VATupdate Newsletter Week 18 2021

We come across a lot of interesting news when collecting the VAT items every day. Some examples we found this week:

We don’t post these items on the website, but still it’s intriguing. What if Belgium becomes bigger and France smaller?

An item that we should have posted is the news relating to the Brexit, where David Jones, a minister in the UK Government’s Brexit department, confirmed that with the Brexit “the island of Britain will not actually leave the continent of Europe.”
This was a reassuring thought for many Britts, who may otherwise have believed that the British Island would have floated away from the European continent and who knows where it would end up?

What we do post, is VAT news. From all over the world. With this week interesting discussion on VAT Grouping: who can be part of a VAT Group? But also a lot of news on VAT and e-commerce (a lot of businesses need to prepare for the new rules that will apply as of 1 July 2021), and a German photo studio that wanted to apply the reduced VAT rate to the transfer of rights of use (but the Court said that the studio was just making and processing photo’s).

Do you like our services? Let us know by sending us an email or by leave a thumbs-up or comment on LinkedIn.

Have a great week!

PS: the links for the above-mentioned news items can be found here:

EUROPEAN UNION

• Agenda of the ECJ VAT cases – 2 decisions, 2 AG Opinions expected in May 2021
• EU VAT E-Commerce Directive Member States One Stop Shop contact details (and latest news)
• European Commission’s YouTube’s on E-Commerce VAT Directive to be implemented July 1, 2021
• Destination taxability and its impacts for EU e-commerce
• The EU VAT e-Commerce Package and OSS: Your Questions Answered
• Opinion Statement on the EU Consultation on Current VAT Rules for Insurance & Financial Services – Tax Advisers Europe
• The EU may end a clandestine revenue stream for luxury retailers
• Roadtrip through ECJ Cases – Focus on ”Exemption – Management of special investment funds”
• European Commission launches new learning portal for tax and customs professionals across the EU
• DAC6 – Domestic implementation review
• AG Bobek’s opinion on the duty of national courts of last instance to request a preliminary ruling
• Also EU VAT experts want to travel again … wondering about the last rules in place?
• European design of digital services tax expected in the summer of 2021
• Sports Direct under scrutiny from EU tax authorities over VAT bills
• Customs: Obligations resulting from Market Surveillance Regulation per 16 July 2021
• Two new ECJ cases added to Curia last week
• European Tax Studies: VAT Grouping
• Good things to remember about EU VAT invoicing rules
• OSS ecommerce VAT rules for Amazon sellers
• OSS European VAT rules for E-Commerce: What do you need to know?
• Which Member States in the European Union allow for VAT grouping?
• ECJ C-97/21(MV – 98) – Question – Whether sealing of business premises together with administrative penalty is proportionate for failing to…
• Flashback on ECJ cases C-595/13 (Fiscale Eenheid X) – VAT exemption for the management of special investment funds may also…

BELGIUM

• Circular 2021/C/39: Covid-19 measures – Extension of the temporary rate reduction for face masks and hydroalcoholic gels up to and including…
• New XML scheme for filing reports related to mandatory disclosure rules (DAC 6)
• VAT reduction catering industry – be careful with advances received before May 8, 2021

BULGARIA

• Ordinance on the refund of VAT paid to foreign persons who are not established in the territory of the Community
• Bulgaria Considering Increased VAT Registration Threshold

CZECH REPUBLIC

• Analytical department secured 3.9 billion crowns last year

FINLAND

• Single vs. composite supplies …. which VAT rate to use?
• Parliament Considers Bill to Further Extend VAT Exemption on Goods Due to Coronavirus

FRANCE

• VAT Groups: a French Revolution
• VAT number can no longer be checked using VIES application as explained in point 14 of the FAQ issued by French tax authorities

GERMANY

• Measures to tighten real estate transfer tax involving share deals
• Germany is chasing €10m in VAT from Malta-based gaming company
• Is the VAT system fit for a virtual world?
• Photo studio cannot claim the reduced VAT rate for the granting and transfer of copyrights
• Donations in kind – possibility to reduce the VAT assessment basis temporarily
• Deduction of import VAT as input VAT
• Input VAT deduction of a municipality arising from the production costs of a multi-purpose hall with carpark
• Zero-rating for supplies of goods for the supply of ships
• Implementation of the second stage of the digital VAT package

HUNGARY

• Real-time invoice data reporting obligation grace period for self-billing announced

ITALY

• Court rules about 10% rate for photovoltaic systems
• Prefilled (draft) VAT returns for transactions starting from 1 July 2021 (on pilot basis)
• VAT and Customs Duties Relief for Importation of Medical Equipment till Dec 31, 2021
• New terms for VAT variation notes in bankruptcy proceedins
• E-commerce news: it is already possible to register for OSS and IOSS
• Answer #305: Intra-Community supplies: Proof of the transfer of goods
• Reduced VAT on vehicles for persons with fiscally dependent disabilities

