The main VAT changes in Cyprus over the last few months concern the implosion of VAT at 19% on the leasing/rental of immovable properties and undeveloped building land, as provided for in the amending VAT Law No. 157(I)/2017 of 13 November 2017. Read more
The Revenue Commissioners have published a new Tax and Duty Manual, “VAT Treatment of Payment Services”. Certain financial services including negotiating or dealing in payments and transfers are exempt from VAT and this new manual provides guidance in relation to the nature of such exempt services. Read more
The decision of the Court of Justice of The European Union (CJEU) in the case of Edward Cussens & Others v T.G. Brosnan C-251/16 was published on 22/11/2017. The case concerned the recovery of VAT in relation to property sales. Questions relating to the application of the principle on the prohibition of abusive practices in Ireland were referred to the CJEU. Read more
On 22 February 2018 European Fiscal Studies (EFS/Erasmus University Rotterdam (EUR)) held its annual indirect tax-related seminar, this year focusing on the recent proposals of the European Commission on its Action Plan for a Single VAT Area under the title ‘Action Plan on VAT: Towards a Single VAT Area?’. Speakers/ Panel Members included the chairman Prof. Walter de Wit (EFS, Erasmus School of Law, EY), Prof. Gert-Jan van Norden (Tilburg University, KPMG Meijburg & Co), Prof. Marie Lamensch (Vrije Universiteit Brussel, KU Leuven and UCLouvain), Allard van Nes (Royal Friesland Campina) and Marcel Neggers (Dutch Tax and Customs Administration). Prof. Ben Terra (University of Lund, Sweden, Universidade Catholica Lisbon, Portugal) joined the panel during the plenary discussion.
Significant amendments to a number of tax-regulatory acts are enacted from 1 January 2018 including VAT. The amendments envisage a lower threshold for mandatory registration in the Register of VAT Payers and extend the business areas eligible to special VAT payment regime, the so-called reverse VAT.
Three major changes to Greek VAT are already in force with effective date 1/1/2018 which affect a significant number of taxpayers and businesses.
On 20 February 2018 the Council of the European Union has decided to authorise Malta by way of a derogation to Article 287 of the EU VAT Directive (2006/112) to increase to Eur 20,000 in the annual turnover threshold exempting persons whose economic activity consists mainly in the supply of services with a high element of value added.
In view of the judgment of the Court of Justice of the European Union of June 29th, 2017 C-288/16 L, the Ministry of Finance of the Czech Republic issued information on the interpretation of the Article 69 of the VAT Act, concerning the exemption of services directly linked to the export of goods. Nevertheless, it also refers to applicable exemptions in case of imports.
Intertax has noticed that many sellers in case of small and not important adjustments on the sales invoice such as wrong address, dates, invoice number, etc., often issue a credit note and then rise a new invoice that includes all proper data. Such procedure may result in huge negative consequences as the credit notes that decrease the output VAT may be declared in the VAT return only after meeting all obligatory requirements for credit notes. In case meeting those requirements fails, this procedure may lead to temporary double VAT taxation of the transaction. Read more