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).
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… Read More
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… Read More
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.
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… Read More
From 1 January 2019, the Malaysian tax authorities confirmed that it will amend its 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… Read More
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.
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… Read More
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… Read More
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.