VAT news tagged as "Split-payments"

Italy

Italy withdraws VAT split payments

July 9th, 2018

Italy’s Minister for Economic Development has said that anti-VAT fraud split payments regime will be abolished for professional service transactions to government. Italian split payments involve customers paying the VAT element of invoices directly to the tax authorities. Split payments are obligatory in Italy for B2G transactions only. This reduces the opportunity for VAT fraud. Italy …


Worldwide

Global VAT changes 1 July 2018

July 1st, 2018

Below is a summary of major VAT and GST changes that come into effect on 1 July 2018: Australia drops GST-free levy on small goods, and requires non-resident e-commerce companies to register if over the threshold of AU$ 75,000 per annum Bahamas raises VAT to 12% The introduction of Polish Split Payments Hungary introduces live …


United Kingdom

UK Parliament criticises slow progress on online VAT fraud

June 29th, 2018

Parliament’s Public Accounts Committee (PAC) has today highlighted ongoing weaknesses in HMRC’s fight against online retailers failing to properly declare and pay up to £1.5billion in VAT on sales on major marketplaces. Many of the fraudulent e-retailers originate from China. HMRC needs greater powers to break the stubborn levels of VAT fraud. They need the …


Poland

Poland VAT split payments July 2018

May 21st, 2018

Poland is preparing to launch voluntary anti-fraud VAT split payments on 1 July 2018. This may be made mandatory from 2019 for certain industries. Purchasers of taxable goods or services will be given the choice to split the VAT element and pay into a special VAT Bank Account (‘r-VAT Account’) of their customer. If they …


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 …


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 …


Europe

EU questions VAT Split Payment benefit

January 17th, 2018

A European Commission study into the benefits of Split Payments as a VAT collection tool, aimed at combating VAT fraud, has cast doubt on the cost / benefits.  The report concludes that the administrative and technology costs of running, tracking and reporting on such a scheme would outweigh any additional VAT recouped. The study reviewed …


Romania

Romania Jan 2018 VAT Split Payments

December 28th, 2017

Romania’s President has passed the bill for the implementation of a mandatory VAT Split Payment law for implementation on 1 January 2018. The system has been voluntary since 1 October 2017. The bill will now move to the Parliament, which may delay its implementation or make it voluntary only. The new, anti-VAT fraud measure requires …


Poland

Poland delays VAT split payments Jul 2018

December 21st, 2017

The Polish Ministry of Finance has said it will delay the introduction of Split Payments until 1 July 2018.  The anti-VAT fraud measure has already been delayed once since the original launch plan of 1 January 2018. Split Payments is a measure requiring B2B customers to pay the VAT element of an invoice into a …


Romania

Romania delays VAT split payments 1 Mar 2018

December 18th, 2017

Reports are emerging that Romania will delay the introduction of Split Payments until 1 March 2018. The plan had been to introduce the anti-VAT fraud measure on 1 January 2018. Split Payments requires the customer on a B2B transaction to pay the VAT element of a transaction directly into a controlled VAT bank account of …