VAT News


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 …


EU Single VAT Area challenge

March 12th, 2018

The small enterprise association, UEAPME, has challenged the admin burden that the European Commission’s 2022 Single VAT Area proposal may impose. UEAPME, an employers’ association, is concerned that the requirement to track and correctly charge national VAT rates on B2B transactions across 28 states will place a high compliance burden on small companies. It also believes …


India delays again GST fixes

March 11th, 2018

The Indian GST Council has again delayed fixes to the newly launched Goods & Sales Tax system, introduced on 1 July 2017. Taxpayers will continue the existing GSTR-1 and GSTR-3B filings for a further three months, covering April to June 2018.  A decision on the simplification of the problematic new indirect filings system is still proving …


India to relaunch e-Way Bill Apr 2018

March 10th, 2018

India is expected this weekend to announce the relaunch of its e-Way Bill pilot from 1 April 2018. The scheme, which requires the electronic registering of the movement of goods across intra-state borders, was withdrawn within a few days of its launch in February due to excess demand. Simplifications to avoid a further crash in the …


EU VAT fraud reverse charge evaluation

March 9th, 2018

The European Commission has published this week an impact study of the effectiveness of the anti-VAT fraud domestic reverse charge mechanism. The EU VAT Directive’s Article 199a permits the emergency imposition of the reverse charge (zero-rated VAT) on domestic VAT transactions of certain, high fraud risk goods and services. This was introduced to fight missing trader …


Turkey VAT updates

March 8th, 2018

Turkey has proposed a range of changes to its VAT law, including: VAT credits will be paid within 12 months or 3 months if they cannot be offset against output VAT due. Any outstanding VAT due to taxpayers will be paid down by the end of 2018. There will also be the right to interest …


Lithuania cuts VAT on food

March 7th, 2018

The Lithuanian Parliament has issued a proposal to reduce the VAT rate on foodstuffs. The proposal would set foods at the reduced VAT rate of 9%.