The UK will opt for a mechanism similar to the One Stop Shop (OSS) coming in on mainland Europe from 1 July 2021, but in the case of the UK this will be introduced when transition period for the UK to exit the European Union ends. Read more
Irish VAT rate change to become effective on September 1st
The Irish Government has announced a change to Irish VAT rate under the July Jobs Stimulus Package, a set of measures designed to support businesses.
As part of these measures, there will be a six-month reduction in the standard rate of VAT from 23% to 21%, from 1 September 2020 to 28 February 2021.
New measures (“Quick fixes”) effective January 1, 2020 (B2B)
The finance law for 2020 has transposed the so-called “quick fixes” measures provided for by Directive 2018/1910/EU of December 4, 2018 concerning intra-Community traffic in goods between taxable persons (B2B), with effect as of January 1, 2020.
Reduced VAT rate applicable to the supply of electronic publications in Belgium
Since 1 April 2019, the reduced VAT rate of 6%, which already applies to “printed” books and other publications on physical media as referred in the Royal Decree No. 20, also applies to books and publications which are made available to the reader “by electronic way “. Read more
Spain – Travel Agent’s VAT special regime turns to be applicable to Internet platforms rendering transport of people services
According to the Spanish binding consultation DGT CV 28-12-17 the services of “transport of people” with driver offered online, must receive the same treatment as a travel agent’s by being obliged to use their special regime.
When a Company puts together car owners who render transport services with clients who need transport, using for this purposes a website, and invoicing directly the final client while hiring the transport services, the complex service is qualified in the same way a travel agent’s activity would.
The key for the Spanish Tax authorities is the fact that the transport services are rendered under own name but with alien means .
Travel Agents do exactly the same. Subcontracting a third party but assuming the service as own.
The special regime of travel agents in Spain obliges operators to charge a 21% out of their gross margin. The gross margin is the difference between the amount collected from the client (without VAT) and the amount of the expenses incurred by the travel agent´s to be used in the composition of the client´s order, including taxes.
Whatsoever, the input VAT afforded by the travel agent’s shall be 10%.
We must remind at this point, that the special regime for travel agent’s has the aim to allow the Companies obliged to keep the secrecy on their markups, avoiding unfair competition.
VAT treatment applicable to the provision of free meals to staff in the absence of an alternative catering offer at the place of activity system in UE
French companies have recently requested for the restitution of the VAT which they had to pay because of expenses related to free meals served to their employees.
The French Conseil d’Etat (CE, October 11, 2017, No. 397902, “SAS Autogrill Côté France”) agrees with it on the grounds that if the free supply of meals by companies to its employees is in principle treated as a provision of services subject to VAT, it is different in the absence of alternative catering offer at the place of activity of employees.
Referring to the European case law (ECJ, 11 December 2008, C – 371/07, Danfoss A / S and AstraZeneca A / S vs. Skatteministeriet), the Conseil d’Etat recalls that VAT liability does not cover the provision, free of charge, of meals in company canteens to business contacts in the course of meetings held on the company premises where objective evidence indicates that those meals are provided for strictly business related purposes.
On the other hand, the provision, free of charge, of meals by a company to its staff on their premises is neither subject to VAT at least when the needs of the company, such as the need to ensure that work meetings are run smoothly and without interruptions, require the employer to ensure that meals are provided.
In the case at hand, the company operates catering establishments located on the motorway network. As part of this activity, the company provides free meals to its staff.
In view of the activity on the motorway network, the Conseil d’Etat considers that the provision of meals to staff meets specific needs, considering the lack of alternative catering offer at the place of business of the company and, correspondingly, should not be treated as a supply of services for consideration for VAT purpose.
The company can therefore deduct the VAT on its cost without accounting for VAT on the value of meals it provides free of charge to its staff under the aforementioned conditions.
Requirement Of Compliant Invoice For VAT Deduction In Belgium
Following the recent decision of the European Court of Justice concerning the right to deduct input VAT charged on invoices, the Belgian VAT Administration issued on 12 October 2017, a Circular letter providing guidelines on the requirement of a compliant invoice, to ensure the right to deduct incoming VAT.
Malta – Budget Measures 2018
On 9th October 2017 the following Budget Measures for 2018 were announced by the Maltese Minister of Finance and are expected to be introduced in the forthcoming calendar year once the relative Bill is approved by Parliament. Read more
Partial abolishment of the advance payments for quarterly VAT taxable persons in Belgium
On 23 February 2017, a royal decree abolishing as from 1 April 2017 the obligation for VAT taxable persons submitting quarterly VAT returns to make advance payments, has been published in the Belgian Official Gazette.