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… Read More

REMINDER: Russia will impose VAT on foreign B2B digital services

From 1 January 2019, Russia has amended its current VAT legislation to state that non-resident businesses selling digital services to other businesses within Russia will have to VAT register and charge VAT on their supplies. Currently, non-resident providers of this type of service only have to register and charge VAT if they are providing these… Read More

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… Read More

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… Read More

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… Read More

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… Read More

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.

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.

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… Read More