VAT News


EU consults on VAT fraud

March 24th, 2018

The European Commission has launched a consultation on the free exchange of tax data between member states to help fight VAT fraud in the area of e-commerce. It seeks to understand from the online marketplaces, tax authorities and payment companies how best to detect and prevent undeclared transactions for VAT purposes. 3 potential solutions are …


Norway pushes home renters marketplace tax disclosures

March 23rd, 2018

Norway has taken a further step towards requiring P2P home rental marketplaces, such as Airbnb and HomeAway, to disclose the taxable activities of hosts on their websites. The government has now opened a public consultation on how this could work, and builds on a sharing economy committee report at the end of 2017. This reviewed …


India GST requires more work

March 22nd, 2018

The July 2017 new Goods and Services Tax (‘GST’) regime was an ambitious reform of a complex, and business unfriendly tax regime. But more reforms to the GST system are required if it is to realise its potential to liberalise intra-state trade in the country. Areas for focus in the next months will include: Simplify …

United Kingdom

UK to leave EU VAT regime 31 Dec 2020

March 21st, 2018

The UK’s date for leaving the EU VAT regime has been potentially set for 31 December 2020. On 19 March 2018, the UK and EU negotiating teams confirmed that a new draft Withdrawal Agreement, to be released later this week, will include a 21-month transition period ending 31 December 2020. At present, by act of …


Thailand levies VAT on bitcoin

March 20th, 2018

Thailand’s Cabinet has moved to levy 7% VAT on digital currency (e.g. bitcoin) transactions. This is aimed at curbing money laundering and tax evasion. The Council of State will have to ratify the widening of the tax net. Over the past three years, the EU, South Korea and Japan have exempted from such consumption taxes. Trading …


Finland questions EU VAT rate reforms

March 15th, 2018

The Finnish government has questioned European Union proposal to allow member states more control of their reduced VAT rates. The Finish Ministry of Finance is concerned that this would lead to intra-state competitive tax cuts. Also, potentially, a highly complex system with many variations on rates for the same products and services across the EU states. This …


Lithuania SAF-T July 2018

March 14th, 2018

Lithuania is to launch its delayed Standard Audit File for Tax (SAF-T) in July 2018. SAF-T was original introduced to the country in 2016 for invoice listings and transport documentation. But this was effectively just an e-invoice reporting requirement. The third requirement, SAF-T accounting transactions, was delayed from 1 January 2017. Initially, only resident companies …

United Kingdom

UK tourism VAT review

March 13th, 2018

Today’s UK Spring Statement included an announcement of a consultation around Northern Ireland cutting its 20% tourism VAT rate to match Ireland’s 9%. This was an election manifesto promise of the DUP, which is now in a power sharing arrangement with the Conservative government. As part of the DUP ‘confidence and supply’ deal, the Conservatives …

United Arab Emirates

UAE pre-VAT contracts

March 13th, 2018

The United Arab Emirates’ Federal Tax Authority has issued guidance on 3 March on the VAT liabilities for parties in contracts spanning the 1 January 2018 introduction of VAT. Where a contract does not make clear which party will be liable for VAT, and quotes only a VAT exclusive price, then it automatically falls to …