Regulatory Analysis

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Posted July 21, 2020 by Joanna Hysi
Greece publishes law on e-invoicing incentives

The Greek parliament has adopted legislation (Law 4701/2020) which provides a number of incentives to businesses who decide to use e-invoicing through a service provider during the tax years of 2020-2022. These incentives for example include a reduction of the statute of limitation for fiscal matters by 2 years, and a depreciation of twice the […]

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Posted June 26, 2020 by Denise Hatem
Preliminary Agreement to Postpone EU VAT e-Commerce Package to 1 July 2021

On June 24, 2020, European Union member states’ ambassadors reached a preliminary agreement on postponing the VAT e-Commerce Package from 1 January 2021 to 1 July 2021. Reports indicate that the postponement should be formally adopted by the Council following legal and linguistic review. The European Commission initially proposed the postponement in May due to the impact […]

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Posted June 18, 2020 by Jeff Gambold
UK: Further delay to implementation of VAT reverse charge to domestic construction services

UK HM Revenue & Customs has announced that the application of VAT by reverse charge on the provision of construction services in the UK will be delayed from 1 October 2020 to 1 March 2021 (the originally planned commencement date was 1 October 2019).  The revised reverse charge rules will impact any businesses that supply […]

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Posted June 18, 2020 by Jeff Gambold
Germany: Temporary lowering of VAT Standard Rate and Reduced Rate between 1 July and 31 December 2020

Germany’s Federal Ministry of Finance has announced that VAT rates will be temporarily reduced from 1 July 2020 through 31 December 2020 to stimulate the economy in response to the coronavirus pandemic. The standard rate is to be lowered from 19% to 16%, and the reduced rate is to be lowered from 7% to 5%. […]

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Posted June 18, 2020 by Muazzam Malik
Czech Republic: New VAT rules for cross-border e-commerce from 2021

The Czech Ministry of Finance has announced the removal of the concession whereby the import into Czech from outside the EU of small consignments valued at less than 22 euros were exempted from import VAT.  This equalizes the VAT treatment with goods arriving from EU countries.  This change will coincide with the adoption of the […]

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Posted May 29, 2020 by Jeff Gambold
European Commission suggests a new levy on large businesses

In conjunction with its revised 1,100 bn budget projection for the period 2021-2027, the European Commission has published its Next Generation EU strategy for alleviating the social and economic impact of the Covid-19 pandemic, to be financed by up to 750bn euros of borrowing.  The intention is that this borrowing will be paid back in […]

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Posted May 29, 2020 by Jeff Gambold
Poland: JPK_VAT launch delayed to October 2020

On 28 May 2020, the Polish Ministry of Finance announced that compulsory filing by all taxpayers of the new combined JPK_VAT uniform control file and VAT return structure has been deferred to 1 October 2020 due to compliance challenges arising from coronavirus, according to a Gazeta Prawna report. It was previously deferred to 1 July as […]

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Posted May 11, 2020 by Denise Hatem
European Commission Proposes Postponement of 2021 VAT E-Commerce Package due to Coronavirus

Due to the coronavirus (COVID-19) crisis, the European Commission has proposed to defer the application of the VAT e-commerce package from 1 January 2021 to 1 July 2021. The Commission expects that the European Parliament and Council will soon adopt the proposal.

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Posted May 1, 2020 by Ramón Frias
SPAIN: New Reduced Rate for Electronic Publications

Spain enacted Decree 15/2020 by which electronic publications become subject to a reduced rate of 4%. This new rate became effective on April 23, 2020 and applies to all books, magazines, newspapers and similar publications issued digitally. The new decree also establishes a temporary exemption until July 2020, of all imports and intra-EU acquisitions of […]

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Posted April 20, 2020 by Gabriel Pezzato
The Italian tax authority delays the introduction of the new FatturaPA

According to the ruling 166579/2020, from 20 April 2020, the version 1.6 of the technical specifications of the FatturaPA introduced by ruling 99922/2020 is now applicable as of 1 October 2020 on a voluntary basis and will be mandatory starting on 1 January 2021. Taxable persons may use the schema attached to version 1.5 of […]

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Posted April 2, 2020 by Jeff Gambold
Poland delays introduction of new JPK_VAT with the declaration to 1 July 2020

We recently reported that the new “JPK with the declaration” JPK_V7M (monthly) and JPK_V7K (quarterly) periodic VAT reporting files (a combined Uniform Control File and VAT Return) were due to be implemented from 1 April 2020 for taxpayers defined under Polish legislation as being large businesses. However, as part of a new “Anti-Crisis Shield” (Tarcza […]

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Posted March 31, 2020 by Muazzam Malik
UK MTD for VAT Digital Links soft landing period extended to 1 April 2021

HMRC  has informed Sovos that it is extending the soft landing period for MTD digital links until 1 April 2021, for all taxpayers. The effect of this is that businesses will now have until their first VAT return period starting on or after the 1 April 2021 to have digital links in place.  Our understanding […]

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Posted March 25, 2020 by Victor Duarte
Mandatory Adoption of Hungary Real Time Reporting V. 2.0 Postponed

The Hungarian Tax Authority announced that the deadline to implement the mandatory real time reporting version 2.0 xsd is postponed from 1 April 2020 to 1 July 2020. It is important to note that 2.0 xsd can already be used live in parallel with Version 1.1 xsd. Official announcement can be found at the following link:

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Posted March 20, 2020 by Denise Hatem
Poland Provides New Guidance for Large Businesses

The new “JPK with the declaration” JPK_V7M (monthly) and JPK_V7K (quarterly) periodic VAT reporting files are due to be implemented from 1 April 2020 for taxpayers defined under Polish legislation as being large businesses.  To recap, this means any businesses undertaking operations in Poland that in at least one year of the last two financial […]

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Posted January 7, 2020 by Kelsey O'Gorman
VAT on Electronic Publications Reduced in Various EU Countries – January 1, 2020

In 2019, many European Union Member States took advantage of the alignment of physical publications and electronic publications, recently allowed by Council Directive (EU) 2018/1713.  It appears 2020 is no different, as the following Member States have followed suit: Austria Electronic publications in Austria are currently taxed at the standard VAT rate of 20%, while physical […]

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Posted November 26, 2019 by Victor Duarte
Hungary Expands Scope of Real-Time Reporting

Since July 2018, taxpayers in Hungary have been obliged to disclose the data of electronic invoices issued for transactions with accounted VAT exceeding HUF 100,000 (approximately €300). This data must be transmitted to the National Tax and Customs Administration of Hungary (NAV) in a structured manner once the electronic invoice has been issued.  This fiscal obligation […]

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Posted November 7, 2019 by Kelsey O'Gorman
Italy to Introduce Pre-Completed VAT Returns by July 2020

From July 1, 2020, on an experimental basis, Italian taxpayers (i.e. businesses resident and established in Italy) may submit pre-completed VAT returns. Specifically, Article 16 of recently enacted Decree n. 124/2019 provides that data gleaned from transactional information supplied from electronic invoices via SDI, cross-border transactions, as well as data collected on fees electronically will […]

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Posted October 31, 2019 by Jeff Gambold
Poland: From 1 November 2019 Taxpayers Can Apply to the Ministry Of Finance For Binding Rate Information

From 1 November 2019, the Polish Ministry of Finance (“MoF”) will implement the Binding Rate Information scheme (“WIS”), a facility enabling taxpayers to apply to the MoF for a legally binding agreement on the VAT rate pertaining to a specific good or service (or combination of goods and services).  Most WIS agreements will only become […]

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