved a revision of its VAT law, which will take effect from January 2025. - [Germany proposes to introduce mandatory B2B e-invoicinG](https://fiscalsolutions.co.uk/news/germany-proposes-to-introduce-mandatory-b2b-e-invoicing-and-reporting-from-january-2026/): Germany is proposing the introduction of a new mandatory real-time invoice-reporting regime for resident businesses. - [EU revenue figures point to a successful implementation](https://fiscalsolutions.co.uk/news/eu-e-commerce-package-eu-revenue-figures-point-to-a-successful-implementation/): The European Commission has published statistics showing VAT revenue collected during 2022 from the EU e-commerce packages. - [UAE proposes a mandatory ‘e-billing system'](https://fiscalsolutions.co.uk/news/uae-proposes-the-introduction-of-a-mandatory-e-billing-system-from-july-2025/): From July 2025, the UAE Ministry of Finance is proposing to implement a new mandatory real-time payment and e-invoicing regime for B2B transactions. - [Uganda introduces a new digital service turnover tax](https://fiscalsolutions.co.uk/news/uganda-introduces-a-new-digital-service-turnover-tax-on-income-generated-by-non-resident-companies/): On 1 July 2023, Uganda introduced a new 5% levy on gross digital services income received by non-resident providers from local consumers. - [ECJ judgement on the VAT treatment of travel agents supplies](https://fiscalsolutions.co.uk/news/ecj-judgement-on-the-vat-treatment-of-travel-agents-supplies-of-hotel-accommodation/): The European Court of Justice (ECJ) has made its judgement in the case C-108/22. - [Switzerland to introduce deemed supplier rules from Jan 25](https://fiscalsolutions.co.uk/news/switzerland-to-introduce-deemed-supplier-rules-for-online-marketplaces-from-january-2025/): Switzerland will introduce deemed supplier rules, which will require online marketplaces to charge, collect and remit VAT on sales of low-value imported goods. - [Finland proposes to amend reduced-rated VAT rates](https://fiscalsolutions.co.uk/news/finland-proposes-to-amend-reduced-rated-vat-rates/): During June 2023, the Finnish government proposed to reclassify many reduced VAT-rated supplies - [Cyprus to introduce a VAT rate of 3% using new EU freedoms](https://fiscalsolutions.co.uk/news/cyprus-to-introduce-a-vat-rate-of-3-using-the-new-eu-freedoms-on-reduced-vat-rates/): The Cypriot government has proposed the introduction of a new reduced VAT rate of 3% on certain supplies - [Liechtenstein VAT rise to shadow Switzerland](https://fiscalsolutions.co.uk/news/liechtenstein-vat-rise-to-shadow-switzerland/): Liechtenstein has confirmed that it will follow Switzerland’s lead and raise its VAT rates from 1 January 2024 - [REMINDER: Jersey to apply GST on e-commerce supplies](https://fiscalsolutions.co.uk/news/reminder-jersey-to-apply-gst-on-e-commerce-supplies-from-july-2023/): From 1 July 2023, Jersey will impose a Goods and Services Tax (GST) on the sales of e-commerce goods and services - [Czech Republic propose merging 10% and 15% reduced VAT rates](https://fiscalsolutions.co.uk/news/czech-republic-propose-merging-current-10-and-15-reduced-vat-rates/): The Czech government is proposing to merge the country’s two reduced VAT rates of 15% and 10%, and if accepted, these rates would be merged into a single rate. - [UPDATE: Poland releases e-invoice update (KSeF)](https://fiscalsolutions.co.uk/news/update-poland-releases-e-invoice-update-ksef/): The latest draft law for the introduction of mandatory e-invoicing in Poland was published on 17 March 2023 and confirmed a delayed launch date of July 2024. - [HMRC closes old VAT return filing portal after MTD](https://fiscalsolutions.co.uk/news/hmrc-closes-old-vat-return-filing-portal-as-mtd-filings-become-compulsory/): During May 2023, HMRC closed its manual VAT return submission portal which was used by businesses to manually input VAT return figures - [VAT obligations for foreign digital service firms in Benin](https://fiscalsolutions.co.uk/news/benin-confirms-vat-obligations-for-foreign-digital-service-providers/): The West African country of Benin has imposed VAT at 18% on the sale of electronic services by non-resident suppliers to consumers in the country - [EU Proposal could see the end of the €150 duty threshold](https://fiscalsolutions.co.uk/news/proposal-for-eu-customs-reform-could-see-the-end-of-the-150-duty-threshold-and-changes-to-the-ioss/): The European Commission has proposed what it has called “its most ambitious and comprehensive reform of the EU Customs Union since its establishment in 1968”. - [EU member states to implement new reporting regulations](https://fiscalsolutions.co.uk/news/eu-member-states-to-implement-new-reporting-regulations-on-payment-service-providers-from-2024/): From 1 January 2024, EU member states will start to impose reporting requirements on payment services providers (PSP’s) relating to their sellers’ activities. - [EC quick fixes to the existing e-commerce VAT regime](https://fiscalsolutions.co.uk/news/european-commission-proposes-2024-quick-fixes-to-the-existing-e-commerce-vat-regime/): From 2025, the proposed introduction of ViDA could mean the extension of the One Stop Shop (OSS) e-commerce single EU VAT registration many other supplies. - [New Estonian government proposes a 2% standard VAT rise](https://fiscalsolutions.co.uk/news/new-estonian-coalition-government-propose-a-2-standard-vat-rate-rise/): During April 2023, the new Estonian parliament proposed a rise in its VAT rates to improve the country's financial situation. - [Spain extends basic food VAT zero rating until June 2023](https://fiscalsolutions.co.uk/news/spain-extends-basic-food-vat-zero-rating-until-june-2023/): The Spanish government confirmed it will continue to apply the zero rate of VAT to basic foodstuffs up until 30 June 2023. - [South Africa introduces VAT registration exception](https://fiscalsolutions.co.uk/news/south-africa-introduces-vat-registration-exception-for-foreign-providers-of-digital-services/): The South African Revenue Service has confirmed that some foreign traders who supply electronic services to customers can avoid registering for VAT - [Bosnia and Herzegovina VAT reminder for digital services](https://fiscalsolutions.co.uk/news/bosnia-and-herzegovina-vat-reminder-for-foreign-providers-selling-digital-services/): Bosnia and Herzegovina has recently sought to remind non-resident suppliers of electronic services that they have a VAT registration requirement. - [Palau confirms GST obligation for digital services suppliers](https://fiscalsolutions.co.uk/news/palau-confirms-gst-obligations-for-non-resident-suppliers-of-digital-services/): From 1 January 2023, Palau introduced Goods and Service Tax at a new rate of 10% - [Slovakia cuts VAT rate applied to certain services](https://fiscalsolutions.co.uk/news/slovakia-permanently-cuts-the-vat-rate-applied-to-accommodation-and-hospitality-services/): From 1 April 2023, the Slovak Republic permanently reduced the VAT rate from 20% to 10% on particular supplies. - [Aruba confirms tax obligations for foreign digital services](https://fiscalsolutions.co.uk/news/aruba-confirms-turnover-tax-obligations-for-foreign-digital-service-providers/): Aruba has confirmed that from 1 January 2023, turnover tax at 7% was imposed on the sale of electronic services by non-resident suppliers to consumers. - [Brexit: UK and EU agree on major changes to the NI protocol](https://fiscalsolutions.co.uk/news/brexit-uk-and-eu-agree-on-major-changes-to-the-northern-ireland-protocol-windsor-framework/): The UK and EU governments adopted a new agreement that will mean changes to the Northern Ireland Protocol, keeping them in the single market and customs union. - [Switzerland to eliminate distance selling](https://fiscalsolutions.co.uk/news/switzerland-prepares-to-join-eu-in-eliminating-distance-selling-threshold/): From January 2024, Switzerland plans to follow the EU by removing the distance selling threshold. - [Israel introduces VAT on B2C e-services sales from Jan 2024](https://fiscalsolutions.co.uk/news/israel-to-introduce-vat-on-foreign-b2c-e-services-sales-from-jan-2024/): From 1 January 2024, the Israeli government plans to impose a VAT charge of 17% on the sales of e-services to consumers by non-resident businesses. - [Malaysia postpones imposing sales tax on low-value imports](https://fiscalsolutions.co.uk/news/malaysia-postpones-imposing-sales-tax-on-low-value-imports/): The Malaysian government recently announced that reforms to remove the Import Sales Tax exemption on goods bought from outside the country have been suspended. - [UPDATE: Greece extends VAT rate reduction on key supplies](https://fiscalsolutions.co.uk/news/update-greece-extends-vat-rate-reduction-on-key-supplies/): The Greek tax authorities have confirmed that the VAT rate reduction on key supplies will remain. - [Croatian consultation on B2B e-invoicing underway](https://fiscalsolutions.co.uk/news/croatian-consultation-on-b2b-e-invoicing-underway/): The Croatian tax authority is proposing to implement e-invoicing on transactions undertaken between VAT registered companies in the country. - [HMRC publishes simplified VAT guidance for overseas sellers](https://fiscalsolutions.co.uk/news/hmrc-publishes-simplified-vat-guidance-for-overseas-sellers/): HM Revenue and Customs (HMRC) has published simplified VAT guidance for overseas sellers, with a translation aimed at Chinese retailers that sell goods online. - [IOSS Intermediary UK](https://fiscalsolutions.co.uk/news/does-a-uk-business-need-an-ioss-intermediary-when-selling-to-the-eu/): Looking for an IOSS intermediary in the UK? Our expert team can help you comply with the new VAT rules for e-commerce in the EU. Contact us today. - [France to introduce mandatory B2B e-invoicing and reporting](https://fiscalsolutions.co.uk/news/update-france-to-introduce-mandatory-b2b-e-invoicing-and-reporting/): France’s General Directorate of Public Finance has published further technical guidance relating to the July 2024 launch of its mandatory B2B e-invoicing regime - [Singapore to increase its GST rate to 9% from Jan 2024](https://fiscalsolutions.co.uk/news/singapore-to-increase-its-gst-rate-to-9-from-jan-2024/): The Singaporean parliament has confirmed that the country's Goods and Services Tax (GST) rate will rise from 8% to 9% from 1 January 2024. - [Spain reduces the scope of the use and enjoyment rule](https://fiscalsolutions.co.uk/news/spain-reduces-the-scope-of-the-use-and-enjoyment-rule/): In January 2023, Spain amended its VAT law relating to "use and enjoyment rules" applied to professional services in the country. - [Egypt's simplified VAT for sellers of digital services](https://fiscalsolutions.co.uk/news/egypt-to-launch-simplified-vat-registration-for-non-resident-companies-selling-digital-services/): From 1 May 2023, Egypt will launch a new simplified registration process and VAT reporting portal for non-resident businesses selling electronic services - [Croatia adopts the euro from 1 January 2023](https://fiscalsolutions.co.uk/news/croatia-adopts-the-euro-from-1-january-2023/): From 1 January 2023, Croatia became the 20th country to adopt the Euro currency. - [Spain introduces VAT reverse charge on gold and electronics](https://fiscalsolutions.co.uk/news/spain-introduces-vat-reverse-charge-on-gold-mobile-phones-and-electronics/): To prevent VAT fraud, Spain has introduced a domestic reverse charge on supplies of gold, mobile phones, game consoles, laptops, and computer tablets. - [Bulgaria introduces bad debt relief to fall in line with EU](https://fiscalsolutions.co.uk/news/bulgaria-introduces-bad-debt-relief-to-fall-in-line-with-eu/): Bulgaria has amended its VAT Act to provide relief on bad debts from 1 January 2023. - [Jersey to apply GST on e-commerce supplies from July 2023](https://fiscalsolutions.co.uk/news/update-jersey-to-apply-gst-on-e-commerce-supplies-from-july-2023/): From 1 July 2023, Jersey has confirmed that it will impose (GST) on the sales of e-commerce goods and services made to consumers by non-resident businesses. - [Suriname introduces VAT on non-resident digital services](https://fiscalsolutions.co.uk/news/suriname-introduces-vat-on-non-resident-digital-services/): From 1 January 2023, the South American country of Suriname has imposed VAT on the sale of electronic services to local consumers by non-resident businesses. - [Romania increases the VAT rate on hospitality services by 9%](https://fiscalsolutions.co.uk/news/romania-increases-the-vat-rate-applied-on-hospitality-and-hotel-services-to-9/): From 1 January 2023, the Romanian government has confirmed that it will increase the VAT rate applied to accommodation and catering services. - [Greece extends VAT rate reduction on key supplies](https://fiscalsolutions.co.uk/news/greece-extends-vat-rate-reduction-on-key-supplies/): The Greek tax authorities have confirmed that the VAT rate reduction on key supplies will remain in force until 30 June 2023. - [Malaysia to impose sales tax on low-value imports](https://fiscalsolutions.co.uk/news/malaysia-to-impose-sales-tax-on-low-value-imports/): The Malaysian government has passed its Sales Tax Bill, meaning from 1 January 2023 the Import Sales Tax exemption on goods bought from abroad will be removed. - [Polish government approves extension of VAT rate cuts](https://fiscalsolutions.co.uk/news/polish-council-of-ministers-approve-further-extension-of-vat-rate-cuts/): Due to rising inflation, the Polish Council of Ministers have approved the extension of various food and fuel VAT rate cuts to be extended to 30 June 2023. - [European Commission to modernise the VAT system](https://fiscalsolutions.co.uk/news/european-commission-propose-measures-to-modernise-the-vat-system/): The European Commission proposed to revamp the EU VAT system by implementing a series of digital measures. - [French VAT to become payable upon payment of a deposit](https://fiscalsolutions.co.uk/news/french-vat-to-become-payable-upon-payment-of-a-deposit/): From 1 January 2023, VAT will be payable as soon as an advance payment for goods or a deposit is paid within France. - [EU 2020 VAT gap study shows a loss of €93 billion](https://fiscalsolutions.co.uk/news/european-union-2020-vat-gap-study-shows-a-loss-of-93-billion/): An estimated €93 billion in VAT revenue was lost within the European Union (EU) due to non-compliance or non-collection during the year 2020. - [Azerbaijan B2B e-services VAT simplification](https://fiscalsolutions.co.uk/news/azerbaijan-b2b-e-services-vat-simplification/): Azerbaijan will require non-resident businesses selling digital services to businesses in the country to charge VAT on their supplies. - [Lithuania cuts the VAT rate applied to digital books](https://fiscalsolutions.co.uk/news/lithuania-cuts-the-vat-rate-applied-to-digital-books-accommodation-and-hospitality-services/): Lithuania cuts the VAT rate applied to digital books, accommodation, and hospitality services - [Ireland changes VAT rates for newspapers and hospitality](https://fiscalsolutions.co.uk/news/ireland-changes-vat-rates-for-newspapers-tourism-and-hospitality-in-2023/): From 1 January 2023, the Irish government confirmed it will cut the VAT rate applied to: Newspapers and news periodicals from 9% to the zero rate of VAT. Some pharmaceutical and health-related products, including defibrillators, non-oral nicotine therapy and non-oral hormone replacement therapy from 23% to the zero rate of VAT. This was announced as part of a set of measures in the Irish budget for 2023. The Irish government also confirmed that the temporary VAT rate reduction to 9% in the tourism and hosp - [Germany extends the VAT rate cut on hospitality services](https://fiscalsolutions.co.uk/news/germany-extends-the-vat-rate-cut-on-hospitality-and-hotel-services/): The German government has confirmed that it will extend the VAT rate cut of 7% on hospitality services to 31 December 2023. - [Luxembourg to cut VAT rates from January 2023](https://fiscalsolutions.co.uk/news/luxembourg-to-cut-vat-rates-from-january-2023/): The Luxembourg government has announced that it will reduce VAT rates in the country by 1% from 1 January 2023. - [Singapore GST rise to 8% from Jan 2023](https://fiscalsolutions.co.uk/news/singapore-gst-rise-to-8-from-jan-2023-approved-by-parliament/): The Singaporean parliament has confirmed that it will be increasing the GST rate in the country for the first time in 15 years. - [Philippines proposing VAT on e-services from July 2023](https://fiscalsolutions.co.uk/news/philippines-proposing-to-apply-vat-on-e-services-from-july-2023/): From 1 July 2023, the Philippines House of Representatives are proposing to introduce VAT on the supplies of electronic services by non-resident companies - [Singapore to introduce GST on low-value goods](https://fiscalsolutions.co.uk/news/reminder-singapore-to-introduce-goods-and-sales-tax-on-low-value-goods-and-non-digital-services/): From January 2023, Singapore will introduce GST on imported sales of low-value goods and non-digital services to consumers at a rate of 8%. - [Swiss Parliament backs VAT rise for 1 January 2024](https://fiscalsolutions.co.uk/news/swiss-parliament-backs-vat-rise-for-1-january-2024/): From 1 January 2024, the Swiss tax authorities will increase the VAT rates in the country. - [New reporting rules in Portugal for non-resident companies](https://fiscalsolutions.co.uk/news/portugal-introduce-certified-invoicing-saf-t-filing-qr-code-requirements-non-resident-companies/): Portugal to introduce certified invoicing, SAF-T filing, and QR code requirements for non-resident companies. - [VAT rate changes announced in the Irish Budget for 2023](https://fiscalsolutions.co.uk/news/vat-rate-changes-announced-in-the-irish-budget-for-2023/): The Irish government recently confirmed the following VAT rate changes during their budget announcement for 2023. - [Lithuania cuts VAT rate for hospitality and hotel services](https://fiscalsolutions.co.uk/news/lithuania-extends-the-vat-rate-cut-on-hospitality-and-hotel-services/): The Lithuanian government has confirmed that it will extend the VAT rate cut to 9% on hospitality, sporting, and cultural services to 31 December 2023. - [Temporary VAT reduction in Luxembourg from 1 January 2023](https://fiscalsolutions.co.uk/news/luxembourg-announces-a-temporary-vat-rate-reduction-from-1-january-2023/): On 21 September 2022, the Luxembourg government announced that it will reduce most VAT rates in the country by 1% from 1 January 2023. - [Electronic services suppliers required to register in Kenya](https://fiscalsolutions.co.uk/news/non-resident-suppliers-of-electronic-services-are-required-to-register-in-kenya/): We can confirm that non-resident suppliers of electronic services have a requirement to VAT register from the first sale that they make in Kenya. - [France to introduce mandatory B2B e-invoicing and reporting](https://fiscalsolutions.co.uk/news/update-france-to-introduce-mandatory-b2b-e-invoicing-and-reporting-1/): France’s General Directorate of Public Finance has published technical guidance relating to the July 2024 launch of its mandatory business to business (B2B) e-i - [Latvia to cut basic foods VAT to 5%](https://fiscalsolutions.co.uk/news/latvia-to-cut-basic-foods-vat-to-5-as-inflation-hits-new-records-in-july/): Due to a rapid increase in inflation, Latvia is considering a two-year cut in the VAT rate on basic foods such as meat, dairy, and bread. - [Kenya introduces VAT on B2B supplies of electronic services](https://fiscalsolutions.co.uk/news/kenya-introduces-vat-on-b2b-supplies-of-electronic-services-from-non-resident-businesses/): Non-resident businesses selling digital services to businesses in Kenya must now VAT register and charge VAT on their supplies. - [EU VAT Directive changes](https://fiscalsolutions.co.uk/news/eu-vat-changes-for-single-vat-registrations-digital-reporting-digital-platforms-vat-role/): The European Commission (EC) will publish details of major reforms to the VAT regime on 16 November 2022. - [Switzerland to hold another referendum for VAT rise proposal](https://fiscalsolutions.co.uk/news/switzerland-to-hold-another-referendum-for-vat-rise-proposal/): The Swiss tax authorities are proposing to increase VAT rates - [Kenyan VAT registration threshold for electronic services](https://fiscalsolutions.co.uk/news/foreign-providers-of-electronic-services-vat-registration-threshold-in-kenya/): the Kenyan government has confirmed the introduction of an annual VAT registration threshold of KES 5 million. - [Romanian VAT increases on fizzy drinks, hotels, and catering](https://fiscalsolutions.co.uk/news/romania-proposes-vat-rate-increases-on-sparkling-drinks-hotels-and-catering-supplies/): From 1 January 2023, the Romanian tax authorities are proposing to raise the VAT rate on certain goods and services. - [EU to extend the One stop shop system to include B2B sales](https://fiscalsolutions.co.uk/news/eu-propose-to-extend-the-oss-to-include-b2b-sales-of-goods-and-services/): The EC will publish a draft of amendments to the EU VAT Directive to extend the OSS to all remaining cross-border B2C and some B2B transactions this autumn.  - [European Council agrees to extend generalised reverse charge](https://fiscalsolutions.co.uk/news/update-european-council-agrees-to-extend-generalised-temporary-reverse-charge/): The European Council has confirmed that the option for EU member states to use the generalised temporary reverse charge will be extended to 31 December 2026. - [Poland release electronic invoice software (KSeF)](https://fiscalsolutions.co.uk/news/update-poland-release-electronic-invoice-software-ksef/): Poland has released its e-invoicing platform (KSeF) to allow businesses to test electronic business-to-business invoices. - [Credit and debit card issuers to withhold VAT on e-services](https://fiscalsolutions.co.uk/news/credit-and-debit-card-issuers-to-withhold-vat-on-digital-services-in-chile/): From 1 August 2022, the Chilian Government has confirmed that banks and credit card companies will be responsible for withholding VAT on payments on e-services. - [New EU E-commerce package – EU confirms initial success](https://fiscalsolutions.co.uk/news/new-eu-e-commerce-package-eu-confirms-initial-success/): The EU has released statistics showing that the introduction of the EU e-commerce packages in July last year has been a success. - [Australia withdraws from the low value imported goods regime](https://fiscalsolutions.co.uk/news/australia-raises-aus-760-million-in-goods-and-services-tax-gst-after-withdrawal-from-the-low-value-imported-goods-regime/): Australia has announced that since the removal of the Low Value Imported Goods regime, it's collected GST on low value imported goods of AUS$ 760 million. - [Belgium to implement B2B electronic invoicing](https://fiscalsolutions.co.uk/news/belgium-to-implement-business-to-business-b2b-electronic-invoicing/): The Belgium Chamber of Representatives published a draft law that could oblige electronic invoicing between VAT registered companies in the country. - [Romania to introduce business to government e-invoicing](https://fiscalsolutions.co.uk/news/romania-to-introduce-mandatory-business-to-government-b2g-e-invoicing-from-july-2022/): The Romanian tax authorities have confirmed that businesses that sell to government departments will be required to issue e-invoices from 1 July 2022. - [European Council confirms VAT is due on online events](https://fiscalsolutions.co.uk/news/european-council-confirms-that-vat-is-due-on-online-events-in-the-country-of-the-consumer/): The European Council has amended the EU wide VAT directive (No. 2022/542) relating to the place of supply of live virtual events supplied over the internet. - [Norway consults on VAT rule changes relating to services](https://fiscalsolutions.co.uk/news/norway-consults-on-vat-rule-changes-relating-to-non-digital-services-1/): The Norwegian Ministry of Finance has launched a public consultation relating to the VAT treatment of non-digital services. - [UK COVID-19 hospitality reduced VAT rate withdrawn](https://fiscalsolutions.co.uk/news/uk-covid-19-hospitality-reduced-vat-rate-withdrawn/): The UK temporary VAT rate cut on hospitality and tourism, introduced to help the UK hospitality sector recover from the impact of COVID-19, ended on 31 March. - [European Council allow Poland to implement e-invoicing](https://fiscalsolutions.co.uk/news/update-european-council-allow-poland-to-implement-mandatory-e-invoicing-from-2023/): European Council allowed Poland to amend its electronic invoicing legislation to make it mandatory for businesses to use the regime from as early as April 2023. - [Laos tax obligations for non-resident e-commerce providers](https://fiscalsolutions.co.uk/news/laos-establishes-tax-obligations-for-non-resident-e-commerce-and-digital-service-platform-providers/): From 1 January 2022, the Southeast Asian country of Laos imposed VAT on the sale of e-services to local consumers by non-resident businesses. - [EU Parliament backs member states’ reduced VAT rate freedom](https://fiscalsolutions.co.uk/news/eu-parliament-backs-member-states-reduced-vat-rate-freedom/): The Parliament of the European Union backed the European Council’s agreement on extending reduced VAT rate setting powers to individual member states.  - [British Columbia propose marketplace facilitator law for PST](https://fiscalsolutions.co.uk/news/british-columbia-propose-marketplace-facilitator-law-for-pst/): In February 2022, the Canadian province of British Columbia (BC) announced changes to PST rules regarding sales via online marketplaces. - [Australia announces the implementation of e-invoicing](https://fiscalsolutions.co.uk/news/australia-announces-the-gradual-implementation-of-e-invoicing-from-july-2022/): Australia has proposed a Business E-invoicing Right (BER), which will encourage businesses to adopt e-invoicing. - [Croatia to reduce the VAT rate on energy and food](https://fiscalsolutions.co.uk/news/croatia-to-reduce-the-vat-rate-on-energy-sanitary-goods-and-food-products/): From 1 April 2022, the Croatian tax authorities has confirmed that it will cut the VAT rate on certain goods and services including heating and food. - [EU Electronic invoicing](https://fiscalsolutions.co.uk/news/eu-electronic-invoicing/): On 16 February 2022, the European parliament voted in favour of harmonising electronic invoicing (e-invoicing) rules across the EU. - [Kyrgyz Republic confirms non-residents subject to VAT](https://fiscalsolutions.co.uk/news/kyrgyz-republic-confirms-non-residents-subject-to-vat-obligations/): Kyrgyzstan recently confirmed that from January 2022, VAT will be applied on the sale of e-services to local Kyrgyz consumers by non-resident businesses. - [Swiss referendum on 2023 VAT rise to 8.1%](https://fiscalsolutions.co.uk/news/swiss-referendum-2023-vat-rise-to-8.1/): This proposal is being put forward in an attempt to cover the pension deficit caused by the ‘baby boomer’ generation - [Luxembourg introduces e-invoicing for business to gov sales](https://fiscalsolutions.co.uk/news/luxembourg-e-invoicing-for-business-to-government-transactions/): Luxembourg has recently introduced a new law that makes it compulsory for businesses selling to the public sector (government) to issue electronic invoices. - [Qatar and Kuwait plan to implement VAT](https://fiscalsolutions.co.uk/news/update-qatar-and-kuwait-plan-to-implement-vat/): Qatar has recently announced that it plans to finally introduce VAT at 5% during 2022 but has not provided an exact date. - [Kazakhstan implements VAT on foreign e-services from January](https://fiscalsolutions.co.uk/news/kazakhstan-vat-on-foreign-e-services-from-january-2022/): On 1 January 2022, Kazakhstan extended its VAT system to include the sale of electronic services to consumers by non-resident businesses. - [Ivory Coast introduces VAT on non-resident digital services](https://fiscalsolutions.co.uk/news/ivory-coast-introduces-vat-non-resident-digital-services/): From 4 January 2022, the West African state of the Ivory Coast has imposed VAT on the sale of e-services to local consumers by non-resident businesses - [EU - Intrastat Changes from 1 January 2022](https://fiscalsolutions.co.uk/news/eu-intrastat-changes-from-1-jan-2022/): From 1 January 2022, additional data will be required when submitting the Intrastat in all EU countries. - [Romania launches new e-invoicing system](https://fiscalsolutions.co.uk/news/romania-launches-new-e-invoicing-system/): From 1 January 2022, businesses will be able to register for the live VAT e-invoice (the RO e-Factura) reporting in Romania. - [Slovakia to introduce e-invoice reporting](https://fiscalsolutions.co.uk/news/slovakia-to-introduce-e-invoice-reporting/): Slovakia will introduce a new real-time invoice-reporting regime for all VAT registered businesses. - [UPDATE: Poland implements e-invoicing from 2022](https://fiscalsolutions.co.uk/news/update-poland-implements-e-invoicing-from-2022/): Poland has now passed legislation that has introduced a voluntary live VAT e-invoice reporting regime in the country. - [Spain passes legislation for mandatory B2B e-invoicing](https://fiscalsolutions.co.uk/news/spain-passes-legislation-for-mandatory-b2b-e-invoicing/): The Spanish government has approved VAT law that includes a requirement for businesses to issue e-invoices for all business-to-business (B2B) transactions. - [European Union 2019 VAT gap study](https://fiscalsolutions.co.uk/news/european-union-2019-vat-gap-study-shows-loss-of-134-billion/): According to the annual VAT gap study, an estimated €134 billion in VAT revenue was lost within the European Union (EU). - [France splits it’s Intrastat into separate filing submission](https://fiscalsolutions.co.uk/news/france-splits-its-intrastat-into-separate-filing-submissions/): From January 2022, France has split its monthly dispatch Intrastat report (Déclaration d’Echanges de Biens (DEB)) into two separate reports. - [German government announces B2B e-invoicing](https://fiscalsolutions.co.uk/news/new-german-government-announces-intention-to-implement-b2b-e-invoicing/): The German government has announced that it intends to implement a mandatory B2B e-invoicing regime in the country. - [Armenia applies VAT on digital services](https://fiscalsolutions.co.uk/news/armenia-applies-vat-on-digital-services/): From 1 January 2022, Armenia will impose VAT on the sale of e-services to local consumers by non-resident businesses. - [Bahrain increases VAT rate to 10%](https://fiscalsolutions.co.uk/news/bahrain-increases-vat-rate-to-10/): From 1 January 2022, Bahrain has announced that it will increase its VAT rate from 5% to 10%. - [Bulgaria extends VAT rate reduction to 9% on certain goods](https://fiscalsolutions.co.uk/news/bulgaria-extends-vat-rate-reduction-to-9-on-certain-goods-and-services/): Bulgarian tax authorities confirmed that the VAT rate applicable on the following goods and services will remain at 9% until after the COVID-19 pandemic. - [France to split intrastat into separate submissions from Jan](https://fiscalsolutions.co.uk/news/france-to-split-intrastat-into-separate-submissions-jan/): This is an effort to follow the same processes and reporting requirements that other EU member states currently follow. - [Poland implements e-invoicing from 2022](https://fiscalsolutions.co.uk/news/poland-implements-e-invoicing-from-2022/): From 2022, Poland will introduce a voluntary live VAT e-invoice reporting regime. - [Ukraine to apply VAT on digital services from January](https://fiscalsolutions.co.uk/news/ukraine-to-apply-vat-on-digital-services-from-jan-2022/): From 1 January 2022, Ukraine will impose VAT at 20% on the sale of e-services to local consumers by non-resident businesses. - [Israel to introduce VAT on the supply of digital services](https://fiscalsolutions.co.uk/news/israel-introduces-vat-on-the-supply-of-digital-services-by-foreign-provider/): From 1 January 2022, the Israeli Government is planning to impose a VAT charge of 17% on the sales of e-services to consumers by non-resident businesses. - [HMRC publishes details of VAT refund issues](https://fiscalsolutions.co.uk/news/vat-refund-issues-that-non-resident-businesses-may-face/): HMRC recently published details of an issue that non-resident businesses, who are VAT registered in the country, may face when they are due a UK VAT refund. - [Romania reduces the VAT rate for e-books](https://fiscalsolutions.co.uk/news/romania-reduces-the-vat-rate-for-e-books/): From 1 January 2022, the Romanian tax authorities will reduce the VAT rate on electronic books and publications to 5%. - [Jersey to apply GST on e-commerce supplies from January 2023](https://fiscalsolutions.co.uk/news/jersey-to-apply-gst-on-e-commerce-supplies-from-jan-2023/): From 1 January 2023, Jersey has confirmed that it will impose a GST on the sales of e-commerce goods and services made to consumers by non-resident businesses - [Latvia enacts EU reduced VAT agreement on e-books and news](https://fiscalsolutions.co.uk/news/latvia-enacts-eu-reduced-vat-agreement-on-e-books-and-news-1-january-2022/): From 1 January 2022, the Latvian tax authorities will reduce the VAT rate on electronic books and publications from the standard rate of 21% to 5%. - [Italy to extend resident B2B real-time invoice regime](https://fiscalsolutions.co.uk/news/italy-to-extend-resident-b2b-real-time-invoice-regime-to-include-ec-sales/): From January, Italy will extend its mandatory real time invoice-reporting regime used by resident VAT registered businesses, to include intra-community sales. - [Romania confirms the introduction of a SAF-T from Jan 2022](https://fiscalsolutions.co.uk/news/romania-confirms-the-introduction-of-a-saf-t-for-large-taxpayers-from-jan-2022/): The Romanian tax authorities have confirmed that it is now on track to introduce a mandatory SAF-T by 1 January 2022. - [Greece reduce the VAT rate for e-books](https://fiscalsolutions.co.uk/news/greece-reduce-the-vat-rate-for-e-books/): From 1 July 2021, the Greek tax authorities reduced the VAT rate on electronic books and publications to 6%. - [New reduced VAT rate introduced in the UK](https://fiscalsolutions.co.uk/news/new-reduced-vat-rate-introduced-in-the-uk-for-the-hospitality-sector/): The UK tax authorities have introduced a new reduced VAT rate on hospitality services of 12.5%. - [France to introduce mandatory B2B e-invoicing and reporting](https://fiscalsolutions.co.uk/news/france-to-introduce-mandatory-b2b-e-invoicing-and-reporting/): France will introduce a new mandatory real-time invoice-reporting regime for resident businesses - [UPDATE: Norway increases its reduced VAT rate](https://fiscalsolutions.co.uk/news/update-norway-increases-its-reduced-vat-rate/): From 1 October 2021, the reduced VAT rate in Norway increased from 6% to 12%. - [Extension of VAT reverse charge on importation of goods](https://fiscalsolutions.co.uk/news/update-france-extension-of-vat-reverse-charge-on-importation-of-goods/): France has announced that from January 2022, it will drop all requirements for businesses to use reverse charge import VAT accounting in the country. - [Lithuania cuts hospitality VAT to 9% until 31 December 2021](https://fiscalsolutions.co.uk/news/lithuania-cuts-hospitality-vat-until-31-december-2021/): Lithuania will cut the VAT rate applicable to hospitality, sporting, and cultural services from the standard VAT rate of 21% to the reduced rate of 9%. - [Ukraine to apply VAT on digital services from January 2022](https://fiscalsolutions.co.uk/news/ukraine-to-apply-vat-on-digital-services/): From 1 January 2022, Ukraine will impose VAT at 20% on the sale of e-services to local consumers by non-resident businesses. - [Belgium to cut e-book VAT rate from 1 January 2022](https://fiscalsolutions.co.uk/news/belgium-to-cut-e-book-vat-rate-from-1-january-2022/): The Belgium tax authorities have confirmed that the VAT rate on the sale of e-books, e-manuals, e-newspapers, and e-magazines sold online will be reduced. - [Canada: GST to be charged on digital goods and services](https://fiscalsolutions.co.uk/news/canada-gst-to-be-charged-on-digital-goods-and-services-from-july-2021/): From July 2021, the Canadian Revenue Agency will introduce GST/HST on sales of e-commerce goods made by non-resident companies to consumers. - [France to introduce e-filing for 13th Directive VAT refund](https://fiscalsolutions.co.uk/news/france-to-introduce-e-filing-for-13th-directive-vat-refund-requests/): From 1 July 2021, non-EU businesses must request 13th Directive VAT refund claims electronically through a fiscal representative established in France. - [Norway extends reduced VAT rate to September 2021](https://fiscalsolutions.co.uk/news/norway-extends-reduced-vat-rate-to-september-2021/): Norway has confirmed that the temporary reduced VAT rate reduction, from 12% to 6%, will be extended from 30 June 2021 to 30 September 2021. - [Fiscal representation after Brexit](https://fiscalsolutions.co.uk/news/fiscal-representation-after-brexit/): As a UK business, it’s important to check whether you will require fiscal representation in the EU countries where you’re VAT registered. Up until 31 December 2020, UK businesses trading in other EU countries were not required to appoint a fiscal representative to assist with managing their VAT registrations. However, from 1 January 2021, in some EU countries, UK businesses now have an obligation to appoint a fiscal representative to carry on trading. What is a fiscal representative?  A fiscal representativ - [UK issues grants for businesses new to importing/exporting](https://fiscalsolutions.co.uk/news/uk-issues-grants-to-help-businesses-new-to-importing-or-exporting/): The UK announced that it will allow UK established small and medium sized (SME) businesses to apply for a SME Brexit Support grant of up to £2,000. - [Canada - British Columbia PST applied on digital services](https://fiscalsolutions.co.uk/news/canada-british-columbia-pst-applied-on-digital-services/): The Canadian province of British Columbia imposed Provincial Sales Tax (PST) at 7% on income earned by non-resident providers of e-services selling to consumers - [Thailand to implement VAT on digital services from Sept 2021](https://fiscalsolutions.co.uk/news/thailand-to-implement-vat-on-digital-services/): From September 2021, Thailand has confirmed it will introduce VAT at 7% on sales of electronic services by non-resident providers to consumers in the country.  - [Hungary extends real-time e-invoice requirements to B2C sale](https://fiscalsolutions.co.uk/news/hungary-extends-real-time-e-invoice-requirements-to-b2c-sales/): All businesses involved in Business to Consumer (B2C) sales in Hungary are required to report invoices under the country’s real-time e-invoice reporting regime. - [German IOSS portal to miss EU deadline](https://fiscalsolutions.co.uk/news/german-ioss-portal-to-miss-eu-e-commerce-vat-package-launch-deadline/): The German portal to support the EU’s Import One-Stop-Shop (IOSS), will not be ready for the launch of the EU’s e-commerce VAT package on 1 July 2021. - [Germany extends reduced VAT rate on catering food services](https://fiscalsolutions.co.uk/news/germany-extends-reduced-vat-rate-on-catering-food-services/): The German tax authorities confirmed that the temporary VAT rate reduction on the supply of catering food services will be extended to December 2022. - [Oman introduces VAT from April 2021](https://fiscalsolutions.co.uk/news/oman-introduces-vat-from-april-2021/): In April 2021, Oman became the fourth member of the Gulf Arab states to implement a regional VAT regime.  - [Separate EORI number for Northern Ireland required](https://fiscalsolutions.co.uk/news/separate-eori-number-for-northern-ireland-required/): HMRC have recently confirmed that businesses who import and export goods from Northern Ireland (NI) will need a special EORI number. - [Ireland to introduce postponed accounting for import VAT](https://fiscalsolutions.co.uk/news/brexit-news-ireland-proposes-postponed-accounting-for-import-vat/): The Irish government have confirmed that a postponed accounting facility will be implemented for import VAT post-Brexit.  - [Belgium force UK companies to engage a fiscal representative](https://fiscalsolutions.co.uk/news/belgium-force-uk-companies-to-engage-a-fiscal-representative-from-jan-2021/): UK traders that hold a Belgium VAT account are required to appoint a fiscal representative when the UK leaves the EU VAT regime on 31 December 2020. - [UK Intrastat still required after Brexit](https://fiscalsolutions.co.uk/news/uk-intrastat-still-required-after-brexit/): English, Welsh and Scottish businesses importing goods into the UK from the EU will still be required to submit monthly Intrastat reports after Brexit. - [Fiscal representation not required in France for UK business](https://fiscalsolutions.co.uk/news/fiscal-representation-not-required-in-france-for-uk-businesses/): French tax authorities have confirmed that UK businesses will not have a requirement to engage a fiscal representative after Brexit. - [Brexit: UK VAT changes impacting e-commerce](https://fiscalsolutions.co.uk/news/brexit-uk-vat-changes-impacting-e-commerce/): HMRC will introduce changes to the VAT treatment of goods sold from overseas businesses to UK consumers, either directly via import or via online marketplaces. - [Brexit: Actions to help you prepare](https://fiscalsolutions.co.uk/news/brexit-actions-to-help-you-prepare/): We highlight the key VAT issues that will impact businesses trading between the EU and the UK, and the appropriate course of action you should take. - [UK extends cut in hospitality VAT rate to 31 March](https://fiscalsolutions.co.uk/news/uk-extends-cut-in-hospitality-and-tourism-vat-rate-to-31-march-2021/): The UK tax authorities have confirmed that the temporary VAT rate cut on hospitality services will be extended to 31 March 2021. - [Sweden to introduce VAT reverse charge on mobile phones](https://fiscalsolutions.co.uk/news/sweden-to-introduce-vat-reverse-charge-on-mobile-phones/): To prevent VAT fraud, Sweden will introduce a domestic reverse charge on supplies of computer chips, mobile phones, games consoles and laptops. - [UK offers phased 2021 repayment schedule for deferred VAT](https://fiscalsolutions.co.uk/news/uk-offers-phased-2021-repayment-schedule-for-deferred-vat/): The UK tax authorities announced that businesses that deferred VAT payments to combat the financial impact of coronavirus can now opt to pay smaller payments... - [UK trials post-Brexit foreign VAT recovery portal](https://fiscalsolutions.co.uk/news/uk-trials-post-brexit-foreign-vat-recovery-portal/): HMRC are trialling a new VAT recovery portal that will allow certain non-resident businesses to recover any eligible UK VAT that they incur. - [Hungary to extend real-time e-invoice requirements to B2C](https://fiscalsolutions.co.uk/news/hungary-to-extend-real-time-e-invoice-requirements-to-b2c-sales/): Hungary has confirmed the requirement to report invoices under their real-time e-invoice reporting regime will be extended to include all b2c businesses. - [EU VAT gap rises to €140 billion](https://fiscalsolutions.co.uk/news/eu-vat-gap-rises-to-140-billion/): According to the annual VAT gap study, an estimated €140 billion in VAT revenue was lost within the EU due to non-compliance or non-collection during 2018 - [Oman delays VAT adoption to January 2022](https://fiscalsolutions.co.uk/news/oman-delays-vat-adoption-to-january-2022/): Oman has recently announced that it will delay the introduction of VAT until at least 2022. - [Costa Rica to introduce VAT on electronic services](https://fiscalsolutions.co.uk/news/costa-rica-to-introduce-vat-on-electronic-services/): From 1 October 2020, Costa Rica will introduce VAT at 13% on the provision of electronic services by non-resident companies. - [Portugal to introduce e-invoice serial numbers](https://fiscalsolutions.co.uk/news/portugal-to-introduce-e-invoice-serial-numbers/): From January 2021, the Portuguese tax office has confirmed that specific serial numbers issued by them will need to be shown on all taxpayers’ sales invoices. - [Ecuador to apply VAT on digital services](https://fiscalsolutions.co.uk/news/ecuador-to-apply-vat-on-digital-services/): From 16 September 2020, Ecuador will impose VAT at 12% on the sale of e-services to local consumers by non-resident businesses. - [Indonesia confirms VAT on foreign e-commerce](https://fiscalsolutions.co.uk/news/indonesia-confirms-vat-on-foreign-e-commerce/): From 1 July 2020, the Indonesian tax authorities will introduce VAT at 10% on all e-services transactions made by non-resident companies. - [VAT measures to combat the financial impact of Coronavirus](https://fiscalsolutions.co.uk/news/emergency-vat-measures-to-combat-the-financial-impact-of-coronavirus/): We share what several tax authorities have implemented as emergency VAT measures to try to help affected businesses overcome the Coronavirus pandemic. - [Poland allow delays to the July 2020 VAT return and payments](https://fiscalsolutions.co.uk/news/poland-allow-delays-to-the-july-2020-vat-return-and-payments-subject-to-approval/): Polish tax authorities have confirmed that upon application, the July 2020 VAT return can be delayed until 20 September 2020. - [Italy confirm VAT payers can apply for staged payments on VA](https://fiscalsolutions.co.uk/news/italy-confirm-vat-payers-can-apply-for-staged-payments-on-vat-liabilities/): The Italian tax authorities have announced that VAT payers may apply for staged payments on VAT liabilities incurred during the coronavirus crisis. - [Croatia to reduce the VAT rate to 13% on foodstuff](https://fiscalsolutions.co.uk/news/croatia-to-reduce-the-vat-rate-to-13-on-foodstuff/): The Croatian tax office has confirmed that the VAT rate on foodstuffs will be cut from 25% to 13%. The implementation date has not yet been confirmed. - [Greece to reduce VAT rate on music books](https://fiscalsolutions.co.uk/news/greece-to-reduce-vat-rate-on-music-books-and-sports-event-admission/): Until 30 June 2021, the Greek tax office will reduce the VAT rate on music books to 6%, and on sports event admission to 13%. - [Ireland to temporarily reduce the VAT rate](https://fiscalsolutions.co.uk/news/ireland-to-temporarily-reduce-the-vat-rate-from-september-2020/): From 1 September 2020 until 28 February 2021, Ireland will reduce its VAT rate from 23% to 21%. - [UK cuts hospitality and tourism VAT to 5% until January 2021](https://fiscalsolutions.co.uk/news/uk-cuts-hospitality-and-tourism-vat-to-5-until-january-2021/): From 15 July 2020 to 12 January 2021, the UK will cut the VAT rate applicable on hospitality services from the standard rate of 20% to the reduced rate of 5%. - [Canada extends the sales tax return submission deadlines](https://fiscalsolutions.co.uk/news/canada-extends-the-sales-tax-return-submission-deadlines/): The Province of Manitoba has extended the sales tax return submission deadlines to 20 October 2020 for small and medium sized businesses. - [Portugal extends VAT return deadlines](https://fiscalsolutions.co.uk/news/portugal-extends-vat-return-deadlines/): The May and June monthly VAT returns due on 12 July and 12 August respectively are now due on 17 July and the 17 August. - [Hungary confirms retail tax will remain permanently](https://fiscalsolutions.co.uk/news/hungary-confirms-retail-tax-will-remain-permanently/): The Hungarian tax authorities have confirmed that the retail sales tax that was applied during the Coronavirus crisis will remain in place permanently. - [Hungary scraps real-time VAT invoice reporting threshold](https://fiscalsolutions.co.uk/news/hungary-scraps-real-time-vat-invoice-reporting-threshold/): From 1 July 2020, Hungary has confirmed the withdrawal of the threshold to report invoices under their real-time invoice-reporting regime. - [Indonesia postpones VAT on foreign e-commerce to August 2020](https://fiscalsolutions.co.uk/news/indonesia-postpone-vat-on-foreign-e-commerce-to-1-august-2020/): The Indonesian tax authorities have postponed the introduction of VAT at 10% on all e-commerce goods made by non-resident companies to August 2020. - [Thailand to extend VAT to digital services](https://fiscalsolutions.co.uk/news/thailand-to-extend-vat-to-digital-services/): Thailand is set to extend its VAT regime to apply to the sales of electronic services supplied by non-resident (foreign) companies to consumers in the country. - [Mauritius to implement VAT on foreign digital services](https://fiscalsolutions.co.uk/news/mauritius-to-implement-vat-on-foreign-digital-services/): Mauritius is set to extend its VAT regime to apply to the sales of electronic services supplied by non-resident (foreign) companies to consumers in the country. - [EU confirms e-commerce VAT reforms delay to July 2021](https://fiscalsolutions.co.uk/news/eu-confirms-e-commerce-vat-reforms-delay-to-july-2021/): The European Commission has confirmed that it will delay the introduction of the EU VAT e-commerce package from 1 January 2021 to 1 July 2021.  It is hoped that the introduction of this package will reduce the amount of VAT fraud, which is prevalent in this sector and currently stands at approx. €5billion per year. Please click here for further information on these reforms. - [Lithuania extends the VAT reclaim deadline](https://fiscalsolutions.co.uk/news/lithuania-extends-the-vat-reclaim-deadline-for-non-eu-businesses/): The Lithuanian tax authorities have extended the deadline for VAT reclaims by non-EU businesses under the 13th Directive from 30 June to 30 September 2020. - [Austria temporarily reduce VAT rate on restaurant services](https://fiscalsolutions.co.uk/news/austria-to-temporarily-reduce-the-vat-rate-on-restaurant-and-cinema-services/): The Austrian government has announced that it is planning to temporarily reduce the VAT rate on restaurant and cinema services to 5% until the end of the year. - [Bulgaria reduce VAT rate for e-books and catering services](https://fiscalsolutions.co.uk/news/bulgaria-reduce-the-vat-rate-for-e-books-and-catering-services/): The Bulgarian tax authorities have confirmed that the VAT rate for e-books and catering services will be reduced from 20% to 9 from the 1 July to 31 December. - [Belgium extends VAT return submission deadlines](https://fiscalsolutions.co.uk/news/belgium-introduces-extensions-to-vat-return-submission-deadlines/): The Belgian tax authorities have introduced extensions to the VAT return submission deadlines - [Belgium plans to cut the VAT rate on catering](https://fiscalsolutions.co.uk/news/belgium-plans-to-cut-the-vat-rate-on-catering-restaurant-and-cafe-services-to-6/): The Belgium tax office is proposing a VAT rate cut on catering, restaurant and cafe services from the standard rate of 21% to the reduced rate of 6%. - [Cyprus cut vat rate on the supply of hospitality services](https://fiscalsolutions.co.uk/news/cyprus-cut-the-vat-rate-on-the-supply-of-accommodation-and-hospitality-services/): The Cypriot tax authorities have confirmed that the VAT rate on the supply of accommodation and hospitality services will be cut from 9% to 5%. - [Germany reduces VAT rates from 1 July 2020](https://fiscalsolutions.co.uk/news/germany-reduces-vat-rates-from-1-july-2020/): The German tax office has today announced the following VAT rate reductions, which will be implemented for the period of 1 July 2020 to 31 December 2020. - [EU delays 2021 e-commerce VAT reforms to July 2021](https://fiscalsolutions.co.uk/news/eu-delays-2021-ecommerce-vat-reforms-to-july-2021/): Due to the Coronavirus crisis, the European Commission is proposing to delay the introduction of the EU VAT e-commerce package to 1 July 2021. - [Sweden to extend 'chemical tax' to B2C goods sold by non-resident businesses](https://fiscalsolutions.co.uk/news/sweden-to-extend-chemical-tax-to-b2c-goods-sold-by-non-resident-businesses/): The Swedish government has confirmed the extension of its “Chemicals Tax” to cover goods sold directly to consumers by non-resident businesses. - [Mexico to apply VAT to e-services from 1 June 2020](https://fiscalsolutions.co.uk/news/update-mexico-to-apply-vat-to-e-services-from-1-june-2020/): Mexico has confirmed that it will extend its VAT system to cover digital services supplied by non-resident (foreign) companies from 1 June 2020. - [Indonesia proposes to introduce VAT on e-commerce sales](https://fiscalsolutions.co.uk/news/update-indonesia-proposes-to-introduce-vat-on-e-commerce-sales/): The Indonesian tax authorities have pushed back the introduction of VAT at 10% on all e-commerce goods and service transactions made by non-resident companies. - [Philippines to apply VAT on e-services](https://fiscalsolutions.co.uk/news/philippines-to-apply-vat-on-e-services-from-january-2021/): From 1 January 2021, the Philippines are proposing to introduce VAT on the supplies of electronic services by non-resident companies in the country. - [Paraguay to introduce VAT on e-services from January 2021](https://fiscalsolutions.co.uk/news/paraguay-to-introduce-vat-on-e-services-from-january-2021/): From 1 January 2021, Paraguay will extend VAT to non-resident sales of digital services to consumers in the country. - [Czech Republic to reduce VAT on the supply of accommodation](https://fiscalsolutions.co.uk/news/czech-republic-confirms-the-reduction-of-vat-on-the-supply-of-accommodation-and-cultural-event-services/): The Czech tax authorities have confirmed the VAT rate on the supply of accommodation and admission to cultural events services will be reduced. - [Greece to reduce VAT rate on public transport](https://fiscalsolutions.co.uk/news/greece-to-reduce-vat-rate-on-public-transport-coffee-supplies-and-non-alcoholic-drinks-to-13/): The Greek tax authorities have confirmed that the VAT rate on public transport, coffee supplies and non-alcoholic drinks will be reduced from 24% to 13%. - [Spain confirm that emergency VAT and tax filing deadlines postponement measures are to be withdrawn](https://fiscalsolutions.co.uk/news/spain-confirm-that-emergency-vat-and-tax-filing-deadlines-postponement-measures-are-to-be-withdrawn/): The Spanish tax authorities have confirmed that the emergency VAT and tax filing deadline postponement measures are to be withdrawn from the 1 June 2020. - [Netherlands extends COVID-19 VAT easements](https://fiscalsolutions.co.uk/news/netherlands-extends-covid-19-vat-easements-and-payment-extensions-to-30-september-2020/): The Dutch tax office has extended their Coronavirus VAT easements and payment extensions to 30 September 2020. - [Portugal to reduce the VAT rate on gym memberships](https://fiscalsolutions.co.uk/news/portugal-to-reduce-the-vat-rate-on-gym-and-health-club-memberships-to-6/): The Portuguese tax office has announced that the VAT rate on gym and health club memberships is to be reduced to 6%. - [Bulgaria proposes cut in the VAT rate for e-books](https://fiscalsolutions.co.uk/news/bulgaria-proposes-cut-in-the-vat-rate-for-e-books-and-catering-services/): The Bulgarian tax authorities are proposing a cut in the VAT rate for e-books and catering services from 20% to 9%. - [Italy abandons plans to raise the standard VAT rate to 25% o](https://fiscalsolutions.co.uk/news/italy-abandons-plans-to-raise-the-standard-vat-rate-to-25-on-1-january-2021/): The Italian government have confirmed that they will abandon plans to raise the standard VAT rate to 25% on 1 January 2021. - [Luxembourg confirm that VAT penalties issued for filing VAT returns late have been reinstated](https://fiscalsolutions.co.uk/news/luxembourg-confirm-that-vat-penalties-issued-for-filing-vat-returns-late-have-been-reinstated/): The Luxembourg tax authorities have confirmed that VAT penalties issued for the late filing of VAT returns have been reinstated. - [Slovenia to end all COVID-19 VAT reliefs issued by 31 May](https://fiscalsolutions.co.uk/news/slovenia-confirms-that-all-vat-reliefs-issued-as-a-result-of-covid-19-will-end-on-31-may-2020/): Slovenia has confirmed that all VAT reliefs they have issued as a result of the Coronavirus pandemic, will end on 31 May 2020. - [Austria reclassify VAT rate on non-alcoholic drinks](https://fiscalsolutions.co.uk/news/austria-reclassify-vat-rate-on-non-alcoholic-drinks/): The Austrian tax authorities have reclassified the VAT rate on non-alcoholic drinks from the standard rate of 20% to the reduced rate of 10%. - [Ireland suspend interest on late VAT payments for June and July VAT returns](https://fiscalsolutions.co.uk/news/ireland-suspend-interest-on-late-vat-payments-for-june-and-july-vat-returns/): The Irish Revenue have confirmed that interest on late VAT payments for the June and July VAT returns will be suspended. To find out how this update could impact your organisation, click here to speak to one of our multi lingual, international VAT experts. - [Greece plans to cut VAT rate for catering services](https://fiscalsolutions.co.uk/news/greece-plans-to-cut-vat-rate-for-catering-services/): The Greek tax authorities are proposing a cut in the VAT rate for catering services from 13% to 11%. - [Poland plans to implement a sales levy on video-on-demand me](https://fiscalsolutions.co.uk/news/poland-plans-to-implement-a-sales-levy-on-video-on-demand-media-suppliers/): The polish tax office is proposing the introduction of a 1.5% sales levy on suppliers of video-on-demand media to polish consumers. - [France reduce VAT rate on personal protective equipment](https://fiscalsolutions.co.uk/news/france-reduce-vat-rate-on-personal-protective-equipment-to-5.5/): France reduce VAT rate on personal protective equipment to 5.5%. - [Netherlands temporarily reduce VAT rate on face masks](https://fiscalsolutions.co.uk/news/the-netherlands-confirm-that-the-vat-rate-on-face-masks-will-temporarily-be-reduced-to-0/): The Netherlands government have confirmed that from 25 May to 1 September 2020, the VAT rate on face masks will be temporarily reduced from 21% to 0%. - [Malta temporarily reduces the VAT rate on face masks](https://fiscalsolutions.co.uk/news/malta-temporarily-reduces-the-vat-rate-on-face-masks-and-visors-to-5/): Malta temporarily reduces the VAT rate on face masks and visors to 5%. - [Spain cuts e-book VAT rate to 4%](https://fiscalsolutions.co.uk/news/spain-cuts-e-book-vat-rate-to-4/): The Spanish tax authorities confirmed that the VAT rate on digital publications (e-books) has been reduced from 21% to 4%. - [Tunisia propose 3% e-services tax on foreign providers](https://fiscalsolutions.co.uk/news/tunisia-propose-3-e-services-tax-on-foreign-providers/): Tunisia is proposing to introduce a new e-service tax at 3% on the sale of electronic services to consumers by non-resident businesses. - [Luxembourg to open VAT One-Stop-Shop registration](https://fiscalsolutions.co.uk/news/luxembourg-to-open-vat-one-stop-shop-registration/): Luxembourg is the first EU member state to confirm it will open its VAT One-Stop-Shop registration portal from 1 October 2020. - [UK to cut e-book VAT](https://fiscalsolutions.co.uk/news/update-uk-to-cut-e-book-vat-rate-from-1-december-2020/): The UK tax authorities have brought forward the cut in the VAT rate on digital publications (e-books) from 20% to 0% to 1 May 2020. - [Bulgaria cut import duty and VAT on certain medical supplies](https://fiscalsolutions.co.uk/news/bulgaria-cut-import-duty-and-vat-on-certain-medical-supplies-during-the-covid-19-outbreak/): Bulgaria cut import duty and VAT on certain medical supplies during the COVID-19 outbreak. - [Sweden allow businesses to apply for a delay VAT payments](https://fiscalsolutions.co.uk/news/sweden-announces-that-businesses-can-apply-to-delay-vat-payments-for-up-to-one-year/): Sweden announces that businesses can apply to delay VAT payments for up to one year - [Latvia offers businesses the ability to delay VAT payments](https://fiscalsolutions.co.uk/news/latvia-offers-businesses-the-ability-to-delay-vat-payments-by-three-years-interest-free/): Latvia offers businesses the ability to delay VAT payments by three years interest-free. - [Russia to cut VAT rates](https://fiscalsolutions.co.uk/news/russia-to-cut-vat-rates/): The Russian government recently proposed that it will gradually reduce its VAT rate from 20% to 18% from 2021, 15% from 2023 and 12% from 2025. - [Norway proposes the introduction of a simplified VAT regime](https://fiscalsolutions.co.uk/news/reminder-norway-proposes-the-introduction-of-a-simplified-vat-regime-for-low-value-goods/): The Norwegian government has introduced new VAT rules that apply to non-resident businesses selling and shipping goods directly to consumers in the country. - [UK to cut e-book VAT rate from 1 December 2020](https://fiscalsolutions.co.uk/news/uk-to-cut-e-book-vat-rate-from-1-december-2020/): UK to cut e-book VAT rate from 1 December 2020, UK reduce e-book VAT rate, - [UK confirms postponed import VAT accounting from Jan 2020](https://fiscalsolutions.co.uk/news/uk-confirms-postponed-import-vat-accounting-from-january-2021/): From 1 January 2021, the UK government has confirmed that it will introduce postponed import Value Added Tax (VAT) accounting to all imports of goods. - [EU VAT reclaim deadline extensions - 13th Directive](https://fiscalsolutions.co.uk/news/eu-vat-reclaim-deadline-extensions-13th-directive/): Many European Union member states have extended the deadline for non-EU companies to reclaim VAT incurred during 2019, from 30 June 2020 to 30 September 2020. - [Slovenia to allow applications for businesses to delay VAT payments affected by Coronavirus](https://fiscalsolutions.co.uk/news/slovenia-to-allow-applications-for-businesses-to-delay-vat-payments-affected-by-coronavirus/): Slovenia to allow applications for businesses to delay VAT payments affected by Coronavirus. - [Romania implement VAT and tax easements following COVID-19](https://fiscalsolutions.co.uk/news/romania-announces-numerous-vat-and-tax-easements-as-a-result-of-the-coronavirus-outbreak/): Romania announces numerous VAT and tax easements as a result of the Coronavirus outbreak. - [France relax conditions for Import VAT Postponed Accounting](https://fiscalsolutions.co.uk/news/france-relaxes-conditions-for-import-vat-postponed-accounting/): France will drop all requirements on businesses who are entitled to use the Import Value-Added Tax (VAT) Postponed Accounting regime in the country. - [BREXIT News: UK propose full import VAT & customs controls](https://fiscalsolutions.co.uk/news/brexit-news-uk-propose-full-import-vat-customs-controls-from-january-2021/): The UK government is planning to introduce full import and export controls on most goods coming into and leaving the UK for the EU. - [EU warns member states on delay in implementing quick fixes](https://fiscalsolutions.co.uk/news/update-eu-warns-14-member-states-on-delay-in-implementing-the-four-quick-fixes/): The European Commission has issued notice letters to 14 European Union member states, warning them on their failure to implement the four ‘Quick Fixes’ for VAT. - [Hungary extends live invoice reporting to B2C](https://fiscalsolutions.co.uk/news/update-hungary-extends-live-invoice-reporting-to-b2c-from-january-2021/): Hungary has confirmed they will extend their real time invoice-reporting regime to cover Business to Consumer (B2C) invoices. - [Canada’s British Colombia to apply PST to e-services](https://fiscalsolutions.co.uk/news/canadas-british-colombia-to-apply-pst-to-e-services-from-1-july-2020/): British Colombia will introduce sales tax (PST) on sales made by non-resident providers of digital services to consumers residing in the province. - [Fiji VAT on e-services provided by remote sellers](https://fiscalsolutions.co.uk/news/fiji-vat-on-e-services-provided-by-remote-sellers/): Fiji is proposing to extend its VAT regime to apply to the sales of electronic services supplied by non-resident companies to consumers in the country. - [Chile imposes VAT on foreign electronic services](https://fiscalsolutions.co.uk/news/chile-imposes-vat-on-foreign-electronic-services/): Chile will extend its VAT system to cover digital services supplied by non-resident (foreign) companies to consumers in the country. - [Cameroon VAT on foreign e-commerce](https://fiscalsolutions.co.uk/news/cameroon-vat-on-foreign-e-commerce/): Cameroon has extended its VAT system to cover supplies of online goods and services supplied by non-resident (foreign) companies in the country. - [Italy VAT rate rise confirmed for 2021 if budget not met](https://fiscalsolutions.co.uk/news/italy-vat-rate-rise-confirmed-for-2021-if-budget-not-met/): The Italian government recently announced that if certain budgetary targets aren't met within 2020, they will implement a number of potential VAT rate increases - [Czech Republic delays introducing the generalised GRCM](https://fiscalsolutions.co.uk/news/update-czech-republic-delays-introducing-the-generalised-temporary-reverse-charge-mechanism/): The Czech Republic will delay the introduction of the generalised reverse charge mechanism (GRCM) on domestic supplies undertaken in the country - [UPDATE: Poland late on EU VAT Quick Fixes implementation](https://fiscalsolutions.co.uk/news/update-poland-late-on-eu-vat-quick-fixes-implementation/): Poland has missed the 1 January 2020 implementation deadline for the four EU VAT Quick Fixes. - [Algerian VAT to apply to e-services from 1 January 2020](https://fiscalsolutions.co.uk/news/algerian-vat-to-apply-to-e-services-from-1-january-2020/): Algeria has extended its Value-Added Tax (VAT) system to cover digital services supplied by non-resident (foreign) companies to consumers in the country. - [UPDATE: Kazakhstan delays VAT on foreign e-services to 2021](https://fiscalsolutions.co.uk/news/update-kazakhstan-delays-vat-on-foreign-e-services-to-2021/): Kazakhstan has postponed extending its Value-Added Tax (VAT) system to include digital services supplied by non-resident (foreign) companies to 1 January 2021. - [Mexican VAT to apply to e-services from 1 June 2020](https://fiscalsolutions.co.uk/news/mexican-vat-to-apply-to-e-services-from-1-june-2020/): Mexico is set to extend its Value-Added Tax (VAT) system to cover digital services supplied by non-resident (foreign) companies from 1 June 2020. At present, foreign businesses providing digital services in Mexico do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage this gives to non-resident companies over Mexican resident providers, the Mexican government has now announced that VAT at 16% will be applied on these types of transactions from June 2020. This new tax - [UPDATE: Moldova delays e-service VAT until April 2020](https://fiscalsolutions.co.uk/news/update-moldova-delays-e-service-vat-until-april-2020/): Moldova has postponed extending its Value-Added Tax (VAT) system to include digital services supplied by non-resident (foreign) companies to 1 April 2020. - [UPDATE: Qatar and Oman delays VAT until 2021](https://fiscalsolutions.co.uk/news/update-qatar-and-oman-delays-vat-until-2021/): Qatar and Oman have recently announced that they will delay the introduction of Value Added Tax (VAT) until at least 2021. - [Polish plan to implement live VAT e-invoices from 2021](https://fiscalsolutions.co.uk/news/polish-plan-to-implement-live-vat-e-invoices-from-2021/): From 2021, Poland is planning to introduce a live VAT e-invoice reporting regime. - [EU ‘quick fixes’ changes on cross-border transactions](https://fiscalsolutions.co.uk/news/eu-quick-fixes-changes-on-cross-border-transactions-from-1-january-2020/): From January 2020, all EU member states will introduce four ‘quick fixes’ applicable to certain B2B cross-border transactions between EU member states. - [Brexit almost certain to happen by 31 January 2020](https://fiscalsolutions.co.uk/news/brexit-news-brexit-almost-certain-to-happen-by-31-january-2020/): The latest withdrawal agreement agreed with the EU is almost certain to be passed by UK Parliament, leading to the UK’s exit of the European Union. - [Netherlands postpones new requirements for companies exporti](https://fiscalsolutions.co.uk/news/the-netherlands-postpones-new-requirements-for-companies-exporting-goods/): The requirement for non-EU companies to either establish their own Dutch company or appoint an EU established indirect customs representative to export goods fr - [EU VAT registration thresholds for foreign businesses](https://fiscalsolutions.co.uk/news/eu-vat-registration-thresholds-for-foreign-businesses/): From January 2025, EU member states have agreed on providing non-resident businesses with the same VAT registration thresholds as resident suppliers. - [Hungary proposes to scrap real time VAT invoice reporting th](https://fiscalsolutions.co.uk/news/hungary-proposes-to-scrap-real-time-vat-invoice-reporting-threshold/): Hungary has proposed the withdrawal of the threshold to report invoices under their real-time invoice-reporting regime. - [Italian VAT receipt lottery to fight VAT fraud](https://fiscalsolutions.co.uk/news/italian-vat-receipt-lottery-to-fight-vat-fraud/): In an effort to reduce VAT fraud, the Italian government are planning to launch a lottery based on VAT compliant receipts issued to consumers. - [Slovenia plans to cut VAT on e-books to 9.5%](https://fiscalsolutions.co.uk/news/slovenia-plans-to-cut-vat-on-e-books-to-9.5/): From 1 January 2020, Slovenia will cut the VAT rate applicable to e-books from 22% to 9.5%. - [Argentina B2C e-commerce withholding VAT – July 2020](https://fiscalsolutions.co.uk/news/argentina-b2c-e-commerce-withholding-vat-november-2019/): From November 2019, Argentina extended its VAT regime to include non-resident e-commerce sales to consumers. - [BREXIT NEWS: Brexit delayed until 31 January 2020](https://fiscalsolutions.co.uk/news/brexit-news-brexit-delayed-until-31-january-2020/): During October 2019, the European Union (EU) and the UK agreed to a flexible extension relating to the UK’s exit from the EU to 31 January 2020. As this is a flexible extension, it means that the UK could possibly leave at any point between now and the end of January 2020. It also means that the UK will remain a full member of EU VAT regime, Customs Union and Single Market up until either they decide to leave or the 31 January 2020 deadline. In addition to this extension, the UK has also stated that a gener - [EU requests that Germany end their F22 VAT Certificate marketplace obligation](https://fiscalsolutions.co.uk/news/eu-requests-that-germany-end-their-f22-vat-certificate-marketplace-obligation/): Last month, the EU Commission (EC) sent Germany a formal notice to withdraw its requirement for EU and non-EU sellers on German marketplaces to obtain an F22 VAT Certificate. The EC stated that this paper requirement is an inefficient and disproportionate measure which hinders the free access of EU businesses to the German market, and as a result, is in violation of EU Law which should allow for free movements of goods for EU businesses. As stated in previous articles, the F22 certificate confirms that the - [France proposes new online marketplaces VAT fraud obligation](https://fiscalsolutions.co.uk/news/france-proposes-new-online-marketplaces-vat-fraud-obligations/): The French government recently proposed new measures to combat e-commerce VAT fraud within its draft budget for 2020. - [Australia introduce GST to foreign businesses selling accommodation in the country](https://fiscalsolutions.co.uk/news/australia-introduce-gst-to-foreign-businesses-selling-accommodation-in-the-country/): From 1 October 2019, Australia introduced GST at 10% on the provision of hotel rentals and other commercial lettings in the country, provided by non-resident companies on online platforms. Prior to this, foreign businesses providing these types of supplies in Australia did not have to charge GST on their sales. However, in an effort to remove the unfair advantage that this gives to non-resident companies over Australian resident providers, the Australian government have now implemented GST at 10% on these t - [UPDATE: Portugal delays the introduction of live VAT invoice reporting for non-residents until January 2021](https://fiscalsolutions.co.uk/news/update-portugal-delays-the-introduction-of-live-vat-invoice-reporting-for-non-residents-until-january-2021/): The Portuguese government have again delayed the introduction of the new mandatory real time invoice-reporting regime for non-resident VAT registered businesses until 1 January 2021. Originally, this was planned to be introduced from January 2020 and required non-resident businesses to send their invoices to the tax authorities for checking at the same time as they are issued to their customer. Once implemented, this new invoice-reporting regime is designed to prevent common errors on these types of invoice - [UPDATE: From 2023 France will extend e-invoices for all B2B transactions](https://fiscalsolutions.co.uk/news/update-from-2023-france-will-extend-e-invoices-for-all-b2b-transactions/): From January 2023, France will extend the obligation to submit electronic VAT invoices to all business-to-business sales transactions undertaken in the country. This requirement has already been in place for business-to-government transactions from 2018 and requires effected businesses to use an authorised software to raise and send invoices via a digital connection (such as an EDI or API) to their customers. - [Ecuador proposes to introduce VAT on e-services from 2020](https://fiscalsolutions.co.uk/news/ecuador-proposes-to-introduce-vat-on-e-services-from-2020/): Ecuador is the latest country to propose a VAT charge on the sale of e-services to local consumers by non-resident businesses. At present, non-resident businesses providing digital services in Ecuador do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage that this gives to non-resident companies over Ecuadorian resident providers, the Ecuadorian tax authorities are proposing that VAT should be charged at 12% on these types of transactions. If accepted the measure is - [Paraguay B2C e-services withholding VAT](https://fiscalsolutions.co.uk/news/paraguay-b2c-e-services-withholding-vat-january-2020/): From 1 January 2020, Paraguay will extend VAT to non-resident sales of digital services to consumers in the country. - [Ireland increases VAT rate applied to food supplements from January 2020](https://fiscalsolutions.co.uk/news/ireland-increases-vat-rate-applied-to-food-supplements-from-january-2020/): From 1 January 2020, Ireland will raise the VAT rate applied to certain food supplements to 13.5%. This will not apply to all food supplements, with certain products such as some vitamins, minerals and fortified foods, continuing to benefit from the 0% VAT rate. Please click here for further information - [EU VAT Gap shrinks to €138 billion](https://fiscalsolutions.co.uk/news/eu-vat-gap-shrinks-to-138-billion/): According to the annual VAT gap study an estimated €137.5 billion in VAT revenue was lost within the EU, due to non-compliance or non-collection during the year 2017. When compared with the same study from 2016 this shows a reduction in the gap of €7.9 billion. The VAT gap study is funded by the European Commission as part of its work to reform the VAT system and clamp down on tax evasion within the European Union. Each year the study sets out detailed data on the gap between the amount of VAT due and the a - [Romania confirms the introduction of a SAF-T pilot scheme from January 2020](https://fiscalsolutions.co.uk/news/romania-confirms-the-introduction-of-a-saf-t-pilot-scheme-from-january-2020/): The Romanian tax authorities have confirmed that they are on track to introduce a mandatory SAF-T by the end of 2020, and will proceed with a pilot scheme for large taxpayers from January 2020 The SAF-T file, which is a way for the tax authorities to exchange VAT data with businesses in a more secure, accurate and efficient way, will be mandatory for all VAT registered businesses. These files are already in use in several EU countries including Poland, Portugal, Austria, Luxembourg, France and Lithuania. Hu - [UPDATE: Nigeria confirms VAT will be collected on online transactions](https://fiscalsolutions.co.uk/news/update-nigeria-confirms-vat-will-be-collected-on-online-transactions/): From 1 January 2020, the Federal Inland Revenue Service (FIRS) will introduce withholding value added tax at 5% on all e-commerce goods and service transactions. When introduced, this tax will be charged and collected via banks and credit card companies in the country; this is instead of suppliers. It would also apply to both resident and non-resident providers of these types of goods and services. It is proposed that the tax would be levied when the sale is made from the online marketplaces (such as Amazon - [REMINDER: Quebec introduces sales tax on digital sales to consumers](https://fiscalsolutions.co.uk/news/reminder-quebec-introduces-sales-tax-on-digital-sales-to-consumers/): From 1 September 2019, Quebec introduced sales tax (QST) on sales made by non-resident providers of digital services to consumers residing in the province. Previously, non-resident businesses providing digital services in Quebec did not have to charge QST on their sales. However, in an effort to remove the unfair advantage that this gave to these companies over resident providers, the Quebec Revenue of Finance has implemented QST on these types of supplies at a rate of 9.975%. This will be subject to an ann - [REMINDER: New German F22 Tax certificate requirement for online sellers delayed](https://fiscalsolutions.co.uk/news/reminder-new-german-f22-tax-certificate-requirement-for-online-sellers-delayed/): This is a reminder that from 1 October 2019, EU sellers using online marketplaces to sell goods in Germany will need to register and obtain an “F22” tax certificate. As stated in our previous article, this new certificate will confirm that the online seller is up-to-date with their German VAT compliance and will need to be collected by all online marketplaces (such as eBay, Amazon etc.), which the seller uses to sell their goods or services in the country. Failure to obtain and produce these certificates by - [Netherlands confirm new requirements for companies exporting goods from the country](https://fiscalsolutions.co.uk/news/netherlands-confirm-new-requirements-for-companies-exporting-goods-from-the-country/): From 1 December 2019, non-EU companies will have to either establish their own Dutch company or appoint an EU established indirect customs representative, to export goods from the country. This requirement follows recent clarification released by the EU commission, stating that non-EU businesses must be established in the customs territory of the EU in order to export. Please click here for this update in full. Similar export requirements have already been confirmed in several EU member states, including Be - [French tax authorities confirm new purchase order requirement for VAT invoices](https://fiscalsolutions.co.uk/news/french-tax-authorities-confirm-new-purchase-order-requirement-for-vat-invoices/): The French tax authorities recently confirmed that companies VAT registered in France must now show purchase order numbers on their invoices, if a purchase order was raised prior to the invoice being issued. In France, missing or misstated information on an invoice can be penalised in the event of an audit and penalties can be as much as a quarter of the value of the invoice amount stated. - [Norway propose the introduction of a simplified VAT regime for low value goods](https://fiscalsolutions.co.uk/news/norway-propose-the-introduction-of-a-simplified-vat-regime-for-low-value-goods/): From 1 April 2020, the Norwegian government is proposing to make changes to the Value Added Tax (VAT) rules that apply to non-resident businesses selling and shipping directly to consumers in the country. This new regime is an extension to the simplified scheme already in place for cross-border sales of electronic services to consumers (VOES) and will apply to goods imported up to a value of NOK 3,000 (approx. £270). Currently at import into Norway, consumers can pay the VAT owed at clearance meaning that t - [BREXIT UPDATE: HMRC issue traders with EORI numbers](https://fiscalsolutions.co.uk/news/brexit-update-hmrc-issue-traders-with-eori-numbers/): The UK tax authority (HMRC) recently announced that it would automatically provide approximately 88,000 businesses with Economic Operator Registration Identification (EORI) numbers. If the UK leaves the EU on 31 October 2019, then any business moving goods between the UK and EU countries will require an EORI number. Going forward, businesses will need this number to declare exports and to clear goods into the UK and pay any VAT and duties due. HMRC hope that by automatically providing these numbers, it will - [Italian marketplace anti-fraud reporting requirements go live](https://fiscalsolutions.co.uk/news/italian-marketplace-anti-fraud-reporting-requirements-go-live/): From 31 October 2019, Italy will introduce new anti-VAT fraud reporting requirements on online marketplaces. This new requirement will oblige online platforms to report the following information directly to the Italian tax authorities on a quarterly basis: Details of each seller using their platform, including a valid Italian tax number Total sales by € and quantities sold in Italy - [France to implement VAT obligations for online marketplaces from 2020](https://fiscalsolutions.co.uk/news/france-to-implement-vat-obligations-for-online-market-places-from-2020/): From January 2020, France will require online marketplaces to verify the Value Added Tax status of foreign sellers using their online platforms. The new rules will require digital platforms to verify VAT registration numbers of third party merchants using their platforms. This is in order to ensure they are VAT registered and accounting for VAT on their sales correctly. Under the new rules, tax authorities will also notify marketplaces of any potential VAT fraud undertaken by their sellers. The marketplaces - [Malaysia to apply SST on digital imports](https://fiscalsolutions.co.uk/news/malaysia-to-apply-sst-on-digital-imports-2/): From 1 January 2020, the Malaysian tax authority confirmed that it would amend it’s current Sales and Service Tax (SST) legislation in order to apply SST to online services supplied by non-resident (foreign) companies. At present, foreign businesses providing digital services in Malaysia do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage this gives to non-resident companies over Malaysian resident providers, the Malaysian government propose that SST at 6% will be - [UPDATE: New Zealand introduces new legislation to amend the import GST exemption on low value imports](https://fiscalsolutions.co.uk/news/update-new-zealand-introduces-new-legislation-to-amend-the-import-gst-exemption-on-low-value-imports/): The New Zealand government has announced that the introduction of the new legislation, to make changes to the Goods and Services Tax (GST) rules that apply to low value imports made by non-resident businesses shipping to consumers in the country, is postponed from 1 October 2019 to 1 December 2019. Currently, the low value threshold in New Zealand allows all importers to purchase goods from non-resident companies without paying any GST or duties where: • The combined value of duty, excise and GST calculated - [Poland postpones introduction of VAT split payments to Nov](https://fiscalsolutions.co.uk/news/update-poland-postpones-implementation-of-vat-split-payments-until-november-2019/): Poland has postponed the implementation of the VAT split payments regime from September to 1 November 2019. - [Croatia plans to cut the standard VAT rate to 24%](https://fiscalsolutions.co.uk/news/croatia-plans-to-cut-the-standard-vat-rate-to-24/): From 1 January 2020, Croatia plans to reduce their standard VAT rate from 25% to 24%. At the same time, they also plan to reduce the VAT rate applicable to hospitality services provided in cafes, restaurants and hotels, from 25% to 13%. This decrease is aimed at boosting the tourism sector and mirrors the VAT treatment most EU countries apply to their travel and hospitality sectors. - [Romania proposes to cut the standard VAT rate to 16%](https://fiscalsolutions.co.uk/news/romania-proposes-to-cut-the-standard-vat-rate-to-16/): From 1 January 2020, the Romanian tax authorities are proposing to cut the standard VAT rate from 19% to 16%. If adopted the reduced VAT rate will also be lowered from 9% to 5%. - [UPDATE: Portugal delays the introduction of live VAT invoice reporting until 1 January 2020](https://fiscalsolutions.co.uk/news/update-portugal-delays-the-introduction-of-live-vat-invoice-reporting-until-1-january-2020/): The Portuguese government have again delayed the introduction of the new mandatory real time invoice reporting regime for VAT registered companies that sell to government bodies, until 1 January 2020. Originally, this was planned to be introduced in January 2019 and will require businesses, making these types of supplies, to send their invoices to the tax authorities for checking at the same time as they are issued to their customer. Once implemented this new invoice-reporting regime should prevent common e - [UPDATE: Hungary proposes a reduction of hotel VAT](https://fiscalsolutions.co.uk/news/update-hungary-proposes-a-reduction-of-hotel-vat/): The Hungarian government has confirmed that it will reduce the VAT rate applicable to hotel accommodation from 18% to 13%.  