VAT News

Italy

Italy cancels 2018 VAT rise

October 20th, 2017

The Italian Council of Ministers have overturned plans to raise the Italian VAT rate from 22% to 25% on 1 January 2018.  The reduced VAT will also remain at its current level, 10%, instead of a planned rise to 11.14%. In the draft 2018 Budget Law there had been a provision to raise the VAT …


United Arab Emirates

UAE confirms Free Zones not VAT free

October 19th, 2017

United Arab Emirates (UAE) Free Zones have been confirmed as not benefiting from automatic VAT-exempt status on the introduction of the new indirect tax from 1 January 2018. There are over 40 Free Zones in the UAE – generally at ports, airports and major cities. They benefit from relaxed trading rules for foreign companies to …


Greece

Greece VAT receipt lottery to fight fraud

October 18th, 2017

Greece is to become the latest country to launch a monthly lottery based on VAT compliant receipts in an order to reduce VAT fraud. From the end of October, every VAT receipt will be stamped with a unique number which will be automatically entered into a cash-prize draw organised by the government. Each month, 1,000 …


Germany

Germany decrees for call-off stock

October 17th, 2017

The German Federal Ministry of Finance published a decree on 10 October to permit a VAT registration exemption for foreign companies holding call-off stock in Germany. Call-off stock are goods held in a foreign country by a non-resident seller, but under the full control of a single customer. This includes the right for the customer to access …


Paraguay

Paraguay e-invoicing software 2018

October 16th, 2017

Paraguay is to launch a centrally-controlled electronic invoice system. The system, known as SIFEN, will include approved software provided by the government to tax payers.  This will track all invoices, credit notes and withholding tax receipts. Details of SIFEN will be provided at the start of 2019.


Malta

Malta raises VAT registration threshold

October 15th, 2017

The 2018 Maltese Budget includes a proposal to increase the country’s VAT registration threshold from €14,000 to €20,000. Non-resident companies must immediately VAT register if they are providing taxable supplies in Malta. The exception is e-commerce sales by foreign companies to Maltese consumers. In this case, there is a distance selling threshold of €35,000 per …


Europe

Brexit UK to benefit from EU VAT reforms

October 14th, 2017

Post-Brexit UK businesses may receive an unexpected benefit from recently announced proposals to create a single EU VAT regime in 2022. The potential introduction of a reforming destination-based VAT system will mean the UK’s loss of zero VAT rating on EU exports/imports after Brexit will be cancelled out.  This could neutralise up to £85bn on recoverable …


Romania

Romania relaxes VAT split payments

October 13th, 2017

Romania is to relax the initial mandatory requirements for VAT payers to implement split payment measures. Anti-VAT fraud split payments were introduced on a voluntary basis from 1 October 2017. They were to become mandatory for all VAT registered businesses on 1 January 2018. Following heavy lobbying from businesses and employer associations this is to …


United States

US marketplace sales tax amnesty extension

October 13th, 2017

The sales tax amnesty for online Sellers in the US has been extended to 1 November 2017. Open to online marketplace sellers, the original 17th August – 17th October amnesty programme will forgive back taxes, interest, and penalties for sellers that haven’t been collecting sales tax in states where they should. The amnesty is available in participating …


Norway

Norway raises reduced VAT rate

October 12th, 2017

Norway has proposed an increase in its reduced VAT rate from 10% to 12% from 1 January 2018. The reduced VAT rate applies to cinema admission, public transport, hotel accommodation services, entrance to cinemas, museums and amusement parks. The standard VAT rate (25%) and other reduced VAT rate (15%) will remain unchanged.