Latest VAT News

2020

March 31, 2020 - Updated April 7, 2020; June 10, 2020; and August 27, 2020
Euro VAT Refund’s latest global tax and VAT/GST reporting update

Tax Authorities around the world are responding to stuttering economies under the coronavirus (COVID-19) threat.
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August 10, 2020
The World is Gearing up for Brexit

The United Kingdom Brexit transition period is ending on December 31, 2020. Britain will operate completely independently of the EU’s free-trade zone/customs union. In practice, this means that goods travelling between UK and the EU will now pass through a customs border. Biggest changes for North American Companies doing business in the UK include...
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August 5, 2020
Big Changes for Amazon UK Sellers

Amazon’s UK fulfillment operations are ending: European Fulfillment Network and Pan-European FBA inventory transfers between the UK and EU. Here are a few things you need to know.
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August 3, 2020
Germans Spending VAT Savings on New Cars!

Car buying in Germany showed this year's smallest monthly drop in July as buyers took advantage of the temporary cut in value-added tax (VAT). As you remember from our previous newsletter: the German government cut VAT to 16% from 19% July to December 2020 as part of a stimulus package to boost spending.
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July 27, 2020
Online Teaching, Live Webinars, Virtual Events and Zoom sessions – What are Considered Electronically Supplied Services?

Defining “electronically supplied” involves analyzing e-services (automatically delivered over the internet or an electronic network where there is minimal or no human intervention). Here are some guidelines to determine electronic supplies and whether they are digital services.
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July 23, 2020
Ireland – Lowered Standard VAT Rate to 21%

Ireland announced a temporary standard VAT rate drop from 23% to 21%. The lower rate will be effective on September 1, 2020 until February 28, 2021 as part of a €5.2bn economic package.
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July 8, 2020
Denmark VAT Filing Extensions

The Danish Parliament (Folketinget) has passed an aid package to help businesses during the COVID pandemic. This means your VAT settlement deadlines might have been extended by The Danish Tax Agency (Skattestyrelsen). There are different deadlines depending on if you are a large, medium or small sized company.
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June 9, 2020
Germany Lowers VAT Rates and Extends Import Payment Date

On June 3, 2020, the Grand Coalition in Germany agreed on an economic stimulus package of EUR 130 billion during the COVID-19 crisis. Over the next six months, VAT rates will be reduced to 16% (from 19%) and 5% (from 7%) starting July 1 and ending on December 31. This sharp drop is primarily designed to trigger consumer spending. By reducing VAT it should encourage individuals to start consuming again and thereby strengthening domestic demand in Germany.
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June 6, 2020
Belgium Helping Hotels and Restaurants

Belgium announced that they are lowering the VAT on the Horeca sector (hotels, restaurants, cafes) to 6%. (from 21% or 12% VAT, depending on the type of food served). The new measures to support the economy against the impact of the coronavirus, also include 300 euros citizen aid
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June 2, 2020
Mexico Requires North American Companies to Collect and Remit VAT on Digital Services

The Mexican Tax Administration Service (SAT) and Finance of Ministry has published new requirements, in their Digital IVA Regulations, saying that non-Mexican digital service providers need to report Mexican value-added tax (IVA) on income earned from digital platforms, websites and other methods.
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May 30, 2020
EU - New Obligations for Payment Service Providers

Starting January 1, 2024 new legislation in the EU applies to PSPs such as: credit institutions, electronic money institutions, post office “giro” institutions, payment institutions, the European Central Bank and national central banks, and member state/regional/local authorities. The EU will apply a “follow the money” approach, by enacting PSPs, to prevent VAT fraud in the e-commerce sector.
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May 29, 2020
Let’s Travel to Greece!

