EU to audit VAT recoveryCategory:


EU to audit VAT recovery

February 16th, 2018

The European Commission has launched an audit of the foreign VAT recovery administration of the EU 28 member states. The EC is anxious to see if countries are providing an adequate and efficient cash refund for companies incurring foreign EU VAT on company expenses. It is concerned that delays act as a disincentive to cross-border …

United Kingdom

UK rules chocolate milkshake VAT free but strawberry & banana liable

February 14th, 2018

Today, the UK Upper Tribunal Tax court ruled that Nestlé’s Nesquik chocolate powder milkshake was zero rated for VAT; but strawberry and banana flavor were subject to 20% standard rated VAT. Nesquik milkshake drink powder is available in three flavours: chocolate; strawberry and banana. The chocolate flavor is based on cocoa butter which is zero …

United Kingdom

UK MTD VAT delay – early upgrades required

February 9th, 2018

The latest VAT implementation date for the UK’s Making Tax Digital, 1 April 2019, means most resident and non-resident businesses will be forced into preemptive accounting system changes in 2018. MTD – 1 April 2019 VAT filings MTD will require all VAT registered businesses to record all transactions digitally. In addition, they must then submit their …


EU VAT priorities for 2018

February 2nd, 2018

Bulgaria, which holds the Presidency of the Council of the EU for the first half of 2018, has issued its priorities for indirect tax. These include: Completing the Norwegian agreement on administrative cooperation on VAT Agreement on the four simplifications for cross border supplies of goods, including the establishment of the Certified Taxable Person process …


Romania cuts VAT to 18% 2019

January 29th, 2018

Romania has proposed a 1% VAT rate cut to 18% from 1 January 2019. The decrease comes as part of a package of tax simplifications. In addition to the reduction in the standard rate, the 5% reduced VAT rate will be extended to a number of property and agricultural supplies. Following the financial crisis, Romania …


Romania limited VAT split payments March 2018

January 22nd, 2018

Romania has implemented a limited VAT split payments regime from 1 March 2018 in attempt to reduce VAT losses and fraud. From 1 January 2018, Romanian tax payers in financial difficulties must establish VAT Bank Accounts for the secure receipt of VAT receipts and onwards remittance to the tax authorities.  The criteria for the requirement …


EU proposes exempting SMEs from cross-border VAT obligation

January 20th, 2018

On 18 January 2018, the European Commission (EU) published a proposal to eliminate foreign EU VAT obligations for small enterprises (‘SME’). Currently, EU small businesses selling in their own country are exempt from VAT if their sales are below a set threshold. This threshold varies between member states, e.g. €10,000 in France; and £85,000 in …

United Kingdom

UK Making Tax Digital VAT consultation

January 19th, 2018

The UK has released draft regulations for consultation and draft VAT notice for the April 2019 launch of Making Tax Digital (MTD) VAT. A pilot for tax payers, agents and software providers is scheduled to start in April 2018. Making Tax Digital for VAT April 2019 MTD is an ambitious programme to digitize tax records …


Hungary live VAT invoice reporting July 2018

January 18th, 2018

Hungary has confirmed this week that live VAT invoice reporting will proceed from 1 July 2018. The requirements apply to invoices with VAT chargeable above HUF 100,000 (approx. €320) – meaning a net invoice value of HUF370 000 (approx. €1,195). The timing of reporting Has been tightened up since the last update, and the option to …


EU VAT reduced rates overhaul

January 18th, 2018

The European Commission has today issued proposals giving more flexibility to EU member states in setting their reduced VAT rates.  The plans could be implemented in 2022. Presently, states are limited to two reduced VAT rates below their national standard VAT rate, but no lower than 5%.  Countries may only set their reduced rates for prescribed goods and …