Brexit
Although the United-Kingdom has officially left the European Union on January 31, 2020, a period of transition has now started for the purpose of negotiations on a final agreement.
Therefore, from a VAT perspective, nothing changes until December 31, 2020.
Electronic invoices
The newly published Finance Law of 2020 (article 153) introduces the obligation to issue electronic invoices for B2B transactions. This measure will come into force between 2023 and 2025 depending on the sectors and the size of the businesses.
In France, the issuance of electronic invoices already became mandatory for B2G transactions (i.e. with public sector). See our European VAT News No 6/2019 for further details.
Postponed accounting for import VAT
Businesses may currently apply for the postponed accounting of the French import VAT provided the conditions of article 1695 of General Tax Code are met (e.g. for EU-based applicants, they performed at least 4 importations in France during the last 12 months and did not commit any violation to the customs or tax regulations during that period).
These conditions will be repealed as from January 01, 2022, based on Finance Law of 2020 (article 181). It means that as from that date all businesses will be able to benefit from the postponed accounting scheme in France with no specific conditions to be met… if no further legal changes are introduced in the meantime.
Generalized reverse charge
As we previously commented, Czech Republic intends to apply the generalized reverse charge mechanism in accordance with Article 199c of Directive 2006/112/EC. See our European VAT News No 7/2019 for further details.
Although Czech Republic received the authorization from the European Council to apply the generalized reverse charge as from January 01, 2020, it now appears that the new measure should rather come into force on July 01, 2020.
Payment of VAT to micro accounts
As from January 01, 2020, the VAT due to the Polish State has to be transferred to a specific Polish bank account (so called “micro account”), which is different for each taxpayer. The individual bank account number of foreign taxpayers will in principle include their 10-digit tax number (NIP).
The transfer of money to the former bank accounts of the Polish State is no longer possible.
You may check your own micro account via this official website.
Scope of real-time reporting is extended
At the moment, invoices with a VAT amount exceeding HUF 100,000 (+/- EUR 300) have to be reported to the Hungarian Tax Authorities via a real-time online platform (within max. 5 days). That obligation currently covers supplies to taxable persons registered for VAT in Hungary where a VAT amount is or must be charged on the invoice. In other words, B2C transactions and supplies subject to the reverse charge are notably not subject to this real-time reporting.
As of July 01, 2020, the HUF 100,000 threshold will no longer be applicable and the real-time reporting obligation will also cover the transactions subject to the reverse charge.
As of January 01, 2021, this real-time reporting obligation should be extended to the B2C supplies as well.