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… Read More

EU warns Germany regarding 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… Read More

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…. Read More

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… Read More

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… Read More

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… Read More

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… Read More

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

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… Read More