The European Commission has published a summary report on its public consultation with regards to reduced VAT rates. One of the most critical issues seems to be the current application of reduced VAT rates to e-books in some Member States, compared to number of other Member States that apply standard rates. This different VAT treatment results in distortion of competition between Member States. Read More »
Category: Tax Knowledge
Luxembourg – increase of VAT rate as from 2015
The Prime Minister announced in his speech on 10 of April 2013 that Luxembourg intends to increase the current standard VAT rate of 15% as from 2015. Which means no increase of VAT this and next calendar year. It was also indicated that the standard VAT rate would remain the lowest in Europe. This would mean that the rate might increase from 15% to 18% at most, as Cyprus and Malta currently have the second lowest VAT rate within the EU of 18%.
Netherlands – Tax Authorities actively looking for VAT payable on the balance sheet
The Dutch Tax Authorities have announced that they will start investigating businesses to see whether they have amounts of VAT payable on their balance sheets. In practice, many businesses have an amount of VAT payable on the balance sheet for different reasons.Read More »
Germany – special VAT audits generated 2.3 billion Euro of additional revenue in 2012
According to the statistics records of the highest financial authorities of the federal states in Germany, the special VAT audits carried out in 2012 generated in the field of VAT an additional income of 2.3 billion Euro. The revenue generated by VAT inspectors taking part in general tax audits or in audits of tax fraud investigations are not included in this additional income.Read More »
USA – one stop shop for internet sales (Marketplace Fairness Act)
US legislators want to introduce a basis for a system as quick as possible, which resembles the European one stop shop system for internet sales. Foreseen is a process where the online retailers have to collect sales tax, according to the state the customer resides in. This new piece of legislation is called Marketplace Fairness Act. The proposal was submitted last week; the vote is expected this week. The White House as well as big online retailers are backing this proposal.Read More »
Croatia joins EU on the 1st of July 2013 – What does it mean for vessels?
From the 1st of July 2013 onwards, EU resident owners of vessels, which have been temporarily admitted to Croatia and do not have the customs status of Community goods anymore, have to file a customs declaration, pay customs duties and VAT in order to turn their vessels into EU goods.Read More »
Turkey – Import of radios, televisions, videos and combine devices (TRT Bandrol)
The provisions for the funding of the public service broadcasting are regulated by the “Turkish Radio-Television Revenues Law No.3093”(“Law No.3093”). According to Law No.3093, companies importing radios, televisions, videos and combine devices to Turkey for commercial purposes are obliged to obtain a special tax stamp, namely “TRT bandrol”, before commencing the importation procedures. Read More »
Doppelbesteuerung von privat benutzten Geschäftsfahrzeugen in Deutschland und in der Schweiz ab 1.1.2013
Wenn ein schweizerischer Arbeitgeber seinem Personal das Geschäftsfahrzeug zur Verfügung stellt und dieses Fahrzeug sowohl für den Arbeitsweg oder zusätzlich auch für andere privat Fahrten benutzt werden kann, liegt gemäss dem schweizerischen Mehrwertsteuerrecht eine Lieferung vor. Diese Lieferung muss mit 8% MWST abgerechnet werden. Das unabhängig davon, ob es unentgeltlich oder entgeltlich erfolgt. Read More »
Update – Germany: new limitation in the application of deemed intra-Community supplies transition period extended until 30 September 2013
As reported in my previous post earlier this year, the German Ministry of Finance (Bundesfinanzministerium – BMF) proposed stricter rules for the application of the simplification rule which allows suppliers to treat certain cross-border transactions as an intra-Community transfer of own goods. As per the proposal this treatment will only be allowed if the supplier transports the goods himself.Read More »
The Netherlands – reverse charge on certain products as from 1 of April 2013 as a measure to avoid the VAT fraud – btw verlegd
Companies selling goods as mobile phones, tablet PC’s, laptops, game consoles or integrated circuit devices (e.g. CPU’s) in the total value of Euro 10.000 or more have to apply reverse charge mechanism for local Dutch supplies as from 1 of April 2013. Reverse charge mechanism means that the purchaser has to account for the VAT due on the transaction in his own VAT return. Read More »
Michaela Merz 