Under the new rules that, in principle, will be applicable as from 1 April 2020 (this is included in the budget law for 2020 which is expected to be confirmed shortly), the VAT liability for low value imports, i.e. up to 3 000 NOK, will shift from the consumer to the non-resident supplier.

Currently consumers can pay the VAT due at clearance, and in such context distance sales companies, avoided the need for VAT registration in Norway. However, under these new rules the VAT liability for such low value imports will shift from the consumer to the non- resident supplier, meaning that subject the 50 000 NOK registration threshold, the non-resident supplier will need to VAT register in order to report and remit VAT in the country.

As from 1 January 2020, the VAT rate of 0% will continue to be applied only to specific groups of food, to vitamins and minerals, such as folic acid licensed as medicines and fortified foods. However, the  VAT rate for food supplement products will be increased to 13%.

The EU Directive 2018/1910 on harmonization and simplification of VAT for cross-border trade was approved in the parliament. The respective draft bill, if finally approved, will enter into force in 1 January 2020 and contains, among others, (i.) simplification measures related to call-off stock arrangements, (ii.) introduction of a substantial requirement for the application of the VAT exemption on intra EU supplies, i.e. the VAT number of the purchaser must be identified. Also, it is required that the supply is properly and timely included in the respective IC Sales Listing declaration. The draft bill also foresees (iii.) specific rules that attribute the intra-Community transport of the goods to a concrete supply within a chain of transactions.

The National Statistical Institute (NSI) announced that, as from 1 January 2020, the thresholds for Intrastat reporting will be 900 000 RON for arrivals and 900 000 RON for dispatches. In this context, if a taxpayer exceeded these thresholds in 2019, he is obliged to complete Intrastat declarations in 2020.

With effects from 1st January 2020, several amendments will enter into force regarding the Local Taxes and Duties Act, such as, individuals, who are VAT registered in Bulgaria will be allowed to register for local patent tax purposes if they perform one of the activities specified in the Annex 4 to the Local Taxes and Duties Act.

The European Council formally approved the “quick fixes”, and they will be, in principle, applied, by the EU Member States as from 1 January 2020. The new measures are related with simplification rules in the frame of call-off stock arrangements, attribution of intra community transport within chain transactions, clarification of requirements to apply VAT exemption on intra community supplies and introduction of the EU VAT number of the purchaser as a substantial requirement for the application of the VAT exemption.

The government announced the extension, until 31 December 2020, of the reduced VAT rates to the five islands Leros, Lesbos, Kos, Samos and Chios.

The Italian Tax Authorities have recently clarified that the VAT group calculation regime allows entities under the same control to combine their input and output VAT and pay the net result, without the need of creating a new entity.

According to the information provided this regime can be applied to group members resident in different EU Member States and provided that all requirements indicated in the Ministerial Decree of 13 December 1979, as recently amended by the Ministerial Decree of 13 February 2017, are met.

The majority of the below changes will be applicable as from 1st January 2020:

• The "quick fixes" foreseen in the Council Directive (EU) 2018/1910 will be implemented, such as (i) modifications in the required proof for the application of the 0% VAT rate on intra community supplies, (ii) introduction of simplification rules and reporting obligations regarding call-of stock, for which the respective noncompliance with will originate new sanctions and (iii) new rules regarding chain transactions between EU Member States;
• It will not be mandatory to issue cash receipts for uncontrolled online payments with debit and/or credit cards;
• Will be outside the scope of VAT the construction, improvements and repairs of publicly owned infrastructure without respective consideration, provided that it is used in the person’s economic activities, even when it is also used by other persons. On such cases, and in accordance with the ECJ judgment on Iberdrola Imobiliaria Real Estate Investments (Case C-132/16), those persons are authorized to deduct the input VAT incurred on general costs and/or on components of the price of taxable supplies carried out as part of the person's economic activities;
• The definition and regulation of "new buildings" and  "improvements to buildings” will be modified for VAT purposes;
• The rules regarding taxable events for goods arriving or being exported in or from the continental shelf and in or from the exclusive economic zone of Bulgaria will also be modified.

In order to apply for the VAT grouping regime, the VAT group representative must submit the request until 30 September of the preceding year regarding which the regime should apply. In this context, the Italian Tax Authorities have recently clarified that, under certain circumstances, the data previously submitted, can be modified, through a substitutive form, provided that the regime has not yet become effective.

The ECJ has ruled that Article 90 of the EU VAT Directive (2006/112) should be interpreted as allowing the reduction of the taxable amount in cases where the taxable person can provide proof that its claim towards the debtor has become definitely irrecoverable, insofar as this situation does not constitute a case of non-payment capable of giving rise to a derogation from the obligation to reduce the taxable amount of VAT provided for in paragraph 2 of this Article.

The Italian Tax Authorities have recently clarified that electronic invoices can be issued until the last day of the calendar month during which the relevant supply took place.

The Italian tax authorities provided, on the Ruling Answer No. 461, the following clarifications regarding the supply of carpooling services:

• the costs supported by employers for the supply of these services are deductible within the limits established by the law;
• the amounts paid by riders to drivers to share the travel costs are not subject to VAT; and
• the amounts withheld by the providers of the carpooling platforms are subject to VAT.