They have stated that this should be implemented on 1 January 2020. Most EU countries now offer a reduced VAT rate on hotel accommodation services linked to the tourism trade. The notable exceptions are Denmark and the UK. - [Mexico proposes the implementation of VAT on e-commerce supplies](https://fiscalsolutions.co.uk/news/mexico-proposes-the-implementation-of-vat-on-e-commerce-supplies/): The Mexican senate is proposing to levy VAT at 16%, on digital e-commerce supplies provided to consumers by non-resident online platforms. At present, non-resident online platforms do not have to charge VAT on their sales in Mexico. However, in an effort to remove the unfair advantage that this gives to non-resident companies over Mexican resident providers, the Mexican senate proposes that VAT at 16% will be applied on these types of transactions from as early as January 2020. If introduced, the VAT on the - [Indonesia proposes to introduce VAT on e-commerce sales](https://fiscalsolutions.co.uk/news/indonesia-proposes-to-introduce-vat-on-e-commerce-sales/): A VAT bill is currently being reviewed by the Indonesian government that will introduce VAT at 10% on all e-commerce goods and service transactions made by non-resident companies. At present, non-resident businesses providing e-commerce supplies to Indonesia do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage that this gives to non-resident companies over Indonesian resident providers, the Indonesian government are planning to introduce VAT at 10% on these types of - [Uzbekistan will introduce VAT on e-services in 2020](https://fiscalsolutions.co.uk/news/uzbekistan-will-introduce-vat-on-e-services-in-2020/): The Uzbekistan tax authority has recently confirmed that local VAT will be applicable on the sale of e-services to consumers by non-resident businesses. At present, non-resident businesses providing digital services in Uzbekistan do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage that this gives to non-resident companies over Uzbekistan resident providers, the Uzbekistan tax authorities have now confirmed that VAT at 20% will be applied on these types of transacti - [Vietnam B2C e-commerce withholding VAT - July 2020](https://fiscalsolutions.co.uk/news/vietnam-b2c-e-commerce-withholding-vat-july-2020/): From 1 July 2020, Vietnam will extend VAT to non-resident e-commerce sales to consumers. This will apply to both sales of goods and digital services. When introduced the new tax will be collected via banks and credit card companies based in the country when payment is received from their customer, and they will then be responsible for paying this over to the Vietnam tax authorities. The non-resident sellers will still have a requirement to VAT register in order to report these transactions in the country. - [Germany warns that VAT payments received with incorrect references will be subject to penalties](https://fiscalsolutions.co.uk/news/germany-warns-that-vat-payments-received-with-incorrect-references-will-be-subject-to-penalties/): The German tax authorities have recently written to non-EU businesses informing them that they must now declare a specific payment reference with their VAT payments going forward. This is because of the German tax authorities facing issues in allocating VAT payments received from these types of businesses, which cause delays in updating VAT accounts and often leads to unnecessary administration work in chasing VAT debts that are already paid. The German tax authorities warn that companies who fail to comply - [UPDATE: New Zealand introduces new legislation to amend the import GST rules on low value imports](https://fiscalsolutions.co.uk/news/update-new-zealand-introduces-new-legislation-to-amend-the-import-gst-rules-on-low-value-imports/): The New Zealand government has announced that the introduction of the new legislation, to make changes to the Goods and Services Tax (GST) rules that apply to low value imports made by non-resident businesses shipping to consumers in the country, is postponed from 1 October 2019 to 1 December 2019. Currently, the low value threshold allows all importers to purchase goods from non-resident companies without paying any GST or duties where: • The combined value of duty, excise and GST calculated on the goods t - [Czech Republic to introduce generalised temporary reverse charge during 2020](https://fiscalsolutions.co.uk/news/czech-republic-to-introduce-generalised-temporary-reverse-charge-during-2020/): From 1 January 2020, the Czech Republic will introduce the generalised reverse charge mechanism (GRCM) on domestic supplies undertaken in the country. The GRCM is allowed by the European Union in an effort to combat VAT fraud and allows EU member states most severely affected by fraud to apply a GRCM to transactions above a value of €17,500. For full detail of how the GRCM works please refer to our previous article here. - [France proposes to introduce fulfilment house scheme similar to the UK’s from 2020](https://fiscalsolutions.co.uk/news/france-proposes-to-introduce-fulfilment-house-scheme-similar-to-the-uks-from-2020/): The French government is proposing to introduce a fulfilment house scheme in an effort to prevent VAT evasion committed by non-compliant, non-EU businesses selling goods online in the country. This will mirror the UK “Fulfilment House Due Diligence Scheme” (FHDDS), which was introduced during 2017 and will target fulfilment houses in an effort to encourage them to monitor their customers’ VAT compliance. For further information on the UK FHDDS please click here. - [Czech e-book and catering VAT cut](https://fiscalsolutions.co.uk/news/czech-e-book-and-catering-vat-cut/): The Czech Republic is proposing to reduce the VAT rate on several goods and services to 10%, including: E-books and digital publications Catering services Domestic cleaning services Domestic water supplies - [Bangladesh 15% VAT implementation July 2019](https://fiscalsolutions.co.uk/news/bangladesh-15-vat-implementation-july-2019/): From 1 July 2019, Bangladesh introduced a new VAT regime in the country, with a standard rate of 15%. With this change, VAT is also chargeable on sales of e-services made by non-resident suppliers.  Previously, there was no VAT regime in the country so foreign businesses providing digital services did not have to charge VAT on their supplies. However, this recent change has meant that VAT at 15% is also charged on these types of transactions. This new tax applies to a range of electronic services including - [Sweden plans to cut VAT on e-books to 6%](https://fiscalsolutions.co.uk/news/sweden-plans-to-cut-vat-on-e-books-to-6/): From 1 July 2019, Sweden reduced the VAT rate applicable to e-books from 25% to 6%. This follows the EU Council’s proposal to allow EU member states to cut rates on electronic publications to match their printed equivalents, please click here for the full article. - [Hungary proposes reduction on hotel VAT](https://fiscalsolutions.co.uk/news/hungary-proposes-reduction-on-hotel-vat/): The Hungarian government is proposing to reduce the VAT rate applied on hotel accommodation from 18% to 13%, although no implementation date has been announced yet. Most EU countries now offer a reduced VAT rate on hotel and accommodation services linked to the tourism trade. The notable exceptions are Denmark and the UK. - [Romania confirms the introduction of a mandatory SAF-T file from January 2020](https://fiscalsolutions.co.uk/news/romania-confirms-the-introduction-of-a-mandatory-saf-t-file-from-january-2020/): The Romanian tax authorities have confirmed that they will introduce a mandatory SAF-T by the end of 2020. The SAF-T file, which is a way for the tax authorities to exchange VAT data with businesses in a more secure, accurate and efficient way, will be mandatory for all VAT registered businesses. These files are already in use in several EU countries including Poland, Portugal, Austria, Luxembourg, France and Lithuania. - [Russia B2B e-services VAT simplification](https://fiscalsolutions.co.uk/news/russia-b2b-e-services-vat-simplification/): From 1 January 2019, Russia has amended its current VAT legislation to state that non-resident businesses selling digital services to businesses in Russia have to VAT register and charge VAT on their supplies.However, the Russian tax authorities have now confirmed that the business customers in the transaction can withhold the VAT payments and submit this to the tax authorities directly. This will mean that the supplier will not need to receive and remit the VAT payments to the tax authorities, but they mus - [Lithuania proposes to cut VAT rate to 18% from 2019](https://fiscalsolutions.co.uk/news/lithuania-proposes-to-cut-vat-rate-to-18-from-2019/): The Lithuanian tax authorities are proposing to reduce their standard VAT rate from 21% to 18%.There is no plan to lower their current reduced VAT rates, which will remain at 19% and 5%. - [Nigeria confirms VAT will be collected on online transactions](https://fiscalsolutions.co.uk/news/nigeria-confirms-vat-will-be-collected-on-online-transactions/): The chairman of the Federal Inland Revenue Service (FIRS) confirmed the introduction of a 5% withholding value added tax on all e-commerce goods and service transactions.The chairman did not give an official date for its introduction but did state that when introduced, it would be charged and collected via banks and credit card companies in the country; this is instead of suppliers. It would also apply to both resident and non-resident providers of these types of goods and services.It is thought that this t - [UPDATE: Italy postpones online marketplaces’ VAT fraud obligations](https://fiscalsolutions.co.uk/news/update-italy-postpones-online-marketplaces-vat-fraud-obligations/): Italy has postponed plans to make online marketplaces responsible for the VAT on sales of electronic goods under a value of €150, made by non-EU sellers to January 2021. Under the new rules, online marketplaces will acquire the goods from the non-EU seller and then undertake the local sale to the consumers themselves. The marketplace will then be responsible for charging, collecting and remitting VAT to the Italian tax authorities on the transaction. This measure is designed to help prevent online VAT fraud - [Belgium cuts e-book VAT to 6%](https://fiscalsolutions.co.uk/news/belgium-cuts-e-book-vat-to-6/): Effective from 1 April 2019, Belgium introduced a reduction on the VAT rate applicable to e-books from 21% to 6%. This follows the EU Council’s proposal to allow EU member states to cut rates on electronic publications to match their printed equivalents. Please click here to read our previous update on this. - [UPDATE: Poland plans to implement VAT split payments on 1 September 2019](https://fiscalsolutions.co.uk/news/update-poland-plans-to-implement-vat-split-payments-on-1-september-2019/): From 1 September 2019, Poland confirmed it plans to introduce a mandatory split payment regime for companies involved in business-to-business (B2B) sales within certain sectors prevalent to VAT fraud. The split payment procedure will apply to transactions with a value above PLN 15,000 (approx. £3,100) and will be applicable to the following products: Steel Fuel and coal Mobile phones, tablets, digital cameras Passenger car parts Once introduced, the split payment regime will mean that customers of the b - [Norway proposes to reduce VAT to 0% on e-books](https://fiscalsolutions.co.uk/news/norway-proposes-to-reduce-vat-to-0-on-e-books/): From 1 July 2019, Norway proposes to reduce VAT applicable to e-books from 25% to 0%. - [Spain plans to cut VAT on e-books to 4%](https://fiscalsolutions.co.uk/news/spain-plans-to-cut-vat-on-e-books-to-4/): Spain has proposed to cut the VAT rate applicable to e-books from 21% to 4% and hopes to implement this next year. This follows the EU Council’s proposal to allow EU member states to cut rates on electronic publications to match their printed equivalents, please click here for the full article. - [Greece cuts VAT rate on some food items, including for restaurant and hotel services](https://fiscalsolutions.co.uk/news/greece-cuts-vat-rate-on-some-food-items-and-restaurant-hotel-services/): Greece has confirmed that from 20 May 2019, the following VAT rate reductions will take effect: From 24% to 13% on: all kinds of pasta and bread, fish and crustaceans, coffee, tea, fruit juices and vegetables, salt, vinegar, various food items based on cereals, flours, starches, and food items for the preparation of sauces, broth and soups. From 13% to 6% for supplies of electricity and natural gas. From 24% to 13% on some food preparation services supplied by businesses for food to be consumed either ons - [UPDATE: EU makes marketplaces liable for VAT from 2021](https://fiscalsolutions.co.uk/news/update-eu-makes-marketplaces-liable-for-vat-from-2021/): EU member states recently agreed to make online marketplaces responsible for charging and collecting VAT for their non-EU sellers in a bid to reduce VAT fraud.From 1 January 2021, online marketplaces will be considered as the supplier of the goods for VAT purposes. This is applicable where goods are imported by a merchant into one EU country and then moved to another EU country via an online marketplace for onward sale at a value of less than €150 to consumers.It is hoped that this will help to prevent VAT - [South Africa increases registration threshold for B2C e-services](https://fiscalsolutions.co.uk/news/south-africa-increases-registration-threshold-for-b2c-e-services/): From 1 April 2019, South Africa increased the VAT registration threshold for foreign providers of electronic services to consumer from ZAR 50,000 to ZAR 1 million.This threshold is calculated on a rolling 12-month calendar basis. - [Portugal delays the introduction of live VAT invoice reporting until 1 July 2019](https://fiscalsolutions.co.uk/news/portugal-delays-the-introduction-of-live-vat-invoice-reporting-until-1-july-2019/): The Portuguese government have delayed the introduction of the new mandatory real-time invoice reporting regime for VAT registered companies that sell to government bodies, until 1 July 2019.Originally, this was planned to be introduced from January 2019 and will require businesses making these types of supplies, to send their invoices to the tax authorities for checking at the same time as they are issued to their customer.Once implemented this new invoice-reporting regime should prevent common errors on t - [Italy attempts to avoid VAT hike](https://fiscalsolutions.co.uk/news/italy-attempts-to-avoid-vat-hike/): The Italian government are trying to avoid increasing the countries standard VAT rate from 22% to 24.2%, this increase is scheduled for January 2020.Due to Italy having the second highest level of debt in the European Union, they previously agreed with the European Commission (EC) to increase their VAT rates if certain budgetary targets were not met.It now seems that even though these targets will not be achieved, the current Italian government are adamant that the VAT rate in the country will not increase - [UPDATE: Poland VAT split payments implementation to be delayed until Jan 2020](https://fiscalsolutions.co.uk/news/update-poland-vat-split-payments-implementation-to-be-delayed-until-jan-2020/): Poland has confirmed that it will delay the planned mandatory split payment regime for companies involved in business-to-business (B2B) sales within certain sectors prevalent to VAT fraud, until January 2020.Once introduced the split payment procedure will mean that customers of the businesses affected will have to pay the VAT amount of a sale directly into a special government supervised bank account, while paying the net amount directly to the supplier. The tax authorities can then monitor the bank accoun - [UPDATE: Kuwait plans to implement VAT from April 2021](https://fiscalsolutions.co.uk/news/update-kuwait-plans-to-implement-vat-from-april-2021/): Kuwait has recently announced that it will finally introduce Value Added Tax (VAT) at 5% from 1 April 2021.Kuwait is part of the six-country Gulf Cooperation Council (“GCC”) and all of these countries have agreed to implement a harmonised VAT regime of 5% by 2018. The GCC countries consist of Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman. Kuwait VAT launch April 2021. - [Iceland will no longer require Fiscal Representatives](https://fiscalsolutions.co.uk/news/iceland-will-no-longer-require-fiscal-representatives/): From July 2019, Iceland will drop the obligation for non-resident businesses trading in the country to appoint a fiscal representative. It means that from this date foreign businesses selling to Icelandic consumers will be able to register and declare local VAT via a general registration or through a new simplified registration scheme (which will only be used for sales of e-services, printed books or newspapers and tourism services).A fiscal representative is a resident business that normally acts as the VA - [Italian tax office publishes guidance on VAT treatment of goods in the event of a no deal Brexit scenario](https://fiscalsolutions.co.uk/news/italian-tax-office-publishes-guidance-on-vat-treatment-of-goods-in-the-event-of-a-no-deal-brexit-scenario/): Italy published guidance relating to the VAT treatment of goods sold between the UK and Italy in the event of a no deal Brexit.This guidance states that in the event of a no-deal scenario, movements of goods between the two countries will no longer be treated as zero-rated intracommunity movements. Instead, they will be treated as exports and imports from and to the EU, and as a result subject to customs inspections, declaration and tariffs. - [BREXIT NEWS: Brexit delayed until 31 Oct 2019](https://fiscalsolutions.co.uk/news/brexit-news-brexit-delayed-until-31-oct-2019/): During April 2019, European Union leaders agreed to delay the UK’s exit from the EU until 31 October 2019. However, the UK can leave earlier if their Parliament passes the draft Withdrawal Agreement negotiated and agreed with EU states last year, please click here for our previous article relating to the proposed agreement. This extension means that the UK will remain a full member of the EU up until 31 October 2019, as a result, the UK remains within the EU VAT regime, Customs Union and Single Market. - [Germany plans to cut VAT on e-books to 7%](https://fiscalsolutions.co.uk/news/germany-plans-to-cut-vat-on-e-books-to-7/): Germany have committed to cut the VAT rate applicable to e-books from 19% to 7% and hopes to implement this from 1 January 2020. This follows the EU Council’s proposal to allow EU member states to cut rates on electronic publications to match their printed equivalents, please click here for the full article. - [UPDATE: EU commission takes action against split payment regime in Romania](https://fiscalsolutions.co.uk/news/update-eu-commission-takes-action-against-split-payment-regime-in-romania/): Following the letter of formal notice sent by the European Commission (EC) to Romania during November 2018, the country has now dropped the requirement for mandatory VAT split payments.  Please click here to view our previous article in regards to this. The split payment procedure introduced in Romania required VAT registered businesses with an overdue VAT debt to open special, secure bank accounts that are specifically used for receiving and making VAT payments. The vendor’s customers then pay the VAT amou - [Brexit: HMRC digital companies should prepare for no deal](https://fiscalsolutions.co.uk/news/brexit-hmrc-digital-companies-should-prepare-for-no-deal/): As the chances of a no deal Brexit increase, there are understandably many concerns about the impact of Brexit on businesses. Currently, there is no agreement in place for when the UK leaves the EU and the UK leaving without a deal is becoming a very real possibility. As a result, HMRC and other EU tax authorities have released various updates and guidance to prepare businesses for a no deal. HMRC have recently written to thousands of UK, US and other international businesses that sell digital services to c - [Brexit: The impact of no deal – International supplies of Goods](https://fiscalsolutions.co.uk/news/brexit-the-impact-of-no-deal-international-supplies-of-goods/): With so much uncertainty around the future relationship between the UK and the EU, many businesses that trade in or between the two territories are understandably worried. In order to try and alleviate some of these concerns, the UK authorities  and other EU Tax Authorities have released various guidance to help businesses prepare for the possibility of a no deal. In this article, we will be looking at how VAT changes with a possible no deal Brexit will impact businesses who trade goods in and between the E - [UPDATE: New German F22 Tax certificate requirement for online sellers delayed](https://fiscalsolutions.co.uk/news/update-new-german-f22-tax-certificate-requirement-for-online-sellers-delayed/): The German tax authorities have announced that they will delay the requirement for non-EU sellers using online marketplaces to register and obtain a new “F22” tax certificate until 15 April 2019.This new certificate will confirm that the online seller is up-to-date with their German VAT compliance. This certificate will need to be collected by all online marketplaces (such as eBay, Amazon etc.) which the seller uses to sell their goods or services in the country. Failure to obtain and produce these certific - [BREXIT NEWS: New reporting system for the sales of small value consignment relief goods opens in the UK](https://fiscalsolutions.co.uk/news/brexit-news-new-reporting-system-for-the-sales-of-small-value-consignment-relief-goods-opens-in-the-uk/): The UK tax authorities (HMRC) have introduced a new registration scheme for overseas businesses importing and selling goods valued at less than £135.This new scheme is being introduced to ensure that these types of sellers account for VAT and duties when the goods are delivered to their customers in the UK. Registration for the scheme has already opened, please click here for further information.Once registered, these businesses will be given a unique seller number to be included in all customs declarations - [Austria announce that online marketplaces will be liable for their merchants’ unpaid VAT from 2020](https://fiscalsolutions.co.uk/news/austria-announce-that-online-marketplaces-will-be-liable-for-their-merchants-unpaid-vat-from-2020/): Austria recently announced that from 1 January 2020, it plans to make online marketplaces (such as eBay, Amazon etc.) liable for unpaid VAT by merchants selling through their platforms.This new liability follows similar regulations introduced by Germany and the UK and should help to prevent online VAT fraud, which is estimated to cost the European Union up to €5 billion per year. - [Poland VAT split payments to become mandatory for some businesses from July 2019](https://fiscalsolutions.co.uk/news/poland-vat-split-payments-to-become-mandatory-for-some-businesses-from-july-2019/): From 1 July 2019, Poland will introduce a temporary mandatory split payment regime for companies involved in business to business (B2B) sales within in certain sectors prevalent to VAT fraud.Once introduced the split payment procedure will mean that customers of the businesses affected will have to pay the VAT amount of a sale directly into a special supervised bank account, while paying the net amount directly to the supplier. The tax authorities can then monitor the bank account and make withdrawals in or - [UPDATE: Qatar to launch 5% VAT from January 2020](https://fiscalsolutions.co.uk/news/update-qatar-to-launch-5-vat-from-january-2020/): Qatar is now expected to be the fourth Arab Gulf state to introduce VAT at 5% from January 2020, this follows Saudi Arabia, the United Arab Emirates and Bahrain.Qatar is part of the UAE Gulf Cooperation Council (“GCC”) consisting of Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman. All of these countries had originally agreed to implement a harmonised VAT regime by 2018, however, only the UAE and Saudi Arabia managed to implement a VAT system by this deadline, with Bahrain following - [UK eases no deal Brexit import declarations and tariffs for UK businesses](https://fiscalsolutions.co.uk/news/uk-eases-no-deal-brexit-import-declarations-and-tariffs-for-uk-businesses/): In the event of a no-deal Brexit, the UK tax authorities (HMRC) have eased some of the potential new import requirements in the case of UK businesses trading goods between the UK and the EU. These changes will be limited to roll on-roll off (Ro-Ro) UK ports and will exclude shipments from Ireland to Northern Ireland. Currently, the UK is scheduled to leave the EU on 29 March without any transitional deal in place. This would mean that goods brought into the UK from the EU would be treated as imports requiri - [Italy announces online marketplaces VAT fraud obligations](https://fiscalsolutions.co.uk/news/italy-announces-online-marketplaces-vat-fraud-obligations/): Italy has announced plans to make online marketplaces responsible for the VAT on sales of electronic goods under a value of €150, made by non-EU sellers.  If implemented this will apply to sales of mobile phones, video games, tablets and games consoles for example. Under these new rules, it will mean that the online marketplaces will have to first acquire the goods from the non-EU seller and then undertake the local sale to the consumers themselves.  The marketplace will then be responsible for charging, co - [Cyprus advises companies to make EU Refund Directive claims by 10 March 2019](https://fiscalsolutions.co.uk/news/cyprus-advises-companies-to-make-eu-refund-directive-claims-by-10-march-2019/): The Cypriot tax authorities have recommended that Cypriot and UK businesses, who use the EU Refund Directive mechanism to claim back VAT incurred in the UK and Cyprus during 2018, should complete their applications by 10 March 2019. Normally these types of claims would have a submission deadline of 30 September in both countries. However, due to the uncertainty of a no-deal Brexit the Cypriot tax authorities are advising to file these claims by 10 March 2019. Furthermore, the Cypriot tax authorities have st - [Bulgarian National Revenue Agency publishes guidance on VAT and customs implications of Brexit](https://fiscalsolutions.co.uk/news/bulgarian-national-revenue-agency-publishes-guidance-on-vat-and-customs-implications-of-brexit/): On 25 February 2019, the Bulgarian National Revenue Agency published guidance on the potential VAT and customs implications of a no-deal Brexit for Bulgarian companies. Within this guidance the National Revenue Agency provides various recommendations to companies doing business with the United Kingdom concerning; • Registration with the customs authorities for trading with non-EU countries; • Checking whether they have the required human resources, technical capacity and customs permissions for trading with - [Netherlands cuts VAT on e-books to 9%](https://fiscalsolutions.co.uk/news/netherlands-cuts-vat-on-e-books-to-9/): From 1 January 2020, the Netherlands will cut the VAT rate applicable on e-books from 21% to 9%. This follows the EU Councils proposal to allow EU member states to cut rates on electronic publications to match their printed equivalents, please click here for the full article. - [Austria cuts e-book VAT to 10% 2020](https://fiscalsolutions.co.uk/news/austria-cuts-e-book-vat-to-10-2020/): From 1 January 2020, Austria will cut the VAT rate applicable on e-books from 20% to 10%. This follows the EU Councils proposal to allow EU member states to cut rates on electronic publications to match their printed equivalents, please click here for the full article. - [France advises companies to make EU Refund Directive claims by 28 February 2019](https://fiscalsolutions.co.uk/news/france-advises-companies-to-make-eu-refund-directive-claims-by-28-february-2019/): The French tax authorities have recommended that French and UK businesses, who use the EU Refund Directive mechanism to claim back VAT incurred in the UK and France during 2018, should complete their applications by 28 February 2019.Normally these types of claims would have a submission deadline of 30 September in both countries.  However, due to the uncertainty of a no-deal Brexit the French tax authorities are advising to file these claims by the end of this month.Furthermore, the French tax authorities h - [France extends e-invoices for business to Government transactions](https://fiscalsolutions.co.uk/news/france-extends-e-invoices-for-business-to-government-transactions/): From 1 January 2019, France extended the obligation to submit electronic VAT invoices for sales made to the government, to include small and mid-sized businesses.Small and mid-sized businesses are considered to be vendors with between 10 to 250 employees and this new requirement will mean that they must use authorised software to raise and send invoices via a digital connection (such as an EDI or API) to their public service customers.Larger sized companies with more than 250 employees are already obliged t - [Ireland increase VAT rate applied to food supplements from 1 March 2019](https://fiscalsolutions.co.uk/news/ireland-increase-vat-rate-applied-to-food-supplements-from-1-march-2019/): From 1 March 2019, Ireland will raise the VAT rate applied to food supplements (including vitamins, minerals fish oils etc.) to 23%.This is due to the Irish Revenue recently confirming that they no longer consider these types of supplies as foodstuffs and therefore they will be reclassified from the zero to the standard VAT rate in the country. - [New German F22 Tax certificate requirement for online sellers](https://fiscalsolutions.co.uk/news/new-german-f22-tax-certificate-requirement-for-online-sellers/): The German tax authorities have recently announced that they will require sellers using online marketplaces to register and obtain a new “F22” tax certificate.This new certificate will confirm that the online seller is up-to-date with their German VAT compliance and will need to be collected by all online marketplaces (such as eBay, Amazon etc.) which the seller uses to sell their goods or services in the country.  Failure to obtain and produce these certificates by the marketplaces will automatically make - [UPDATE: UK Making Tax Digital VAT pilot](https://fiscalsolutions.co.uk/news/update-uk-making-tax-digital-vat-pilot/): The UK tax authority (HMRC) recently confirmed that it has extended the Making Tax Digital for VAT pilot available to members of VAT Groups, partnerships and companies using the flat rate scheme.During October 2018, the pilot was opened up to the public for testing and this enabled most taxpayers to submit VAT returns using the new system.As stated in our previous article, MTD will require VAT registered businesses to use special software to provide summary tax data directly to the tax office electronically - [BREXIT NEWS: UK Brexit postponed accounting law for import VAT](https://fiscalsolutions.co.uk/news/brexit-news-uk-brexit-postponed-accounting-law-for-import-vat/): The UK government has issued draft legislation relating to the implementation of postponed import VAT accounting in the event of a no-deal Brexit, please click here to view this legislation in full. As per our original article back in September 2018, postponed import VAT accounting will allow all UK VAT registered businesses to avoid having to pay VAT on the clearance of their goods into the UK. Instead, the import VAT amounts will be postponed to the VAT returns and will be entered in the same way as a rev - [Croatia make changes to VAT legislation from 1 January 2019](https://fiscalsolutions.co.uk/news/croatia-make-changes-to-vat-legislation-from-1-january-2019/): From 1 January 2019, a number of important changes were made to the Croatian (“HR”) VAT law.  These included: A change in the Value Added Tax (VAT) treatment of vouchers. This affects retailers with promotional or loyalty programs and follows the EU Voucher Directive changes which harmonised the VAT treatment of vouchers across the EU during January 2019. Our previous article here gives further explanation of these changes. The removal of the extended reverse charge for VAT registered foreign taxable perso - [Bulgaria – Import VAT reverse charge effective 1 July 2019](https://fiscalsolutions.co.uk/news/bulgaria-import-vat-reverse-charge-effective-1-july-2019/): From 1 July 2019, Bulgaria will introduce a deferred import VAT scheme for all businesses registered for VAT in the country. Any business wishing to use the scheme will need to apply to the Bulgarian tax authorities for authorisation and once accepted, it will remove the requirement to pay import VAT when goods are cleared into the country.  Instead the VAT will be deferred to the businesses’ VAT return. This should result in savings on shipping costs and bank charges for the companies who import goods on a - [Portugal cuts e-book and cultural service VAT rates](https://fiscalsolutions.co.uk/news/portugal-cuts-e-book-and-cultural-service-vat-rates/): Portugal have recently reclassified the VAT rate on the below services to the reduced VAT rate (6% in mainland Portugal, 5% in Madeira and 4% in Azores): Digital e-books and online publications - This follows the EU Councils proposal to allow EU member states to cut rates on electronic publications to match their printed equivalents, please click here for the full article. Entrance fees to cultural events. - [Ireland implement rule changes for the VAT treatment of vouchers](https://fiscalsolutions.co.uk/news/ireland-implement-rule-changes-for-the-vat-treatment-of-vouchers/): From 1 January 2019, the Irish tax authorities amended their VAT legislation relating to the Value Added Tax (VAT) treatment of vouchers. This change follows the EU Voucher Directive amendments which harmonised the VAT treatment of vouchers across the EU and will affect retailers with promotional or loyalty programs in the country. Our previous article gives further explanation of how these changes will work. - [Czech Republic bid to introduce generalised temporary reverse charge (GRCM) during 2020](https://fiscalsolutions.co.uk/news/czech-republic-bid-to-introduce-generalised-temporary-reverse-charge-grcm-during-2020/): During January 2019, the Czech Republic requested to be the first EU member state to introduce the generalised reverse charge mechanism (GRCM) on domestic supplies undertaken in the country. The GRCM was introduced by the European Union in an effort to combat VAT fraud and allows EU member states most severely affected by fraud to apply a GRCM to transactions above a value of €17,500.  