Italy intends to increase the standard rate from 21% to 23% and the reduced rate from 10% to 12% as of July 1, 2013. The plan is however that this should be temporary increase only and the VAT rate should decline to 22% as from January 1, 2014 again.
Category: Tax Knowledge
Malta – Double Treaty with Switzerland as from 1 of January 2013
The Swiss Federation has announced that the Treaty with Malta is in force and should be effective as of 1 January 2013.
Spain – Increase of VAT rate as of 1 September 2012
The Spanish Prime Minister announced a rise as of 1 September 2012 of the standard VAT rate from 18% to 21% and of the reduced rate from 8% to 10%. The super-reduced rate remains at 4%.
Italy – new penalties as of August 1, 2012 for incorrect or missing entries in VIES (VAT Information Exchange System)
The Italian Tax Authorities will impose penalties in case of EU supplies if the Italian customer’s number is not reported in the VIES. Therefore it is recommended to verify the VIES VAT registration number of your customers to avoid penalties equal to 100% of the VAT amount due.
Brazil – 2014 FIFA World Cup and 2016 Olympic Games
The federal government published in October 2010 a special tax relief named RECOPA (Regime Especial de Tributação para Construção, Ampliação, Reforma ou Modernização de Estádios de Futebol) with the aim to attract investment projects for modernization of football stadiums in Brazil by reducing the tax burden. The regime is also applicable to companies who provides services directly to FIFA. Read More »
France – exemption of repondant regime cancelled as from October 2012
As from October 2012 the repondant regime will not be applicable anymore. Therefore if you use this mechanism to improve your cash management and avoid a VAT credit position you will have to look for other options. The application of the reverse charge mechanism will not have any exemptions anymore. However the good news is that there are still ways how to manage cash flow issues in France.
EU: Invoicing Directive
New EU Invoicing Directive will come into effect in all EU member states on 1 January 2013 at the very latest (Germany, for example, has already implemented the new rules and allows among other to submit e-invoices in PDF format). Under the new Directive the authenticity, integrity and legibility of all invoices (paper and electronic) still need to Read More »
Germany – documentary evidence for intra-Community supplies of goods (Gelangsbestätigung)
As of January 1, 2012 the German provision concerning the documentary evidence for zero-rated intra-Community supplies of goods was amended. In the meantime however, the German Federal Ministry of Finance has already twice postponed the compulsory application of the new provisions. Therefore it is still acceptable if the documentary evidence is made in accordance with the provisions in place prior to 31 December 2011.
The Netherlands – optional reverse charge for computer and mobile phones as of June 1, 2012
The Dutch State Secretary of Finance has announced (29 May) that he has taken measures to combat VAT carousel fraud, and that from 1 June 2012 an optional reverse charge mechanism will apply to supplies of mobile phones and computer parts with a value not less than Euro 10,000.
Taxation Trends in the European Union 2012
Shortly published analysis shows that the VAT rates are going only in one direction. For more details have a look at the link below:
http://ec.europa.eu/taxation_customs/taxation/gen_info/economic_analysis/tax_structures/index_en.htm
(source: 2012 edition of the ‘Taxation Trends’ report, Marco Fantini, Head of Sector, « Quantitative analysis of taxation«, DG TAXUD)
Michaela Merz 