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… Read More

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.

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

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… Read More

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… Read More

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: 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… Read More