The Italian tax authorities recently published several changes to the Spesometro obligations.
The new deadline to submit the Spesometro for the second semester of 2017 is 6 April 2018. This due date was originally set on 28 February, but the deadline has now been extended for over a month.
The due dates on the return obligation were already extended two times in 2017, therefore we will not be surprised if further changes are published in the next few months.
The address of suppliers and customers will no longer be required in the ID data reported for each transaction.
One the most recurrent issues when producing the XML files for 2017 were related to the address of suppliers and customers. This is due to different formats and information in each address, particularly when the supplier or customer are located in a foreign country.
Despite the initial plans of requiring the Spesometro returns to be submitted on a quarterly basis in 2018, the authorities recently announced that it is possible to submit this return every six months.
The updated deadlines with the new frequency of filing in 2018 are the following:
The confirmation of the deadline extension and some of the changes explained above is available in the website of the Italian tax authorities.
Given our experience with similar obligations in Italy, we expect further changes to be published in the future about the Spesometro obligation.
Italy updated the Intrastat thresholds in 2018. Due to changes for arrival and dispatches and different requirements depending on whether a business is trading goods or services, we are including below a table with a summary of the 2018 Intrastat changes.
This table was produced by Marosa with the assistance of Alessandro Garzon from our network of local delegates.
The tax-office for non-established companies confirmed a number of issues causing delays in the processing of French VAT number applications.
If you submitted a VAT registration application in France in the last 4 months, you probably experienced a longer than normal delay in the answer from the French authorities. This delay is due to a re-organization of their tax office and certain IT changes currently being implemented in their system.
A French VAT registration application is normally processed within 6 to 8 weeks, however, these delays have extended the waiting period up to 3 or 4 months from the moment the application is submitted.
We received this information as part of our membership to the International VAT Association. The French tax authorities requested all members to distribute the information about these delays so that all interested parties are informed.
At Marosa we developed a relationship with the French tax office for non-established companies. Our communications via email and contact persons within the tax office will help your business get a VAT number faster.
Please contact us if you need help with French VAT registrations.
The Portuguese tax authorities recently announced a delay on the obligation to provide an annual accounting SAF-T file. This obligation has been postponed for one year, hence the next Annual accounting SAF-T would only be requested in 2019 covering the accounting period of 2018.
This delay is due to expected updates on the Portuguese accounting regulations, particularly about the IES obligations. The official notice issued by the authorities is available at the website of the Portuguese tax authorities.
Portugal requires monthly SAF-T data to be reported by all established companies. SAF-T information generally includes transaction data of all sales made in Portugal during the previous month. This information must reconcile with the VAT return data.
The challenge with this obligation is that the XML file must be generated from a software certified by the Portuguese tax authorities. Each invoice must include a verified electronic signature and the correct XML format must be used. The authorities often update the XML format, therefore it is important to stay up to date on the latest changes.
Our solution consists on a software that will immediately generate your monthly SAF-T file on the basis of standard templates received from your ERP team. This file will be automatically updated and ready to submit at the tax authorities´ website.
Marosa´s software will also produce the Annual accounting SAF-T file at any time should the Portuguese tax authorities request this information in the course of an audit.
On 1 July 2018 comes into force the Hungarian real-time invoice reporting obligation. The new obligation will require that any taxpayer registered for VAT purposes in Hungary, issuing an invoice with a VAT amount greater than or equal to report the invoice data automatically, electronically, immediately and without human intervention to the Hungarian tax authority. Not complying with this obligation will carry a fixed penalty of up to HUF 500,00 (EUR 1,700 approx.) per invoice.
Hungary is the second country in Europe requiring real-time reporting of tax data, following Spain which was the first one introducing a system for real-time VAT ledgers reporting called ‘Suministro Inmediato de Información – SII’. Several jurisdictions like Poland, Portugal or the Czech Republic have introduced the SAF-T requirement on a periodic basis, but none of them has requested real-time information yet.
The so-called ‘online számla’ consists of the obligation to report the invoices issued electronically and immediately (at the moment of issuance) if the VAT charged is at least of HUF 100,000. This new obligation will require companies to adapt their invoicing and ERP systems in order to produce the XML file that must be transmitted to the Hungarian tax authorities’ website without human intervention.
However, the taxpayer may also decide to disregard the VAT threshold and provide data for all his domestic invoices issued, even though the invoice contains or not any VAT due and the corresponding VAT amount. Hungarian tax authorities also accept voluntarily invoice data provided.