For full detail of how the GRCM works please refer to our previous article here. - [REMINDER: Switzerland scraps low-value VAT exemption on e-commerce imports](https://fiscalsolutions.co.uk/news/reminder-switzerland-scraps-low-value-vat-exemption-on-e-commerce-imports/): From 1 January 2019, the Swiss government has removed its low-value import VAT exemption on goods bought from foreign suppliers.Previously, the threshold for the exemption was set at CHF 62.50 (approx. £50) for most goods and allowed importers to purchase goods VAT free from non-resident companies below this amount.However, in an effort to remove the unfair advantage that gave non-resident providers over resident providers of the same goods, the Swiss government removed the low-value threshold from 1 Januar - [REMINDER: Bahrain launches 5% VAT January 2019](https://fiscalsolutions.co.uk/news/reminder-bahrain-launches-5-vat-january-2019/): As per our previous article, Bahrain implemented Value Added Tax (VAT) at 5% from 1 January 2019.The Bahraini government has now confirmed that there is a mandatory VAT registration threshold of BHD 37,700 (approx. £78,000) for resident businesses. However, this threshold will not apply to non-resident businesses who will have to register from the first sale that they make in the country.Bahrain is part of the UAE Gulf Cooperation Council (“GCC”) consisting of Saudi Arabia, Kuwait, the United Arab Emirates, - [Norway to remove low-value import from 2020](https://fiscalsolutions.co.uk/news/norway-to-remove-low-value-import-from-2020/): From 1 January 2020, the Norwegian government have voted to remove the low-value import VAT exemption threshold on goods imported into the country.Currently, this threshold allows companies to import goods into Norway at a value of less than NOK 350 (approx. €35), VAT free.However, in an effort to remove the unfair advantage that this gives non-resident providers over resident providers of the same goods, the Norwegian government will remove the low-value threshold. This will mean that non-resident provider - [Uganda to introduce VAT on electronic services](https://fiscalsolutions.co.uk/news/uganda-to-introduce-vat-on-electronic-services/): Uganda is proposing to introduce VAT at 18% on the provision of electronic services in the country by non-resident companies.At present, foreign businesses providing digital services in Uganda do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage that this gives to non-resident companies over Ugandan resident providers, the Ugandan government is proposing to implement VAT at 18% on these types of transactions.If introduced, this new tax will be subject to a UGX 15 mi - [Lithuania - Newspapers, magazines, periodicals subject to 5% VAT from 1 January 2019](https://fiscalsolutions.co.uk/news/lithuania-newspapers-magazines-periodicals-subject-to-5-vat-from-1-january-2019/): From 1 January 2019, the VAT rate on newspapers, magazines, and other periodicals was reduced from 9% to 5%. Books and other printed materials will remain subject to 9% VAT. - [EU makes marketplaces liable for VAT from 2021](https://fiscalsolutions.co.uk/news/eu-makes-marketplaces-liable-for-vat-from-2021/): During December 2018, the European Commission proposed new rules which could make online marketplaces responsible for the reporting and payment of VAT on certain Business to Consumer cross-border sales made by sellers on their websites.If accepted, from January 2021 online marketplaces will be considered as the supplier of the goods for VAT purposes. This is applicable where goods are imported by a merchant into one EU country and then moved to another EU country via the online marketplace for an onward sal - [EU introduces e-service VAT simplifications](https://fiscalsolutions.co.uk/news/eu-introduces-e-service-vat-simplifications/): From 1 January 2019, EU member states introduced simplified VAT rules for businesses selling electronic services to consumers online in other EU Member States. These new simplifications consist of: Small EU businesses selling less than €10,000 worth of electronic services to consumers in other EU member states per year will issue their invoices and charge VAT under their home countries VAT regime. Only when they exceed this threshold will they have to switch to charging VAT locally in the consumer customers - [Finland to cut VAT on e-books to 5%](https://fiscalsolutions.co.uk/news/finland-to-cut-vat-on-e-books-to-5/): From 1 July 2019, Finland is set to cut the VAT rate applicable on e-books to 5% from 21%. This follows the EU Councils proposal to allow EU member states to cut rates on electronic publications to match their printed equivalents, please click here for the full article. - [Lithuania cuts VAT on e-books to 5%](https://fiscalsolutions.co.uk/news/lithuania-cuts-vat-on-e-books-to-5/): From 1 January 2019, Lithuania cut the VAT rate applicable on e-books to 5% from 21%. This follows the EU Councils proposal to allow EU member states to cut rates on electronic publications to match their printed equivalents, please click here for the full article. - [REMINDER: Netherlands increases reduced VAT rate to 9%](https://fiscalsolutions.co.uk/news/reminder-netherlands-increases-reduced-vat-rate-to-9/): From 1 January 2019, the Dutch tax authorities increased the reduced VAT rate from 6% to 9%.The reduced VAT rate applies to a number of different goods and services including accommodation, foodstuffs, pharmaceutical products, domestic passenger transport and books (excluding e-books). - [UPDATE: EU wide rule change for VAT rates applied to electronic books, newspapers and periodicals](https://fiscalsolutions.co.uk/news/update-eu-wide-rule-change-for-vat-rates-applied-to-electronic-books-newspapers-and-periodicals/): During November 2018, the European Council formally adopted the directive allowing member states to apply reduced, super-reduced or zero VAT rates to electronic publications.This rule change will allow member states to align VAT rates applied to both electronic and physical publications at their own discretion. This is a temporary fix until the EU implements a permanent change to its VAT legislation that will govern VAT rates on these types of supplies. - [UPDATE: Germany announces that online marketplaces will be liable for their merchants’ unpaid VAT from 2019](https://fiscalsolutions.co.uk/news/update-germany-announces-that-online-marketplaces-will-be-liable-for-their-merchants-unpaid-vat-from-2019/): Germany has passed a new law which extends its existing joint and several liability rules to hold online marketplaces (such as eBay, Amazon etc.) liable for unpaid VAT by the merchants selling over their platforms.This new law will come into force from January 2019. This requires online marketplaces to either keep a record of their merchants’ German VAT certificates or hold digital confirmation from the German tax authorities that the merchants are up-to-date with their VAT affairs.This measure is designed - [Germany new decree for call-off stock](https://fiscalsolutions.co.uk/news/germany-new-decree-for-call-off-stock/): From 1 January 2019, the German Ministry of Finance will allow foreign companies holding call-off stock in Germany to avoid VAT registering in the country.Call-off stocks are goods held in a country by a non-resident seller that are under the full control of one of their customers. These goods can then only be used by that customer and cannot be accessed or sold to any other businesses.Currently, non-resident companies who sell goods in this way have to VAT register in Germany and charge VAT to their custom - [EU commission take action against split payment regime in Romania](https://fiscalsolutions.co.uk/news/eu-commission-take-action-against-split-payment-regime-in-romania/): The European Commission (EC) recently sent a letter of formal notice to Romania requesting that they withdraw the new value added tax (VAT) split payment regime introduced in January 2018.Currently, the split payment procedure requires Romanian VAT registered businesses with an overdue VAT debt to open special, secure bank accounts which are specifically used for receiving and making VAT payments. The vendor’s customers then pay the VAT amounts charged by the vendor directly into this special secure bank ac - [Slovakia hotel VAT cut to 10%](https://fiscalsolutions.co.uk/news/slovakia-hotel-vat-cut-to-10/): From 1 January 2019, Slovakia will reduce the VAT rate for hotels and similar accommodation services from 20% to 10%.This decrease is aimed at boosting the tourism sector and mirrors the VAT subsidies that most EU countries give to their travel and hospitality sectors. - [UK's missing VAT grows by £1.3 billion](https://fiscalsolutions.co.uk/news/uks-missing-vat-grows-by-1-3-billion/): According to figures released by HMRC, an estimated £13.3 billion in UK VAT revenue was lost due to non-compliance or non-collection during the year 2017/18. When compared with the same figures from 2016/17 this shows an increase of £1.3 billion.The main factors contributing to were insolvencies, bankruptcies, fraud, administrative errors and legal tax optimisation. - [Fiscal Solutions to release compliant MTD solution in 2019](https://fiscalsolutions.co.uk/news/fiscal-solutions-to-release-compliant-mtd-solution-in-2019/): In preparation for MTD, Fiscal Solutions will release its very own HMRC approved MTD compliant bridging solution at the beginning of 2019. This cloud-based solution is easy to use, competitively priced and will enable businesses to meet the demands of MTD in order to submit their UK VAT returns after the potential April 2019 deadline. It will also allow businesses using the system to keep track of returns previously submitted and perform certain validation checks on VAT returns prior to submission. If you w - [UPDATE: UK provide BREXIT withdrawal agreement](https://fiscalsolutions.co.uk/news/update-uk-provide-brexit-withdrawal-agreement/): During November 2018, the UK government released details of a withdrawal agreement setting out the terms of its exit from the EU in March 2019. This agreement has also now been agreed by the other 27 EU member states governments. The agreement includes the previously stated 19-month transition period for VAT purposes, which means that the UK will remain within the EU VAT, Customs and Excise regime until at least 31 December 2020. Please see our previous article here for further detail regarding this transit - [UK - MTD UPDATE: Lords Request MTD Delay](https://fiscalsolutions.co.uk/news/uk-mtd-update-lords-request-mtd-delay/): The House of Lords, which is the Upper House of UK Parliament, have called for a minimum of 1-year delay to the implementation of Making Tax Digital (MTD). They claim that HMRC have neglected their responsibility to small businesses and that the costs to implement the new system will exceed those outlined in HMRC’s impact assessment. They also stated that low awareness from affected businesses and difficulty in the software market should also warrant an extension of this deadline. As stated in our previous - [Poland to cut VAT on e-books to 5%](https://fiscalsolutions.co.uk/news/poland-to-cut-vat-on-e-books-to-5/): From 1 April 2019, Poland will cut the VAT rate applicable on e-books to 5% from 23%. This follows the EU Councils proposal to allow EU member states to cut rates on electronic publications to match their printed equivalents, please click here for the full article. - [Malta to harmonise VAT rate on digital books and online journals at 5%](https://fiscalsolutions.co.uk/news/malta-to-harmonise-vat-rate-on-digital-books-and-online-journals-at-5/): From 1 January 2019, Malta is to harmonise its VAT rate on digital books and online journals with their reduced-rated paper equivalents at 5%. This follows the EU Councils proposal to allow EU member states to cut rates on electronic publications to match their printed equivalents, please click here for the full article. - [EU wide rule change for VAT rates applied to electronic books, newspapers and periodicals](https://fiscalsolutions.co.uk/news/eu-wide-rule-change-for-vat-rates-applied-to-electronic-books-newspapers-and-periodicals/): During October 2018, the European Council agreed a proposal allowing member states to apply reduced, super-reduced or zero VAT rates to electronic publications.This rule change will allow member states to align VAT rates applied to both electronic and physical publications at their own discretion. This is a temporary fix until the EU implements a permanent change to its VAT legislation that will govern VAT rates on these types of supplies. - [BREXIT UPDATE: UK tax authorities (HMRC) release guidance on free trade agreements in the event of a no deal Brexit](https://fiscalsolutions.co.uk/news/brexit-update-uk-tax-authorities-hmrc-release-guidance-on-free-trade-agreements-in-the-event-of-a-no-deal-brexit/): HMRC have published a guidance notice entitled ‘Existing free trade agreements if there’s no Brexit deal’, the full notice can be found here.In the event of a no deal Brexit, this publication explains how the Government will seek to preserve the terms on which UK businesses will import goods from non-EU countries after March 2019. - [European Council agrees to allow generalised temporary reverse charge (GTRC)](https://fiscalsolutions.co.uk/news/european-council-agrees-to-allow-generalised-temporary-reverse-charge-gtrc/): During October 2018 and in an effort to prevent VAT fraud, the European Council agreed a proposal that will allow EU member states most severely affected by VAT fraud to make temporary exemptions from normal VAT rules until July 2022.The proposed exemptions will allow member states heavily affected by fraud to apply a GTRC to transactions above a value of €17,500, which will mean that businesses providing transactions above this value will no longer have to charge VAT on their supplies to other business cus - [Norway scraps e-book VAT from July 2019](https://fiscalsolutions.co.uk/news/norway-scraps-e-book-vat-from-july-2019/): From 1 July 2019, Norway have reduced the VAT rate applicable on electronic publications to the zero rate.Previously digital publications were subject to the standard rate of VAT at 25%, even though the printed publications (offering the same reading content) were taxed at the zero rate. - [UPDATE: Poland decides against cutting VAT rate to 22% from 2019](https://fiscalsolutions.co.uk/news/update-poland-decides-against-cutting-vat-rate-to-22-from-2019/): In our July article, we announced that from 1 January 2019 the Polish tax authorities were looking to reduce their standard VAT rate from 23% to 22%. However, the Polish Ministry of Finance have now decided against this reduction and will instead re-categorise many supplies to include them in the reduced 8% VAT rate category. - [EU vote to cap VAT at 25%](https://fiscalsolutions.co.uk/news/eu-vote-to-cap-vat-at-25/): The European Parliament are proposing to implement a maximum cap of 25% on the standard VAT rate applicable in all EU countries.Currently the only EU country that will be affected if this cap is introduced is Hungary, who will have to reduce their current VAT rate of 27%. - [UPDATE: Bahrain launches 5% VAT January 2019](https://fiscalsolutions.co.uk/news/update-bahrain-launches-5-vat-october-2018-2/): The Bahraini government has voted in favour of implementing Value Added Tax (VAT) at a rate of 5% from 1 January 2019.The UAE is part of the six-country Gulf Cooperation Council (“GCC”) consisting of Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman. All of these countries had originally agreed to implement a harmonised VAT regime by 2018, however only the UAE and Saudi Arabia managed to implement a VAT system by this deadline. - [Ireland raises tourism VAT to 13.5%](https://fiscalsolutions.co.uk/news/ireland-raises-tourism-vat-to-13-5/): From 1 January 2019, Ireland will raise the VAT rate on tourism services from 9% to 13.5%.It is hoped that this will raise an extra €466 million in VAT per year and will apply to services provided by hotel, restaurant, theatres and cinemas. - [UPDATE: UK - Making Tax Digital implementation date extended for some businesses](https://fiscalsolutions.co.uk/news/update-uk-making-tax-digital-implementation-date-extended-for-some-businesses/): The UK tax authority (HMRC) recently announced an extension to the Making Tax Digital (MTD) implementation deadline for “complex organisations” to October 2019. A full list of the complex organisations affected can be found here and includes Trusts, VAT Groups and some not-for-profit organisations and importantly “traders based overseas”. As stated in our previous article, MTD will require VAT registered businesses to use special software to provide summary tax data directly to the tax office electronically - [UPDATE: Italy to introduce B2B real-time invoice reporting from 1 January 2019](https://fiscalsolutions.co.uk/news/update-italy-to-introduce-b2b-real-time-invoice-reporting-from-1-january-2019-2/): The Italian tax authorities have announced an extension to the reporting deadline for the submission of electronic invoices, which will apply when they introduce the new real-time invoice-reporting requirement next year. This extension will last until July 2019 and will allow affected businesses to submit their invoices to the tax authorities by the 15th of the month following the date of the invoice issued. This is instead of the originally planned 10 days after the transaction actually taken place. As per - [Portugal live VAT invoice reporting 2019](https://fiscalsolutions.co.uk/news/portugal-live-vat-invoice-reporting-2019/): From 1 January 2019, Portugal will introduce a new mandatory real-time invoice reporting regime that will apply to all VAT registered companies who sell to government bodies.This new regime will require businesses making these types of supplies, to send the invoices to the tax authorities for checking at the same time as they are issued to their customer.It is hoped that this new invoice-reporting regime will prevent common errors on these types of invoices and also prevent VAT fraud in the country. If succ - [UPDATE: The EU commission announces VAT co-operation agreement between EU and Norway](https://fiscalsolutions.co.uk/news/update-the-eu-commission-announces-vat-co-operation-agreement-between-eu-and-norway/): On 1 August 2018, the European Union (EU) published the agreement relating to its administrative co-operation with Norway.This agreement entered into force from 1 September 2018 and will provide EU Member States as well as Norway with a legal framework to cooperate on combating VAT fraud, as well as allowing them to assist each other on VAT compliance and reclaims.A full copy of the agreement can be found here. - [Greece VAT rate cut to 22% from 2021](https://fiscalsolutions.co.uk/news/greece-vat-rate-cut-to-22-from-2021/): The Greek government has announced that it will look to reduce its standard VAT rate by 2% from 24% to 22% by 2021.There is no plan to lower their reduced VAT rates, which will remain at 13% and 6%. - [EU VAT Gap shrinks to €147.1billion](https://fiscalsolutions.co.uk/news/eu-vat-gap-shrinks-to-e147-1billion/): According to the annual VAT gap study an estimated €147.1 billion in VAT revenue was lost within the EU due to non-compliance or non-collection during the year 2016, when compared with the same study from 2015 this shows a reduction in the gap of €10.6 billion.The VAT gap study is funded by the European Commission as part of its work to reform the VAT system and clamp down on tax evasion within the European Union.Each year the study sets out detailed data on the gap between the amount of VAT due and the amo - [UPDATE: UK Making Tax Digital implementation](https://fiscalsolutions.co.uk/news/update-uk-making-tax-digital-implementation-2/): The UK tax authority (HMRC) recently provided an update confirming that it is implementing the next phase of its Making Tax Digital (MTD) program during October 2018.During the next phase, the pilot will be opened up to the public for testing and this will enable any taxpayer to submit VAT returns using the new system.As stated in our previous article, MTD will require VAT registered businesses to use special software to provide summary tax data directly to the tax office electronically. This data will then - [Italy to introduce B2B real-time invoice reporting](https://fiscalsolutions.co.uk/news/italy-to-introduce-b2b-real-time-invoice-reporting-from-1-january-2019/): From 1 January 2019, Italy will introduce a new real-time invoice-reporting regime that will apply to all domestic B2B transactions made by resident businesses. - [Romania cuts accommodation and hotel services VAT rate to 5%](https://fiscalsolutions.co.uk/news/romania-cuts-accommodation-and-hotel-services-vat-rate-to-5/): From 1 January 2019, the Romanian government have announced that they will cut the VAT rate applicable to hotel accommodation and restaurant services to 5%. This change mirrors the majority of EU countries who already apply a reduced VAT rate to hotel accommodation. - [Russia to raise VAT rate to 20%](https://fiscalsolutions.co.uk/news/russia-to-raise-vat-rate-to-20/): From 1 January 2019, the Russian parliament approved a rise in the standard rate of VAT from 18% to 20%.The reduced rate of 10% will remain unchanged. - [Switzerland to scrap low-value VAT exemption on e-commerce imports](https://fiscalsolutions.co.uk/news/switzerland-to-scrap-low-value-vat-exemption-on-e-commerce-imports/): From 1 January 2019, the Swiss government will remove the low-value import VAT exemption on goods bought from foreign suppliers.Currently, the threshold for the exemption is set at CHf 62.50 for most goods and allows importers to purchase goods VAT free from non-resident companies up until this amount.However, in an effort to remove the unfair advantage that this gives non-resident providers over resident providers of the same goods, the Swiss government confirmed it would remove the low-value threshold fro - [UK issues no-deal VAT guidance notice](https://fiscalsolutions.co.uk/news/brexit-update-uk-issues-no-deal-vat-guidance-notice/): The UK has recently issued a range of guidance notices informing what the implications would be if the UK leaves the EU without a formal withdrawal agreement. - [EU members to introduce B2C e-services foreign VAT threshold](https://fiscalsolutions.co.uk/news/eu-member-states-to-introduce-b2c-e-services-foreign-vat-threshold-from-january-2019/): From 1 January 2019, small suppliers of digital services will be able to charge VAT in their home country on sales of electronic services to consumers in other EU member states where the total amount of these sales is under a threshold of €10,000. Currently there is no threshold for these types of sellers therefore the affected suppliers are required to charge VAT in the consumer’s country from the first sale that they make. They are then required to report and pay this VAT to that EU country either via a V - [Slovakia propose VAT amendments from 2019](https://fiscalsolutions.co.uk/news/slovakia-propose-vat-amendments-from-2019/): From January 2019, Slovakia are proposing to amend their VAT legislation. Some of the changes being considered include: • The adoption of the new EU VAT rules for the treatment of single and multi-purpose vouchers – Please click here for our previous article explaining the new VAT treatments. • Complete withdrawal of the VAT guarantee requirement – This will mean that non-EU businesses registering for VAT will no longer need to pay a VAT guarantee to the tax office to protect against possible VAT underpayme - [EU warns Germany regarding its unreasonable restrictions on providing VAT refunds](https://fiscalsolutions.co.uk/news/eu-warns-germany-relating-to-its-unreasonable-restrictions-on-providing-vat-refunds/): The European Commission (EC) recently warned Germany that it must reduce its restrictions on providing VAT refunds to non-resident businesses.The EC stated that Germany was unjustified in denying VAT refunds to taxpayers from other member states when all reasonable required information in accordance with the EU VAT refund directive, had been provided.Germany now has two months to comply with the EC’s request to reduce their restrictions or they will face a referral to the European Court of Justice. - [UPDATE: UK Making Tax Digital implementation](https://fiscalsolutions.co.uk/news/update-uk-making-tax-digital-implementation/): The UK tax authority (HMRC) recently provided an update on the progress made relating to the implementation of Making Tax Digital (MTD), due to begin on 1 April 2019.This update stated that they are making good progress with 35 software suppliers having stated that they will have software ready for the first testing phase of the pilot. Which is when the new MTD system will be tested by a small number of businesses and VAT agents.As stated in our previous article, MTD will require VAT registered businesses t - [Uruguay imposes retrospective VAT on the supply of e-services](https://fiscalsolutions.co.uk/news/uruguay-imposes-retrospective-vat-on-the-supply-of-e-services/): The Uruguayan tax authority recently confirmed that VAT at 22% is applicable on the sale of e-services to consumers by non-resident businesses in the country.Under previous legislation, non-resident businesses providing digital services in Uruguay did not have to charge VAT on their sales. However, in an effort to remove the unfair advantage that this gave to non-resident companies over local resident providers, the Uruguayan tax authorities confirmed that VAT will be applied on these types of transactions - [More Brexit news! Parliament vote on amendments to Brexit Customs Paper](https://fiscalsolutions.co.uk/news/more-brexit-news-parliament-vote-on-amendments-to-brexit-customs-paper/): During July 2018, the UK Parliament voted to amend the Brexit Customs Paper to ensure that the UK does not remain within the EU VAT regime after leaving the EU in 2020. The Brexit Customs Paper is a proposal on the future customs relationship between the EU and the UK post Brexit and these amendments will mean that the UK will: Not attempt to collect EU VAT amounts on behalf of EU member states. Not enjoy any cross border trade VAT simplifications such as VAT free (zero rated) intra-community supplies of g - [UPDATE: Italy to introduce B2B real-time invoice reporting from 1 January 2019](https://fiscalsolutions.co.uk/news/update-italy-to-introduce-b2b-real-time-invoice-reporting-from-1-january-2019/): During July 2018, the Italian tax authorities announced that the new real-time invoice-reporting regime due to be implemented from 1 January 2019, will only apply to Italian resident taxpayers. As a result, non-resident Italian VAT registered businesses will not have to follow this obligation and will instead continue to file a Spesometro filing, a declaration of all of their Italian VATable sales and purchases in the country. Please see our previous article that gives further information about how this new - [Hungary propose a range of VAT changes for 2019](https://fiscalsolutions.co.uk/news/hungary-propose-a-range-of-vat-changes-for-2019/): From January 2019, the Hungarian tax authorities are proposing to introduce a number of changes to their VAT legislation, these changes include: The adoption of the new EU VAT rules for the treatment of single and multi-purpose vouchers – Our previous article from July 2016 explains the new VAT treatments that will apply to vouchers. The local domestic reverse charge mechanism used to curb VAT fraud, will be extended to apply on the supply of steel and grain products. - [UK propose rule changes for the VAT treatment of vouchers](https://fiscalsolutions.co.uk/news/uk-propose-rule-changes-for-the-vat-treatment-of-vouchers/): The UK tax authorities have published a proposal for a change in the Value Added Tax (VAT) treatment of vouchers. This will affect retailers with promotional or loyalty programs and if accepted the new legislation will be introduced from 1 January 2019. The UK proposal follows the EU Voucher Directive which will take effect from 1 January 2019 and will harmonise the VAT treatment of vouchers across the EU. Our previous article from July 2016 gives further explanation of how this will work. - [Germany announce that online marketplaces will be liable for their merchants’ unpaid VAT from 2019](https://fiscalsolutions.co.uk/news/germany-announce-that-online-marketplaces-will-be-liable-for-their-merchants-unpaid-vat-from-2019/): Germany recently announced that from 1 January 2019 its existing joint and several liability rules will be extended to hold online marketplaces (such as eBay, Amazon etc.), liable for unpaid VAT by the merchants selling over their platforms.This new liability mirrors the regulations that were introduced by the UK during March 2018 and will require online marketplaces to either keep a record of their merchants’ German VAT certificates or hold digital confirmation from the German tax authorities that the merc - [Croatia propose to cut VAT rate to 24% from 2019](https://fiscalsolutions.co.uk/news/croatia-propose-to-cut-vat-rate-to-24-from-2019/): From 1 January 2019, the Croatian tax authorities are proposing to reduce their standard VAT rate from 25% to 24%.There is no plan to lower their reduced VAT rates, which will remain at 13% and 5%. - [Colombia imposes VAT on the supply of e-services](https://fiscalsolutions.co.uk/news/colombia-imposes-vat-on-the-supply-of-e-services/): The Colombian tax authority has recently confirmed that local VAT will be applicable on the sale of e-services to consumers by non-resident businesses.At present, non-resident businesses providing digital services in Colombia do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage that this gives to non-resident companies over Colombian resident providers, the Colombian tax authorities have now confirmed that VAT at 19% will be applied on these types of transactions fr - [Poland to cut VAT rate to 22% from 2019](https://fiscalsolutions.co.uk/news/poland-to-cut-vat-rate-to-22-from-2019/): From 1 January 2019, the Polish tax authorities will introduce a draft amendment to the VAT Act to reduce the standard VAT rate in the country from 23% to 22%.If accepted the reduced VAT rate will also decrease from 8% to 7% at the same time. The super reduced VAT rate will remain unchanged at 5%. - [Netherlands to increase reduced VAT rate to 9%](https://fiscalsolutions.co.uk/news/netherlands-to-increase-reduced-vat-rate-to-9/): From 1 January 2019, the Dutch tax authorities will increase the reduced VAT rate from 6% to 9%.This reduced VAT rate applies to a number of different goods and services including accommodation, foodstuffs, pharmaceutical products, domestic passenger transport and books (excluding e-books). - [Finally some Brexit news! Agreement reached regarding tax and cooperation procedures](https://fiscalsolutions.co.uk/news/finally-some-brexit-news-agreement-reached-regarding-tax-and-cooperation-procedures/): During June 2018, the European Union (EU) and the United Kingdom (UK) published a joint statement on the progress of negotiations relating to the UK’s withdrawal from the EU planned for March 2019, the full statement can be found here. In the joint statement, it confirms that the UK will remain in the EU VAT regime until the end of the 19-month Brexit transition period, which is scheduled to end on 31 December 2020. In effect, this means that the EU VAT Directive rules on cross-border transactions will stil - [Austria reduces VAT on hotels to 10%](https://fiscalsolutions.co.uk/news/austria-reduces-vat-on-hotels-to-10/): From 1 November 2018, the Austrian government will amend its VAT law to reduce the VAT rate applied on hotel accommodation to 10%. This new rate brings Austria in line with most other European Union countries who already impose a reduced VAT rate on this type of service. - [New Zealand consider amending the import GST exemption on goods](https://fiscalsolutions.co.uk/news/new-zealand-consider-amending-the-import-gst-exemption-on-goods/): From October 2019, the New Zealand (NZ) government is considering whether to make changes to the Goods and Services Tax (GST) rules that apply to non-resident businesses shipping to consumers in the country. Currently at import into NZ the low value threshold allows all importers to purchase goods from non-resident companies without paying any GST or duties where: The combined value of duty, excise and GST calculated on the goods totals NZ$60 or less. The goods have no duty applicable and are valued up unt - [UPDATE: Major online marketplaces sign-up to help tackle VAT fraud in the UK](https://fiscalsolutions.co.uk/news/update-major-online-marketplaces-sign-up-to-help-tackle-vat-fraud-in-the-uk/): The UK tax authorities (HMRC) have confirmed that Amazon, eBay and Fruugo are the first online marketplaces to sign up to its e-commerce data exchange agreement. During April 2018, HMRC asked all online marketplaces operating in the UK to sign an agreement to help tackle online VAT fraud. By signing this agreement these online platforms have agreed to: Educate the sellers who use their online marketplaces in the UK on their VAT obligations either by producing their own guidance or directing them to HMRC’s G - [REMINDER: Hungary to introduce real time VAT invoice reporting](https://fiscalsolutions.co.uk/news/reminder-hungary-to-introduce-real-time-vat-invoice-reporting/): A reminder that from 1 July 2018, the Hungarian tax authorities will introduce a new real time invoice-reporting regime, which will affect all VAT registered businesses in Hungary. When introduced the regime will apply to all business to business (B2B) sales transactions made in Hungary with a VAT amount above HUF 100,000 (approx.€320). All businesses undertaking these types of transactions will be expected to declare the invoices to the Hungarian tax authorities at the same time as they are issued to the b - [Greece to introduce real time invoice reporting](https://fiscalsolutions.co.uk/news/greece-to-introduce-real-time-invoice-reporting-from-1-january-2019/): From 1 January 2019, Greece are proposing to introduce a new mandatory real time invoice-reporting regime that will apply to all companies that sell to the public sector and limited liability companies (“LLC’s”). If introduced this new regime will require all businesses making these types of supplies, to declare the invoices to the Greek tax authorities at the same time as they are issued to the customer. The customer will then electronically confirm receipt of the invoice with the tax authorities directly. - [UPDATE: Kuwait delays VAT until 2021](https://fiscalsolutions.co.uk/news/update-kuwait-delays-vat-until-2021/): Kuwait has recently announced that it will delay the introduction of Value Added Tax (VAT) until 2021. Kuwait is part of the six-country Gulf Cooperation Council (“GCC”) and all of these countries had agreed to implement a harmonised VAT regime of 5% by 2018. The GCC countries consist of Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman. - [REMINDER: Poland VAT split payments from July 2018](https://fiscalsolutions.co.uk/news/reminder-poland-vat-split-payments-july-2018/): From 1 July 2018, Poland will introduce a voluntary anti-VAT fraud split payment regime. Once introduced the split payment procedure will allow customers to pay the VAT amount of a sale directly into a special supervised bank account, while paying the net amount directly to the supplier. The tax authorities can then monitor the bank account and make withdrawals in order to settle the supplier’s VAT liability. - [UK issue a further Split VAT Payment consultation](https://fiscalsolutions.co.uk/news/uk-issue-a-further-split-vat-payment-consultation/): The UK tax authorities have issued a further public consultation relating to the adoption of Split Payments for e-commerce transactions in the country.If introduced it’s hoped that the mechanism will help to prevent online VAT fraud and would require the VAT-element of online sales to be paid directly to the UK tax authorities by the online sellers at the time of purchase.Split Payments are already in use on certain transactions in Italy, Romania and Austria. Poland are also planning to introduce the mechan - [Iceland removes e-book VAT from 2019](https://fiscalsolutions.co.uk/news/iceland-removes-e-book-vat-from-2019/): From 1 January 2019, Iceland’s Ministry of Finance and Economic Affairs will reclassify electronic books as zero-rated for Value Added Tax.E-books are currently subject to the reduced VAT rate of 11% in Iceland, however as Iceland is not a member of the European Union (EU) they can decide their own VAT rates which has allowed them to scrap this VAT charge altogether.EU countries do not have this privilege and are currently obliged to charge the full standard VAT rate on e-books, this is despite printed book - [Quebec introduces sales tax on digital sales to consumers](https://fiscalsolutions.co.uk/news/quebec-introduce-sales-tax-on-digital-sales-to-consumers/): From 2019, Quebec will be the first Canadian province to introduce sales tax (QST) on sales made by non-resident providers of digital services to consumers residing in the province. At present, non-resident businesses providing digital services in Quebec do not have to charge QST on their sales. However, in an effort to remove the unfair advantage that this gives to these companies over resident providers, the Quebec Revenue of Finance has confirmed it will implement QST on these types of supplies at a rate - [Russia considers lowering VAT on imported goods](https://fiscalsolutions.co.uk/news/russia-considers-lowering-vat-and-duty-exemption-on-imported-goods/): The Russian Ministry of Finance has proposed significantly lowering its import VAT and duty exemption threshold for goods imported into the country. - [HMRC calls on online marketplaces to sign agreement tackling VAT fraud in the UK](https://fiscalsolutions.co.uk/news/hmrc-calls-on-online-marketplaces-to-sign-agreement-tackling-vat-fraud-in-the-uk/): During April 2018, HMRC asked all online marketplaces operating in the UK to sign an agreement to help tackle online VAT fraud. This agreement states that these online platforms have a responsibility to: Educate the sellers who use their online marketplaces in the UK, on their VAT obligations either by producing their own guidance or directing them to HMRC’s GOV.UK guidance which can be found here: https://www.gov.uk/guidance/vat-overseas-businesses-using-an-online-marketplace-to-sell-goods-in-the-uk. Impl - [ECJ judgement on the VAT treatment of travel agents supplies in Germany](https://fiscalsolutions.co.uk/news/ecj-judgement-over-vat-treatment-of-travel-agents-in-germany/): The European Court of Justice (ECJ) has made its judgement in the case C-380/16 relating to the application of the special scheme for travel agents, referred to as the Tour Operators Margin Scheme (TOMS), in Germany. The court ruled that Germany failed to fulfil its obligations set under the EU VAT directive by: • Only applying TOMS on services supplied directly to consumers. • Allowing travel agents to only set one single profit margin for all supplies sold during a VAT return period. As per the EU VAT dir - [South Africa VAT increase from 1 April](https://fiscalsolutions.co.uk/news/south-africa-vat-increase-1-april/): In the 2018 Budget speech, South Africa has announced that the VAT rate will increase from 14% to 15% From 1 April 2018. - [UK Making Tax Digital: Legislation Published](https://fiscalsolutions.co.uk/news/uk-making-tax-digital-legislation-published/): The UK tax authority (HMRC) recently published a final version of the legislation that will introduce new digital reporting obligations from April 2019.As stated in our previous article, when introduced, businesses with a turnover greater than the VAT registration threshold of £85,000 will be required to use the system to provide summary tax data directly to the tax office electronically. This data will then be used to automatically generate tax records, instead of manually calculating and filing a VAT retu - [Czech Republic propose VAT amendments from 2019](https://fiscalsolutions.co.uk/news/czech-republic-propose-vat-amendments-2019/): From January 2019 the Czech Republic are proposing to amend their VAT legislation. Some of the changes include: The adoption of the new EU VAT rules for the treatment of single and multi-purpose vouchers – Please click here for our previous article explaining the new VAT treatments. Non-resident suppliers of e-services not having to charge Czech VAT or produce Czech compliant invoices if their sales to consumers are below an annual €10,000 threshold. - [REMINDER: Portugal – Import VAT reverse charge effective 1 March 2018](https://fiscalsolutions.co.uk/news/reminder-portugal-import-vat-reverse-charge-effective-1-march-2018/): From 1 March 2018, Portugal has extended its current reverse charge mechanism on imports to include all goods imported into the country. Previously this was restricted to certain goods mentioned in the Portuguese VAT legislation. This will allow any VAT registered businesses to apply to the Portuguese tax authorities for authorisation to use this reverse charge. Once accepted, it will remove the requirement to pay import VAT when goods are cleared into the country and instead the VAT will be deferred to the - [EU - VAT refund procedure scrutinised](https://fiscalsolutions.co.uk/news/eu-vat-refund-procedure-scrutinised/): During February 2018, the