United Kingdom

MTD – what’s changing?

August 13th, 2018

Manual accounting records Required VAT records VAT filings Adjustments to VAT returns Error corrections Supporting VAT data Businesses below £85,000 VAT threshold Annual VAT return filers VAT Flat Rate Scheme Retail Scheme Margin schemes Non-resident UK VAT payers rules


United Kingdom

MTD – functional compatible software

August 13th, 2018

Under the new UK Making Tax Digital (MTF) VAT rules, ‘Functional Compatible Software’ is a single program or set of programs, products or software applications that are able to: Record and store VAT digital records; Submit to HMRC data for the completion of VAT returns via HMRC’s API platform; and Receive data and information in …


United Kingdom

MTD – Exempt businesses

August 13th, 2018

From 1 April 2019, under the Making Tax Digital (MTD) initiative, all UK VAT registered businesses will be required to store and file their VAT transactional data digitally. However, several exemptions have been granted. These include: Businesses which have never crossed the VAT registration threshold, currently £85,000 per annum Businesses under insolvency procedures Members of …


United Kingdom

MTD Digital record-keeping

August 13th, 2018

UK VAT registered businesses under the new Making Tax Digital (MTD) rules must keep and maintain relevant VAT records digitally within ‘functional compatible software’. This includes sales and purchase invoices with VAT. Accounting records not specific to VAT return requirements are not included in this. The following date must be stored digitally: Designatory data: business trading name; …


Belgium

Belgium revises VAT penalties

August 9th, 2018

Belgium has overhauled its VAT penalty regime to make it less onerous for overdue filings. Its new regime was implemented from 1 August 2018, and has been applied retrospectively to 1 Jan. The old regime imposed a fine on late VAT return filings of €100 per filing per month. Plus interest charge on any VAT …


Romania

Romania abandons 2019 VAT cut

August 3rd, 2018

Romania is considering postponing cutting its 19% VAT rate to 18%, as planned for January 2019. The decrease is in jeopardy as the country is struggling to reduce its deficit to 3% of Gross Domestic Product. Romania originally raised VAT from 19% to 24% in 2010 during the European financial crisis. But has since cut …


Germany

Germany advances marketplace VAT liability bill

August 1st, 2018

On 1 August 2018, Germany’s federal cabinet (Bundesregierung) approved a draft bill to oblige online marketplaces to capture key VAT data and compliance on third-party sellers on their platforms from January 2019. After 30 September 2019, marketplaces failing to follow the new obligations, including blocking fraudulent sellers, will become secondary liable for any unpaid VAT dating back to 1 …


Ireland

Ireland Finance Ministry questions tourism VAT subsidy

August 1st, 2018

Ireland’s reduced 9% VAT rate on tourism services has been challenged by the Finance Ministry as a ‘deadweight’ on the economy’s finances. The department has claimed this week the rate reduction is no longer relevant given the buoyant visitor numbers. The rate was temporarily cut from 13.5% in 2011 at the height of the financial crisis as …