Hungarian real-time invoice reporting is mandatory for (i) all taxpayers registered for VAT purposes in Hungary, regardless whether they are established or not in Hungary, who issue an invoice with a VAT amount of HUF 100,000 or more; (ii) those distance sellers who carry out B2B supplies (online sales business to business performed to Hungarian taxpayers) and charge VAT for HUF 100,000 or more.
Therefore, a taxable person is NOT required to report any information in the following scenarios:
The content of the XML required by the tax authorities for the Hungarian real-time invoice reporting is, at least, the mandatory invoice data as stipulated in the Hungarian VAT Act. This would include at least the following data:
Please send us an email if you would like to receive the official XML format required by the tax authorities.
You will need to send your invoice data in XML via APIrest to the Hungarian tax authorities. This communication will send back a token that will accept the data and the submission will be confirmed. The requirement for a token transmission will oblige most foreign companies with an ERP abroad to use a bridge software between their ERP and the tax authorities.
Since 2014 a taxable person registered for VAT purposes in Hungary who issues invoices is required to use an invoicing software which strictly complies with the following requirements, among others:
Together with our local delegate, Marosa has developed a solution for the transmission and submission of your XML files. This solution has been fully tested and is now operational.
Please contact us if you would like to receive a demo of our solution for the Hungarian real-time invoice reporting.
If you have not yet started working on the Hungarian real-time invoice reporting, you must take the following steps as soon as possible to ensure that you are compliant with the new obligation:
Given the urgency, we suggest starting the process within the first two weeks of March 2018 at the latest.
Please contact us so we can send you an invitation for a conference call to create an Action plan and ensure that you are compliant by 1 July 2018.
Failure to report data according to any of requirements described above (electronically, automatically, immediately and with no human transaction) will trigger a default penalty of up to HUF 500,000 (EUR 1,700 approx.) per invoice. Additional penalties would apply for non-compliance with the invoicing software requirements.
Late, incomplete, erroneous or false data reporting will trigger a default penalty for each invoice affected by the failure of up to HUF 500,000 (HUF 200,000 for private individual taxpayers).
More information about the Hungarian real-time invoice reporting can be found on the website of the tax authorities.
This article describes the VAT treatment and VAT obligations of companies selling goods through the internet to private individuals across the EU. By private individuals we mean customers that are not registered for VAT.
When goods are sold in the internet and shipped over to the customer in another EU country, the seller has the option to charge the VAT rate of the sending country or the VAT rate of the recipient country. This option is only available when the total amount of sales in the customer´s country is below the distance sales threshold. When the annual value of sales exceeds this threshold, the seller is obliged to get a VAT number in the country of the customer and charge VAT at the customer´s country VAT rate.
The distance sales thresholds are different in each Member State, however, they are usually €35,000 or €100,000 (or the equivalent in local currency). Big E-commerce countries like Germany, Luxembourg, Netherlands or UK have a €100,000 threshold. But Spain, Italy, France, Belgium, Finland or Austria have a €35,000 limit. For example, a UK business sells t-shirts through the internet to private individuals in many EU countries, Germany among them. The distance sales threshold in Germany is €100,000 and the German VAT rate is 19%. As long as the total value of annual sales in Germany is below €100,000, the UK business can choose to apply the UK VAT rate or the German VAT rate. In case the company opts to charge German VAT or the threshold is exceeded, a VAT registration is required in Germany. In this article, you can check what are the typical documents required for a VAT registration.
Once VAT registered in the country of the customer, the distance sales business must meet a number of obligations in each country of registration. All VAT registered businesses should file VAT returns. The frequency of filing, due dates and data requirements for these returns are different in each country. Intrastat returns may also be required when the Intrastat threshold is exceeded (consult here our updated table on Intrastat thresholds), although there is no consistency among Member States about the requirement to file Intrastat returns for distance sales businesses. Similarly, a compliant invoice according to the invoice rules in the country of the customer is only required in a few countries.
Marosa has extensive experience managing the treatment of E-commerce VAT obligations of businesses around Europe. We can assist your company with VAT registrations, VAT returns or reviewing the current VAT compliance to ensure that all requirements are met.
As from last January, import VAT in Finland is reverse charged in the VAT return instead of being pre-paid at Customs.