European Commission (EC) launched a compliance check to assess whether VAT refunds to businesses within EU Member States are in line with current EU law.This check will last eight months and will review whether the 28 European Union member states are providing an adequate and efficient cash refund service for companies incurring VAT on foreign expenses. - [South Africa to raise VAT to 15% from April 2018](https://fiscalsolutions.co.uk/news/south-africa-raise-vat-15-april-2018/): From 1 April 2018, South Africa will increase its VAT rate from 14% to 15%. This is the first VAT increase to be implemented in the country for 25 years and it is hoped that it will help to decrease the countries growing deficit, which increased to 4.3% during 2017. - [UPDATE: The EU commission announces VAT cooperation agreement between EU and Norway](https://fiscalsolutions.co.uk/news/update-eu-commission-announces-vat-cooperation-agreement-eu-norway/): On 6 February 2018, the European Commission and Norway signed the long awaited VAT cooperation agreement. The negotiations in regards to this agreement began in June 2015 and now signed; it should provide EU Member States and Norway with a legal framework for the cooperation on combating VAT fraud and assisting each other on VAT compliance and reclaims. - [Argentina taxes foreign digital services from January 2018](https://fiscalsolutions.co.uk/news/argentina-taxes-foreign-digital-services-january-2018/): Argentina have recently confirmed that local VAT is applicable on the supply of digital services made by non-resident providers to consumers in the country. - [Thailand proposes to introduce VAT on electronic services](https://fiscalsolutions.co.uk/news/thailand-proposes-introduce-vat-electronic-services/): Thailand is proposing to introduce VAT at 7% on the provision of electronic services in the country. - [Romania propose to cut VAT rate to 18% from 2019](https://fiscalsolutions.co.uk/news/romania-propose-cut-vat-rate-18-2019/): Romania is proposing to reduce its VAT rate from 19% to 18% from 1 January 2019. - [Italy to introduce B2B real-time invoice reporting from 1 January 2019](https://fiscalsolutions.co.uk/news/italy-introduce-b2b-real-time-invoice-reporting-1-january-2019/): From 1 January 2019, Italy will introduce a new mandatory real time invoice-reporting regime that will apply to all domestic business-to-business (B2B) transactions in the country. This new regime will require all businesses, both resident and non-resident, that sell to other VAT registered businesses in the country, to declare these sales to the Italian tax authorities via a new e-invoicing platform (Sistema di Interscambio SDI). This is instead of sending these invoices to their customers themselves. The - [United Arab Emirates confirm VAT at 5% will apply to e-commerce sales](https://fiscalsolutions.co.uk/news/united-arab-emirates-confirm-vat-5-will-apply-e-commerce-sales/): The United Arab Emirates (UAE) have confirmed that e-commerce supplies of both goods and services made by non-resident (foreign) suppliers to consumers in the country, are to be subject to VAT at 5%. These types of supplies are subject to the same VAT registration procedure and threshold as other supplies made in the country, which is currently set at Dh 375,000 (Approx. £73,000). The UAE is part of the six-country Gulf Cooperation Council (GCC), which planned to implement a harmonised VAT regime by 2018. H - [UK Making Tax Digital VAT consultation](https://fiscalsolutions.co.uk/news/uk-making-tax-digital-vat-consultation/): The UK tax authority (HMRC) recently released draft regulations and VAT notices that relate to the April 2019 launch of the “Making Tax Digital” legislation. A pilot of the programme for taxpayers, agents and software providers is also scheduled to begin from April 2018.As stated in our previous article, when introduced businesses with a turnover greater than the VAT registration threshold of £85,000 will be required to use the system to provide summary tax data directly to the tax office electronically. Th - [UPDATE: Bahrain launches 5% VAT October 2018](https://fiscalsolutions.co.uk/news/update-bahrain-launches-5-vat-october-2018/): The Ministry of Finance in Bahrain has confirmed that it will implement Value Added Tax (VAT) at a rate of 5% from 1 October 2018, with a VAT registration threshold set for all businesses at US$ 100,000.The UAE is part of the six-country Gulf Cooperation Council (“GCC”) and all of these countries had agreed to implement a harmonised VAT regime by 2018. The GCC countries consist of Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman. - [UPDATE: Oman delays VAT until 2019](https://fiscalsolutions.co.uk/news/update-oman-delays-vat-2019/): Oman has recently announced that it will delay the introduction of Value Added Tax (VAT) in the country until at least 2019.Oman is part of the six-country Gulf Cooperation Council (“GCC”) and all of these countries had agreed to implement a harmonised VAT regime of 5% by 2018. The GCC countries consist of Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman. - [Lithuania reduces VAT on hotels to 9%](https://fiscalsolutions.co.uk/news/lithuania-reduces-vat-hotels-9/): From 1 January 2018, Lithuania has reduced the VAT rate applicable on hotel accommodation to 9%.This new rate will only apply until the end of 2022 and brings Lithuania in line with most other European Union countries who already impose a reduced VAT rate on this type of service. - [EU proposes exempting SMEs from cross-border VAT obligation](https://fiscalsolutions.co.uk/news/eu-proposes-exempting-smes-cross-border-vat-obligation/): During January 2018, the European Commission (EC) published a proposal to eliminate foreign VAT obligations for small to medium sized EU enterprises (SMEs). - [Hungary to introduce real time VAT invoice reporting](https://fiscalsolutions.co.uk/news/update-hungary-introduce-real-time-vat-invoice-reporting-2/): From 1 July 2018, the Hungarian tax authorities will introduce a new real time invoice-reporting regime impacting all VAT registered businesses in Hungary. - [Russia to impose VAT on foreign B2B digital services](https://fiscalsolutions.co.uk/news/russia-impose-vat-foreign-b2b-digital-services/): Russia has amended its current VAT legislation to state that non-resident businesses selling digital services to other businesses will have to VAT register. - [Turkey introduces VAT on foreign B2C digital services](https://fiscalsolutions.co.uk/news/turkey-introduce-vat-foreign-b2c-digital-services/): From 1 January 2018, the Turkish Government introduced a VAT charge on all sales of e-services to consumers in Turkey. - [UPDATE: Norway confirm the introduction of a mandatory SAF-T file from January 2020](https://fiscalsolutions.co.uk/news/update-norway-confirm-introduction-mandatory-saf-t-file-january-2020/): The Norwegian tax authorities have confirmed that the planned implementation of a mandatory SAF-T file will be further delayed until 1 January 2020. The SAF-T file was introduced on a voluntary basis in the country from January 2017 and is a way for the tax authorities to exchange VAT data with businesses in a more secure, accurate and efficient way. These files are already in use in several EU countries including Poland, Portugal, Austria, Luxembourg, France and Lithuania. - [Switzerland standard rate VAT decreased to 7.7%](https://fiscalsolutions.co.uk/news/reminder-switzerland-standard-rate-vat-decreased-7-7/): From the 1 January 2018, the Swiss VAT rate decreased from 8% to 7.7%. - [Hungary implements internet services VAT rate reduction](https://fiscalsolutions.co.uk/news/hungary-implements-internet-services-vat-rate-reduction/): From 1 January 2018, the VAT rate on internet access services provided to consumers reduced from 18% to 5%. - [New rules could allow EU member states to set VAT rates](https://fiscalsolutions.co.uk/news/european-commission-propose-new-rules-give-member-states-flexibility-set-vat-rates/): During January 2018, the European Commission proposed new rules to give Member States more flexibility to set their own VAT rates. - [Portugal import VAT reverse charge effective 1 March 2018](https://fiscalsolutions.co.uk/news/portugal-import-vat-reverse-charge-effective-1-march-2018/): From 1 March 2018, Portugal will extend its current reverse charge mechanism on imports to include all goods imported into the country. - [UPDATE: Romania to consider the implementation of split payments](https://fiscalsolutions.co.uk/news/update-romania-consider-implementation-split-payments-2/): On the 14 December 2017, the Romanian government approved a new law that significantly alters which businesses are affected by the new VAT split payment legislation, which is to be introduced on 1 January 2018.Originally this was going to apply to all VAT registered businesses in the country, however the new law states that it will now only apply to companies with an overdue VAT debt as at 31 December 2017 and companies who are over 60 days late in paying their VAT obligations during 2018.As stated previous - [Finland to defer VAT on imports to VAT returns](https://fiscalsolutions.co.uk/news/finland-defer-vat-imports-vat-returns/): From 1 January 2018, Finland will change the rules on accounting for VAT when importing goods into the country by allowing VAT registered businesses to defer the import VAT to their VAT reporting.This will in effect remove the requirement to pay import VAT on goods at the time they are imported, which could result in savings on shipping costs and bank charges. It should also improve cash flow for businesses importing into the country, as they will no longer need to wait for the VAT to be refunded from the F - [Argentina taxes foreign digital services 2018](https://fiscalsolutions.co.uk/news/argentina-taxes-foreign-digital-services-2018/): The Argentine government is proposing to levy VAT on consumers of digital services provided by non-resident providers.If introduced this VAT would be settled by the consumer’s credit card provider who would withhold the VAT amounts on the transaction.If implemented this will apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services. - [ECOFIN agree on E-Commerce VAT regime reforms for online sellers](https://fiscalsolutions.co.uk/news/ecofin-agree-e-commerce-vat-regime-reforms-online-sellers/): On 5 December 2017, the EU’s Economic and Financial Affairs Council (ECOFIN), which is a council consisting of economic and finance ministers from all EU member states that are responsible for setting economic and taxation policies within the EU, reached an agreement on a series of reforms that will simplify the E-Commerce VAT regime within the EU. These reforms will apply to the collection of VAT when consumers buy goods and services online and are to be phased in from 2019, please see below for a full lis - [Digital services supplies subject to VAT in Saudi Arabia](https://fiscalsolutions.co.uk/news/saudi-arabia-confirm-supplies-digital-services-will-subject-vat/): Saudi Arabian tax authorities have announced that the supply of digital services to consumers by non-resident providers will be subject to VAT at 5%. - [Latvia makes changes to its VAT legislation](https://fiscalsolutions.co.uk/news/latvia-makes-changes-vat-legislation/): From 1 January 2018 the Latvian government will introduce a number of changes to the VAT legislation in the country. These changes include:- The introduction of a domestic reverse charge to combat VAT fraud on constructions services, precious metals, certain consumer electronic appliances and sales of games consoles. The new mechanism will mean that businesses involved in making these types of supplies will no longer have to charge VAT on their supplies to other business customers. Instead, it will be the c - [Norway increases its reduced VAT rate to 12%](https://fiscalsolutions.co.uk/news/reminder-norway-increases-reduced-vat-rate-12/): From 1 January 2018, the Norwegian government will increase the reduced VAT rate from 10% to 12%. - [Poland postpones the introduction of split payments to prevent VAT fraud](https://fiscalsolutions.co.uk/news/poland-postpones-introduction-split-payments-prevent-vat-fraud-2/): Poland recently announced that the introduction of the anti-VAT fraud split payments regime will be further delayed until 1 July 2018. Once introduced the split payment procedure will allow customers to pay the VAT amount of a sale directly into a special supervised bank account. The tax authorities can then make withdrawals directly from this bank account in order to settle the supplier’s VAT liability. - [Malaysia proposes to apply GST on digital imports](https://fiscalsolutions.co.uk/news/malaysia-proposes-apply-gst-digital-imports/): Malaysian tax authorities have announced they propose to amend their current GST legislation to apply GST to online services supplied by non-resident companies. - [UPDATE: Norway propose to introduce mandatory SAF-T filing from January 2018](https://fiscalsolutions.co.uk/news/update-norway-propose-introduce-mandatory-saf-t-filing-january-2018/): The Norwegian tax authorities look likely to delay the implementation of mandatory SAF-T files until at least 2019.Last month the Norwegian tax authorities indicated that they plan to make the standard audit file (SAF-T) reporting mandatory for all businesses from 1 January 2018. However, changes to the legislation governing this have yet to be proposed and are now unlikely to be in place to meet the 2018 deadline.The SAF-T file was introduced on a voluntary basis in the country from January 2017 and is a w - [UK VAT registration threshold frozen until 2020](https://fiscalsolutions.co.uk/news/uk-vat-registration-threshold-frozen-2020/): As announced in the October 2017 Autumn budget, the UK VAT registration threshold will remain frozen at £85,000 for resident businesses until 2020.This registration threshold only applies to resident companies, as non-resident companies must immediately VAT register if they are undertaking taxable sales in the UK. - [Hungary raises VAT registration threshold for resident firms](https://fiscalsolutions.co.uk/news/hungary-raises-vat-registration-threshold-resident-businesses/): The Hungarian government is proposing to increase the country’s VAT registration threshold from HUF 8 million to HUF 12 million (approx. £23K to £34k). - [UK to extend scope of VAT liability for online marketplaces](https://fiscalsolutions.co.uk/news/uk-extend-scope-joint-several-vat-liability-online-marketplaces/): Legislation will be introduced that will extend the scope of the existing joint and several liability rules. - [ECOFIN fail to reach an agreement on E-Commerce VAT regime](https://fiscalsolutions.co.uk/news/ecofin-fail-reach-agreement-e-commerce-vat-regime-reform/): ECOFIN have failed to reach an agreement on the proposed 2022 E-Commerce VAT regime reforms. - [UK to introduce fulfilment house register from June 2018](https://fiscalsolutions.co.uk/news/uk-introduce-fulfilment-house-register-june-2018/): All UK-based businesses involved with fulfilling orders of imported goods for third party businesses will need to apply to join a new approved fulfilment house. - [REMINDER: Polish SAF-T will be required for all businesses from 1 January 2018](https://fiscalsolutions.co.uk/news/reminder-polish-saf-t-will-required-businesses-1-january-2018/): From 1 January 2018, the mandatory requirement to submit Standard Audit Files (SAF-T) in Poland will be extended to include all companies. This requirement has been a mandatory requirement for large enterprises since July 2016 and was introduced in an effort to prevent VAT fraud. SAF-T is a way for the tax authorities to exchange VAT data with businesses in a more secure, accurate and efficient way.  These files are already in use in several other EU countries including Portugal, Austria, Luxembourg, France - [Slovakia simplify VAT registration for foreign companies](https://fiscalsolutions.co.uk/news/slovakia-vat-registration-simplification-non-resident-companies/): From 1 Jan 2018, non-resident e-commerce businesses who provide goods online can utilise simplified VAT registration if they meet a certain criteria. - [Italy plan to increase VAT rates from 1 January 2019](https://fiscalsolutions.co.uk/news/italy-plan-increase-vat-rates-1-january-2019/): The Italian government have announced they plan to increase VAT rates in their recently published stability budget. - [Canada - Quebec announces remote sales tax plan](https://fiscalsolutions.co.uk/news/canada-quebec-announces-remote-sales-tax-plan/): Quebec has announced a tax fairness action plan which will require Canadian non-resident suppliers of goods and services to register and account for QST. - [Italian government cancels 2018 VAT rise](https://fiscalsolutions.co.uk/news/italy-government-cancels-2018-vat-rise/): The Italian government recently presented its 2018 draft budget, which excludes the promised standard and reduced VAT rate increases to 25% and 11.5% respectively.At the beginning of the year, the Italian government announced that if they did not meet certain budgetary targets during 2017, then they would increase the VAT rates to cover the shortfall. However, even though it seems that the budget requirements have not been met the VAT rates will remain at 22% for the standard rate and 10% for the reduced ra - [Netherlands proposes to increase its reduced VAT rate to 9%](https://fiscalsolutions.co.uk/news/netherlands-proposes-increase-reduced-vat-rate-9/): From 1 January 2018, the Dutch government is proposing to increase the reduced VAT rate from 6% to 9%.In the Netherlands, the reduced VAT rate applies to basic foodstuffs, books, hairdresser services, swimming pool entry, medicines, art, antiques as well as entry to museums, zoos, theatres and sporting events. - [Swiss e-book VAT reduced to 2.5%](https://fiscalsolutions.co.uk/news/swiss-e-book-vat-reduced-2-5/): From 1 January 2018, the Swiss government will reduce the VAT rate on e-books from 8% to 2.5%.This will bring the VAT rate of electronic books in line with that of printed books in the country. The rate change will coincide with the standard VAT rate reduction from 8% to 7.7%, which was announced last month. - [EU VAT Gap shrinks to €152 billion in 2015](https://fiscalsolutions.co.uk/news/eu-vat-gap-shrinks-e152-billion-2015/): According to the annual VAT gap study an estimated €151.5 billion in VAT revenues were lost due to non-compliance or non-collection during the year 2015, when compared with the same study from 2014, this shows a reduction in the gap of €8 billion.The VAT gap study is funded by the European Commission as part of its work to reform the VAT system in Europe, as well as its wider campaign to clamp down on tax evasion.Each year the study sets out detailed data on the gap between the amount of VAT due and the amo - [Malta raises VAT registration threshold for resident businesses](https://fiscalsolutions.co.uk/news/malta-raises-vat-registration-threshold-resident-businesses/): From 1 January 2018, the Maltese government are proposing to increase the country’s VAT registration threshold from €14,000 to €20,000.This registration threshold will only apply to resident companies, as non-resident companies must immediately VAT register if they are undertaking taxable sales in Malta. - [Greece VAT receipt lottery to fight fraud](https://fiscalsolutions.co.uk/news/greece-vat-receipt-lottery-fight-fraud/): In order to try to reduce VAT fraud the Greek government has launched a monthly lottery based on VAT compliant receipts issued to consumers.From the end of October, every VAT receipt issued in the country will show a unique number which will be automatically entered into a monthly cash-prize draw organised by the government. There will be 1,000 winners each month that will win €1,000 each.It’s hoped the scheme will encourage Greek consumers to ask for VAT receipts, in order to be entered into this draw. The - [EC publish details of the 2022 VAT regime reform](https://fiscalsolutions.co.uk/news/european-commission-publish-details-vat-regime-reform-introduced-2022/): During October, the European Commission (EC) published details of the fundamental VAT reforms that it plans to implement by 2022. - [Norway considering mandatory SAF-T filing from January 2018](https://fiscalsolutions.co.uk/news/norway-propose-introduce-mandatory-saf-t-filing-january-2018/): The Norwegian tax authorities have recently stated that they plan to make standard audit file (SAF-T) reporting mandatory for all businesses from 1 Jan 2018. - [UPDATE: New liability for non-resident suppliers to register for Swiss VAT](https://fiscalsolutions.co.uk/news/update-new-liability-non-resident-suppliers-register-swiss-vat/): Switzerland has now amended their VAT law to state that, from 1 January 2018, suppliers with a global turnover exceeding CHF 100,000 (approx. £80,000), will have to register and account for VAT on supplies made in Switzerland. Under the current VAT rules suppliers are only obliged to register in Switzerland if their supplies in the country exceed the CHF 100,000 threshold, however when these new rules are introduced this will no longer be the case and companies will have to look at their worldwide turnover - [Norway propose to increase its reduced VAT rate to 12%](https://fiscalsolutions.co.uk/news/norway-proposes-increase-reduced-vat-rate-12/): From 1 January 2018, the Norwegian government is proposing to increase the reduced VAT rate from 10% to 12%. - [Latvia propose 5% VAT rate for fresh fruit and veg sales](https://fiscalsolutions.co.uk/news/latvia-proposed-5-vat-rate-fresh-fruit-vegetables-sales/): From 1 January 2018, the Ministry of Finance is proposing to introduce a reduced VAT rate of 5% on supplies of fruits and vegetables in Latvia. - [Romania raises VAT registration threshold for resident firms](https://fiscalsolutions.co.uk/news/romania-raises-vat-registration-threshold-resident-businesses/): From 1 January 2018, the Romanian government will increase the country’s VAT registration threshold from RON 220,000 to RON 300,000 (approx. £42k to £58k). - [EU VAT fraud public prosecutor office established](https://fiscalsolutions.co.uk/news/eu-vat-fraud-public-prosecutor-office-established-20-states/): An anti VAT fraud public prosecutor’s office will be established by 20 EU member states and will focus on the EU trading block’s estimated €50bn VAT fraud issue - [UPDATE: Romania to consider the implementation of split payments](https://fiscalsolutions.co.uk/news/update-romania-consider-implementation-split-payments/): The Romanian Government has now passed legislation on the value added tax (VAT) split-payment mechanism which will be introduced on a voluntary basis from 1 October 2017. This is with a view to making it compulsory for all VAT registered businesses from 1 January 2018.The split payment procedure will require vendors to open a special, secure bank account specifically used for receiving and making VAT payments.  The vendor’s customers will then pay the VAT amounts charged by the vendor directly into this spe - [Switzerland standard rate VAT will decrease to 7.7%](https://fiscalsolutions.co.uk/news/switzerland-standard-rate-vat-will-decrease-7-7/): The Swiss VAT rate will decrease from 8% to 7.7% From 1 January 2018.On 24 September 2017 the Swiss population voted to reject a proposal to raise the VAT rate to 8.6% in order to support pension reforms in the country. As a result of this rejection it now means that the previously scheduled VAT reduction to 7.7% will go ahead in its place.There will be no change to the reduced VAT rate of 2.5% but the special reduced VAT rate on hotels will also fall from 3.8% to 3.7%. - [France introduce new VAT software obligations from January 2018](https://fiscalsolutions.co.uk/news/france-introduce-new-vat-software-obligations-jan-2018-2/): A new requirement for all resident French businesses that are VAT registered to use certified anti-VAT fraud software when undertaking cash and credit sales to consumers (B2C transactions) will be introduced from 1 January 2018.The software introduced will be approved by the French tax authorities and will be designed to prevent VAT fraud by restricting businesses from fraudulently amending the details of their sales transactions. Foreign providers of these types of cash transactions will also be obliged to - [UPDATE: United Arab Emirates to introduce VAT](https://fiscalsolutions.co.uk/news/update-united-arab-emirates-introduce-vat-3/): The United Arab Emirates (UAE) has opened its VAT registration portal for businesses to register in time for the launch of VAT on the 1 January 2018.Recently the UAE published its Value Added Tax law confirming a VAT rate of 5% and a registration threshold for all businesses at Dh 375,000 (Approx. US$ 100,000). The law also confirmed that the new tax will be levied on most goods and services, with the exemption of essential items such as foodstuffs and health & social care services.The UAE is part of th - [UK issue an overview of the Making Tax Digital legislation](https://fiscalsolutions.co.uk/news/uk-issue-overview-making-tax-digital-legislation/): The UK tax authority (HMRC) has recently issued an overview of the Making Tax Digital (MTD) legislation for VAT, which will come into effect from April 2019. - [Poland postpones the introduction of split payments to prevent VAT fraud](https://fiscalsolutions.co.uk/news/poland-postpones-introduction-split-payments-prevent-vat-fraud/): Poland recently announced that the introduction of the anti-VAT fraud split payments regime will be delayed until 1 April 2018. The original proposed implementation date was 1 January 2018 and once introduced the split payment procedure will allow customers to pay the VAT amount of a sale directly into a special supervised bank account. The tax authorities can then make withdrawals directly from this bank account in order to settle the supplier’s VAT liability. - [Romania to consider the implementation of split payments](https://fiscalsolutions.co.uk/news/romania-consider-implementation-split-payments/): In an effort to prevent VAT fraud Romania are proposing to introduce a new VAT split payments regime.If introduced, the split payment procedure will require vendors to open a secure bank account specifically used for receiving and making VAT payments. The vendor’s customers will then pay the VAT amounts charged by the vendor directly into this special bank account, while making a separate payment of the net amount to the vendor’s regular bank account. The Romanian tax authorities will then be able to monito - [Switzerland votes on standard rate VAT rise](https://fiscalsolutions.co.uk/news/switzerland-votes-standard-rate-vat-rise/): The Swiss government will hold a vote on 24 September 2017 in order to decide if its VAT rate should rise from 8% to 8.6%.If it goes ahead then the additional funds raised will help to pay for pension fund reforms in the country. - [Brazil to implement VAT regime](https://fiscalsolutions.co.uk/news/brazil-implement-vat-regime/): Brazil is planning to consolidate its existing complex indirect taxes into a single Value Added Tax (VAT) regime.The aim is to simplify the complex consumption tax regime currently in place, which in turn should cut the amount of administration hours that businesses in the country spend on calculating, reporting and paying their taxes.Details of the new VAT regime and the implementation date will be available in September 2017. - [Latvia cuts its VAT registration threshold](https://fiscalsolutions.co.uk/news/latvia-cuts-vat-registration-threshold/): From 1 January 2018, the Latvian annual VAT registration threshold for resident businesses will reduce from €50,000 to €40,000 per annum.This will not affect non-resident businesses who have a nil threshold and have to register from the first sale that they make in the country.  - [UPDATE: United Arab Emirates to introduce VAT](https://fiscalsolutions.co.uk/news/update-united-arab-emirates-introduce-vat-2/): The United Arab Emirates (UAE) has now published its Value Added Tax (VAT) law confirming that it will be implementing VAT at a rate of 5% from 1 January 2018.The VAT registration threshold for all businesses has also been confirmed at Dh 375,000 (Approx. US$ 100,000).The new tax will be levied on most goods and services however there will be exemptions on essential items such as foodstuffs and health & social care services.The UAE is part of the six-country Gulf Cooperation Council (“GCC”) and all of t - [Kuwait approves draft VAT laws](https://fiscalsolutions.co.uk/news/kuwait-approves-draft-vat-laws/): Kuwait has accepted the draft implementation of VAT and excise laws set by the Gulf Cooperation Council (GCC), which set the VAT rate at 5% in the country.The GCC consists of six countries (Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman) who have all agreed to implement a harmonised VAT regime by next year. - [Update: UK to tackle e-commerce VAT fraud](https://fiscalsolutions.co.uk/news/update-uk-tackle-e-commerce-vat-fraud-2/): The UK government has updated its plans to prevent VAT evasion committed by non-compliant, non-EU businesses that sell goods online in the UK and will now include the “Fulfilment House Due Diligence Scheme” (FHDDS), which will target fulfilment houses in an effort to get them to monitor their customers VAT compliance, in its early-autumn Finance Bill. Part of this FHDDS scheme will involve the introduction of an approved fulfilment house register from April 2018. This register will require all qualifying fu - [Greece implement domestic reverse charge on electronics](https://fiscalsolutions.co.uk/news/greece-introduce-domestic-reverse-charge-mechanism-electronic-devices/): The Greek government has implemented a domestic reverse charge mechanism on the supplies of mobile phones, games consoles, tablet PCs and laptops. - [New liability for non-resident suppliers to register for Swiss VAT](https://fiscalsolutions.co.uk/news/new-liability-non-resident-suppliers-register-swiss-vat/): The Swiss tax authorities have confirmed that they are amending their VAT Act from 1 January 2019 to state that non-resident mail order companies, which generate a turnover of more than CHF 100,000 of low value consignment sales in Switzerland, will have to VAT register and charge VAT on their sales in the country. Currently in Switzerland, the Federal Customs Administration waives import VAT on low value consignments that have a VAT amount of CHF 5 or less. This allows non-resident mail order companies to - [Puerto Rico decide whether to introduce VAT on e-services](https://fiscalsolutions.co.uk/news/puerto-rico-decide-whether-introduce-vat-e-services/): Puerto Rico is considering the introduction of VAT at 15% on the provision of electronic services in the country. - [Spain reduce VAT on cultural event tickets](https://fiscalsolutions.co.uk/news/spain-reduce-vat-cultural-event-tickets/): Spain have reduced the VAT rate applied on the admission to cultural events from 21% to 10%. This decrease came into effect from 28 June 2017 and will apply to admission to events such as concerts and theatre productions. - [Russia considers implementation of split payments for e-service transactions](https://fiscalsolutions.co.uk/news/russia-considers-implementation-split-payments-e-service-transactions/): In an effort to prevent VAT fraud, Russia is considering introducing a VAT split payments regime on the sales of e-services.If introduced the split payment procedure would require online market places (such as Amazon and E-bay) to collect the VAT at 18%, which is due on these types of sales, directly from the consumer. The online market place would then pay these VAT amounts directly to the Russian tax authorities before passing the remainder of the sales amount back to the service provider. - [EU ECOFIN fail to agree on the reduction of VAT on e-Books](https://fiscalsolutions.co.uk/news/eu-ecofin-fail-agree-reduction-vat-e-books/): The EU’s Economic and Financial Affairs Council have failed to reach an agreement on reducing the VAT rate on e-books to match that of printed material. - [Holland to change VAT treatment on sales of retail vouchers](https://fiscalsolutions.co.uk/news/netherlands-propose-vat-treatment-changes-sales-retail-vouchers/): The Netherlands tax authorities have published a proposal for a change in the Value Added Tax (VAT) treatment of vouchers. - [REMINDER: New Australian law applying GST to imported digital products and services from 1 July 2017](https://fiscalsolutions.co.uk/news/reminder-new-australian-law-applying-gst-imported-digital-products-services-1-july-2017/): From 1 July 2017, Australia will introduce a Goods and Services Tax (GST) on the international sales of digital services to Australian consumers.This new obligation will mean that, subject to an AUS$75,000 threshold, non-resident businesses selling services to consumers will be required to charge GST at 10% on their sales of electronic services.This new tax will be applied very broadly to sales of anything except goods and real property. Further detailed information can be found via this link. - [Thailand proposes to introduce VAT on e-commerce sales](https://fiscalsolutions.co.uk/news/thailand-propose-introduce-vat-e-commerce-sales/): A VAT bill is currently being reviewed by Thailand’s government which would introduce a 5% withholding value added tax on all e-commerce goods and service transactions.If introduced the new tax would be charged and collected via banks and credit card companies in the country, instead of suppliers. It would also apply to both resident and non-resident providers of these types of goods and services.It is thought that this tax would be levied when the sale is made from the online market places (including Amazo - [The EU commission has announced VAT cooperation agreement between EU and Norway](https://fiscalsolutions.co.uk/news/eu-commission-announced-vat-cooperation-agreement-eu-norway/): The European Commission and Norway have concluded negotiations on the VAT cooperation agreement.These negotiations started in June 2015 and once signed and adopted, the VAT cooperation agreement will provide the EU Member States and Norway with a legal framework for cooperation on combating VAT fraud and assisting each other on VAT compliance and reclaims. - [UPDATE: Australia – low value imports legislation delayed until 2018](https://fiscalsolutions.co.uk/news/update-australia-low-value-imports-legislation-delayed-2018/): The Australian government have confirmed that the removal of the import Goods and Services tax (GST) exemption on goods bought from foreign suppliers will be delayed until 1 July 2018. The import GST exemption allows importers to purchase goods from non-resident companies up to a value of AUD $1,000. Once removed this will not be the case and instead non-resident providers, who have previously avoided GST registration, will have an obligation to register and account for GST on the sale of their low value go - [India to introduce Goods and Services tax from July 2017](https://fiscalsolutions.co.uk/news/india-introduce-goods-services-tax-july-2017/): A new Goods and Service tax (GST) is to be introduced in India from 1 July 2017. - [Belarus to apply VAT to e-services from 1 January 2018](https://fiscalsolutions.co.uk/news/belarus-vat-e-services-1-january-2018/): Belarus is set to extend its VAT system to cover digital services supplied by non-resident (foreign) companies as of from 1 January 2018. - [Potential new liability for non-resident suppliers to register for Swiss VAT](https://fiscalsolutions.co.uk/news/potential-new-liability-non-resident-suppliers-register-swiss-vat/): Switzerland is proposing to amend the VAT law to state that suppliers with a global turnover exceeding CHF 100,000 (approx. £80,000), will have to register and account for VAT on supplies made in Switzerland. Under the current VAT rules suppliers are only obliged to register in Switzerland if their supplies in the country exceed the CHF 100,000 threshold, however if these new rules are introduced this will no longer be the case and companies will have to look at their worldwide turnover to see if they excee - [Switzerland to reduce the VAT rate for e-publications](https://fiscalsolutions.co.uk/news/switzerland-propose-reduce-vat-rate-e-publications-1-january-2018/): Switzerland is proposing to bring the VAT treatment of online media and e-books into line with printed publications. - [EU to make online platforms liable for VAT on sales](https://fiscalsolutions.co.uk/news/eu-propose-making-online-platforms-liable-vat-sales-made-non-eu-businesses/): The EU is proposing to make online marketplaces liable for the VAT on certain online sales of imported goods made by non-EU merchants via their portals. - [Netherlands introduce reverse charge on telecom services](https://fiscalsolutions.co.uk/news/netherlands-introduce-reverse-charge-telecommunication-services/): In an effort to prevent VAT fraud a new domestic reverse charge rule will be introduced on the sale of telecom services to businesses in the Netherlands.This measure will mean that the providers of telecom services will no longer have to charge VAT on their supplies to other business customers, as it will now be the business customer’s responsibility to account for the VAT on these services.It is likely that this new measure will be introduced from 1 June 2017. - [UPDATE: Spain to introduce real time VAT reporting from July 2017](https://fiscalsolutions.co.uk/news/update-spain-introduce-real-time-vat-reporting-july-2017/): Spain has now confirmed the introduction of a new real time VAT reporting regime which will require large taxpayers to submit copies of their purchase and sales invoices to the tax authorities online within eight days of issuance or receipt. The reporting period will then be reduced to four days after issue from 2018.This scheme, known as SII (Suministro Inmediato de Información), will apply to large enterprises with an annual turnover of over €6 million and the companies affected will be granted an extende - [UPDATE: Hungary to introduce real time VAT invoice reporting](https://fiscalsolutions.co.uk/news/update-hungary-introduce-real-time-vat-invoice-reporting/): Hungary have postponed the introduction of the new real time VAT invoice reporting regime from 1 July 2017 to 1 July 2018.When introduced the regime will apply to all business to business (B2B) invoices with a VAT amount above HUF 100,000 (approx.