VAT news tagged as "Split-payments"

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 …


Ghana

Ghana VAT Split Payments

November 26th, 2017

Ghana is the latest country to propose Split Payments on VAT transactions in an attempt to limit fraud. Split payments involve the payment by customers of the VAT element of the consideration directly to the government – instead of to the vendor.  It has already been adopted in Italy and Austria. The European Union is …


Romania

Romania relaxes VAT split payments

October 13th, 2017

Romania is to relax the initial mandatory requirements for VAT payers to implement split payment measures. Anti-VAT fraud split payments were introduced on a voluntary basis from 1 October 2017. They were to become mandatory for all VAT registered businesses on 1 January 2018. Following heavy lobbying from businesses and employer associations this is to …


Poland

Poland delays VAT split payments to April 2018

September 8th, 2017

Poland has announced a delay to the introduction of anti-VAT fraud Split Payments until 1 April 2018.  The original date had been 1 January 2018. Split Payments require the payment of the VAT element of a sales invoice into a special, restricted VAT Account of the vendor. The vendor may only use these funds to …


Romania

Romania 2018 split payment criticism  

August 30th, 2017

Plans in Romania to introduce anti-VAT fraud split payments from 1 January 2017 have drawn criticism. The Romanian Foreign Investor Council has suggested that other reforms, including Standard Audit File for Tax (SAF-T) and government controlled e-invoices are more effective at preventing VAT fraud.  Split payments will require tax payers to create separate VAT bank …