A series of stimulus measures have been launched to aid the Greek tourism sector. The government of Greece dropped the VAT rate to 13% (from 24%) to help businesses especially places serving food and beverages.
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February 28, 2020
Brexit February 2020 Update

The United Kingdom (UK) left the European Union (EU) - bringing to an end 47 years of British membership of this economic and political partnership with 28 countries. UK's exit officially took effect on January 31, 2020, that is 3 1/2 years after the first vote to quit.
There is now a transition period in effect until December 31, 2020. The current rules on Value Added Tax (VAT), trade, travel, and business for the UK and EU will continue to apply during this transition period. The UK and EU are negotiating arrangements and new rules will take effect on January 1, 2021.
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February 25, 2020
Germany VAT filing deadline is approaching

If your company paid VAT on expenses in Germany last year (between January 1, 2019 through December 31, 2019) the original invoices should be sent to our office as soon as possible in order to meet the June 30, 2020 VAT filing deadline for Germany. This only applies to non VAT registered North American companies. Filing preparation must begin as soon as possible due to a mandatory IRS certificate that has to be ordered (can take up to 10 weeks to receive). Please contact our office at your earliest convenience if you are interested in a VAT refund.

February 21, 2020
Important EU Quick Fixes!

Please note some important changes in the VAT laws in the European Union "EU" relating to shipments and sales of goods from one EU country to another. These changes are effective as of January 1, 2020, and are part of the so called "quick fixes" within the EU. The purpose of stricter requirements is to streamline how the different EU countries apply the VAT rules. It’s an attempt to decrease VAT fraud in the EU, which currently is a major loss of revenue due to the uncollected VAT.
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February 18, 2020
Poland – 'micro' bank accounts mandatory for VAT payments as of January 2020

If you have VAT due to the Polish tax authorities a new bank account should be used to transfer the funds. This change affects both established and non-established entities and the new accounts are applicable since January 2020 and includes 2019 reporting periods. This new ´micro-account´ is an individual bank account automatically generated by the Polish tax authorities for each taxpayer in Poland.
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February 13, 2020
Netherlands newly issued VAT ID numbers are required for intra-Community transactions

As of January 1, 2020, the Dutch tax authorities will assign a new Dutch VAT ID number to sole traders registered for VAT purposes in the Netherlands. The previously issued Dutch VAT ID number will become invalid with effect as of January 1, 2020. For other company forms the current Dutch VAT ID number remains valid.

February 10, 2020
“Scrap VAT on e-books” suggest Stephen Fry and E.L. James

Fifty Shades Of Grey author E.L. James and actor, comedian and writer Stephen Fry are among 700 prominent writers asking the UK Finance Minister to eliminate VAT on e-books.
Books and newspapers have been VAT exempt since 1973. The writers are afraid the current 20% VAT rate on e-books stops “young readers, those from low income backgrounds, and those who struggle to read print from experiencing the joys of reading”.
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2019

November 1, 2019
Brexit Update

European leaders have approved UK's request for a three-month extension for Brexit. Donald Tusk, president of the EU Council, informed that EU27 leaders have agreed to accept UK's request for a Brexit “flextension” until 31 January 31, 2020; the decision is expected to be formalized through a written procedure.
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October 31, 2019
EU Countries Gaining New Business

While everyone is waiting for the UK elections, U.S. and Canadian companies are already preparing for the possibility of a no-deal Brexit. Changing UK border duties, VAT and increased customs formalities (since the free movement of goods, services and people between UK and EU would halt) have already dissuaded companies from selecting the UK as their “EU hub”.
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October 22, 2019
EU online marketplaces are responsible for VAT in 2021

Online marketplaces in the EU (such as Amazon, Ebay etc.) will become responsible for charging and collecting VAT for their non-EU sellers in an attempt to recover EUR 5 billion in VAT fraud. European Commission (EC), and ECOFIN finance ministers reached a decision in March and over the last couple of months they have discussed implementation regulations.
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October 10, 2019
Japan raised its Consumption Tax rate from 8% to 10% October 1, 2019

To prevent another collapse in consumer spending in Japan, Parliament has this last month approved a consumer and retail stimulus in the range of JPY 2 trillion. The stimulus includes retail vouchers for low-income shoppers/families. In addition, a reduced Consumption Tax rate of 8% has been introduced for basic foodstuffs.
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October 1, 2019
Busted - Cell Phone VAT Fraudsters Caught