$360). Businesses involved in these types of transactions will be expected to declare them to the Hungarian tax authorities prior to sending them to their customer. The businesses will then be given a unique invoice number from the authorities that they must show o - [EU committee backs reduced e-book VAT proposal](https://fiscalsolutions.co.uk/news/eu-committee-backs-reduced-e-book-vat-proposal/): The European Parliaments Economic and Monetary Affairs Committee has voted in favour of the EU Commission's proposal to bring the VAT treatment of digital publications into line with printed publications.Currently digital publications should be subject to the standard rate of VAT across the EU, while printed publications (offering the same reading content) are normally taxed at reduced rates.The proposal is now pending to be voted on by the European parliament as a whole at the end of May 2017. - [UK plan to overhaul electronic VAT reporting system](https://fiscalsolutions.co.uk/news/uk-plan-overhaul-electronic-vat-reporting-system/): The UK tax authorities are planning to overhaul the reporting of VAT by introducing a new reporting system called “Making Tax Digital” (MTD).It is hoped that the new system will be in use from April 2019 onwards and once implemented it will synchronise VAT reporting requirements with income tax and corporation tax obligations.Businesses with a turnover greater than £10,000 will be required to use the system and to provide summary tax data that is then used to automatically generate tax records, instead of m - [UPDATE: Australia – low value imports legislation introduced](https://fiscalsolutions.co.uk/news/update-australia-low-value-imports-legislation-introduced/): There is speculation that the Australian Government may delay the removal of the import GST exemption on goods bought from foreign suppliers to 1 July 2018. Currently this threshold is set at AUD$ 1,000 and allows importers to purchase goods GST and duty free from non-resident companies up to this amount. Once removed this will not be the case and instead non-resident providers, who have previously avoided GST registration, will have an obligation to register and account for GST on the sale of their low val - [France introduce new VAT software obligations from Jan 2018](https://fiscalsolutions.co.uk/news/france-introduce-new-vat-software-obligations-jan-2018/): From January 2018 France will require VAT registered businesses to use certified anti-VAT fraud software. These requirements will apply to all software used by the business whether it is bought-in or developed in-house, and also to cash registers used in retailer’s premises. The basic requirements for the software include: The ability for the tax authorities to be able to access individual transaction data directly The data to be stored online or in a method approved by the tax authorities The ability to - [Removal of use for telecom service sales to UK consumers](https://fiscalsolutions.co.uk/news/removal-use-enjoyment-provision-telecommunication-service-sales-uk-consumers/): HMRC have published draft legislation which will remove the VAT use and enjoyment provision for businesses selling telecommunication services to consumers. - [Foreign enterprises can reclaim VAT incurred in Taiwan](https://fiscalsolutions.co.uk/news/non-established-foreign-enterprises-can-claim-back-vat-incurred-taiwan/): Some foreign enterprises can now reclaim VAT incurred on the purchase of goods and services during their stay in Taiwan. - [Gulf Co-operation Council publishes VAT treaty](https://fiscalsolutions.co.uk/news/gulf-co-operation-council-publishes-vat-treaty/): The Gulf Co-operation Council (GCC), which consists of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, has published a VAT treaty which outlines its proposed January 2018 common VAT regime. This treaty will outline the structure of the harmonized VAT regime across all six states, and will be used as a guide for the states to implement their own local VAT legislation. The treaty is not legally binding on the member states and some of the key features can be seen below: Since the GCC - [Poland proposes split payments to prevent VAT fraud](https://fiscalsolutions.co.uk/news/poland-proposes-split-payments-prevent-vat-fraud/): In an effort to prevent VAT fraud, Poland is considering introducing a voluntary VAT split payments regime from 2018. - [Italy will increase VAT rates from 1 January 2018](https://fiscalsolutions.co.uk/news/italy-will-increase-vat-rates-1-january-2018/): The Italian government have announced the following VAT rate increases in their recently published stability law The standard VAT rate being increased: from 22% to 25% from 1 January 2018 from 25% to 25.9% from 1 January 2019 The reduced 10% VAT rate being increased to 11.5% from 1 January 2018 It was also confirmed that these VAT rate increases may change when they are converted into law. - [UK raises VAT registration threshold](https://fiscalsolutions.co.uk/news/uk-raises-vat-registration-threshold/): From the 1 April 2017 the UK will raise the annual VAT registration threshold for UK resident businesses from £83,000 to £85,000.This threshold does not apply to non-resident businesses who face a nil VAT registration threshold and are expected to VAT register from the first sale that they make in the UK. - [UPDATE: United Arab Emirates to introduce VAT](https://fiscalsolutions.co.uk/news/update-united-arab-emirates-introduce-vat/): The United Arab Emirates (UAE) confirmed that it will be implementing VAT at a rate of 5% from 1 January 2018. The VAT registration threshold for all businesses has also been confirmed at US$ 100,000.The new tax will be levied on most goods and services however there will be exemptions on essential items such as foodstuffs and health & social care services.The UAE is part of the six-country Gulf Cooperation Council (“GCC”) and all of these countries have agreed to implement a harmonized VAT regime by 20 - [ECJ rules against the reduced VAT being applied to e-books](https://fiscalsolutions.co.uk/news/ecj-rules-reduced-vat-applied-e-books/): In a recent European Court of Justice (ECJ) ruling (Case C-390/15) it was stated that e-books are not entitled to the same reduced EU VAT rates as printed books.In the ruling the ECJ held that having differing rates for the same book, based on the media that it is provided in, was not discriminatory.Currently only printed books are allowed to benefit from the reduced rate of VAT in the EU, meaning that e-books have the standard rate of VAT applied.This ruling follows the infringement proceedings that the EC - [UK anti-VAT fraud split payments on e-commerce](https://fiscalsolutions.co.uk/news/uk-anti-vat-fraud-split-payments-e-commerce/): The UK government has announced that it will hold a public consultation relating to the introduction of an anti-VAT fraud spilt payment system.This measure will apply to e-commerce sales made by non-established suppliers to consumers in the UK. If brought in, this will mean that the UK consumer purchasing the goods will be required to pay the VAT element of their purchase directly to HMRC. The net amount will then be paid to the supplier in the normal way.It is hoped that this measure will help to eliminate - [UPDATE: New Australian law applying GST to imported digital products and services](https://fiscalsolutions.co.uk/news/update-new-australian-law-applying-gst-imported-digital-products-services/): Australia has introduced a new law applying Goods and Services Tax (GST) to international sales of services and digital products to Australian consumers.This new law will be introduced from 1 July 2017 and will mean that, subject to an A$75,000 threshold, non-resident businesses selling services to consumers will be required to charge GST at 10% on their sales of services.This new tax will be applied very broadly to sales of anything except goods and real property. Further detailed information can be found - [Saudi Arabia approves VAT implementation](https://fiscalsolutions.co.uk/news/saudi-arabia-approves-vat-implementation/): The Saudi Arabian government approved the introduction of VAT in the country from 1 January 2018.The standard VAT rate will likely be set at 5% and VAT will also be introduced in the five other Gulf Co-operation Council countries (Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates) at the same time. - [Czech Republic change VAT rate on newspapers and magazines](https://fiscalsolutions.co.uk/news/czech-republic-change-vat-rate-newspapers-magazines/): As of 1 March 2017 the VAT rate on newspapers and magazines will be reduced from 15% to 10% in the Czech Republic. - [ECJ - VIES not required on zero rating](https://fiscalsolutions.co.uk/news/ecj-vies-not-required-nil-rating/): The European Court of Justice has ruled that an intra-community supply of goods (EC Sale) can be zero rated, even if the customers VAT number in the member state of arrival was not shown as valid on the VIES register.The VIES register is an online database of EU VAT numbers on which companies can cross check the authenticity of a VAT number in order to make intra-community supplies.  Many EU countries do not automatically list VAT registered companies on this database.The ruling made in the Euro Tyre BV cas - [UPDATE: Taiwan proposes VAT on foreign e-services](https://fiscalsolutions.co.uk/news/update-taiwan-proposes-vat-foreign-e-services-2/): The Taiwanese government has now officially confirmed that from 1 May 2017 they will make it mandatory for non-resident providers of digital services to VAT register and start charging VAT at 5% on their supplies to Taiwanese consumers.This new requirement will be subject to a VAT registration threshold of NTD 480,000 (approx $ 15,000).Currently non-resident businesses providing digital services do not have to charge VAT on their sales to consumers, instead the consumer purchasing the e-service self-declare - [Hungary sales and purchase listing to become mandatory](https://fiscalsolutions.co.uk/news/hungary-sales-purchase-listing-become-mandatory/): From 1 July 2017 the submission of a local sales and purchases listing report will be introduced for any businesses that issue or receive invoices with a VAT amount of HUF 100,000 or greater.This new report will be used by the Hungarian tax authorities to validate these types of transactions and it is hoped that it will help to reduce VAT fraud in the country. - [Italy proposes to increase VAT rate if budgets are not met](https://fiscalsolutions.co.uk/news/italy-propose-increase-vat-rate-budgets-not-met/): The Italian government has announced that if certain budgetary targets are not met within 2017 then there could be a number of potential VAT rate increases from 1st January 2018. These increases include: The reduced 10% VAT rate being increased by three percent (from 10% to 13%) from 1st January 2018 The standard VAT rate being increased: from 22% to 24% from 1st January 2018 from 24% to 25.9% from 1st January 2019 There will be no change to the 4% Super Reduced VAT rate. - [France raises VAT registration threshold](https://fiscalsolutions.co.uk/news/france-raises-vat-registration-threshold/): On 1 January 2017 France increased the annual VAT registration threshold for resident companies from €32,600 to €33,200 per annum. This does not apply to: Non-resident companies who have a nil threshold and must register for VAT as soon as they make any taxable supplies in the country. Distance selling companies who sell goods that are delivered from other EU countries directly to consumers in France. These types of companies are subject to EU distance selling rules which allow them to charge VAT from the - [Australia introduce low value imports legislation](https://fiscalsolutions.co.uk/news/australia-low-value-imports-legislation-introduced-parliament/): The Australian government has announced that from 1 July 2017 they will remove the import GST exemption on goods bought from foreign suppliers. - [EU - Commission proposes optional anti-fraud reverse charge for domestic goods supplies](https://fiscalsolutions.co.uk/news/eu-commission-proposes-optional-anti-fraud-reverse-charge-domestic-goods-supplies/): In an effort to prevent VAT fraud the European Commission has put forward a proposal which will allow European Union (EU) member states to introduce the reverse charge on all domestic sales between businesses with a value over €10,000.Currently, EU member states can only apply the reverse charge to sales in specific industries (such as mobile phones and precious metals). If the above proposal is accepted then it will mean the reverse charge can be applied across all sectors.The reverse charge allows the bus - [Hungary to introduce real time VAT invoice reporting](https://fiscalsolutions.co.uk/news/hungary-introduce-real-time-vat-invoice-reporting/): From 1 July 2017 Hungary will introduce a new real time VAT invoice reporting regime for all business to business (B2B) invoices with a VAT amount above HUF 100,000 (approx.$340).Businesses involved in these types of transactions will be expected to declare them to the Hungarian tax authorities prior to sending them to their customer. The businesses will then be given a unique invoice number from the authorities that they must show on the sales invoice that they issue to their customer.Failure to comply wit - [Italy raises VAT refund guarantee threshold](https://fiscalsolutions.co.uk/news/italy-raises-vat-refund-guarantee-threshold/): Italy has increased the EU VAT refund threshold for which it requires a certified Italian audit or bank guarantee to €30,000.In order to reduce the risk to the tax authority, refund claims above this threshold will either be audited, or the claimant will have to provide a bank guarantee to get the amounts refunded.There is no change to the VAT refund claims on submitted returns. - [France introduce live reporting for high-value VAT](https://fiscalsolutions.co.uk/news/france-high-value-vat-live-reporting/): From 1 January 2018, France will introduce a new live VAT invoice reporting requirement for any sales with a value above €863,000.Businesses that are affected will have 24 hours to report their transactions via the electronic portal on the tax office website. - [Norway postpone the introduction of SAF-T files until 2018](https://fiscalsolutions.co.uk/news/norway-postpone-introduction-saf-t-files-2018/): The Norwegian tax authorities have postponed the introduction of a standard audit file, for the exchange of VAT data between themselves and large corporations registered in the country, until 2018.By introducing these files the Norwegian tax authorities hope to make the exchange of data during tax audits more efficient and accurate. These files are already being used for the exchange of data in several EU countries including Poland and France.  - [Egypt announce early VAT rate increase to 14% from July 2017](https://fiscalsolutions.co.uk/news/egypt-announce-early-vat-rate-increase-14-july-2017/): Egypt recently announced that it will increase its standard VAT rate of 13% to 14% from 1 July 2017.As per our previous articles, VAT was only introduced in Egypt on 1 October 2016. - [Bulgaria lowers Intrastat thresholds](https://fiscalsolutions.co.uk/news/bulgaria-lowers-intrastat-thresholds/): From 1 January 2017 Bulgaria lowered the threshold for reporting Intrastat to: BGN 410,000 per annum for arrival intrastats (goods moved into Bulgaria from other EU countries). BGN 240,000 per annum.for dispatch intrastats (goods moved from from Bulgaria to other EU countries). An intrastat is a monthly filing which lists the movement of goods from one European Union member state to another. - [Hungary reduces VAT rate on some goods and services](https://fiscalsolutions.co.uk/news/hungary-reduces-vat-rate-goods-services/): On 1 January 2017, Hungary introduced a lower VAT rate on internet access services and restaurant services including food and non-alcoholic drinks. - [Portugal introduce VAT changes from 1 January 2017](https://fiscalsolutions.co.uk/news/portugal-introduce-vat-changes-1-january-2017/): The Portuguese parliament recently approved the 2017 Budget which included a number of VAT changes. These changes included: The introduction of a VAT deferment (via reverse charge) on import VAT for a range of goods from September 2017. From 1 January 2017 the VAT rate on some basic foodstuffs will be reduced to 13%. A proposal to apply the reduced VAT rate on all beverages (alcoholic and non-alcoholic) supplied in restaurants and cafes. - [Poland raises VAT registration threshold](https://fiscalsolutions.co.uk/news/poland-raises-vat-registration-threshold/): From the 1 January 2017 the VAT registration threshold for Polish resident companies will rise from €30,000 to €40,000. There is no threshold in place for non-resident companies who must VAT register from the first taxable sale they make in the country. - [Italy guarantee VAT refund claims will be refunded in four months](https://fiscalsolutions.co.uk/news/italy-guarantee-vat-refund-claims-will-refunded-four-months/): Italy recently guaranteed that it will provide VAT refunds for claims made by non-resident tax payers within four months of the claim being submitted.This relates to VAT claims for Italian VAT incurred by VAT registered business from other countries which are submitted either through the tax payer’s home tax authority’s portal, or those directly sent to the Italian tax authorities.However the Italian tax authorities have reserved the right to extend the four-month period in the case of claims requiring furt - [European Union plan to remove VAT exemptions for low value imports](https://fiscalsolutions.co.uk/news/european-union-plan-remove-vat-exemptions-low-value-imports/): The European Union have announced that they plan to remove the VAT exemptions for low value imports by 2021.Currently, non-EU, E-commerce merchants of goods can import low value packages of around €22 ($25) into the EU VAT free.  This gives these merchants an advantage over resident EU businesses and in an effort to stop this the EU have announced that they will scrap the exemption. - [UPDATE: Taiwan proposes VAT on foreign e-services](https://fiscalsolutions.co.uk/news/update-taiwan-proposes-vat-foreign-e-services/): The Taiwanese government has now passed the bill which will make it mandatory for non-resident providers of digital services to VAT register and start charging VAT at 5% on their supplies from 1 January 2017. Currently non-resident businesses providing digital services do not have to charge VAT on their sales to consumers, instead the consumer purchasing the e-service self-declares and pays any VAT due to the Taiwanese tax authorities. This new tax will likely be applied to a range of electronic services in - [EU e-commerce - VAT proposals](https://fiscalsolutions.co.uk/news/eu-e-commerce-vat-proposals/): On 1 December 2016 the European Commission issued a proposal for a range of measures that it hopes will simplify the EU VAT regime for e-commerce traders of goods and services. Before they are implemented these measures will need to be agreed by all 28 EU member states and once agreed they will be introduced from 2017 onwards.  Please see below for further detail in regards to these: 2017 – EU member states to be permitted to levy the same VAT rates on electronic books and journals as their paper equivalent - [Romania reduce VAT rate to 19%](https://fiscalsolutions.co.uk/news/romania-reduce-vat-rate-19/): From the 1 January 2017 Romania will reduce the standard rate of VAT from 20% to 19%. A further reduction to 18% is also planned to be implemented from January 2018. - [Spain to introduce real time VAT reporting from July 2017](https://fiscalsolutions.co.uk/news/spain-introduce-real-time-vat-reporting-july-2017/): From 1 July 2017 Spain will introduce a new real time VAT reporting regime which will require large taxpayers to submit copies of their purchase and sales invoices to the tax authorities within four days of issuance or receipt. This scheme will apply to large enterprises with an annual turnover of over €6 million and the companies affected will be granted an extended VAT return filing deadline of 30 days after the reporting period and the requirement to submit recapitulative statements (EC sales) will be al - [Oman to introduce VAT in 2018](https://fiscalsolutions.co.uk/news/oman-introduce-vat-2018/): The Arab Gulf state of Oman plans to introduce VAT at a standard rate of 5% from 2018.Oman is part of the six-country Gulf Cooperation Council (“GCC”) and all of these countries have agreed to implement a harmonized VAT regime by 2018. The GCC countries consist of Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman.  - [Online portal opens for foreign suppliers of e-services in Russia](https://fiscalsolutions.co.uk/news/online-portal-opens-foreign-suppliers-e-services-russia/): The Russian Federal Tax Service (FTS) has launched a new online portal which will allow foreign suppliers of e-services to VAT register and undertake their VAT reporting.From 1 January 2017 non-resident suppliers of e-services in Russia will have the obligation to charge VAT on their supplies to consumers.  The portal also contains further guidance on how the new rules for charging VAT will be applied. - [India 15% Service Tax on foreign e-services](https://fiscalsolutions.co.uk/news/india-15-service-tax-foreign-e-services/): From 1 December 2016 the Indian Government will impose a service tax at 15% on the sales of e-services to consumers in the country. At present, non-resident businesses providing digital services in India do not have to charge service tax on their sales.  However, in an effort to remove the unfair advantage given to non-resident companies over Indian resident providers, the Indian Government has now confirmed that the service tax at 15% will be applied on these types of transactions. The Indian government al - [UK Autumn Statement 2016: VAT Flat Rate Scheme changes announced](https://fiscalsolutions.co.uk/news/uk-autumn-statement-2016-vat-flat-rate-scheme-changes-announced/): The Flat Rate scheme (FRS) allows traders with an annual turnover of less than £150,000, to issue VAT invoices to business customers as normal but only account for VAT at a flat rate percentage of their total turnover. The flat rate percentage used is dependent on what business sector that the trader is in and any VAT incurred on imports and other costs cannot be reclaimed separately. Due to reports that this scheme was being abused by certain businesses in the UK, the Autumn statement announced that from 1 - [Croatia cuts VAT 2018](https://fiscalsolutions.co.uk/news/croatia-cuts-vat-2018/): Croatia propose to amend their VAT law to include: A reduction of the standard VAT rate to 24% from 25% during 2018 An increase to the current 13% VAT rate on restaurant services to 25% from 1 January 2017 An increase to the annual VAT registration threshold for resident companies to HRK 300,000 from 1 January 2018 The adoption of the EU VAT Directive rules on the VAT treatment of vouchers in 2017 See our previous article below in regards to the EU VAT treatment of vouchers - http://fiscalsolutions.co.u - [Bulgaria cuts Intrastat thresholds 2017](https://fiscalsolutions.co.uk/news/bulgaria-cuts-intrastat-thresholds-2017/): From 1 January 2017 Bulgaria will lower the reporting thresholds for Intrastat to: BGN 410,000 for arrivals (goods brought into Bulgaria from other EU countries) BGN 240,000 for dispatches (goods moved from Bulgaria to other EU countries). - [Romania cuts VAT rate on Sports Services](https://fiscalsolutions.co.uk/news/romania-cuts-vat-rate-sports-services/): From 1 January 2017 Romania will reduce the VAT charged on sports and fitness-related services from the 20% standard rate to the reduced rate of 9%.10 other EU member states currently charge a reduced rate of VAT on sports services and this is in an effort to try to control the growing problem of obesity. - [Norway avoids financial services VAT](https://fiscalsolutions.co.uk/news/norway-avoids-financial-services-vat/): Norway has recently announced that they will not introduce a separate financial transaction tax or charge VAT on financial services undertaken in the country. Instead they will impose a payroll tax of 5% on companies whose financial service activities are over 30% of their sales.This means that the VAT treatment of financial services in Norway will mirror that of the European Union. - [Italy avoids 24% standard VAT rate increase](https://fiscalsolutions.co.uk/news/italy-avoids-24-standard-vat-rate-increase/): The Italian government recently presented a draft budget for 2017 which excludes the promised standard VAT rate increase to 24%.At the end of 2015 the Italian government announced that if certain budgetary targets were not met during 2016 then the increase to the VAT rate would be implemented, however due to the key constitutional referendum that will be undertaken in December they do not want to introduce any unpopular tax rises.Instead Italy will look to renegotiate the stringent terms of their Euro-curre - [Fiscal Solutions Ltd wins “VAT Services Team of the Year - UK” Award](https://fiscalsolutions.co.uk/news/fiscal-solutions-ltd-wins-vat-services-team-year-award/): We are delighted to announce that Fiscal Solutions Ltd have been awarded the Corporate LiveWire’s Finance Award for “VAT Services Team of the Year - UK”.The award represents “the pinnacle of achievement, championing only the best in the recipients’ respective fields”.Peter Bright, Operations Director of Fiscal Solutions Ltd. commented; “We are absolutely delighted to have been recognised as VAT services team of the Year for 2017 and feel that this demonstrates that we provide an exceptionally high service t - [Poland proposes further changes to prevent VAT fraud](https://fiscalsolutions.co.uk/news/poland-proposes-changes-prevent-vat-fraud/): A range of draft measures have been proposed by Poland in order to help reduce the growing problem of VAT fraud. If accepted these will be introduced from 1 January 2017 and will include:•    Increasing the annual VAT registration threshold from PLN 150,000 to PLN 200,000 for Polish resident businesses•    Transfer of most companies VAT return reporting periods from quarterly to monthly, with the exception of micro-businesses•    Removal of the VAT exemption on some outsourced administrative services in the - [Italian tax office to cancel 60,000 companies VAT numbers on the VIES system](https://fiscalsolutions.co.uk/news/italian-tax-office-cancel-60000-vat-numbers/): In an effort to prevent fraud the Italian tax office confirmed that it will cancel over 60,000 VAT numbers from the European VAT Information Exchange System (VIES).The VIES system is an electronic means of transmitting VAT registration information in the EU and is used to validate VAT numbers for VAT free intra-community supplies between businesses in separate EU countries.The Italian tax authority will target Italian VAT registered businesses that have not undertaken any intra-community supplies since 2015 - [Italy amends VAT filing requirements](https://fiscalsolutions.co.uk/news/italy-amends-vat-filing-requirements/): As of 1 January 2017 the Italian tax authorities are proposing to introduce extensive changes to the VAT filings requirements. These changes will include: A new requirement for quarterly VAT filings instead of the current requirement for VAT registered businesses to make periodic VAT payments. The Annual Spesometro filing (client listing) will be replaced by a new quarterly listing of sales and purchase invoices. The requirement to submit monthly acquisition intrastats will be abolished and this data will - [EU outlines key VAT reform priorities](https://fiscalsolutions.co.uk/news/eu-outlines-key-vat-reform-priorities/): Following on from the European Commission’s 2016 VAT Action Plan announcement in April 2016, the new presidency of the European Council has outlined some of its key EU VAT reform priorities. These include: Extending the single EU VAT registration portal used for E-services (Mini One Stop Shop) to e-commerce goods. EU wide removal of the low-value consignment VAT import relief The ability to undertake single cross border VAT audits Implementation of the reduced VAT rate for e-books Temporary use of the d - [UPDATE: New Zealand introduce GST on all things digital](https://fiscalsolutions.co.uk/news/update-new-zealand-introduce-gst-things-digital/): As previously confirmed in our May 2016 newsletter from 1 October 2016 non-resident providers of e-services to consumers who are resident in New Zealand are required to charge GST on their supplies at 15%. This is subject to a sales threshold of $60,000 (NZD) over a 12 month period and brings the country in line with the EU, Australia, South Korea, Japan, South Africa and others who are already charging VAT on these types of services. This new tax will be applied to a range of electronic services including - [Swiss VAT act amendments in 2018](https://fiscalsolutions.co.uk/news/swiss-vat-act-amendments-2018/): The Swiss Parliament has approved several changes to the Swiss VAT Act that will take effect from 1 January 2018. These include: The application of a reduced VAT rate of 2.5% for online media services. Withdrawal of the CHF 100,000 VAT registration for non-resident service providers from 1 January 2018 Removal of the VAT exemption on low-value packages (under a value of CHF200) being imported into the country - [ECJ rules that invoices can be corrected retrospectively to justify VAT claim](https://fiscalsolutions.co.uk/news/ecj-rules-invoices-can-corrected-retrospectively-justify-vat-claim/): A recent European Court of Justice ruling stated that VAT invoices can be corrected retrospectively to justify VAT reclaimed in a VAT return.The case concerned a Taxpayer that corrected purchase invoices by inserting suppliers' VAT registration numbers during and after a VAT inspection by the German tax authorities. The tax authorities then sought to disregard the date of the invoices for reclaim purposes and wanted to delay the right to the recovery of the purchase VAT until the dates that the corrections - [ECJ ruling on VAT invoice requirements](https://fiscalsolutions.co.uk/news/ecj-ruling-vat-invoice-requirements/): A recent European Court of Justice ruling stated that VAT invoices only need to meet the substantive requirements of the VAT Directive in order for VAT to be recovered.The case, Barlis 06 (C-516/14), concerned an invoice for legal services to a Portuguese hotel chain where the description of the services was vague and the dates of the ongoing legal consultancy were unclear.  Due to this the invoice was not compliant with the EU VAT directive which meant that the Portuguese tax authorities deemed that the VA - [EU VAT Gap shrinks to €160billion for 2014](https://fiscalsolutions.co.uk/news/eu-vat-gap-shrinks-e160billion-2014/): According to the annual VAT Gap study an estimated €160 billion in VAT revenues was lost due to non-compliance or non-collection during the year 2014, when compared with the same study from 2013. This shows a reduction in the gap of €2.5 billion.The VAT Gap study is funded by the European Commission as part of its work to reform the VAT system in Europe, as well as its wider campaign to clamp down on tax evasion.Each year the study sets out detailed data on the gap between the amount of VAT due and the amou - [New reverse charge on the sale of telecom services in the Czech Republic](https://fiscalsolutions.co.uk/news/new-reverse-charge-sale-telecom-services-czech-republic/): From 1 October 2016 a new domestic reverse charge rule will be introduced on the wholesale of telecom services in the Czech Republic.This measure will mean that the providers of telecom services will no longer have to charge VAT on their supplies to other business customers, as it will now be the business customer’s responsibility to account for it.It is hoped that by introducing this new measure it will help to reduce VAT fraud in the wholesale telecoms sector. - [Italian tax authorities to offer e-invoice reporting scheme](https://fiscalsolutions.co.uk/news/italian-tax-authorities-offer-e-invoice-reporting-scheme/): In an effort to reduce VAT fraud and also to simplify VAT reporting the Italian tax authorities will offer a voluntary e-invoice reporting regime from 1 January 2017.By using this scheme businesses will be able to electronically submit their VAT purchase and sales invoice details directly to the tax authorities, who will then use this to calculate the businesses monthly VAT liabilities.By using this service the registered businesses reporting obligations will be reduced in the country and it will also accel - [Estonia - Extension of domestic reverse charge to metals from 1 January 2017](https://fiscalsolutions.co.uk/news/estonia-extension-domestic-reverse-charge-metals-1-january-2017/): In an effort to prevent VAT fraud the Estonian Government has approved a draft law that will expand the scope of the domestic reverse charge to include certain metal products which are mainly used for construction services and in the engineering industry.It is likely that the new rules will be implemented from 1 January 2017 and if accepted it will mean that the providers of these types of goods will no longer have to charge VAT on their supplies to other business customers, it will then be the business cus - [European Union lowers eBook VAT](https://fiscalsolutions.co.uk/news/european-union-lowers-ebook-vat/): At the beginning of September the European Commission confirmed plans to bring forward legislation to permit reduced VAT rates on e-books.It is hoped that the proposed legislation will be published in October 2016 which could then mean that countries may be able to cut their electronic book VAT rates during 2017. - [Update: Lithuania to introduce a VAT Invoice Register submission](https://fiscalsolutions.co.uk/news/update-lithuania-introduce-vat-invoice-register-submission/): As previously reported in an effort to prevent VAT fraud the Lithuanian VAT authorities will require VAT registered businesses to submit monthly online registers detailing all VAT invoices and transport paperwork relating to transactions that they have made in the country.It has now been confirmed that these online registers will be SAF-T files and that from 1 October 2016 the tax authorities will launch a new portal (i.MAS) for the online submission of these reports.SAF-T files are already being used for t - [African island of São Tomé and Príncipe to introduce VAT from 2018](https://fiscalsolutions.co.uk/news/african-island-sao-tome-principe-introduce-vat-2018/): As of 1 January 2018 the African island of São Tomé and Príncipe will introduce a Value Added Tax regime.Currently the country has a sales tax regime applicable on both supplies of goods and services. - [Update: UK to tackle e-commerce VAT fraud](https://fiscalsolutions.co.uk/news/update-uk-tackle-e-commerce-vat-fraud/): The UK government has now been given new powers in order to prevent VAT evasion committed by non-compliant, non-EU businesses that sell goods online in the UK. Currently there is a nil VAT registration threshold in the UK for these types of traders who should register for VAT from the first sale that they make, However in many cases this is not happening and as a result the goods are being sold without VAT being charged. This is costing HMRC a large amount in unpaid VAT and is also giving an unfair advantag - [Egypt confirms the introduction of VAT from September 2016](https://fiscalsolutions.co.uk/news/egypt-confirms-introduction-vat-september-2016/): The Egyptian government introduced VAT in the country from 8 September 2016.  The VAT rates introduced are a standard rate of 13%, which will increase to 14% from 1 October 2017, and a reduced rate of VAT at 5% which will apply to certain types of machinery and equipment. It is hoped that by switching to VAT from the current sales tax regime it will raise additional revenue to help deal with the country’s growing deficit. The deficit is the difference between what the government spends and what it gets in i - [European Commission launches consultation on VAT rate for digital books](https://fiscalsolutions.co.uk/news/european-commission-launches-consultation-digital-books-vat-rate/): The European Commission has launched a public consultation to gather opinion on the application of reduced VAT rates for digital publications.  Currently these types of supplies incur the standard rate of VAT across the EU, while printed publications (offering the same reading content) are taxed at reduced rates.This consultation will run until 19 September 2016 and it is hoped that the European Commission will use this to reduce the VAT rate applied on digital publications going forward.Participants of the - [UPDATE: Norway to defer VAT on imports to VAT returns](https://fiscalsolutions.co.uk/news/update-norway-defer-vat-imports-vat-returns/): In our previous article from June 2016 we stated that the Norwegian tax authorities were planning to change the rules on accounting for VAT when importing goods into the country.  These changes have now been confirmed and mean that from 1 January 2017 companies registered for VAT in Norway will need to report and deduct import VAT in their VAT returns.This will in effect remove the requirement to pay import VAT on goods at the time they are imported, which should result in savings on shipping costs.  It sho - [Slovenia introduce Import VAT deferment from 1 July 2016](https://fiscalsolutions.co.uk/news/slovenia-introduce-import-vat-deferment-1-july-2016/): An import VAT deferment scheme was recently introduced in Slovenia which allows certain businesses who import goods into the country to account for the import VAT in their VAT returns, rather than paying VAT at clearance of the goods into the country.By introducing this it is hoped that it will improve the cash flow of some Slovenian VAT registered businesses, as by using the scheme they will not have to wait for the import VAT to be refunded by the tax authorities.Non-established businesses that do not hav - [India to introduce Goods and Services tax](https://fiscalsolutions.co.uk/news/india-introduce-goods-service-tax/): This month the Indian government approved a bill to implement a new Goods and Services Tax (GST).  GST is a broad-based tax that is applied on most goods or services consumed in a country and India will use this to replace a number of indirect taxes already in place including VAT and Service Tax.It is hoped that by introducing this new tax it will boost the Indian economy and significantly reduce the administrative burden that the current vast range of taxes puts upon Indian businesses.  This change will li - [Norway considering mandatory SAF-T filing from Jan 2018](https://fiscalsolutions.co.uk/news/norway-propose-introduce-saf-t-files-january-2017/): Norway have stated they plan to introduce a standard audit file for the exchange of VAT data between themselves and large corporations registered in the country - [Czech Republic introduces VAT reverse charge mechanism on domestic supplies](https://fiscalsolutions.co.uk/news/czech-republic-introduces-vat-reverse-charge-mechanism-domestic-supplies/): As of 29 June 2016 the Czech Republic introduced a new reverse charge mechanism on the domestic supply of goods from non-resident businesses to Czech VAT registered companies. This new reverse charge rule will mean that businesses outside of the Czech Republic will not need to get VAT registered when only making Czech domestic supplies, instead their customers will have the requirement to account for the VAT in their own returns.The new rules will not affect businesses that were VAT registered before the 29 - [EU introduces directive on voucher VAT](https://fiscalsolutions.co.uk/news/eu-introduces-directive-voucher-vat/): The EU Council has adopted a new directive which will amend the VAT treatment of vouchers with effect from 1 January 2019. The directive relates to two kinds of voucher and these are:'Single Purpose Voucher' - This is a voucher that carries a value that can only be redeemed on a single purchase of either goods or services that are known before the voucher is sold. Given this, the VAT rate will be known prior to the voucher being redeemed.  In the directive it states that the VAT treatment and reporting shou - [Taiwan proposes VAT on foreign e-services](https://fiscalsolutions.co.uk/news/taiwan-proposes-vat-foreign-e-services/): The Taiwanese government is planning to make it mandatory for non-resident providers of digital services to VAT register and start charging VAT at 5% on their supplies.Currently non-resident businesses providing digital services do not have to charge VAT on their sales to consumers, instead the consumer purchasing the e-service self-declares and pays any VAT due to the Taiwanese tax authorities.This new tax will be applied to a range of electronic services including streaming games, music, apps, films, e-bo - [Belgian tax authorities allow simplified proof of transport evidence for EC sales of goods](https://fiscalsolutions.co.uk/news/belgian-tax-authorities-allow-simplified-proof-transport-evidence-ec-sales-goods/): The Belgian tax authorities have taken the decision to simplify the proof of transport requirements for intra-Community supplies by introducing a new “destination document”.This document is an alternative to the usual evidence required to prove that the transport for cross border sales from Belgium to other EU member states has taken place and that the VAT treatment applied is correct.This new document will allow the customer in the other member state to sign and declare that they have received the goods an - [Sweden plan to introduce a VAT registration threshold for resident companies](https://fiscalsolutions.co.uk/news/sweden-plan-introduce-vat-registration-threshold-resident-companies/): Sweden is proposing to introduce a VAT registration threshold for resident companies from 1 January 2017.  