The European Commission has granted approval to Italy to continue the use of anti VAT fraud split payments regime with state organizations. The Commission also allowed Italy to extend the measures to state-owned companies, businesses in the FTSE MIB Index and companies directly controlled by local public bodies.
According to the European Commission, it is possible to derogate Articles from 206 and 226 of the EU VAT Directive regarding transactions with public authorities in industries with a significant evidence of VAT fraud.
Under the VAT split payment mechanism, VAT is not collected...Read more
The UK Government announced that on 1 August 2017 is expected to come into force a new legislation that will remove the VAT use and enjoyment provision on B2C telecommunication services.
At the moment, when telecommunication services are used by UK consumers outside the EU, the place of supply would be deemed to be outside the EU.
With this new legislation, UK VAT will be charged in all telecommunication services used by UK consumers outside the European Union. This change will align the UK rules with the OECD international approach agreed in the VAT/GST guidelines.
HMRC is currently receiving answers from...Read more
The Spanish authorities are expected to allow individual extensions of the 1 July deadline on SII obligations. This announcement is not official and has not been confirmed, so in Marosa we are working on the basis of no possible extensions to the current calendar. There are also important changes on the content and data requirements.
For those who did not start with the SII work yet, you can read about actions required in our To do list for Spanish SII . If you want to know more about the basics of this obligation, you can read our earlier announcement of the SII .
The ECJ recently ruled a case concerning the right of public entities to charge VAT on road tolls. The case concerned an Irish motorway run by a state-owned operator (National Roads Authority). Initially, the advocate general proposed that VAT should also be charged on these tolls, however the ECJ decided that VAT was not due on the grounds of no direct competition between the public and private entities managing motorways in Ireland. According to the European Court of Justice, there is no direct competition between private and public entities where the roads and service provided is clearly separated.
The UK government recently launched a consultation on the use of split VAT payments in the e-commerce industry.
The split payment mechanism consists on the customer paying the VAT portion directly to the tax authorities, instead of the usual scheme where the supplier collects this VAT amount from the customer and pays them to the authorities as part of the VAT return calculation.
The proposed mechanism would apply in B2C online sales made by foreign businesses to UK individuals. These customers would pay VAT on their online purchases directly to HMRC. Based on other initiatives in this industry, we would...Read more
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The Portuguese authorities published guidelines on how to make VAT payments from a foreign bank account . These guidelines area important for foreign businesses...
Marosa developped a solution to comply with the Spanish SII during those first weeks of July in which your ERP system is not yet ready. Despite announcements...
As from 1 June 2017, reverse charge applies on certain telecommunication services in The Netherlands. Following an increase of carousel fraud in this sector,...
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