This month the Hungarian, German, Austrian, Slovakian and Latvian authorities (with support of Eurojust and Europol) had a successful four-day operation against large-scale VAT fraud involving sales of cellphones by an organized crime group in Hungary.
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September 3, 2109
Preparing Your Business for Brexit

United Kingdom’s government announced that the UK will be leaving the EU on October 31, 2019 “whatever the circumstances”. If this really happens there will be immediate changes to the way businesses trade with the UK. Here’s how Brexit may impact your business.
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August 26, 2109
Portugal Requires Owners to Central Register and Extends Deadline for Invoicing Software

As of January 1, 2020 companies in Portugal will be issuing invoices using software certified by the Portuguese tax authorities. This also applies to companies that are not established in Portugal but are registered for VAT purposes in Portugal and have an annual turnover of more than EUR 75,000.
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August 14, 2019
Greece Prepares for Real-time Invoice Reporting

Another EU county planning on modernizing their VAT systems is Greece. They are planning to implement real-time reporting and E-invoicing starting next year. This includes daily reporting of B2B and B2C invoices via the online portal TAXISnet of the Greek tax authorities.

August 2, 2019
The VAT filing deadline in the UK is approaching

If VAT has been paid on expenses within the United Kingdom between July 1, 2018 through June 30, 2019, the original invoices should be gathered and sent to our office as soon as possible
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July 23, 2019
Let’s Not Get Into Double-Trouble

Tax laws say VAT-registered taxpayers need to provide:
1. VAT invoice for every sale, barter, or exchange of goods or properties; and
2. VAT official receipt for every lease of goods or properties and every sale, barter or exchange of services.
Supreme Court has concluded, in various cases, these documents should not be confused to refer to the same thing or be used interchangeably.
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July 11, 2019
Austria is Gearing up to Start Taxing Digital Advertising Revenues

As of January 2020, Austria is planning to levy a 5% tax on digital advertising revenue. Luckily it only affects companies with a global revenue in digital advertising of more than EUR 750M and digital advertising revenue in Austria of more than EUR 25M

June 27, 2019
Are You Surprised Germany Might Raise Taxes on Meat?

And Germany isn’t the only country considering introducing a meat tax – Denmark and Sweden have also been looking into it. The idea is: higher taxes will curb meat consumption by consumers. The argument is that the amount of factory-farmed meat we eat is unsustainable, and higher tax may be a good way to kickstart some widespread behavior changes.
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May 28, 2019
Last chance to apply for a VAT refund on EU invoices issued in 2018!

If VAT has been paid on expenses within the European Union (EU) after January 1, 2018, the invoices should be gathered and sent to our office this week for us to meet the June 2019 VAT filing deadline (This only applies to non VAT registered North American companies). Since we are extremely close to deadline the filing preparation has to start now.
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May 24, 2019
Changed rules - when to charge VAT on admission to training courses in the EU

The local VAT laws for the EU countries for when to charge VAT on admission to training and "educational" courses have varied quite a lot in the past. In some of the countries, it has been required to charge VAT to all the attendees, regardless of what country they come from, or if they are participating on behalf of their company, or as a private person. In others, the admission to these courses/events have been subject to the "reverse charge" which means that VAT should only be charged to attendees from the country of the event.
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May 22, 2019
Greece Reduced VAT on Dozens of Goods

Several supermarket shelf products have had VAT cut from 24% to 13% in Greece. Popular goods such as olive oil, meat and fish, cocoa and generally standardized non-fresh food are now in the lower VAT bracket.
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May 13, 2019
Poland is making it harder for businesses to commit VAT fraud

The Senate in Poland passed legislation on May 9, 2019, that companies are now required to use officially registered bank accounts for all business-to-business payments.
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April 9, 2019
Is VAT the reason beer prices diverge so widely across Europe

