HMRC requests project delays to cope with BrexitCategory:

Europe

EU destination-based VAT reform hitch

April 16th, 2018

Progress on the EU’s ambitious proposals for a ‘Definitive VAT System’ by 2022, grounded on a leap to a destination-based VAT regime to combat fraud, is being delayed over a proposed exemption for large companies. The current rotating EU presidency is held by Bulgaria which had hoped for next-stage agreement by May. But this now looks likely …


Poland

Poland 1% bitcoin sales tax

April 14th, 2018

The Polish Finance Ministry has made all bitcoin trades subject to a 1% turnover tax. The tax, Podatek od czynności cywilnoprawnych, is a limited financial transaction tax on certain loans and mortgages. Under EU VAT rules, following an ECJ ruling, cryptocurrencies are treated as a private currency and therefore not subject to VAT on trades. …


Europe

EU blockchain to solve VAT fraud?

April 11th, 2018

This blog first appeared in International Tax Review Should we ignore the bitcoin speculative bubble and hacking scare stories as the fireflies before the technological storm? Could blockchain solve the EU’s €50billion VAT fraud menace, and revolutionise tax reporting? Or is blockchain’s hype overblown and optimism misplaced? Are the considerable concerns about its electricity-guzzling dependency and …


Romania

Romania 2018 VAT registration threshold rise

April 9th, 2018

Romania has introduced a retrospective rise in its VAT registration threshold for resident businesses. From 1 January 2018, it was increased from €65,000 per annum to €88,500 per annum. The European Commission last year authorised Romania to implement the rise as a variation on the Article 287 rules of the EU VAT Directive.


Czech Republic

Czech VAT rate cuts

April 8th, 2018

The Czech Ministry of Finance has proposed a range of changes to the classification of supplies from the standard 21% VAT rate to the reduced rate of 10%. These include: Supplies of catering services Public provision of water supplies Supplies of local services including barbers, household goods’repairs and domestic cleaning


United Kingdom

UK HMRC Seller VAT fraud eBay and Amazon deal

April 6th, 2018

The UK’s HMRC is to publish in April an agreement it has made with major online marketplaces, including Amazon and eBay, to combat VAT fraud on their websites by sellers. The agreement was committed to following a December 2017 recommendation by the Parliamentary Public Accounts Committee, PAC. Any marketplace failing to meet the requirements of …


United Kingdom

Digitisation of VAT Reporting

April 5th, 2018

European countries are increasingly demanding detailed electronic VAT transactional reporting from businesses to help them efficiently track tax due and reduce significant tax evasion. This includes: EU SAF-T; Making Tax Digital in the UK; live invoice reporting in Spain, Hungary and Italy; and Control Statements. Many countries have now introduced voluntary and mandatory transaction reporting …


United Kingdom

UK VAT Split Payments consultation

April 3rd, 2018

The UK has announced in the March 2018 Spring Statement a further public consultation on adopting anti-VAT fraud Split Payments on e-commerce. The mechanism would require the VAT-element of online sales to be paid directly to the UK tax authorities at the time of purchase. Split Payments are already used to a limited extent in Italy …