Germany

Germany – marketplaces liable for missing VAT

February 22nd, 2018

The new German governing coalition (CDU, CSU, and SPD)  is planning legislation to make online marketplaces potentially liable for any unpaid VAT of merchants operating on their websites. If the marketplace is shown that they failed to prevent ‘dishonest’ merchants, they would be held liable for unpaid VAT. The UK has already implemented similar laws. The …


Italy

Italy Sistema di Interscambio (SDI) real-time e-invoices

February 20th, 2018

Italy has introduced mandatory real-time electronic sales invoice issuance and reporting from 1 January 2019. All relevant invoices have to be issued and submitted to the Italian Revenue Agency’s e-invoicing platform, Sistema di Interscambio (SDI). The measure has been required of sales to government bodies since June 2014. SDI effectively acts as an invoice approval portal, ensuring …


United Kingdom

Making tax digital

February 19th, 2018

From April 2019, HMRC is launching the “Making Tax Digital” (MTD) initiative, an ambitious plan to turn the HMRC into one of the most digitally advanced tax administrations in the world. Under the new system every UK VAT-registered business will be required to submit their VAT returns digitally to HMRC, without any manual intervention. Making …


United Kingdom

Avalara Europe is hiring

February 19th, 2018

If you work in EU VAT compliance, Sales, Marketing or Customer Success and want to be part of one of the most exciting stories in tax automation, then we want to hear from you. Being part of every international tax calculation Avalara’s ambition is to take the pain out of indirect tax compliance for businesses, …


Europe

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 …


Turkey

Turkey digital services VAT update

February 7th, 2018

Turkey has provided an update on the VAT rules for non-resident providers of digital services to local consumers. VAT was imposed on such transactions from 1 January 2018. Key clarifications include: Details of the new online VAT registration process There are no specific requirements for the maintenance of VAT records Supplies to Turkish VAT registered …


United Kingdom

UK Brexit Taxation Bill leaves businesses at risk

February 4th, 2018

On January 8 2018, the legislation setting the UK’s post-Brexit customs and VAT regimes passed its second reading in the House of Commons. The preliminary statute prepares the country to take full governorship of its customs and VAT regimes from 30 March 2019, when the UK is scheduled to depart the European Union (EU). Since …