A new minefield is created around fixed establishments for VAT purposes, even if there is an extensive case-law of the European Court of Justice to determine whether such an establishment exist or not. The main elements of this legal analysis were also embedded into the EU VAT Regulations, however, some of the member states tend to interpret now these rules more widely as before. Read More »
Tag: VAT
Czech Republic – increase of VAT rate as from 1 of January 2013
The Chamber of Deputies has approved the economic measures intended to keep the state budget deficit under three percent of gross domestic product for the next three years. The measures include an increase in the standard VAT rate from 20% to 21% and the reduced rate from 14% to 15%.
Luxembourg – electronic VAT filing obligatory as from 2013
The Tax Authority announced that as from 2013 VAT returns and EC Sales Lists for supply of goods and services will have to be filed electronically.
Of interest is also the fact that the applications for recovery of local VAT paid by non resident companies might be filed electronically as well.
Event: World Wide VAT – The international VAT forum at PwC
25.09.2012 – 25.05.2013
Indirect taxes (VAT/GST/sales taxes/excise taxes) are gaining significance internationally. Thus international indirect taxation is playing an increasingly important part in the global tax agenda of businesses.
The ‘World Wide VAT’ forum is a place to discuss hot international indirect tax topics. It is a platform to share experience and give you more insight on trends in this area.
The ‘World Wide VAT’ forum will take place five times during the period autumn 2012 till spring 2013.
For registration: WorldWideVAT – the international VAT forum
Ukraine – profit is an option but cash is a fact
The President of Ukraine signed Law No 5083-VI which introduces a number of amendments to the Tax Code including a provision under which large taxpayers reporting losses will not be entitled to an automatic VAT refund. The change is effective as of 12 August 2012. The automatic VAT refund is not available for large taxpayers reporting tax losses as a result of activities in 2011. Read More »
Finland – increase of VAT rate as per 1 January 2013
The Finnish Government has issued on Monday 17 September 2012 an official proposal to increase the current VAT rates by 1% in Finland. It is foreseen to increase the standard VAT rate from 23% to 24% and the two reduced VAT rates from 9% to 10% and from 13% to 14%.
If passed by Parliament, the increase will take effect from 1 January 2013.
Portugal – Changes in invoicing as from 10 October 2012 and new reporting obligations as from 1 January 2013
Decree Law no. 197/2012 dated 24 of August brings changes in area of invoicing. The concept of “equivalent document” will be replaced by an obligation to issue invoices. At the same time simplified invoicing will be allowed replacing the current regime of invoice exemption and issuing of sales receipts. New rules in area of e-invoicing will make the implementation more business friendly.
How to enter goods into North Africa – for instance into free trade zones in Egypt
Based on the Investment Law no. 8 of 1997 there is a system of free trade zones in Egypt which allows to store imported goods without tax consequences within the free zone (no GST or custom duty will be due on sales within the free trade zone). Egypt has a general sales tax system which works similar as known VAT systems in Europe. When the goods are imported from the free zone into the country GST and custom will apply. Importation for trade purposes into Egypt is only allowed for companies which are 100% owned by Egyptian shareholders. Egyptian free zone companies are not subject to corporate income tax on the activities approved and licensed by the General Authority for Investment (“GAFI”). These companies are also exempt from GST for this type of activities.
Hungary – new obligations as from 1 of January 2013 with purpose to detect and avoid tax fraud
Based on bill.no T/7028 taxpayers will have to submit a domestic recapitulative statement (comparable to EC Sales and Purchase Lists) together with their VAT returns for all transactions where the VAT amount is equal/greater than HUF 2’000’000 as of 1 of January 2013. This obligation does not apply to reverse-charge transactions.Read More »
Belgium – changes as of 1 of October 2012 in connection with ET 14000 licence
Section 5, §3 of Belgian Royal Decree no. 7 provides the opportunity that the payment of VAT due on importation of goods can be shifted to the periodic VAT return. Instead of payment of the VAT to the Customs Authorities only declaration is done. Read More »
Michaela Merz 