31 January 2017
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 business customer to account for the VAT on the transaction in their own VAT reporting. This removes the requirement for the supplier to charge VAT on the transaction which means that no cash payments of the VAT amounts are exchanged.
LATEST NEWS
Estonia to end Covid-related reduced VAT rate cuts...
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...
SEE MORE
LATEST 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...
SEE MORE
LATEST NEWS
Peru mandates 18% VAT withholding by foreign digital...
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...
SEE MORE