VAT refund - Commission sues Germany
The European Commission has decided to refer Germany to the European Court of Justice over its rejection of various claims for VAT refunds to companies located in other Member States. More specifically, Germany refused in some cases to refund VAT without having previously requested additional information from the applicant when it considered that the information provided about the nature of the supplied goods and services was not sufficient to make a decision on the request. This practice led to situations where a VAT refund was refused to applicants who met the substantive conditions and is contrary to the right to a VAT refund established under EU rules (EC Press Release of 24/01/2019).
We encourage European businesses that faced a rejection of their foreign (in Germany or elsewhere in Europe) VAT refund application on the above basis to lodge an appeal. These companies may contact Xavier Brems for any question on the subject ([email protected] or +32 2 210 17 72).
Split payment as of July 2019
Poland has received the authorization to introduce mandatory VAT split payments. As of 01/07/2019, VAT will have to be paid to a separate and blocked Polish bank account of the supplier for invoices issued in relation to B2B supplies of specific goods and services (in case the payments are made by electronic bank transfers).
This new measure also applies to non-established businesses and notably covers the following goods and services: steel products, non-ferrous metals, electronics and software, waste materials, immovable property and construction works, diesel, fuel and oils, greenhouse gas emission rights, etc.
VAT registration post Brexit
The Belgian VAT Authorities confirmed that all UK businesses having a Belgian VAT number will need to appoint a fiscal representative when the Brexit becomes effective (if they do not have one yet). The official documents in that respect must be filed with the Belgian VAT Authorities before the UK leaves the EU (i.e. by 29/03/2019 if there is no agreement on a postponement).
The tax administration will end the approval procedure within a period of 6 months following the Brexit. In the meantime, a UK business will be treated as if it already has a fiscal representative. This means that the reverse charge mechanism will apply on its domestic purchases of goods and services subject to Belgian VAT provided the supplier is not established in Belgium.
Should you need assistance in order to convert your direct VAT registration number into a Belgian VAT registration number with a responsible representative, please feel free to contact Xavier Brems ([email protected] or +32 2 210 17 72).
Intrastat thresholds
In the Netherlands, Intrastat declarations have to be submitted in 2019 if the following thresholds are met:
- €1,000,000 for dispatches (instead of €1,200,000 in 2018);
- €800,000 for arrivals (instead of €1,000,000 in 2018).
Companies that have an obligation for an Intrastat reporting in 2019 should in principle be informed by Statistics Netherlands via letter.
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