New EU rules on VAT as of 2021

Posted on 16 November 201816 November 2018

The hurdles to register in another EU country will as of 2021 be over with the One-Stop-Shop system or maybe not, read on to learn moe about the changes

One-Stop-Shop

A company than deals with VAT in its own country and in his own language. Please note that this will for B2C only. The B2B option will be valid as of 2022.

So this will be the end of all foreign registrations. No; as soon as the company delivers from another country as where it is based VAT will be processed from this country, when using an fulfilment centre in another EU country VAT will be obligated in that country.

Thresholds

This sounds like a good deal doesn’t it? Well only for those who use the distance sales rule and sell out of their home country. For all those companies using in time fulfilment structures and ship their product out of other countries still have to deal with local tax offices and tax rules. And that is not all! As of 2021 all the different distance sales thresholds will disappear into one threshold of €10.000

Crossing over this EU threshold with all cross border sales to end user within the EU every sale over that threshold has to be taxed in that state where the shipment ends. Which will have to follow through the One Stop Shop.

Using foreign warehouses has direct effect on two kinds of transactions which at this moment cannot be dealt with through the One-Stop-Shop being: domestic supplies to end users in the country of the warehouse and inner community purchases when shipping goods from your home country to the foreign FBA warehouse.

E-platform

Next point is, E-platforms will be responsible for VAT from third country online sellers as of 2021. As of 2021 a fictive supply chain will be in place; the seller from a third country supplies to the e-platform, the platform supplies the customer. When the customer pays the platform will pay the vat.

So the E-platforms will be held liable for not paid vat to the tax office when they don’t hold a certificate of registration from this company at the tax office. This is already in place in Germany and will come in effect in 2019.

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Partners

Posted on 21 September 2018

We are partner with Vatpoint

Vatpoint is a Czech company which supports businesses with their VAT compliance in the Czeck Republik and in Slovakia.

With this partnership Kennispunt VAT solutions/ VATpoint Europe can even better support your growing needs of VAT compliance in Europe.

One stop shop for all your vat questions/ pan-europese omzetbelasting services

Due to new clients we partnered up with a Polish bookkeeping service as well. Your UK, German, French and offcourse Dutch VAT we take care of inhouse.

Is your business involved in cross border selling/ are your goods send from a warehouse in another country as whee your company is based you might be in need of a local VAT registration, contact us and we send you an offer you can’t refuse.

Are you an bookkeeping company and interested in a partnership feel free to contact us.

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UK issues Brexit no-deal VAT notice

Posted on 21 September 2018

The UK has issued a range of guidance notices informing the public and businesses of the implications of the UK leaving the EU on 29 March 2019 without a formal Withdrawal Agreement. The government emphasizes that this is unlikely given the progress of ongoing discussions.

One of the notices covers VAT implications for businesses trading with the EU if there is not Brexit deal. Topics cover:

Importing goods from the EU

The government will introduce a postponed import VAT regime so companies buying goods from the EU or other countries can avoid the cash flow problems of having to recover UK import VAT. This would have to be extended to non-EU businesses too, who currently pay an estimated £31 billion per annum in recoverable import VAT.
The current £15 low value consignment stock relief provided for small, imported packages will not be extended to goods coming from the EU. The EU had planned to scrap this relief anyway in 2021.
For parcels under £135, a technology-based solution will allow VAT to be collected from the overseas business selling the goods into the UK. Overseas businesses will charge VAT at the point of purchase and will be expected to register with an HM Revenue & Customs (HMRC) digital service and account for VAT due. The digital service is an online registration, accounting, and payments service for overseas businesses. On registration, businesses will be provided with a Unique Identifier which will accompany the parcels they send in to the UK. They will then declare the VAT due on those parcels and pay this via their online account. This ensures the process of paying VAT on parcels does not become burdensome for UK consumers and businesses. To give overseas businesses sufficient time to familiarise themselves with their new obligations, the online service will be available for businesses to register in early 2019, prior to 29 March. On goods worth more than £135 sent as parcels VAT will continue to be collected from UK recipients in line with current procedures for parcels from non-EU countries, guidance on these procedures can be found here in HMRC notice 143. VAT will also continue to be collected in line with current procedures for all excise goods sent as parcels and potentially in cases where their supplier is not compliant with HMRC’s new parcels policy. HMRC is working with the relevant industry stakeholders and will provide further information in due course.

Exporting goods to the EU

EU member states will treat goods coming from the UK in the same way as from any other non-EU third-country. This means import VAT and customs tariffs would become due for the first time.
Distance selling VAT registration threshold relief will cease to apply in the event of no Brexit deal. This means many small UK e-commerce retailers would have to VAT register immediately for B2C goods trading into EU states. This could affect over 35,000 UK small businesses.
EU member states will treat goods entering the EU from the UK in the same way as goods entering from other non-EU countries with associated import VAT and customs duties due when the goods arrive into the EU. Individual EU member states may have different rules for import VAT for non-EU countries and import VAT payments may be due at the border when importing goods. UK businesses should check the relevant import VAT rules in the EU Member State concerned.

