Vat News - June 2018

EU Member States

  • 12/06/2018 Spain - E-invoicing to sub-contractors

    Effective as of 1 July 2018, sub-contractors will also be required to issue e-invoices through the ‘FACeB2G’ system (1) when they are involved in public contracts/tenders and (2) if invoicing amount is higher than 5 000 EUR.

  • 12/06/2018 Malta - VAT registration – Threshold amendments

    The Maltese Government has recently amended the thresholds regarding the small undertakings regime for VAT registrations.

    1. The threshold for small undertakings making supplies of high value is increased to 20 000 EUR of annual turnover and

    2. the threshold for entities to be eligible to shift from a standard VAT registration to the “Small undertakings” regime is increased to 17 000 EUR of annual turnover.

  • 12/06/2018 Greece - Real-time invoicing system

    A real-time reporting scheme is currently being proposed by the Greek Government, which would be applicable as from 1st January 2019, to all public sector companies.

    Taxpayers concerned will be required to submit electronic invoices to the tax administration and the document be re-directed to the customer only after the validation of the tax authorities.

    The system is expected to be extended to all Greek taxpayers as from January 2020.

  • 12/06/2018 Austria - Tax treatment for managing directors

    The Federal Tax Court has ruled that:

    1. Directors holding 50% or more of a company’s shares cannot be qualified as a taxable person merely based on that ground; in which case

    2. the director’s income must not be taken into account for the threshold for the small business special scheme applicable to taxable transactions of this director.

  • 12/06/2018 Austria - Tax exemptions for small entrepreneurs

    The Federal Tax Court has held that the VAT exemption with no right to recover input tax for small entrepreneurs prevails over the VAT exemption with a right to deduct input tax.

  • 05/06/2018 Sweden - Guidance on VAT deduction of false invoices

    The Swedish tax authority has updated its guidance on the deductibility of input VAT connected to false invoices, particularly stating that:

    1. A taxpayer may be denied the right to deduct the input VAT linked to a fraudulent transaction if the buyer knew or should have known that he was participating in a fraudulent transaction;

    2. The tax administration has to prove that the buyer was acting in bad faith;

    3. The obligation of the buyer to investigate its supplier may not be disproportionate.

  • 05/06/2018 Italy - Invoicing for supplies of fuel

    The Italian tax authority has issued clarifications on the e-invoices issued for fuel and gasoline supplies, to be used as motor fuel. The circular provides details of the content of such invoices, applicable as from 1 July 2018.

  • 05/06/2018 Italy - Split payment system

    The Italian tax authority has provided clarifications on the revised split payment system. The circular sets out the new subjects to which the systems applies, and provides a list of specific entities that should be considered as within the scope of its application and of the related penalties.

  • 05/06/2018 Austria - Supply chain transactions

    Following a recent ruling from the Austrian Tax Court, the following criteria are decisive for determining of the transaction to which the intra-community acquisition of goods must be allocated in the course of an A-B-C supply chain transaction:

    1. Where and when the final customer is entitled to dispose of the goods as owner and

    2. Whether supplier A has been informed about the resale.

  • 05/06/2018 Austria - Input VAT deduction- Traffic guidance facilities

    The Austrian Supreme Administrative Court has ruled that VAT incurred on the acquisition of traffic guidance facilities should be deemed as deductible if such acquisition has been based on economic business reasons. The deductibility is not affected if such acquisitions and related services are to be transferred, free of charge, to the local municipality.

  • European Union

  • 05/06/2018 European Union - 13th EU VAT Directive: Deadline for recovery of VAT by foreign businesses

    The deadline to submit the annual VAT claims for 2017 by non-resident entities will generally be on 30 June 2018. Nevertheless, as each Member State may determine the requirements for claiming such refund, deadlines may vary depending on the Member State of reclaim.

  • 05/06/2018 European Union - European Court of Justice, C-660/16 and C-661/16- Output and input VAT

    The ECJ has ruled that a taxpayer may not be denied the right of deduction of the input VAT related to payments on account where, at the time of the payment, the buyer did not know or should not have reasonably known that the supply of those goods was uncertain.

    Furthermore, national legislation may deny the adjustment of the deduction of the VAT on payments on account if such payments are not refunded by the supplier.

  • 05/06/2018 European Union - Hungary: reverse charge mechanism during insolvency

    The EU Council has released its decision to authorize Hungary to apply the reverse charge mechanism to certain supplies until 31 December 2021. The reverse charge will be applicable to:

    - supplies of capital goods by a taxable person subject to liquidation or any other proceedings legally establishing its insolvency; and

    - supplies of other goods and services with an open market value exceeding HUF 100,000 (approximately EUR 320) at the time of supply by a taxable person subject to liquidation or any other proceedings legally establishing its insolvency.

  • Non-EU Countries

  • 12/06/2018 Isle of Man - VAT on online marketplaces

    Effective as of 1 April 2018, additional requirements for operators of online platforms have been introduced, notably:

    - Extension of the current joint and several liability of the operator;

    - Demanding operators to display VAT registration numbers on their online platforms and performing due diligence checks thereof, with the application of penalties when failing to display.

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