MALTA

• OSS & IOSS – Implementation in Malta

MOLDOVA

• Moldova Extends Free Economic Zone of Tvardita
• Moldova Providing 12% Reduced VAT Rate for Accommodation and Restaurant services

NETHERLANDS

• Simplification of VAT and solar panels can be expected short term
• VAT independence requires architectural separation and own facilities
• Loaning out former interns is not exempt
• No VAT exemption for credit checks by credit rating agencies
• No VAT exemption for industry pension fund
• No VAT deduction due to theft of imported goods
• No VAT deduction for the customs warehouse manager in the event of theft of nickel
• No reduced VAT rate because it is unlikely that mattresses are to prevent or treat pressure ulcers
• Do you have a holiday home? Be aware of the VAT risk!
• Sale of ​​gold coins online games; no VAT exemption; no margin scheme
• Commissaris and member objection advisory committee not always VAT entrepreneur
• Investigation of large-scale VAT fraud
• No dual calculation method for VAT deduction on general expenses
• Deduction of input tax on construction costs crematorium?

POLAND

• Important changes in VAT settlements for April, and there is no regulation
• Will split payment be extended? Business says no
• Clarifications on SLIM VAT and in minus adjustments
• Resigning from VAT exemption via the notarial deed
• On May 1, 2021, the regulations on cash registers expire, but existing requirements remain valid
• Each ticket for a business trip will allow you to deduct VAT
• TaxWave – Verify your JPK_V7M file with just one click!

PORTUGAL

• Delivery Deadlines for Declarations and Payments Relating to April, May and June 2021
• Extended deadlines for monthly VAT returns due in June and July 2021 & Invoices in PDF accepted till June 30, 2021
• Portugal appeals against European Commission’s decision regarding the Madeira Free Zone scheme
• Authorities issued Guidelines for the application of the reverse charge rules regarding non-established taxpayers

RUSSIA

• Update on customs developments April 2021

SPAIN

• Dismantled a criminal organization that defrauded seven million euros of VAT in the sector of the sale of used vehicles
• Extentension 0% VAT rate for sanitary products extended till Dec 31, 2021
• Spain and the new e-commerce VAT regime. The hidden transposition

SWEDEN

• The Church of Sweden and its organizational parts, VAT

TURKEY

• VAT rate for overnight services at accommodation facilities would be decreased from 8% to 1% for the period from 1 June 2021 to 30 June 2021
• Implementation of E-Accounting receipt

UNITED KINGDOM

• 2021 VAT on e-commerce B2C imports (Jan 1, 2021)
• Montserrat: Government amends tariff rates on some imported goods
• Partial exemption and input VAT recovery
• New guidance on Post-Brexit EU VAT status of second hand boats
• Agents may need to file non-MTD VAT returns via their ASA
• UK after Brexit: Are UK companies ready to operate in Europe?
• HMRC Guidance: Refunds of UK VAT for non-UK businesses or EU VAT for UK businesses (Notice 723A)
• Supreme Court protects care home operator from £800k VAT bill
• VAT Rates in the United Kingdom
• HMRC Guidance: UK trade agreements with non-EU countries
• NHS car parking charges are subject to VAT
• Guidance: Road fuel scale charge tables for VAT
• National Statistics Value Added Tax (VAT) Bulletin
• HMRC Guidance: Guidance Road fuel scale charge tables for VAT
• What Do I Need To Know About VAT Registration?
• Next phase of Making Tax Digital for VAT

GCC

• GCC Indirect Tax Digest – 5 May 2021
• GCC free zones: Are you compliant?
• Ramadan generosity can be costly for VAT
• UK and UAE, Saudi trade agreements could be ‘hammered out’ this year

BAHRAIN

• Bahrain Publishes VAT Agent / VAT Representative Guide

OMAN

• Oman to get $780m revenues from VAT in 2021, $400m in 2022, says Ubhar CEO
• Companies require certificate to collect VAT from customers in Oman
• The Oman Tax Authority has published procedures for applying VAT in Special Economic Zones.
• Oman Customs announces guidelines for VAT exemption for personal luggage
• Residential rentals VAT-exempt in Oman
• Businesses should heed stipulated schedule for VAT implementation: Tax Authority

SAUDI ARABIA

• Saudi Arabia to reconsider VAT after achieving economic objectives – VAT rate back to 5%??
• Saudi Arabia to reconsider VAT after achieving economic objectives
• Zakat has carried out more than 9,900 inspection visits since the beginning of the month of Ramadan

UNITED ARAB EMIRATES

• VAT refunds for business visitors; refund opportunities
• Refund for Business Visitors Guide (Updated April 2021)
• Rules to Follow to Determine VAT on E-commerce Transactions in the UAE