The proposal for the new threshold has been sent to the Swedish Parliament for their approval and if accepted it will be set at an amount of €30,000 per calendar year.Currently Sweden does not have a VAT registration threshold and companies are liable to register for VAT from the first taxable sale that they make. - [Belarus VAT on e-services from 1 January 2017](https://fiscalsolutions.co.uk/news/belarus-vat-e-services-1-january-2017/): At present, non-resident businesses providing digital goods and services in Belarus do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage this gives to non-resident companies over Belarus resident providers, the Belarus government has now announced that VAT at 20% will be applied on these types of transactions from 1 January 2017.This new tax will be applied to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and inter - [Lithuania to introduce a VAT invoice register submission](https://fiscalsolutions.co.uk/news/lithuania-introduce-vat-invoice-register-submission/): In an effort to prevent VAT fraud the Lithuanian VAT authorities will require all VAT registered businesses to submit monthly online registers. They will need to detail all VAT invoices and transport paperwork relating to transactions that they have made in the country.The first report will be due for the period of October 2016 and will be required for both sales and purchase transactions. - [Egypt to introduce VAT from September 2016](https://fiscalsolutions.co.uk/news/egypt-proposing-introduce-vat-september-2016/): The Egyptian finance minister has announced that VAT will be introduced in Egypt from September 2016.The VAT rate will be set at 14% and it is hoped that by switching to VAT from the current sales tax regime it will raise additional revenue to help deal with the countries growing deficit. - [United Arab Emirates to introduce VAT](https://fiscalsolutions.co.uk/news/united-arab-emirates-introduce-vat/): The United Arab Emirates (UAE) will implement VAT at a rate of 5% from 1 January 2018. The VAT registration threshold for all businesses has been confirmed at AED 3,750m.This will be levied on most goods and services however there will be exemptions on essential items such as foodstuffs and health & social care services.The UAE is part of the six-country Gulf Cooperation Council (“GCC”) and all of these countries have agreed to implement a harmonized VAT regime by 2018. The GCC countries consist of Saud - [Hungary plans internet services VAT rate reduction](https://fiscalsolutions.co.uk/news/hungary-plans-internet-services-vat-rate-reduction/): From 1 January 2017 Hungary plans to lower VAT on internet services from 27% to 18%.However, the European Commission (EC) has requested that they delay this planned cut as they believe that it is in breach of EU VAT rules as internet services are not listed in Annex II of the VAT Directive. Annex II is a list of supplies that may enjoy a reduced VAT rate.In the future the EC proposes to let member states have the right to set more reduced VAT rates as part of the proposed VAT Action Plan; however it is not - [Belgium plans to reduce the VAT rate charged on e-books](https://fiscalsolutions.co.uk/news/belgium-plans-reduce-vat-rate-charged-e-books/): The Belgian government plans to decrease the VAT rate applied to the sale of e-books from 21% to 6%.Belgium are planning to introduce this reduction even though it breaches two European Court of Justice rulings in March 2015 (Case C-479/13 & C-502/13) which stated that e-books should be taxed at member states’ standard rate of VAT, even if printed books are at a reduced rate.There is currently no date given for when this reduction will be applied. Fiscal Solutions will update on this when more news aris - [Greece propose to raise VAT registration threshold](https://fiscalsolutions.co.uk/news/greece-propose-raise-vat-registration-threshold/): Greece is planning to increase their VAT registration threshold for resident companies from €10,000 to €25,000 from 1 January 2017.There is no threshold in place for non-resident companies who must VAT register from the first taxable sale they make in the country. - [Update: Russian Government imposes VAT on the supply of e-services](https://fiscalsolutions.co.uk/news/update-russian-government-imposes-vat-on-the-supply-of-e-services/): The Russian Government has now passed the third and final bill which imposes the charge of VAT at 18% on the sales of e-services to consumers in Russia.At present, non-resident businesses providing digital services in Russia do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage given to non-resident companies over Russian resident providers, the Russian Federal Council approved this bill which now confirms that VAT at 18% will be applied on these types of transaction - [UK vote to leave the EU, so what happens now?](https://fiscalsolutions.co.uk/news/uk-vote-to-leave-the-eu-so-what-happens-now/): On 23 June 2016 the UK public voted to leave the EU.With the withdrawal process likely to begin in September or October 2016 and the possibility of at least 2 years’ worth of negotiations to undertake with the EU in order to leave, there is likely to be no change or effect to the EU VAT compliance of any companies doing business to, or from the UK until at least the end of 2018.In relation to the VAT compliance rules specifically, these will remain the same until the UK leaves the EU and at that point new l - [Belgium to apply VAT to online betting from July 2016](https://fiscalsolutions.co.uk/news/belgium-to-apply-vat-to-online-betting-from-july-2016/): As of 1 July 2016 online betting in Belgium will be subject to their 21% VAT rate.  As per the EU VAT Directive, member states are not obliged to charge VAT on betting or games of chance for cash or prizes, and online betting in all other member states is exempt from VAT as a result.Belgium has no plans to introduce VAT on gambling in betting shops, casinos and on the national lottery which will all remain VAT exempt. - [Slovenia to introduce import VAT deferment](https://fiscalsolutions.co.uk/news/slovenia-to-introduce-import-vat-deferment/): An import VAT deferment scheme is being proposed by the Slovenian tax authorities. If accepted, this will allow businesses importing goods into Slovenia to account for the import VAT in their VAT returns rather than paying VAT at clearance into the country.By introducing this it is hoped that it will improve the cash flow of Slovenian VAT registered businesses as using the scheme means they will not have to wait for import VAT to be refunded by the tax authorities. - [HMRC consider the VAT rates on adult colouring books](https://fiscalsolutions.co.uk/news/hmrc-consider-the-vat-rates-on-adult-colouring-books/): HMRC is considering subjecting adult colouring books to VAT at the standard rate in the UK. Currently these types of colouring books for both children and adults have a zero rate of VAT, however HMRC are looking to reclassify these as ‘uncompleted’ books which would result in the 20% standard VAT rate being applied. - [Norway to defer VAT on imports to VAT returns](https://fiscalsolutions.co.uk/news/norway-to-defer-vat-on-imports-to-vat-returns/): Norway plan to change the rules on accounting for VAT when importing goods into the country by allowing VAT registered businesses to defer the import VAT to their VAT returns.This will in effect remove the requirement to pay import VAT on goods at the time they are imported which could result in savings on shipping costs and bank charges.  It should also improve cash flow for businesses importing into the country, as they will no longer need to wait for the VAT to be refunded from the Norwegian tax authorit - [Hungary to change VAT rates on catering and food from 1 January 2017](https://fiscalsolutions.co.uk/news/hungary-change-of-vat-rates-on-catering-and-food-from-1-january-2017/): As of 1 January 2017, the current 27% VAT rate on catering supplied in restaurants and bars in Hungary will be reduced to 18%, with a further reduction to 5% from 1 January 2018.In addition, from 1 January 2017 the VAT rate on certain basic foodstuffs such as poultry, eggs and fresh milk will be reduced to 5%, as well as internet services which will see a reduction to the 18% VAT rate. - [Minimum VAT rate of 15% extended by the EU until December 2017](https://fiscalsolutions.co.uk/news/minimum-vat-rate-of-15-extended-by-the-eu-until-december-2017/): The European Union has decided that it will retain the minimum standard rate of VAT at 15% until at least the 31 December 2017.This minimum VAT rate means that no EU member state can reduce their standard rate of VAT to less than 15%. This is intended to prevent large differences between the standard rates of VAT in all EU member states.  - [ECJ decides that card handling VAT exemption is not a separate service when sold with attendance to an event](https://fiscalsolutions.co.uk/news/ecj-decides-that-card-handling-vat-exemption-in-not-a-separate-service-when-sold-with-attendance-to-an-event/): The European Court of Justice has stated that VAT exemption cannot be applied to supplies of financial transaction services, such as 'card handling' and 'payment processing'. This will apply if the transactions are handled by agents selling tickets for events on behalf of principals who are organising the event. This applies even if the agents are charging separately disclosed fees for these services, as they are still considered ancillary to the charge for attending the event. This decision was taken durin - [Canada increase Harmonised Sales Tax in three provinces](https://fiscalsolutions.co.uk/news/canada-increase-sales-tax-in-three-provinces/): A series of rises in Harmonised Sales Tax rates will take place in Canada in 2016, these include: Newfoundland and Labrador will increase the HST rate from 13% to 15% on 1 July 2016; New Brunswick from 13% to 15% on 1 July 2016; and Prince Edward Island from 14% to 15% on 1 October 2016. - [Spain proposes to relax bank rules for VAT credits](https://fiscalsolutions.co.uk/news/spain-proposes-to-relax-bank-rules-for-vat-credits/): A proposal to drop the requirement for foreign businesses to have a Spanish bank account for the purpose of VAT refunds has been announced by the Spanish government.The current requirement, which states that companies must have a Spanish bank account to receive these refunds, is deemed as prejudicing the operation of the EU Single Market by placing unnecessary administrative requirements on the free movement of goods and services. - [New Zealand to introduce tax on all things digital](https://fiscalsolutions.co.uk/news/new-zealand-to-introduce-tax-on-all-things-digital/): The New Zealand Government has now passed a bill which will impose the charge of 15% GST on e-services provided to consumers from foreign providers.At present, non-resident businesses providing digital services in New Zealand do not have to charge GST on their sales. However, in an effort to remove the unfair advantage that this gives to non-resident companies over New Zealand resident providers, the New Zealand Government has confirmed that GST at 15% will be applied on these types of transactions from 1 O - [Germany referred to the European Court of Justice over the VAT treatment of travel agents](https://fiscalsolutions.co.uk/news/germany-referred-to-the-european-court-of-justice-over-the-vat-treatment-of-travel-agents/): Germany has been referred to the European Court of Justice (ECJ) by the European Commission (EC) for its continuing non-compliance with the EU VAT Directive on travel agents.As per our previous article in 2015 the EC issued a reasoned opinion requesting that Germany amend their VAT legislation on the application of a special scheme for travel agents, referred to as the Tour Operators Margin Scheme (TOMS), in order to bring it in line with the EU VAT directive. The scheme allows travel agents to account for - [Canadian HST rate increase for Newfoundland and Labrador](https://fiscalsolutions.co.uk/news/canadian-hst-rate-increase-for-newfoundland-and-labrador/): Harmonised Sales Tax (HST) in Newfoundland and Labrador will rise to 15%. The new rate will come into effect on 1 July 2016. - [Czech Republic proposes VAT reverse charge mechanism on domestic supplies](https://fiscalsolutions.co.uk/news/czech-republic-proposes-vat-reverse-charge-mechanism-on-domestic-supplies/): As of 1 July 2017 the Czech Republic is proposing to introduce a new reverse charge mechanism on the domestic supplies of goods from non-resident businesses to Czech resident companies. The new reverse charge rule is set to replace the current requirement for businesses outside of the Czech Republic to get VAT registered when making Czech domestic supplies. - [Poland proposing to increase VAT threshold](https://fiscalsolutions.co.uk/news/poland-proposing-to-increase-vat-threshold/): Poland has put forward a proposal to raise the VAT registration threshold for resident companies from PLN 150,000 to PLN 200,000. It is hoped that if accepted it will free a number of smaller resident companies from the administrative burden of having a VAT account. It will also enable the Polish government to focus on larger companies' VAT compliance as well as VAT fraud detection. - [Proposed changes to fiscal representation in Norway](https://fiscalsolutions.co.uk/news/proposed-changes-to-fiscal-representation-in-norway/): A consultation paper has been issued in Norway relating to the removal of the requirement for non-resident businesses in other European Economic Area (EEA) countries to appoint a VAT fiscal representative located in the country. This consultation paper has been put forward based on an opinion by the EEA Surveillance Authority who suggested that having to appoint a representative is in breach of the EEA pact. This pact provides for the free movement of persons, goods, services and capital within the 28 Europ - [Hungary proposes VAT threshold and rate changes](https://fiscalsolutions.co.uk/news/hungary-proposes-vat-threshold-and-rate-changes/): A number of changes within the Hungarian VAT act were discussed by Parliament in May. If accepted these changes could include: lowering the VAT threshold from HUF 1m to HUF 100,000 cutting the VAT rate on domestic internet services Applying the reduced VAT rate of 5% to basic foodstuffs from January 2017 Reducing the VAT rate on restaurant supplies from 27% to 18% from January 2017. With a further decrease to 5% from January 2018. - [Greece increase VAT rate from 1 June 2016](https://fiscalsolutions.co.uk/news/greece-increase-vat-rate-from-1-july-2016/): Greece has now confirmed the increase to their standard VAT rate from 23% to 24% will be implemented on 1 June 2016. They have also confirmed that the reduced VAT rates in the Greek Islands will be scrapped so the standard rate throughout Greece will be 24% from this date. This change is being implemented a month earlier than expected and has been introduced in an effort to improve their economic performance. - [Action Plan on VAT adopted by European Commission](https://fiscalsolutions.co.uk/news/action-plan-vat-adopted-european-commission/): During April 2016 the European Commission approved an action plan which sets out actions to tackle VAT fraud, adapt the EU VAT system to the digital economy and to further consider the VAT obligations on small and medium enterprises.It is hoped that this will help to steer the EU towards a robust single European VAT area in relation to cross-border supplies and also proposes options for a new policy on EU rules governing VAT rates.If implemented this could mean the abolishment of zero-rating on intra-commun - [Postponement of filing deadline for 2015 'Black List' communication](https://fiscalsolutions.co.uk/news/postponement-of-filing-deadline-for-2015-black-list-communication/): The Italian tax authorities have postponed the deadline for the submission of the 'Black List' communication for the fiscal year 2015 to 20 September 2016.The blacklist communication is a report that is submitted to disclose the supply of goods and services which are sold to and purchased from 'black-listed' countries. - [Reduced VAT rate in the Czech Republic will be decreased from 21% to 15% for services related to food](https://fiscalsolutions.co.uk/news/reduced-vat-rate-czech-republic-will-decreased-21-15-services-related-food/): The Czech government has passed a law which will decrease the VAT rate for services related to food from 21% to 15%. The date of effect will not be announced until the law is passed. - [Reminder: The Austrian VAT rate on accommodation will increase](https://fiscalsolutions.co.uk/news/reminder-the-austrian-vat-rate-on-accommodation-will-increase/): From 1 May 2016 the VAT rate on accommodation services in Austria will increase from 10% to 13%. - [Lithuania reduces their standard VAT rate](https://fiscalsolutions.co.uk/news/lithuania-reduces-standard-vat-rate/): As of 1 September 2016 the Lithuanian parliament will reduce the standard VAT rate from 21% to 18%. - [Greece proposes a VAT rate increase in July 2016](https://fiscalsolutions.co.uk/news/greece-proposes-vat-rate-increase-july-2016/): Greece is proposing an increase to their standard VAT rate from 23% to 24% on 1 July 2016. This is due to discussions that the country had with their lenders and is being made in an effort to improve their economic performance. - [Poland introduce Standard Audit File requirement from 1 July 2016](https://fiscalsolutions.co.uk/news/poland-introduce-standard-audit-file-requirement-from-1-july-2016/): From 1 July 2016 Poland will introduce a standard audit file to use in VAT audits and inquiries for large enterprises. This standard file will be known as the SAF-T file with the new requirement also applying to non-resident companies. The new rules will be extended to Small and Medium Enterprises (SMEs) from 1 July 2018. - [Estonia introduces a new reverse charge mechanism for import VAT](https://fiscalsolutions.co.uk/news/estonia-introduce-new-reverse-charge-mechanism-import-vat/): Import VAT is generally paid upon importation however Estonia will now allow businesses to defer their payments to their VAT return reporting. In order to take advantage of this new simplification a business will need to apply to the Estonian tax office and once granted it is hoped that the new measure will significantly improve the businesses cash flow. - [Hungary reduces VAT on restaurants and basic foodstuffs](https://fiscalsolutions.co.uk/news/hungary-reduces-vat-on-restaurants-and-basic-foodstuffs/): As of 1 January 2017 Hungary is proposing to reduce VAT charged on restaurant and café services from the standard rate of 27% to the reduced rate of 18%.  The VAT rate on basic foodstuffs, including milk, poultry and eggs will also be reduced from 27% to 5%. - [UK to raise VAT registration threshold](https://fiscalsolutions.co.uk/news/uk-to-raise-vat-registration-threshold/): As of 1 April 2016 the UK VAT registration threshold for resident businesses will be increased from £82,000 to £83,000 per year.This threshold only applies to UK-resident businesses as there is a nil registration threshold for non-resident businesses who would have to VAT register from the first sale that they make. - [Portugal lowers VAT on restaurant services](https://fiscalsolutions.co.uk/news/portugal-lowers-vat-on-restaurant-services/): As of 1 July 2016 the VAT rate on restaurant services will be lowered from the standard rate of 23% to the reduced rate of 13%. - [Russian Government imposes VAT on the supply of e-services](https://fiscalsolutions.co.uk/news/the-russian-government-to-impose-vat-on-the-supply-of-e-services-to-consumers/): The Russian Government has passed a bill which imposes the charge of VAT at 18% on the sales of e-services to consumers in Russia.At present, non-resident businesses providing digital services in Russia do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage given to non-resident companies over Russian resident providers, the Russian Government has now confirmed that VAT at 18% will be applied on these types of transactions from 1 January 2017.This new tax will be appl - [Israel introduces VAT on supply of digital services by foreign providers](https://fiscalsolutions.co.uk/news/israel-introduces-vat-on-supply-of-digital-services-by-foreign-providers/): The Israeli Government has drafted a bill which imposes a charge of VAT at 17% on the sales of e-services to consumers by non-resident businesses.At present, non-resident businesses providing digital services in Israel do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage given to non-resident companies , the Israeli Government has proposed that VAT at 17% will be applied on these types of transactions.Israel have yet to confirm the date that this will be implemented - [UK to tackle e-commerce VAT fraud](https://fiscalsolutions.co.uk/news/uk-to-tackle-e-commerce-vat-fraud/): The UK government has announced that it will introduce new measures in order to prevent VAT evasion committed by non-compliant, non-EU businesses that sell goods online in the UK. Currently there is a nil VAT registration threshold for these types of traders who should register for VAT from the first sale they make in the country, however in many cases this is not happening and as a result the goods are being sold without VAT being charged.  This is giving an unfair advantage to the non-resident traders as - [Plans to amend the Swiss VAT legislation](https://fiscalsolutions.co.uk/news/plans-to-amend-the-swiss-vat-legislation/): The Swiss Government are planning to introduce a number of changes to their VAT legislation, these include: The removal of the low value package VAT and customs relief threshold. This threshold is currently set at CHF 65 and means that most goods imported into the country under this threshold can be imported VAT and Duty free. Introduction of the CHF 100,000 VAT registration threshold to non-resident businesses that provide only services in the country. - [UK tribunal rules on VAT treatment on mobile phone top-up cards](https://fiscalsolutions.co.uk/news/uk-tribunal-case-about-vat-treatment-on-mobile-phone-top-up-cards/): The UK’s First-tier Tribunal has clarified the rules about agents and principals regarding their VAT liabilities on mobile phone top-up cards (Phone Nation Ltd [2015] UKFTT 593 (TC)).In this case Phone Nation Ltd argued they were the principal in their transactions as they purchased the mobile phone top-up cards from an agent, who acts as a broker to major phone service providers. Phone Nation Ltd then sold these cards to their customers claiming the VAT on the purchase invoices from the agent, even though - [New reverse charge on the sale of electricity and gas in Ireland](https://fiscalsolutions.co.uk/news/new-reverse-charge-on-the-sale-of-electricity-and-gas-in-ireland/): On 1 January 2016 a new domestic reverse charge rule was introduced on the wholesale of gas and electricity supplies in Ireland.This measure means that providers of electricity and gas no longer have to charge VAT on their supplies to certain customers, as it is now their customer’s responsibility to account for it.   - [Poland implements changes to prevent VAT fraud](https://fiscalsolutions.co.uk/news/poland-implements-a-number-of-changes-in-order-to-prevent-vat-fraud/): A range of measures has been introduced by Poland in order to help reduce the growing problem of VAT fraud. These include: Reducing the limit of business to business cash transactions to a value of PLN 15,000 Introducing Standard Audit Files for Tax (SAF-T) in July 2016 Combining the tax and customs authorities to help simplify audits and make them more co-ordinated. - [Canadian province of New Brunswick raises HST to 15%](https://fiscalsolutions.co.uk/news/canadian-province-of-new-brunswick-raises-hst-to-15/): The Canadian province of New Brunswick has confirmed that it is increasing its Harmonized Sales Tax (HST) rate from 13% to 15% from 1 July 2016. This has been implemented despite the recent confirmation from the Canadian tax authorities that they will not be raising the HST rates. HST is a combination of Canadian Goods & Services Tax (GST) and Provincial Sales Tax (PST). This tax is applied in five states including New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island. - [New Reverse Charge due on wholesale telecommunication services in the UK](https://fiscalsolutions.co.uk/news/new-reverse-charge-due-wholesale-telecommunication-services-uk/): From 1 February 2016 suppliers of wholesale telecommunication services in the UK will no longer need to charge VAT on their supplies, instead a reverse charge simplification will be introduced that will mean the responsibility to account for the VAT will change to their customer.This measure is being introduced in order to prevent fraud in this industry and will apply to all wholesale telecommunication services including the routing of telephone calls and associated data (texts and images) over landlines, m - [Reminder: From January 2016 new VAT amendments have been introduced in Romania](https://fiscalsolutions.co.uk/news/reminder-january-2016-new-vat-amendments-introduced-romania/): As stated in our article in October 2015, from 1 January 2016 the following amendments to the VAT act will apply in Romania: The standard VAT rate being reduced from 24% to 20%, with a planned further reduction to 19% from 1 January 2017. The new reduced VAT rate of 5% will be applied to the sale of entry to sports events, museums, castles, historical monuments, fairs, cinemas and cultural events. The 5% VAT rate will also be applied to the sale of books, papers and magazines – with the exception of those - [Slovak VAT Act key changes](https://fiscalsolutions.co.uk/news/slovak-vat-act-changes-bring-the-following-amendments/): Changes to the Slovak VAT Act, which were implemented on 1 January 2016 have brought the following key changes to the VAT regime: The VAT rate on basic foodstuffs has been reduced from the standard rate of 20% to the reduced rate of 10%. In an effort to prevent fraud, a new domestic reverse charge has been introduced for supplies in the construction industry. The introduction of a general reverse charge for domestic supplies made from non-resident to resident VAT registered companies. - [Russian Government publish a draft bill to impose VAT on the supply of e-services to consumers](https://fiscalsolutions.co.uk/news/russian-government-publish-a-draft-bill-to-impose-vat-on-the-supply-of-e-services-to-consumers/): The Russian Government has published a draft bill which imposed the charge of Russian VAT at 18% on the sales of e-services to consumers. At present, non-resident businesses providing digital goods and services in Russia do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage given to non-resident companies over Russian resident providers, the Russian Government has now announced that VAT at 18% will be applied on these types of transactions from 1 January 2017. This n - [Belgium increases its VAT registration threshold for resident companies](https://fiscalsolutions.co.uk/news/belgium-increases-its-vat-registration-threshold-for-resident-companies/): The VAT registration threshold for resident companies in Belgium has been increased from €15,000 to €25,000 from 1 January 2016. This change only applies to Belgian resident companies and will mean that they do not have to mandatorily register for VAT until their taxable sales exceed this threshold. Non-resident companies selling in Belgium are still subject to a nil VAT registration threshold. - [Denmark decreases its Intrastat threshold for the sale of goods to other EU countries](https://fiscalsolutions.co.uk/news/denmark-decreases-its-intrastat-threshold-for-the-sale-of-goods-to-other-eu-countries/): From 1 January 2016 the Intrastat threshold for goods being sold from Denmark to other EU countries (despatches) has been reduced from DKK 5,000,000 to DKK 4,700,000 per annum. - [Finland increases its Intrastat threshold for the purchase of goods from other EU countries](https://fiscalsolutions.co.uk/news/finland-increases-its-intrastat-threshold-for-the-purchase-of-goods-from-other-eu-countries/): From 1 January 2016 the Intrastat threshold for the purchase of goods from other EU countries (arrivals) has been increased from €500,000 to €550,000 per annum. - [Reminder: France decreased its distance selling threshold on 1 January 2016](https://fiscalsolutions.co.uk/news/reminder-france-decreased-distance-selling-threshold-1-january-2016/): From January 2016 the distance selling threshold in France was reduced from €100,000 to €35,000 per annum. - [Germany increases its Intrastat threshold for the purchase of goods from other EU countries](https://fiscalsolutions.co.uk/news/germany-increases-intrastat-threshold-purchase-goods-eu-countries/): From 1 January 2016 the Intrastat threshold for the purchase of goods from businesses in other EU countries (arrivals) will be increased from €500,000 to €800,000 per annum. - [Hungary approves a reduced VAT rate on the construction of new dwellings](https://fiscalsolutions.co.uk/news/hungary-approves-reduced-vat-rate-construction-new-dwellings/): In an effort to kick-start the construction industry in Hungary, a new temporary reduced VAT rate has been introduced to the construction of new residential dwellings. Previously these types of supplies were subject to the standard rate of VAT at 27%, however this will now be reduced to 5% until at least the year 2019. - [Italy reduces the VAT rate charged on e-books, online newspapers and online journals](https://fiscalsolutions.co.uk/news/italy-reduces-the-vat-rate-charged-on-e-books-online-newspapers-and-online-journals/): From 1 January 2016 the VAT rate applied to the sale of e-books, online newspapers and online journals in Italy has been reduced from 22% to 4%. Italy introduced this VAT rate reduction even though it breaches two European Court of Justice rulings in March 2015 (Case C-479/13 & C-502/13) which stated that e-books should be taxed at member states’ standard rate of VAT even if printed books are at a reduced rate. - [Ireland increases its Intrastat threshold for the purchase of goods from other EU countries](https://fiscalsolutions.co.uk/news/ireland-increases-intrastat-threshold-purchase-goods-eu-countries/): From 1 January 2016 the Intrastat reporting threshold for the purchase of goods from businesses in other EU countries (arrivals) has been increased from €191,000 to €500,000 per annum. - [Latvia increases its Intrastat threshold for the purchase of goods from other EU countries](https://fiscalsolutions.co.uk/news/latvia-increases-intrastat-threshold-purchase-goods-eu-countries/): From 1 January 2016 the Intrastat reporting threshold for the purchases of goods from businesses in other EU countries (arrivals) has been increased from €70,000 to €180,000. - [From January 2016 the annual thresholds for the submission of intrastats will be reduced in the Netherlands](https://fiscalsolutions.co.uk/news/january-2016-annual-thresholds-submission-intrastats-will-reduced-netherlands/): From 1 January 2016 the annual thresholds for the submission of intrastats has been reduced: From €1.5 million to €1million per annum for goods arriving into the Netherlands from other EU countries. From €1.5 million to €1million for goods being sold from the Netherlands to other EU countries. - [Application of TOMS extended from January 2016 in Austria](https://fiscalsolutions.co.uk/news/from-january-2016-the-application-of-the-tour-operator-margin-scheme-toms-in-austria-has-been-extended/): From 1 January 2016 Austria has extended the application of TOMS to apply to supplies of travel services made to both VAT registered customers as well as consumers. TOMS is a simplified process for tour operators and by using this it means that they only have to pay VAT on their profit. - [Croatia reduces its annual Intrastat threshold for the sale of goods to other EU countries](https://fiscalsolutions.co.uk/news/croatia-reduces-its-annual-intrastat-threshold-for-the-sale-of-goods-to-other-eu-countries/): From 1 January 2016 the Intrastat threshold for goods being sold from Croatia to other EU countries has been reduced from HRK 1,000,000 to HRK 900,000 per annum. - [Provision of distance learning courses is zero rated for VAT purposes in the UK](https://fiscalsolutions.co.uk/news/provision-of-distance-learning-courses-is-zero-rated-for-vat-purposes-in-the-uk/): In a recent court ruling, the UK’s First Tier Tribunal found that the provision of distance learning courses is zero rated for VAT purposes in the UK. These types of courses involve sending learning materials direct to students for them to undertake their studies under their own initiative. HMRC had argued that these services were educational services which meant they incurred the standard rate of VAT at 20%; however the Tribunal ruled that that the printed learning materials were the main part of the suppl - [Change to Hungarian invoicing rules for digital suppliers](https://fiscalsolutions.co.uk/news/change-to-hungarian-invoicing-rules-for-digital-suppliers/): From 1 January 2016 foreign suppliers who sell digital services to consumers, will no longer have to produce locally VAT compliant invoices. This is in an effort to align Hungarian VAT invoicing rules with most other EU member states where there has never been a requirement to produce invoices for these types of supplies. - [Canadian Tax authorities have confirmed that they will not raise the Harmonised Sales Tax (HST) rate](https://fiscalsolutions.co.uk/news/canadian-tax-authorities-confirmed-will-not-raise-harmonised-sales-tax-hst-rate/): The tax authorities have recently confirmed that they will not raise the Harmonised Sales Tax (HST) rate from 13% to 15%. HST is a combination of Canadian Goods & Services Tax (GST) and Provincial Sales Tax (PST), five states including New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island apply this tax. - [EU Commission have agreed that Hungary can apply a new domestic reverse charge to the supply of staff](https://fiscalsolutions.co.uk/news/eu-commission-have-agreed-that-hungary-can-apply-a-new-domestic-reverse-charge-to-the-supply-of-staff/): The EU Commission have agreed that Hungary can apply a new domestic reverse charge to the supply of staff. This mechanism will allow customers to account for the VAT on the transactions in their own VAT reporting, meaning that the supplier does not charge VAT to their customers. Usually this mechanism is used as a means to try to eliminate VAT fraud. - [From January 2016 the annual thresholds for the submission of intrastats will be reduced in Lithuania](https://fiscalsolutions.co.uk/news/from-january-2016-the-annual-thresholds-for-the-submission-of-intrastats-will-be-reduced-in-lithuania/): From 1 January 2016 the annual thresholds for the submission of intrastats will be reduced from: €290,000 to €280,000 per annum for goods arriving into Lithuania from other EU countries €215,000 to €200,000 for goods being sold from Lithuania to other EU countries. - [VAT rate changes in Poland have been dropped](https://fiscalsolutions.co.uk/news/vat-rate-changes-poland-dropped/): As reported in our July 2015 newsletter, as of 1 January 2016 the Polish government had planned to cut their standard rate of VAT from 23% to 22%. However following a recent change in government and also concerns about the continued growth of the country, this plan has now been dropped. This means the VAT rate will remain at 23% going forward. - [New reduced VAT rates in Romania](https://fiscalsolutions.co.uk/news/reduced-vat-rates-in-romania/): As of 1 January 2016 the standard VAT rate of 24% will be reduced to 20%. Also at the same time, the reduced VAT rate of 9% will be reduced to 5% for the supply of books, newspapers and some magazines, as well as for the supply of some cultural admission services. Romania will also introduce a reverse charge mechanism on the supply of mobile phones, laptops, PC tablets, game consoles, supplies of buildings and land. This is in an effort to prevent VAT fraud in the sector and will take effect from 1 January - [VAT rate increase from January 2016 in Norway](https://fiscalsolutions.co.uk/news/vat-rate-increase-january-2016-norway/): As previously stated in our October 2015 newsletter, the reduced VAT rate will increase from 8% to 10% as of 1 January 2016. This rate is currently applied to supplies such as hotel accommodation, public transport, cinema entrance and the state TV licence. - [From January 2017 VAT will be applied on digital goods and services in Russia](https://fiscalsolutions.co.uk/news/from-january-2017-vat-will-be-applied-on-these-types-of-transactions/): At present, non-resident businesses providing digital goods and services in Russia do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage given to non-resident companies over Russian resident providers, the Russian government has now announced that VAT at 18% will be applied on these types of transactions from 1 January 2017. This new tax will be applied to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet s - [Increase in Italian VAT rates if budgetary targets are not met](https://fiscalsolutions.co.uk/news/increase-italian-vat-rates-budgetary-targets-not-met/): The Italian government has announced that if certain budgetary targets are not met within 2016 then there could be a gradual increase in the Italian VAT rates from 1st January 2017. The increases would include: The reduced 10% VAT rate being increased by three percent (from 10% to 13%) from 1st January 2017 The standard VAT rate being increased: from 22% to 24% from 1st January 2017 from 24% to 25% from 1st January 2018 - [From April 2016 a new domestic reverse charge will be applied in Latvia](https://fiscalsolutions.co.uk/news/april-2016-new-domestic-reverse-charge-will-applied-latvia/): From 1 April 2016, a new domestic reverse charge will be applied to certain domestic business-to-business supplies of mobile telephones, laptop computers and computer chips. This is an effort to prevent VAT fraud and follows several other EU countries who have already introduced this mechanism within this sector. - [Change to Italian invoicing rules for digital suppliers](https://fiscalsolutions.co.uk/news/change-in-invoicing-rules-for-suppliers/): Suppliers selling digital services to consumers in Italy will not have a requirement to produce locally VAT compliant invoices. This change will be backdated to take effect from 1 January 2015. This is also in an effort to bring Italian invoicing rules for these types of supplies in line with other EU member states. - [Romania introduces reverse charge mechanism to prevent fraud](https://fiscalsolutions.co.uk/news/romania-introduces-reverse-charge-mechanism-to-prevent-fraud/): Romania will introduce a reverse charge mechanism on the supply of mobile phones, laptops, PC tablets, game consoles, supplies of buildings and land. This is in an effort to prevent VAT fraud in the sector and will take effect from 1 January 2016. - [New domestic reverse charge mechanism in Italy](https://fiscalsolutions.co.uk/news/new-domestic-reverse-charge-mechanism-italy/): A new domestic reverse charge mechanism has been implemented in Italy relating to sales of laptops, game consoles and computer tablets. This mechanism allows customers to account for the VAT on the transactions in their own VAT reporting, meaning that the supplier does not charge VAT to their customers. Usually, this mechanism is used as a means to try to eliminate VAT fraud. Non-resident Italian VAT registered companies will now be able to claim VAT refunds of up to €15,000 without the obligation to provid - [VAT Control Statement to be brought in from 1 January 2016](https://fiscalsolutions.co.uk/news/vat-control-statement-to-be-brought-in-from-1-january-2016/): A new special “VAT Control Statement” is to be introduced on 1 January 2016. This electronic declaration will be a requirement for all taxable persons registered for VAT in the Czech Republic, and will include all information relating to any purchase/sale transactions they make in the country. - [Latest Australia draft to introduce GST on digital services](https://fiscalsolutions.co.uk/news/latest-australia-draft-to-introduce-gst-on-digital-services/): Australia’s latest draft for the implementation of 10% Goods and Services Tax (GST) on digital services sold to consumers by foreign providers included an AUD 75,000 GST registration threshold.  