Tax Mag: European VAT News

Northern Ireland – BREXIT: The Transition Period Between the United Kingdom and the European Union Has Ended

Following the UK referendum on 26th June 2016, the UK officially left the European Union on 1st January 2021 after lengthy negotiations to establish a withdrawal agreement. For VAT purposes, Great Britain (England, Scotland and Wales) is considered a non-EU country. The negotiated withdrawal agreement includes a protocol on Ireland and Northern Ireland, awarding Northern...

Country Briefs Northern Ireland Brexit

1 January 2021

Bulgaria – Intrastat Thresholds Change

As of January1st, the INTRASTAT thresholds in Bulgaria will decrease: Shipping: 290,000 BGN threshold reduced to 270,000 BGN Introduction: 450,000 BGN threshold increased to 450,000 BGN Thresholds for statistical value returns: Shipping: 15.8 million BGN threshold reduced to 14.7 million BGN Introduction: 7.6 million BGN threshold reduced to 7.3 million BGN

Country Briefs Bulgaria VAT thresholds

25 December 2020

Switzerland: Interest on Arrears will Apply Again from 1st January 2021

At the beginning of the COVID-19 pandemic, the Federal Council issued an ordinance providing for the waiver of late payment interest on taxes, incentive taxes and customs duties between March 20th and December 31st, 2020. As a result, the interest rate for late payment of VAT in effect during this period was 0%. As this...

Country Briefs Switzerland

23 December 2020

Netherlands – Exclusion of the Right to Deduction in the Netherlands for Goods and Services Used More Than 90% for Private Use

An EU Council Decision 2020/2189 on 18th December 2020 authorised the Netherlands to introduce a special measure overruling Articles 168 and 168a of Directive 2006/112/EC on the common system of value added tax. The Netherlands is authorised to exclude VAT due on goods and services from the right of deduction where the goods and services...

Country Briefs Netherlands VAT deductions VAT refunds

20 December 2020

France – Change of Threshold for Refund Claims by Individuals Residing Outside the European Union

The French customs authorities recently announced that from January 2021, the threshold for individuals residing outside the European Union to claim VAT refunds on purchases made in France is EUR 100, instead of the current threshold of EUR 175.

Country Briefs France VAT refunds

18 December 2020

France – Yacht Charters from France: the Flat-Rate Allowance Disappears

For ship rental and charter contracts concluded by 31st October 2020: Short-term leasing of ships (less than 90 days) to a taxable or non-taxable person was taxable in France as long as the ship was made available to the lessee in France (Article 259 A 1° a) of the General Tax Code). Rentals were taxable...

Country Briefs France Yachting VAT Exemption

18 December 2020

Switzerland: VAT Returns Must Now Be Submitted Electronically

From 1st January 2021, VAT returns can only be submitted electronically. Returns can either be submitted either via the “SuisseTax” platform or via “VAT return easy“.

Country Briefs Switzerland E-invoicing

16 December 2020

Poland – Change of Threshold for Low-Value Gifts Not Subject to VAT

From 1st January, the value limit for small gifts not subject to VAT has been raised from PLN 10 to PLN 20.

Country Briefs Poland VAT Exemption VAT thresholds

4 December 2020

Germany – German Tax Authorities Define Supply of Goods with Installation or Assembly

Taxable companies established and registered for VAT in an EU country other than France, who supply goods with installation or assembly in Germany, may now be required to register for VAT in Germany. If this transaction complies with ‘Werklieferungen’. If the “supply” is made by a company established in another EU Member State to a...

Country Briefs Germany Delivery with Installation or Assembly

20 October 2020

Great Britain – New Intrastat Requirements for 2021

Her Majesty’s Revenue and Customs ( HMRC) has published INTRASTAT reporting requirements for 2021 on the “UK trade info“ website. In practice: Businesses exceeding the £1500,000 threshold for import of goods into the UK (including Northern Ireland) from the EU will have to file INTRASTAT returns in 2021. Companies will no longer have to file...

Country Briefs United Kingdom (except Northern Ireland) Brexit Intrastat

14 October 2020

Poland – A New JPK_VAT File

From October 1st, 2020, companies will send only one document ( JPK_VAT) to the tax office consisting of a registration section and return section. The tax authorities may impose a fine of 500 PLN for every error in the new JPK_VAT.

Country Briefs Poland

19 September 2020

Bulgaria – A Reduced Rate May Apply for the Sale of Books, Magazines and in the Catering Sector.

Bulgaria has announced that for the period from 1st July 2020 to 31st December 2021, a reduced rate of 9% may apply to: the sale of books and magazines and certain reception services such as catering

Country Briefs Bulgaria Hotels Restaurants Cafes Media, Press, Culture VAT rates

18 September 2020

Germany – German Case Law Clarifies the Conditions for VAT Deduction

In BFH Beschluss v. 18.05.2020 – XI B 105/19 it has been clarified that in order to benefit from the deduction of paid VAT, the invoice must provide a “sufficient description of the services supplied”. This item of German case law is a reminder to ensure vigilance when it comes to the form and content...

Country Briefs Germany VAT deductions VAT refunds

25 August 2020

Austria – Covid-19 : Reduced VAT rate for the gastronomy, culture and publishing sectors

Due to the current health crisis (COVID-19) some sectors of the economy have been heavily impacted. Austria has therefore decided to apply a 5% VAT rate to the gastronomy, culture and publishing sectors from 1st July to 21st December 2020.

Country Briefs Austria Hotels Restaurants Cafes Covid-19 VAT rates

17 August 2020

Ireland – Temporary Reduction in the Standard VAT Rate in Ireland

Ireland has decided to reduce the standard VAT rate from 23% to 21%. This measure will apply from 1st September 2020 to 28th February 2021.

Country Briefs Ireland VAT rates

20 July 2020

Cyprus – Change of VAT rate for accommodation and hospitality services

From 1st July 2020 to 10th January 2021, a 5% VAT rate will be apply to accommodation and hospitality services. Usually, these services are taxed at the 9% VAT rate.

Country Briefs Cyprus Hotels Restaurants Cafes VAT rates

15 June 2020

Tax Mag: European VAT News | EASYTAX – Page 17