Exporting services into the EU

The factors for determining where VAT is payable, the ‘place of supply’ rules, will remain the same for sales of services to consumers and individuals
This is the same for digital services provided from the UK to EU consumers, but the use of the 2015 Mini One Stop Shop reporting may change later, including UK businesses re-registering under the non-union scheme
For UK businesses supplying insurance and financial services, if the UK leaves the EU without an agreement, input VAT deduction rules for financial services supplied to the EU may be changed. More updates will follow.

VAT refunds

UK business will no longer have access to the EU VAT refund system – ‘8th Directive’ reclaims. UK businesses will continue to be able to claim refunds of VAT from EU member states by using the existing processes for non-EU businesses – ’13th Directive’ reclaims.

UK VAT numbers

The UK will develop its own online VAT number validation portal, similar to the EU’s VIES.

Prepare your business for the Brexit altough nothing is certain so prepare for the worst, no deal.

omzetbelasting

EU VAT system proposed changes

Posted on 14 June 2018

The European Commission has now published proposals for the detailed technical amendments that will accompany the overall plan to make the VAT system more fraud-resilient.

In the October proposal, the Commission proposed the main principles for the creation of a single EU VAT area which would help to shut down the estimated €50 billion in fraud currently affecting national budgets annually in EU Member States.

With the proposal of these technical measures, the Commission hopes that Member States will initiate discussions on the broader principles or ‘cornerstones’ of a simpler and resilient definitive EU VAT system for the trade in goods within the EU.

These four cornerstones are:

– Simplification of how goods are taxed

– Creation of a single online portal (‘One Stop Shop’) for traders

– Reduced administrative burden

– Making the seller responsible for VAT collection in most cases

You can read the full press release here.

Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said that “the proposals we are presenting today represent the final building blocks in the overhaul of the EU’s VAT system. They will open the way to simpler rules, less red tape and a more user-friendly system, thanks to the online one-stop shop for traders.”

omzetbelasting

Czech 10% reduced VAT rate changes

Posted on 14 June 201814 June 2018

The Czech Ministry of Finance has proposed changes to goods which will be subject to its reduced VAT rates of 10%. The current standard VAT rate is 10%. The goods proposed to be re-categorised include: Catering services Certain professional services Tobacco products Non-beer alcoholic beverages The change would be implemented on 1 January 2019.

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Hongarije real-time factuurgegevensrapportage

Posted on 14 June 201814 June 2018

Wat u moet weten over real-time factuurgegevensrapportage in Hongarije

Vanaf 1 juli 2018 zijn btw-betalers in Hongarije verplicht om de Hongaarse financiële administratiehierover te informeren op het moment dat het belastingdocument wordt uitgegeven . Dit is een zogenaamde real-time factuurgegevensrapportage of ook “online számla rendszer”.

marco@vatpointeurope.eu- omzetbelasting in de gehele EU

Wanneer en voor wie is de verplichting om real-time factuurgegevens te rapporteren?

de verplichting om gegevens over het uitgegeven belastingdocument online te melden heeft betrekking op alle Hongaarse btw-betalers, dwz zowel binnenlandse als buitenlandse belastingbetalers
zij rapporteren alleen gegevens over verkoopdocumenten (niet over aankoop, export, levering aan een andere lidstaat)
rapportage heeft alleen betrekking op BtoB-transacties, dwz. alleen documenten die zijn uitgegeven tussen twee Hongaarse btw-betalers
de verplichting ontstaat wanneer de waarde van de btw op het uitgegeven belastingdocument gelijk is aan of groter is dan HUF 100.000 (ongeveer € 340); de financiële administratie stuurt geen informatie over btw-vrijgestelde of belastingvrije transacties

Wat zijn de voorwaarden voor rapportage van real-time factuurgegevens?

factureringssoftware moet gereed zijn voor onmiddellijke online rapportage zonder enige handmatige tussenkomst
Rapportage gebeurt alleen elektronisch via de webinterface van de Hongaarse belastingadministratie in een vast XML-formaat
de correctie van de onjuist uitgegeven documenten vindt plaats binnen 72 uur na afgifte van het document
in het geval van een technische storing, is het mogelijk om gegevens binnen 48 uur handmatig te rapporteren
de verplichting van real-time rapportage komt niet in de plaats van de voorheen verplichte rapportage van uitgegeven belastingdocumenten in het XML-formaat volgens de nummerreeks of voor een bepaalde periode (verplichting vanaf 1 januari 2016)
onjuiste of ontbrekende rapportage kan worden bestraft tot HUF 500.000 (ongeveer € 1.700) per document

Als het belastingdocument niet elektronisch wordt verstrekt, is het mogelijk om een belastingdocument in Hongarije af te geven op de officiële voorgedrukte formulieren die voor dat doel zijn verstrekt.

Deze documenten zijn ook onderworpen aan rapportage:

binnen 5 kalenderdagen als de waarde van de BTW tussen HUF 100.000 en HUF 500.000 ligt
binnen 1 kalenderdag als de waarde van de btw hoger is dan 500.000 HUF

E-commerce

Voor binnenlandse e-shops moet worden opgemerkt dat de verplichting niet geldt bij verzending naar eindklanten. Voor betalers die contant verkopen, is de verplichting om contante ontvangsten te registreren nog steeds van toepassing.

Where can I get more information

If you do need to VAT register contact VAT Point Europe and we guide you further to be VAT compliant.