This is an effort to avoid the heavy compliance burden and confusion imposed on companies when the EU introduced similar electronic services rules at the start of this year. - [VAT rate changes from 2016 in Norway](https://fiscalsolutions.co.uk/news/vat-rate-changes-from-2016-in-norway/): From 1 January 2015 the Norwegian reduced VAT rate of 8% will be increased to 10%, this rise is to help fund a proposed cut in corporation tax from 27% to 22% which will be phased in for resident businesses from 2016 to 2018. A new zero rate of VAT for the supply of electronic newspapers and journals will be brought in by the Norwegian tax authorities from 1 January 2016. - [Poland challenges EU decision on VAT on e-books](https://fiscalsolutions.co.uk/news/poland-challenges-eu-decision-vat-e-books/): Poland has challenged the EU VAT ruling which states that the VAT rate charged on e-books should be the standard rate as they are considered to be electronic services. The Polish Courts have asked for this ruling to be reviewed on the basis that it breaches fiscal neutrality as the purchase of printed books versus an e-book equivalent should not be affected by differing VAT treatments imposed. - [Reduced quarterly filing of EC Sales Lists threshold will start in January 2016](https://fiscalsolutions.co.uk/news/reduced-quarterly-filing-of-ec-sales-lists-threshold-will-start-in-january-2016/): From 1 January 2016 the threshold for the quarterly filing of EC Sales Lists will be reduced from €100,000 to €50,000.  This means that any businesses that exceed the new €50,000 threshold will need to submit their EC Sales Lists on a monthly basis. This change is as a result of a request from the European Commission who stated that the current threshold is not in accordance with EU VAT legislation. - [Changes to the application of the Tour Operators Margin Scheme (TOMS) in Germany](https://fiscalsolutions.co.uk/news/changes-application-tour-operators-margin-scheme-toms-germany/): The European Commission has issued a reasoned opinion requesting that Germany amend their VAT legislation on the application of a special scheme for travel agents, referred to as the Tour Operators Margin Scheme (TOMS), in order to bring it in line with the EU VAT directive. The scheme allows travel agents to account for VAT only on the profit margin element of their trade. The current German VAT legislation states that this scheme can only be applied to services provided direct to consumers and also allows - [No VAT changes to hotel accomodation in Ireland](https://fiscalsolutions.co.uk/news/no-vat-changes-hotel-accomodation-ireland/): A recent Irish budget confirmed that the supply of hotel accommodation will continue to be liable to the reduced Irish VAT rate of 9%. This is in spite of pressure on the Government to increase this to the standard VAT rate of 23% to reduce the budget deficit. Most EU countries offer a reduced VAT rate on tourist-related services including hotel accommodation to help boost the tourism industry. Ireland is also proposing to extend the use of a domestic reverse charge to include the wholesale supply of gas, e - [VAT changes in France](https://fiscalsolutions.co.uk/news/vat-changes-in-france/): From 1 December 2016 non-resident VAT registered businesses will be required to settle their VAT returns via direct debit.  In order to set this up, the French tax authorities have stated that they require the registered company’s bank account details and also the authority to automatically withdraw the amounts of VAT owed direct from the businesses bank account. From 1 January 2016 the distance selling threshold in France will be reduced from €100,000 to €35,000.  This reduction will mean that thousands of - [Carrier bag charge introduced in the UK](https://fiscalsolutions.co.uk/news/carrier-bag-charge-introduced-uk/): On 5 October 2015 a compulsory 5p charge on single-use carrier bags came into force as part of the government’s policy on improving waste and recycling. HMRC have published guidance reminding all businesses that VAT must be accounted for on any charge made for single-use carrier bags. - [From January 2016 there will be new VAT amendments in Romania](https://fiscalsolutions.co.uk/news/from-january-2016-there-will-be-new-vat-amendments-in-romania/): New VAT amendments have now been approved to come into force from 1 January 2016. These amendments include: The standard VAT rate being reduced from 24% to 20%, with a further reduction to 19% from 1 January 2017. The new reduced VAT rate of 5% will be applied to the sale of entry to sports events, museums, castles, historical monuments, fairs, cinemas and cultural events. The 5% VAT rate will also be applied to the sale of books, papers and magazines - with the exception of those published mainly for pub - [VAT rate changes in Greece](https://fiscalsolutions.co.uk/news/vat-rate-changes-greece/): On 1 October 2015 Greece abolished reduced VAT rates on six Islands, the start of their bid to streamline the VAT system as part of the country’s third bailout agreement. Changes to VAT rates will be rolled out across other islands with the aim of being fully implemented throughout the country by 1 January 2017. - [Increased changes to the Intrastat threshold in Germany](https://fiscalsolutions.co.uk/news/increased-changes-to-the-intrastat-threshold-in-germany/): From 1 January 2016 the Intrastat threshold for intra-community purchases (arrivals) will increase from € 500,000 to € 800,000.  The intrastat threshold for intra-community sales (dispatches) will remain unchanged at € 500,000. - [Possible VAT registration threshold increase in Belgium](https://fiscalsolutions.co.uk/news/possible-vat-registration-threshold-increase-belgium/): Belgium has proposed raising its VAT registration threshold from €15,000 to €25,000 for resident companies.  If this proposal is accepted then the new threshold will come into force on 1 January 2016.  This change will not affect non-resident companies selling in Belgium where the nil VAT registration threshold still applies. From 1 September 2015 the VAT rate applicable to supplies of domestic electricity in Belgium increased from 6% to 21%. - [VAT changes in Austria](https://fiscalsolutions.co.uk/news/vat-changes-austria/): In 2016 the VAT rate for accommodation services will increase from 10% to 13%. This change was originally scheduled to take place from 1 April 2016 but will now take effect from 1 May 2016. If a prepayment has been made before 1 September 2015 in respect of accommodation services supplied between 1 May 2016 and 31 December 2017, there is a transitional relief which means the 10% VAT rate will continue to apply. - [VAT registration threshold has been postponed in Switzerland](https://fiscalsolutions.co.uk/news/vat-registration-threshold-postponed-switzerland/): Switzerland has postponed plans to remove the minimum threshold for VAT registration for foreign companies providing digital services to consumers. This change was originally going to be implemented at the end of the year but has now been put back to 1 January 2017.  Currently, foreign companies providing these types of services into Switzerland do not have to register and charge VAT until they have met the annual registration threshold of CHF 100,000. - [Changes to the low value import threshold of AUS $1,000](https://fiscalsolutions.co.uk/news/changes-low-value-import-threshold-aus-1000/): The Australian government has announced that from 1 July 2017 the low value import threshold of AUS $1,000, which allows imports of goods to be cleared GST and duty free, will be removed.  This change will mean that imports below this threshold value will be subject to duty and GST. After the removal of the threshold, overseas suppliers will have to register for GST if their annual sales to Australia exceed AUS $75,000. - [No VAT rate changes to supplies in the UK](https://fiscalsolutions.co.uk/news/no-vat-rate-changes-supplies-uk/): In response to the European Court of Justice ruling that the UK's reduced VAT rate (5%) for the supply and installation of energy saving materials was not compatible with the EU VAT Directive, the UK tax authorities ( HMRC) have now confirmed that they will not make any changes to the VAT rate on these supplies until at least 2016. - [More information on the reduced VAT rate in Slovakia](https://fiscalsolutions.co.uk/news/information-reduced-vat-rate-slovakia/): As stated in last month’s newsletter, Slovakia plans to reduce the VAT rate on basic foodstuffs from 20% to 10% as of 1 January 2016.  It has now been confirmed that this reduction will also apply to fresh meat products and that the reduction in VAT will help eliminate a large amount of suspected fraud in the sector. - [VAT changes in Romania](https://fiscalsolutions.co.uk/news/vat-changes-romania/): The International Monetary Fund and the EU, which oversaw Romania’s bailout during the financial crisis, have opposed its plan to cut its VAT rate to 19%.  In response to this, the Romanian Parliament has now confirmed that it will reduce its standard VAT rate from 24% to 20% on 1 January 2016, and then from 20% to 19% in January 2017. - [VAT rate increase on hotel accommodation](https://fiscalsolutions.co.uk/news/vat-rate-increase-on-hotel-accommodation/): As of 1 January 2016, the VAT rate on hotel accommodation will be increased from 9% to 14%. - [Austria VAT changes from January 2016](https://fiscalsolutions.co.uk/news/austria-vat-changes-january-2016/): Following the update in our March and July 2015 newsletters relating to reduced VAT rate increase in Austria from 10% to 13%, we can now confirm that this change will take effect from 1 January 2016 with the exception of hotel services, which will increase to 13% from 1 April 2016. - [New VAT rate on electronic services in South Korea](https://fiscalsolutions.co.uk/news/new-vat-rate-on-electronic-services-in-south-korea/): As of 1 July 2015, electronic services (applications, e-books, MP3, music, films, etc.) supplied by a foreign service provider are now subject to 10% Korean VAT.  As a result of this, the Korean National Tax Service has implemented a simplified VAT registration procedure for electronic service providers and those affected should register within 20 days from the date of commencement of supplying these types of services. - [The Australian government is considering lowering the import GST and duty exemption on goods](https://fiscalsolutions.co.uk/news/the-australian-government-is-considering-lowering-the-import-gst-and-duty-exemption-on-goods/): The Australian government has again announced that it is considering significantly lowering the import GST and duty exemption on goods bought from foreign suppliers. Currently this threshold is set at AUS$ 1,000 and this allows importers to purchase goods from foreign companies that are exempt from Australian GST and duty, providing they cost less than this amount. - [Reduced VAT rate on basic foodstuffs](https://fiscalsolutions.co.uk/news/reduced-vat-rate-on-basic-foodstuffs/): The VAT rate on basic foodstuffs is set to be reduced from 20% to 10% as of 1 January 2016.  Slovakia currently has one of the highest VAT rates in the EU for basic foodstuffs, as most other EU countries apply a reduced or zero rate of VAT to these types of goods. An amendment to the Slovakian VAT Act could mean the introduction of a reverse charge mechanism on domestic supplies of goods between non-resident and resident Slovak companies.  If approved, this amendment will be implemented on 1 January 2016 an - [Romania will see a new VAT reduced rate from 2016](https://fiscalsolutions.co.uk/news/romania-will-see-a-new-vat-reduced-rate-from-2016/): In last month’s newsletter, we stated that the standard VAT rate in Romania would not change due to potential changes in government.  However, it has now been announced that the standard Romanian VAT rate will be reduced from 24% to 19% in 2016. This is expected to be confirmed by the Romanian Parliament, with a final decision taking place by the end of the month. - [New VAT rates as of July 2015](https://fiscalsolutions.co.uk/news/new-vat-rates-as-of-july-2015/): As of 1 July 2015, new VAT rates have been implemented for the Autonomous Region of the Azores. The new VAT rates will see the reduced VAT rate of 5% lowered to 4% and the intermediate rate lowered from 10% to 9%. The standard VAT rate will remain unchanged at 18%. - [Changes for taxpayers in Poland](https://fiscalsolutions.co.uk/news/changes-for-taxpayers-in-poland/): As of 1 July 2015, taxpayers in Poland are entitled to claim 50% of the input tax incurred on fuel for passenger cars that are used for both business and private purposes.  Previously, this type of expense was subject to a full block on the input tax incurred. The Polish government recently announced that it plans to cut the standard Polish VAT rate from 23% to 22% as of 1 January 2016. This cut will cost the Polish economy around €1.5 billion per annum. - [More changes for Greece from 20 July 2015](https://fiscalsolutions.co.uk/news/more-changes-for-greece-from-20-july-2015/): As part of the reforms recently committed to by the Greek government, from 20 July 2015 the 13% reduced VAT rate was increased to the 23% standard rate on various types of goods and services including: All standard and processed foods Various services relating to works of art Passenger transport Entertainment tickets for various events (including concerts, sporting events, circuses, fairs, amusement parks, zoos and exhibitions). Restaurant and catering services Medical and dental services (if these are - [New decision approved to limit VAT fraud in Czech Republic](https://fiscalsolutions.co.uk/news/new-decision-approved-limit-vat-fraud-czech-republic/): The Czech government has approved a decision intended to limit VAT fraud by extending the reverse charge mechanism to grain and industrial crops. This amendment will come into effect on 1 July 2015. - [New reduced rate of VAT on cultural services in Romania](https://fiscalsolutions.co.uk/news/new-reduced-rate-vat-cultural-services-romania/): The plans to introduce a new reduced rate of VAT for cultural services, lower value houses and printed media have been approved by Romania's lower house of Parliament. As we noted last month, the new rate will be set at 5% and will apply to books, newspapers and magazines. It has also now been confirmed that it will apply to entry to museums, monuments, cultural events, cinemas, sporting events and also to the sale of some private dwellings, depending on the size and value of the property. The Romanian Cham - [Reclassification of VAT on some goods and services in the Netherlands](https://fiscalsolutions.co.uk/news/reclassification-of-vat-on-some-goods-and-services-in-the-netherlands/): The Dutch government is considering reclassifying a number of goods and services from the reduced VAT rate of 6% to the standard Dutch VAT rate of 21%. The supplies being considered for this increase include medicines and pharmaceuticals, entrance to sporting, cultural and entertainment events, restaurant food and related services, hotel accommodation, newspapers and books. If this proposal is implemented, it will mean that only the supply of basic foodstuffs would remain at the current reduced rate. - [Latest update on the Polish VAT Act](https://fiscalsolutions.co.uk/news/latest-update-on-the-polish-vat-act/): In an effort to prevent VAT fraud, the Polish VAT Act has been amended to extend the scope of goods covered by the reverse charge mechanism. This means that as of 1 July 2015, the reverse charge will now apply to ribbed sheets of non-alloy steel, unwrought metals (aluminium, lead, zinc, tin, nickel, gold), laptops and notebooks, tablets, mobile phones including smartphones, video game consoles and other devices for arcade or gambling games with electronic display.Also as part of this extension, on 1 July 20 - [Latest update on Romanian VAT rate on printed books](https://fiscalsolutions.co.uk/news/latest-update-romanian-vat-rate-printed-books/): Romania has announced plans to cut its reduced VAT rate on printed books from 9% to 5% on 1 January 2016. This will make it one of the lowest in Europe. - [Reduced VAT rate in Romania](https://fiscalsolutions.co.uk/news/reduced-vat-rate-romania/): From 1 June 2015, basic foodstuffs will be re-categorized in Romania from the standard VAT rate of 24% to the reduced VAT rate of 9%. - [New VAT Rate in Czech Republic](https://fiscalsolutions.co.uk/news/new-vat-rate-in-czech-republic/): The Financial Administration has published official guidance on the application of the new 10% VAT rate which came into effect from 1 January 2015. This new VAT rate applies to children’s food, medicines and books (among other things). The tax authority has published guidance on the extension of the local reverse charge mechanism, which took effect from 1 April 2015. As per our previous newsletter, the extended regime will include mobile phones, integrated circuits such as microprocessors and central proces - [Annual budget statement - Austria announcement](https://fiscalsolutions.co.uk/news/annual-budget-statement-austria-announcement/): It was announced in the annual budget statement that the Austrian reduced VAT rate will be increased from 10% to 13% for most goods and services, including livestock, seeds, cultural services, museums, zoos and hotels. These changes will take effect from 1 January 2016, with the exception of hotel accommodation, which will increase from either 1 April or 1 May 2016. It was also confirmed that there would be no change to the standard rate of VAT at 20% and the current 10% reduced rate will still continue to - [VAT changes in Greece](https://fiscalsolutions.co.uk/news/vat-changes-in-greece/): The new government has announced a range of VAT reform measures: A proposed new VAT rate on luxury goods (this includes high-value cars, boats, aircraft, helicopters, swimming pools, watches and perfumes). This may not be permitted by the European Union as Member States are normally only permitted a standard and two reduced VAT rates under the EU VAT Directive. A reclassification of many basic foodstuffs from the reduced VAT rate of 13% to the second reduced rate of 6%. - [VAT compliance changes in Croatia](https://fiscalsolutions.co.uk/news/vat-compliance-changes-in-croatia/): A number of VAT compliance changes were introduced at the start of 2015. These include: Cash-based accounting so businesses can pay or charge VAT when their invoices are settled, although this only applies to companies with an annual turnover below HRK 3 million. In order to be more in line with the EU VAT directive, the supply of buildings will become VAT exempt. The introduction of new rules for supplying electronic, broadcast or telecoms services took effect from 1 January 2015 - [VAT increased from 1st January 2015](https://fiscalsolutions.co.uk/news/vat-increased-from-1st-january-2015/): From the 1st January 2015 the following VAT rate increases have taken effect: The standard rate increased from 15% to 17% The intermediate rate increased from 12% to 14% The reduced rate increased from 6% to 8% The super-reduced rate remains unchanged at 3% - [Changes in Lithuania](https://fiscalsolutions.co.uk/news/changes-in-lithuania/): The distance selling registration threshold has changed from LTL 125K to €35K as of 1st January 2015 following the change to the euro as the Lithuanian currency. - [Autumn Statement 2014 - Changes to Air Passenger Duty rates](https://fiscalsolutions.co.uk/news/autumn-statement-2014-changes-to-air-passenger-duty-rates/): Air Passenger Duty ("APD") is a duty of Excise which is levied on the carriage, from a UK airport, of chargeable passengers on chargeable aircraft. It becomes due when a flight with chargeable passengers occurs and is payable by the operator of the aircraft. The Chancellor of the Exchequer has announced in the Autumn Statement that, with effect from 1 May 2015 there will be no APD chargeable on economy flights for children under the age of 12. This will be widened to include children under the age of 16 fro - [New import VAT scheme](https://fiscalsolutions.co.uk/news/new-import-vat-scheme/): A new import VAT scheme is scheduled to be implemented in 2015 and will allow for import VAT postponement for large traders making annual sales above € 6 million. This scheme will allow the importer of the goods to delay the payment of Spanish import VAT until the time of the next VAT return and will benefit companies making taxable supplies in Spain where VAT is collected as they will be able to offset this against the postponed VAT owed from their imports. - [Announcement from the Austrian Federal Financial court](https://fiscalsolutions.co.uk/news/announcement-austrian-federal-financial-court/): According to a judgement made by the Austrian Federal Financial court, a CMR document, which is a consignment note that travels with goods being delivered to customers by road within the EU, can be used as evidence for an intra-Community supply even if it is not signed by the recipient of the goods. - [Changes to VAT rates in Belgium](https://fiscalsolutions.co.uk/news/changes-to-vat-rates-in-belgium/): The VAT exemption on plastic surgery will be abolished in 2015. Supplies in this sector will be subject to the full 21% standard VAT rate. - [Changes in Hungary from January 2015](https://fiscalsolutions.co.uk/news/changes-hungary-january-2015/): From 1 January 2015, the domestic reverse charge mechanism will be extended to the supply of certain iron and steel products. - [VAT changes in 2015](https://fiscalsolutions.co.uk/news/vat-changes-in-2015/): Lithuania will be introducing the euro on 1 January 2015. Also from 1 January 2015, the following VAT amendments are currently being discussed in the government: VAT will apply at 5% to the following goods: Freshly frozen meat and edible slaughterhouse waste; Freshly chilled poultry; Transport of animals, meat products and preparations - [Changes in Spain](https://fiscalsolutions.co.uk/news/changes-in-spain/): The place of supply and install contracts will be amended in Spain. If the installation element is about 15% of the value of the contract then the place of supply will be Spain. This change in treatment means that more non resident contractors will find they have to register for VAT in Spain. - [VAT changes in Italy](https://fiscalsolutions.co.uk/news/vat-changes-italy/): The super reduced rate of 4% which is currently levied on such items as basic foods will also apply to rice based products following a recent clarification from the tax office. - [New VAT rules from 1 October 2014](https://fiscalsolutions.co.uk/news/new-vat-rules-from-1-october-2014/): From 1 October 2014 a new decree introduces new invoicing rules. From that date businesses will have to report the name of the invoicing program they are using to produce invoices and receipts. It has to be approved by the tax office. This report has to be filed by 15 November 2014. It is thought unlikely that Hungary will impose this rule on non-resident businesses that are registered for VAT in Hungary. - [VAT rate changes in Portugal](https://fiscalsolutions.co.uk/news/vat-rate-changes-portugal/): Portugal is to increase the standard VAT rate from 23% to 23.25% from 1 January 2015. - [New VAT rate proposals in Czech Republic](https://fiscalsolutions.co.uk/news/new-vat-rate-proposals-in-czech-republic/): The Czech government is to introduce a second reduced VAT rate of 10% to be implemented by January 2015. The new rate will apply to pharmaceuticals, e-books and baby food products. Alongside the 10% reduced rate proposal, there were also proposals for a 5% reduced rate and a VAT rate simplification (combining the standard rate of 21% with the 15% reduced rate to create a 17.5% VAT rate). However, these were rejected. - [VAT changes in Croatia](https://fiscalsolutions.co.uk/news/vat-changes-croatia/): From the beginning of June 2014, non-resident business providers of road passenger services in Croatia must apply for a VAT registration number, and pay VAT (at 25%) based on the fare and proportion of the travel in Croatia. The VAT charged should then be declared in a monthly return, plus an annual VAT declaration. Companies may apply for a temporary VAT number where the trip is a one-off. If the supplier of the services is a Non-EU business they will be required to appoint a fiscal representative who will - [VAT changes in the United Kingdom](https://fiscalsolutions.co.uk/news/vat-changes-in-the-united-kingdom/): From 1 July 2014 a domestic reverse charge for VAT accounting will apply to all wholesale supplies of gas and electricity between counterparties established in the UK. The domestic reverse charge will not apply to supplies of gas and electricity made under supply license or metered arrangements to domestic and business premises (supplies for consumption). VAT registered businesses that do not resell or trade the gas or electricity will not be affected. This means that supplies with a tax point on or after t - [VAT increases in Luxembourg](https://fiscalsolutions.co.uk/news/vat-increases-luxembourg/): The VAT rate increase to 17% effective 1 January 2015 has been agreed in principle by the government. The intermediate rate of 12% will also increase to 14% and the reduced rate from 6% to 8%. The super-reduced rate of 3%, which is applied to, for example, food items, will not be changed, but it is expected that its scope will be reviewed in respect of its application to real estate transactions. - [Another VAT rate rise in Portugal](https://fiscalsolutions.co.uk/news/another-vat-rate-rise-portugal/): The government has announced yet another rise in the standard VAT rate. This time the rise will be to 23.25% from 1 January 2015 and it will be the 3rd rise since the economic crisis hit the Euro area in 2007. - [Potential changes to the VAT treatment of land related supplies](https://fiscalsolutions.co.uk/news/potential-changes-to-the-vat-treatment-of-land-related-supplies/): The VAT liability of services connected with land and buildings has always been a complex cross-border topic. During April 2014, the EU Commission and Fiscalis published a “Request for input from businesses” to highlight the particular areas of difficulty surrounding this area. We have responded to this request with a set of slides, succinctly laying out the potential problematic areas, as well as laying out a considered approach to the solution. These slides can be viewed by clicking on the 'Download PDF' - [New rules in the VAT Act from 1 April 2014](https://fiscalsolutions.co.uk/news/new-rules-in-the-vat-act-from-1-april-2014/): The amended VAT Act from 1 April 2014 includes new rules relating to input VAT deduction on cars and their usage. Under the new rules, VAT is now fully deductible on cars used exclusively for business purposes. - [Sole traders registered for VAT in Sweden](https://fiscalsolutions.co.uk/news/sole-traders-registered-vat-sweden/): Sole traders registered for VAT in Sweden now need to account for VAT using a VAT return rather than the income tax return. The tax office will accept a paper format (to be sent out 12 April onwards). - [Change in VAT rate in Romania](https://fiscalsolutions.co.uk/news/change-in-vat-rate-in-romania/): The Romanian government has confirmed that it is not in a position to reduce the 24% standard VAT rate at the moment due to the continuing impact of low economic growth. In the meantime, there may be a reclassification of meat, fruit and vegetables from the standard rate to the reduced 9% rate. There are no details yet as to the full range of low VAT rate changes. - [Reduction in fines for late VAT payers in Malta](https://fiscalsolutions.co.uk/news/reduction-in-fines-for-late-vat-payers-in-malta/): The tax office in Malta has advised that it is to reduce the fines for late VAT payers and improve communications with taxable persons looking to bring their non-compliant affairs up-to-date. The Customs and VAT departments will also be merged to simplify communications, as well as to improve audit co-operation between the departments. The charges for fines are as follows: The daily penalty for late returns and payments of €15 will be scrapped. The late penalty interest will be reduced from 9% to 6.5%. Th - [Changes to Air Passenger Duty rates and filing deadlines](https://fiscalsolutions.co.uk/news/changes-to-air-passenger-duty-rates-and-filing-deadlines/): Air Passenger Duty (APD) is a duty of Excise which is levied on the carriage, from a UK airport, of chargeable passengers on a chargeable aircraft. It becomes due when a flight with chargeable passengers occurs and is payable by the operator of the aircraft. From 1 April 2013, the scope of APD widened resulting in more companies having to register for, and pay, APD. To assist with the added burden of this increase in scope of APD, HM Revenue & Customs (HMRC) introduced the Annual Accounting scheme, also - [Plans for VAT increase rate for certain items in Croatia](https://fiscalsolutions.co.uk/news/plans-vat-increase-rate-certain-items-croatia/): On 1st January 2014 Croatia plans to increase the VAT rate on certain items from 10% to 13%. The items involved will include catering services, newspapers and journals. - [Italian VAT increase to 22% from 1st October 2013](https://fiscalsolutions.co.uk/news/italian-vat-increase-to-22-from-1st-october-2013/): It has been confirmed only today that there will be a standard VAT rate increase from 21% to 22%. There are no changes to the lower rates of VAT. The late notification has been because of the uncertain political situation within the Italian Government. - [Change to the rules in Germany affecting shippers of goods from Germany](https://fiscalsolutions.co.uk/news/change-to-the-rules-in-germany-affecting-shippers-of-goods-from-germany/): From 1 October 2013, any business making intra EU dispatches of goods from Germany to another EU country must obtain and retain a certificate from the recipient that confirms that the recipient has received the goods. The German name for this type of certificate is the "Gelangensbestätigung". Our advice to clients is to prepare for this additional requirement as soon as possible to ensure that you are ready for the official start date. Failure to obtain such certification will lead to the shipper being resp - [Greece introduces VAT deferment scheme](https://fiscalsolutions.co.uk/news/greece-introduces-vat-deferment-scheme/): Greece has followed many other EU member countries by introducing a VAT deferment / warehouse scheme to help attract importers and stimulate trade. The scheme will enable EU importers to bring in goods VAT free under certain circumstances. Importers may now avoid the cash flow problems of having to declare and pay Greek VAT at the point of importation, and sell the goods on into free circulation. This only applies if the goods are for onward supply by aircraft or sea vessels. Importers must also have a regu - [Expected delays in change to Italy's VAT rate](https://fiscalsolutions.co.uk/news/expected-delays-in-change-to-italys-vat-rate/): The expected VAT rate increase in Italy due on 1 July 2013 is likely to be postponed to 1st October 2013 or even later to January 2014. - [Fiscal Representation for Air Passenger Duty now available](https://fiscalsolutions.co.uk/news/fiscal-representation-for-air-passenger-duty-now-available/): We now offer fiscal representation for Air Passenger Duty. For more information, please email contact@s769864062.websitehome.co.uk or call +44 (0)20 7831 5115 - [New VAT invoice rules introduced in Bulgaria](https://fiscalsolutions.co.uk/news/new-vat-invoice-rules-introduced-in-bulgaria/): From 1 January 2013 new VAT invoice rules were introduced in Bulgaria. The changes include: The obligation to comply with Bulgarian VAT disclosure rules by any domestic or foreign companies which provide taxable supplies in Bulgaria; Simplified invoices may be used for transactions below the local equivalent of €100; Companies must introduce adequate internal controls to ensure the proper and reliable use of e-invoices; Any company using electronic invoices must seek the approval of their customers, or c - [Romania introduce new VAT return form](https://fiscalsolutions.co.uk/news/romania-introduce-new-vat-return-form/): A new VAT return form has been introduced, including information specific to the cash accounting VAT scheme which was implemented with effect at 1 January 2013. - [Croatia implements new VAT rate](https://fiscalsolutions.co.uk/news/croatia-implements-new-vat-rate/): As of 1 January 2013, a new VAT rate of 5% has been implemented to replace the zero VAT rate. - [Proposed changes to VAT in France](https://fiscalsolutions.co.uk/news/proposed-changes-to-vat-in-france/): The Government has proposed that from 1 January 2014: The standard VAT rate should be increased from 19.6% to 20% The intermediate VAT rate, specifically applying to restoration and renovation work on housing, should be increased from its current rate of 7% to 10% The reduced VAT rate, which applies to basic necessities, in particular food, will be reduced from its current level of 5.5% to 5%. - [France increases lower rate in 2012](https://fiscalsolutions.co.uk/news/france-increases-lower-rate-in-2012/): France has announced its plans to increase the lower rate from 5.5% to 7%. This will most likely come into force early 2012. It is likely that some items will remain at 5.5% such as basic foodstuff and aids for the handicapped etc. - [Businesses making supplies in the UK must register for VAT](https://fiscalsolutions.co.uk/news/businesses-making-supplies-in-the-uk-must-register-for-vat/): As a reminder, from 1 December 2012, businesses that are not established in the UK, and are looking to make taxable supplies in the UK, must register for VAT regardless of the value of the supplies. In addition, non-established businesses that are already making such supplies in the UK but are not currently registered for VAT must also register with effect from this date. - [Finland's proposed VAT increase subject to Parliamentary approval](https://fiscalsolutions.co.uk/news/finlands-proposed-vat-increase-subject-to-parliamentary-approval/): The government has formally proposed that VAT rates will increase by one percent from 1 January 2013. The standard VAT rate is set to rise to 24% and the lower rates to 10% and to 14% respectively. The proposals are subject to Parliamentary approval. - [French Government keeps reduced VAT rate](https://fiscalsolutions.co.uk/news/french-government-keeps-reduced-vat-rate/): The French Government has voted to keep the reduced VAT rate of 5.5% in 2014. Originally it was planned to reduce this rate to 5% but this will not be implemented. - [VAT increase for 2013 in Italy confirmed](https://fiscalsolutions.co.uk/news/vat-increase-for-2013-in-italy-confirmed/): The planned increases in VAT in 2013 have now been agreed by the Italian government at half the original proposed rate increases. From July 2013 the new standard rate will be 22%, the reduced VAT rate will be 11% but the super reduced rate will remain at 4%. - [Austria introduces exemption for masseurs](https://fiscalsolutions.co.uk/news/austria-introduces-exemption-for-masseurs/): Good news if you like a massage. From 1 January 2013 an exemption for therapeutic masseurs will be introduced. - [UK VAT registration threshold limit changes 1 December 2012](https://fiscalsolutions.co.uk/news/uk-vat-registration-threshold-limit-changes-1-december-2012/): From the 1 December 2012 the UK VAT registration threshold limit for non-UK established businesses will be changed to NIL from £77,000.This is an important change and will affect overseas businesses who may wish to trade in or are already operating in the UK at a low level. - [French Parliament cancels VAT increase](https://fiscalsolutions.co.uk/news/french-parliament-cancels-vat-increase/): The French Parliament has confirmed that the increase in the standard VAT rate from 19.6% to 21.2% which was due to take effect from 1 October 2012 has been cancelled. - [VAT on importations in Belgium shifted to periodic VAT return](https://fiscalsolutions.co.uk/news/vat-on-importations-in-belgium-shifted-to-periodic-vat-return/): Under Belgian law, the payment of VAT due on importation of goods can be shifted to the periodic VAT return rather than paying VAT to Customs. In order to be able to benefit from this system, taxable persons have to request an import deferral license and pay a bank guarantee of 1/24th of the import VAT due. It has been announced that as of 1 October 2012 the guarantee will no longer be required. - [Changes to VAT rates in Spain from 1 September](https://fiscalsolutions.co.uk/news/changes-to-vat-rates-in-spain-from-1-september/): From 1 September 2012, VAT rates in Spain will change: The standard rate will increase from 18% to 21%. The reduced rate will increase from 8% to 10%. The super reduced rate will stay at 4%. Certain products and services that were taxed at a reduced rate of 8% will be taxed at the standard 21% rate, namely: Flowers and ornamental plants; Mixed catering, entertainment, nightclub, party, BBQ or similar services; Admission to theatres, circuses, theaters and other shows; Artistic services provided by natura - [VAT refunds in Slovenia](https://fiscalsolutions.co.uk/news/vat-refunds-in-slovenia/): Slovenia has clarified the list of non-EU countries for which a refund of VAT incurred in Slovenia will be accepted. The reciprocity for VAT refunds for the year 2011 will only include the following non-EU countries: Liechtenstein Macedonia Norway Switzerland Turkey Croatia - [Latvia reduces VAT rate](https://fiscalsolutions.co.uk/news/latvia-reduces-vat-rate/): The standard rate of VAT will be reduced to 21% from 1 July 2012. The reduced rate remains at 12%. - [Spain's VAT rate remains the same post Budget](https://fiscalsolutions.co.uk/news/spains-vat-rate-remains-the-same-post-budget/): Following the recent Budget, there was no change announced to the VAT rate in Spain. The standard rate remains at 18%. There is new guidance on foreign companies’ distributing goods in Spain. A court case in Spain has decided that if a non-resident business also has a separate subsidiary in Spain, it can be deemed that the non-resident company does have a permanent establishment on its trading and that its subsidiary is now considered a dependent agent. - [Increased VAT rate in Portugal](https://fiscalsolutions.co.uk/news/increased-vat-rate-in-portugal/): On 1 April 2012 the standard VAT rate in Madeira and Azores was increased to 22% and reduced rates increased to 9% and 12%. - [Finland proposes to increase VAT from 2013](https://fiscalsolutions.co.uk/news/finland-proposes-to-increase-vat-from-2013/): Finland has proposed an increase in the standard VAT rate by 1% to 24% from 1 January 2013 subject to approval in Parliament. - [Croatia extend reduced rate and increase standard rate](https://fiscalsolutions.co.uk/news/croatia-extend-reduced-rate-and-increase-standard-rate/): The scope of the reduced rate of VAT at 10% was extended on 1 March 2012 to cover certain food items. The standard VAT rate was also increased on 1 March to 25%. - [Changes to VAT rates for France](https://fiscalsolutions.co.uk/news/changes-to-vat-rates-for-france/): France has announced that it will be increasing its standard VAT rate from 19.6% to 21.2% effective from 1 October 2012. France has also delayed the increase of VAT on books, from 5.5% to 7%, until April 2012. - [Cyprus increases standard rate of VAT](https://fiscalsolutions.co.uk/news/cyprus-increases-standard-rate-vat/): The 15% standard rate of VAT will increase from 1 March 2012 to 17%. - [New requirement for providing proof of shipment for goods from Germany](https://fiscalsolutions.co.uk/news/new-requirement-for-providing-proof-of-shipment-for-goods-from-germany/): The German Government has approved changes concerning the requirement for providing proof of shipment on Intra-Community supplies. From 1 January 2012 businesses that move goods from Germany for Intra-EU trade will have to obtain confirmation from their customers of the exact date of the arrival of the goods at the place of destination. The German Finance Ministry is expected to publish, in due course, a notice giving full details of the proposed changes and what form this evidence will take. ## Contact us - [Contact Us - Fiscal Solutions](https://fiscalsolutions.co.uk/contact/): Get in touch with us via the email link or form on our website. - [Free VAT Consultation](https://fiscalsolutions.co.uk/contact/free-vat-consultation/)