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 …


Iceland

Iceland scraps e-book VAT 2019

April 10th, 2018

Iceland’s Ministry of Finance and Economic Affairs is to reclassify electronic books as zero-rated for Value Added Tax from 1 January 2019. E-books are currently subject to the reduced VAT rate of 11%. Iceland is a member of the EEA, and not a member of the European Union where countries are obliged to charge the …


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


Iceland

Icelandic VAT rates and compliance

April 6th, 2018

Icelandic VAT rates There are 2 two VAT rates, plus a nil rating: The current rates are: Icelandic VAT compliance As a tax payer, VAT registered business must comply with the rules and record keeping requirements of the VAT Act. This includes invoice format and records.  VAT invoices and records must be stored for at …