Irregular introduction into the EU: import VAT becomes due in the Member State of final destination
It was discovered that consignments had not been appropriately presented to customs in Germany before being transported to Greece. The German customs authorities therefore concluded that the goods had been brought into the customs territory of the EU in an irregular manner and thus considered that customs duties and import VAT became due in Germany. The breaches of the customs regulation on German territory are however not, in themselves, sufficient to consider that the goods in question have entered the Union's economic circuit in Germany. In those circumstances, it must be noted that the goods entered the Union's economic circuit in the Member State of their final destination and that, consequently, the import VAT on those goods became due in that Member State. (10/07/2019, C 26/18, Federal Express Corporation Deutsche Niederlassung).
Split Payment
Split payment – described in our previous flash- will come into force on November 1st, 2019.
White List of Taxpayers
Poland has introduced a new website where the VAT status of (established and non-established) Polish taxpayers may be checked out. This “White List” notably includes the name of the taxpayer, its Polish VAT number, the date of registration and date of deregistration.The list also shows the bank account to which counterparties should make payments. As from 1 January 2020, if a payment is transferred to a different bank account (or in case of cash payment), the expense would not be regarded as a deductible cost and the customer would be jointly and severally liable with the seller for his tax arrears in the part of VAT that falls on the payment for the transaction.
SAF-T to replace VAT returns in 2020
The SAF-T files will replace the VAT returns in Poland. The entry into force of that measure has however be postponed to January 2020 (instead of July 2019 initially). In first instance, this will apply to large businesses only (at least 250 employees or turnover of EUR 50 million and balance sheet total above EUR 43 million). These thresholds have to be regarded from a global perspective, meaning that the foreign entities with a Polish VAT number should not consider their Polish activities only. Other entities should apply the above as from July 2020.
Two-tier VAT registration system introduced
Irish tax Authorities have developed a two-tier VAT registration system whereby a foreign business can apply for a ‘domestic-only’ registration or an ‘intra-EU’ registration. If a business registers for domestic-only purposes and subsequently wishes to engage in intra-EU trade, it may then submit an application for an intra-EU registration. This change came into effect on 17 June 2019. All existing VAT registered customers were deemed to be intra-EU VAT registered.
New threshold for VAT returns
In principle, the tax period of a legal person is a calendar month and tax period of a natural person is a calendar half-year. The legal person can now ask to submit its VAT return on a quarterly basis if its turnover did not exceed EUR 300.000 during previous calendar year (valid as from 1 July 2019). However the tax period is calendar month if the taxpayer acquires goods/services from other EU Member States and is liable to the payment of the VAT.
VAT rate on accommodation services reduced to 5%
As of 1 January 2020, the Hungarian VAT rate on accommodation services will be decreased from 18% to 5%. At the same time, the tourism development contribution of 4% will be extended to these services.
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