United-Kingdom

Brexit

Despite the deadline of October 15, 2020 to reach an agreement - after which the negotiations will be considered has having failed, the regulations post-Brexit regarding VAT issues are already ascertained in any scenario.

You can find more information on VAT impact of Brexit by clicking here

Germany

Decrease of VAT rates until December 31^st, 2020 and consequences

The VAT rates have been reduced temporarily  from 19% and 7% down to respectively 16% and 5% since July 1^st, 2020. This required some quick adaptations by the businesses having taxable operations in Germany.

What happens if the wrong rate was/is applied? What are the consequences for both the supplier and the recipient of the invoice? Read more…

Italy

Deduction of input VAT that is charged too late

A European business, which is registered for VAT in Italy as a foreign entity, made a supply which was subject to Italian VAT. In first instance, an invoice with no VAT was addressed to the customer. It however appeared that it was a mistake and that local VAT had to be charged. As a consequence, the supplier decided to correct the invoice and regularize the situation a posteriori.

The question is about the right of the customer to recover that late-charged VAT even if the legal deadline has ended. Read more…

Poland

Simplified access to the postponed accounting of import VAT

If your company imports goods in the EU on a regular basis, you probably know that VAT has to be immediately paid upon importation unless a postponed accounting mechanism is available in the Member State of importation.

In Poland, postponed accounting has already been introduced for years but it was subject to specific conditions. The access to this beneficial regime has however been broadened since July 01st  2020. Read more…

NOTEWORTHY:

Ireland

Standard VAT rate will be reduced from 23% down to 21% as of September 1^st, 2020

Italy

The Italian Authorities confirmed in a ruling (Riposta n. 292) that it is possible to submit an amended VAT return together with a “visto di conformità” in order to obtain a VAT refund (although the said “visto” was not available when the original VAT return was submitted). In such a case, it is not necessary to set up a bank guarantee.

Portugal

Event organizers can now recover 50% of the VAT included in the expenses performed for the direct needs of participants to the events via a separate procedure. This applies to expenses incurred between August 12^th, 2020 and December 31^st, 2021.