Tag Archives: VAT

EU: B2C 2015 VAT Changes – Implementing Regulation adopted in Ecofin last Friday

We are happy to announce that the EU Ecofin Council reached political agreement on the proposal for VAT implementing Regulation on B2C 2015 place of supply issues, in a meeting in Luxembourg last Friday 21 June.

It will apply as from 1 January 2015. It will be officially released in the next weeks after clean up and translation to the EU official languages.

Important to note is that this Implementing Regulation has direct effect and does not need to be implemented/transposed by the EU Member States in their national VAT legislation (primary, secondary or administrative guidance).

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Feautured article: Tax Planning International: Indirect Taxes – World Wide VAT forum: E-commerce

In April 2013 we have organized a workshop for our clients where we have presented the current and future ecommerce legislation in Switzerland, Europe and worldwide, discussed tax related trends among ecommerce businesses and tax authorities and presented our vies of the future cross-border tax and business implications for ecommerce. We have spent quite some time discussing how the ecommerce tax compliance will need to be modernized and automatized in order to meet the requirements of the ecommerce businesses of tomorrow and presented our vision on how to meet this goal of automated, scalable, seamless and affordable tax compliance service offering.

As a follow-up to the workshop we have prepared and publicized an article in the May 2013 edition of Tax Planning International: Indirect Taxes. For your convenience you can download its copy here.

Montenegro: Proposed VAT rate increase from 1 July 2013

The government proposes a 2% increase in the standard VAT rate from 17% to 19% in Montenegro. If the proposal is accepted by the Parliament, the VAT rate increases will take effect from 1 July 2013.

What does it mean for you

We recommend reviewing the VAT implications on your business operations in Montenegro due to these changes, to ensure full compliance with regard to VAT rules, rates and regulations. Systems must be adjusted and contracts may need to be reviewed. Please see news update on PwC’s GlobalVATOnline here.

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Slovenia – VAT rate increase with effect from 1 July 2013

The Slovenian Parliament has approved an increase in the standard and reduces VAT rates. Subject to the approval from the National Council, the increases will be effective from 1 July 2013, as follows:

  • Standard VAT rate: from 20% to 22%;
  • Reduced VAT rate: from 8.5% to 9.5%;

No changes have been made to the list of goods/services which are subject to the reduced VAT rate.

What does it mean for you

We recommend reviewing the VAT implications on your business operations in Slovenia due to these changes, to ensure full compliance with regard to VAT rules, rates and Find out more

EU: Results of public consultation on the review of the existing legislation on VAT reduced rates published

The results of the public consultation on the review of the existing legislation on VAT reduced rates are now available online.

A total of 333 contributions were received and the greatest number of submissions originated from Belgium (76), followed by those from Germany (65), France (52) and the United Kingdom (48).

The EU Commission’s summary report as well as an index and the individual contributions can be consulted via this TAXUD page (click-through to CIRCABC). Find out more

France: Towards a super reduced VAT rate for digital press publications

According to a recently published press release, France is considering to apply a super reduced VAT rate for online press publications (2,1% instead of 19,6%) and this without the approval of Brussels.

As reported in previous posts, France and Luxembourg already started on 1 January 2012 to apply (super) reduced VAT rates for e-books (5,5% in France and 3% in Luxembourg) making them the cheapest countries to sell e-books in the whole EU.

The EU Commission saw this as an infringement against the EU VAT Directive and initiated infringement proceedings against both France and Luxembourg (Case No 2012/4080).

With this new proposal to Find out more

Luxembourg: VAT rate increase as of 1 January 2015

In his recent “State of the Nation” speech Luxembourg’s Prime Minister, Jean-Claude Juncker announced that the standard VAT rate in Luxembourg will increase with effect from 1 January 2015 (i.e. from the date when the new VAT rules for B2C sales of eservices will become applicable in the EU). Mr. Juncker has explained, that this VAT rate increase should help Luxemburg to counterbalance the expected loss of the VAT revenues due to new VAT rules on eservices.

Current standard VAT rate in Luxembourg is 15%. Even though the new VAT rate has not been disclosed yet, we understand that the Luxembourg’s government intends to maintain the lowest standard VAT rate in the EU also after the proposed increase. This would mean that the new standard rate will have to be somewhere between 16% and 18%. Find out more