As a general rule, most countries require VAT to be paid at Customs before goods coming from a non-EU country that qualifies as imports enter the EU territory. This VAT will be paid together with customs duties and tariffs, which are not deductible. Once the importer submits the VAT return, import VAT would be deducted and only when the amount is transferred to the taxpayer´s bank account (in case of a repayable position), the import VAT will be effectively recovered. With the new rules in Finland the VAT recovery changes significantly: the import VAT will be automatically paid and deducted at the same time in the VAT return, with the corresponding nil effect unless the taxpayer is not fully entitled to deduct VAT.
In practice, these changes mean that management of import VAT will move from Customs Administration to the Finnish Tax Administration. Also, the VAT return form has been updated to include boxes that reflect these changes.
Where the importer is not registered for VAT, import VAT will still be paid at customs.
The European Commission challenged the Maltese VAT rules on Yachts and private jets. According to Pierre Moscovici, the Commissioner for Economic and Financial Affairs, an infringement procedure may follow if these rules are not changed (update – March 8th: EU confirms that the infringement procedure against Malta, Greece and Cyprus, concerning incorrect application of VAT on chartering in those countries, is already initiated).
Malta has a VAT leasing scheme that allows individuals to use an HP leasing agreement in order to purchase a boat with a significant reduction of VAT charged. This reduction is granted on the grounds that the boat is used in international waters during the lease period, so the instalments are partially out of the scope of the VAT.
In boat chartering activities, where the boat spends part of the time outside the EU waters, members states may allow a reduction of the taxable base on which VAT is charged. This mechanism also exists in France and Italy, but different conditions apply in each country. On the contrary, Spain requires chartering companies to account for full amount of VAT on chartering fee.
The ECJ recently gave a landmark decision concerning the VAT treatment of specific leasing agreements. This case has an impact on VAT leasing schemes currently applicable to yachts. Malta already announced small changes to their scheme on the basis of the MBFS case.
Mercedes-Benz Financial Services UK Ltd (MBFS) case concerned an offering where Mercedes would give the option of buying a car under a hire purchase agreement. The question is whether a lease agreement with the ´option´ of buying a car should be considered a supply of services under the normal leasing VAT rules or a supply of goods under the hire purchase VAT rules. The Commission explained that in order to be considered a supply of goods, the agreement requires certainty that at the end of the term the title of the goods will pass to the client.
The ECJ case also introduced several tests to determine when these agreements are considered as supplies of goods or supplies of services. In view of these test, Malta has updated its current VAT leasing scheme with effect from December 2017. These rules will only apply to schemes agreed after this date.
Marosa offers a one-stop solution for all VAT compliance obligations of chartering companies in Europe. We will take care of your VAT registrations, VAT returns and usual VAT questions related to chartering activities with a single approach and a comparative view of different VAT rules in each country. Contact us to know more about these services.
As we already informed, Bulgaria updated the Intrastat thresholds as from 2018. The new exemption thresholds are as follows:
The thresholds requiring detailed Intrastat reports including statistical information have also been updated as follows:
Intrastat thresholds should be computed on the basis of a calendar year. If you have not exceeded the threshold between January and December, you must start your count from zero on the following year. Likewise, if a businesses exceeded the threshold in a given January to December period, it will be mandatory to keep submitting Intrastat returns until you have completed a calendar year below the threshold.
For example, if a company exceeds the Intrastat threshold on March 2018 due to transactions carried out during January to March 2018, this company will be required to submit Intrastat returns at least until December 2019, even if no transactions take place between March 2018 and December 2019.
When passing any of the thresholds requiring detailed Intrastat reports, you are required to include even more information about your transactions.
You can consult all the Intrastat tresholds across Europe on our page at any time. If you have more questions about Intrastat returns in Europe, or if you would like to hear more about our VAT and Intrastat compliance service, please contact us.
As from 1 January 2018, the Czech control report requires additional information on each transaction. In addition to the information included in the report until last December, the following data must be added as from last January:
The information on Czech Control report must be submitted by the 25th day of the month following the reporting period. If the due date falls on a weekend or bank holiday, this date is shifted to the next working day. For example, the February control report is due on 26 March because 25 March is a Sunday.
Periodic VAT obligations such as Control reports and listings are an increasing trend across Europe. Most European countries require some form of return where transaction data is required to be reported. The format, level of detail and file accepted vary from one country to another. These differences make it difficult to comply with all these obligations using one single ERP system.
In Marosa we developed a service line to assist you meeting all periodic obligations requiring system data with one same approach for all European countries. Please contact us for more information.