On May 16 the Court of Justice of the European Union ruled against Luxembourgian tax authorities in an appeal from taxpayer Berlioz Investment Fund SA in Case C-682/15. The Luxembourg authorities had demanded certain documents that Berlioz failed to produce in the requested detail, resulting in the imposition of a €250 000 fine. Berlioz appealed […]
The Estonian Ministry of Finance has issued draft amendments to the VAT Act. The amendments affect the treatment of motor vehicles that are used for both business and non-business purposes. The draft law, 17-0510, can be viewed at Estonia’s online database, Eelnõude infosüsteem (EIS).
On May 16, Sweden’s Supreme Administrative Court ruled that a “parent company is allowed to deduct input VAT in respect of consultancy services acquired in connection with the sale of shares in subsidiaries during the restructuring of operations,” on the grounds that “the costs of the services [are] considered to have a direct and immediate link with […]
The Finnish parliament (the Riksdag) is presently considering Bill No. 45/2017, which would change the way VAT is collected on imports into the country. Under section 3.3 of the bill, the responsibility for import VAT collection would shift from the customs authority to the tax administration. Importers would account for import VAT via their tax […]
On March 24, 2017, Bill No. 1564, amending Poland’s VAT act, was ordered to be read in Poland’s lower house of parliament. The bill would shorten the government’s deadline to refund overpaid VAT from 60 to 25 days, thus reducing cash-flow burdens on compliant businesses. As written, the bill would take effect on July 1, […]
The Belgian parliament is currently debating a bill that would grant VAT enforcement authorities the power to attach property implicated in willful tax evasion. According to the Commission of Finance and Budget, such attachment will follow the common law regarding seizures. At this time, there is no indication of when the bill will enter into force […]
Earlier this month the Hungarian government introduced a budget bill for 2018. Included in the budget is a proposal to reduce the VAT rate on fish, catering services, and internet services to 5%. The bill also confirms an implementation delay for the mandatory filing of B2B VAT invoices with the government, which was scheduled to start on July […]
The Cyprus Tax Department has announced that from May 2, 2017, periodic VAT returns (Form 4) must be submitted electronically through the TAXISnet system. The announcement stresses that the TAXISnet system for indirect tax is separate from the TAXISnet system for income tax, and requires a separate request for access.
Latvia has adopted several amendments to its VAT Act. Included among these amendments are adjustments to the timing of VAT input deductions, adjustments to the section on the deductions of bad debts, and updated references to European Council Regulations. Additional amendments eliminate the exemption for services provided by cooperative societies, and specify that non-Latvian EU […]
The Dutch government has initiated public consultations on new VAT rules that would allow adjustments, similar to those which currently apply to capital goods, to apply to “valuable” services, i.e., services which are capitalized and depreciated by companies over a period of time. These rules, if approved, would take effect in January of 2018. Comments […]
The UK HMRC has updated its list of CRS Reportable Jurisdictions in order to remove three countries from the list: Barbados, Curacao, and Niue. HMRC has decided that it will not be sharing financial account information with these three jurisdictions at this time. Financial Institutions may still send reports to HMRC containing data for accountholders […]
The Turks and Caicos Islands Exchange of Information Unit has published a set of guidance notes for the implementation of the Common Reporting Standard and related domestic legislation. The guidance addresses a wide range of AEOI topics, including the following: Operation of CRS in Turks and Caicos Treatment of investment manager/adviser financial accounts CRS self-certification […]
Egypt’s VAT rate is scheduled to increase form 13% to 14% on July 1, 2017, as dictated by Article 3 of the Egyptian VAT Act. Egypt introduced VAT at the current 13% rate just last year, overhauling its previous sales tax law. In addition to the July rate increase, VAT liable persons should also note that the […]
The first Brexit negotiations between the United Kingdom and the European Union have officially been scheduled for June 19. In preparation, the 27 remaining Member States have unanimously agreed on a set of guidelines that prioritize safeguarding the rights of EU citizens within the UK and obtaining a ‘single financial settlement’ for outstanding British contributions to common […]
Germany has passed a new law, retroactively effective to January 1, 2017, to simplify input VAT deduction procedures for low-value purchases (“invoices for small amounts”). Under Section 15 of the German VAT Act, input VAT deductions can only be claimed by recipients of invoices that meet standardized requirements – for instance, recipient information must be […]
France has recently published a decree on the obligations of foreign taxpayers to appoint a VAT representative. The decree amends a list of countries that have signed tax recovery assistance treaties with France. Foreign taxpayers established in the listed countries are not required to appoint a VAT representative to manage their VAT obligations in France. […]
Her Majesty’s Revenue and Customs (HMRC) has published Issue 1 of VAT Notes 2017, a newsletter providing VAT guidance to tax professionals. The current issue contains links to recently-published or revised HMRC notices, information on special schemes for alcohol and tobacco transactions, and a link to HMRC’s online VAT services. Four issues of “VAT Notes” […]