To buy a beer in Europe you may pay less than one EURO for a half-liter bottle of local beer in the Czech Republic to over EUR 7.00 in Norway. There are obvious reasons beer prices can differ among European countries. One is that tax laws are not uniform. Value added tax (VAT) varies from country to country.
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March 27, 2019
The Netherlands has confirmed they will reduced the VAT rate on electronic books and journals to 9% starting January 1, 2020

This decision by the Dutch government comes after the EU member states' decision last year to end the VAT anomaly between printed and electronic books and online newspapers and journals.
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March 5, 2019
Hard Brexit and VAT

As we are sure most of you have heard, the United Kingdom, (the UK) is about to leave the European Union. This will substantially affect all areas of the trade between the countries, as well as from other parts of the world, for example trade from the US to the UK and EU. This will also affect the VAT. At this moment there is no agreement in place for the continuing relationship between the EU countries and the UK, hence there is a risk for a “hard Brexit” in the end of March, 2019. Everyone hopes that this will not be the case as it would lead to chaos, and very big problems for the trade. We wanted to bring this to your attention in case you trade or plan to trade in the UK.
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February 21, 2019
Amazon and Ecommerce Sites contacting U.S. Companies about VAT

U.S. companies selling products online in Germany and/or rest of EU are receiving emails from Amazon and other online ecommerce sites. Our team at Euro VAT Refund, Inc. started to receive calls and emails from North American companies wondering about VAT registration and their VAT obligations when selling through Amazon and eBay in the EU.
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February 7, 2019
Electronic Services obligated to charge Russian VAT 2019 and standard Russian VAT increased from 18% to 20% (effective 1/1/19)

Foreign entities providing specific electronic services to Russian service recipients (B2C and B2B) will be obligated to register for VAT in Russia and generally charge 20% Russian VAT to the customes. The previous VAT system where Russian service recipients serve as VAT tax agents for the foreign supplier is no longer applicable.
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January 24, 2019
The VAT filing deadline in most European countries is approaching

If VAT has been paid on expenses within the European Union (EU) after 1 January 2018, the invoices should be gathered and sent to our office as soon as possible in order to meet the June 2018 VAT filing deadline.
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January 10, 2019
The Netherlands increase their reduced VAT rate from 6% to 9%

The Dutch government decided to raise their reduced VAT rate from 6% to 9% on January 1, 2019.

 

2018

September 5, 2018
VAT Registration Attention to eBay Sellers

Euro VAT Refund, Inc. has started to receive calls and emails from North American companies that are selling through eBay in the EU. eBay, like Amazon, has begun advising North American companies to register for VAT if they are importing to, storing goods at fulfillment warehouses and selling to customers in various EU countries.
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August 22, 2018
United Kingdom will Remain in EU VAT Regime Until the End of 2020

The European Commission has confirmed that the United Kingdom will remain in the European Union (EU) VAT regime until December 31, 2020 (the end of the 19-month Brexit transitions period), although Brexit currently is scheduled for March 29, 2019.
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August 8, 2018
United Kingdom VAT Filing Deadline is Around the Corner

The deadline for filing a VAT refund claim to the United Kingdom'’s tax authorities for invoices dated from July 1, 2017 through June 30, 2018 is fast approaching.
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January 18, 2018 - Updated June 1, 2018
Alert! The Australian Tax Authorities are actively contacting North American companies!

New GST rules in Australia go in effect July 1, 2018. These new rules mean that any company from a country outside Australia (including North America) selling "low value goods" to private persons in Australia must register for, and pay Australian GST if the turnover is of AUD 75,000 or more in a 12-month period (low value goods are physical goods valued at AUS 1,000 or less).
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January 22, 2018
New VAT reform within the EU in an attempt to tackle cross border fraud

The EU Commission is preparing for the biggest reform of EU VAT rules in a quarter of a century, in an attempt to crack down on an estimated EUR 50 billion in tax revenue lost to cross-border VAT fraud between countries within the European Union (EU).
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January 8, 2018
The VAT filing deadline in most European countries is approaching

If VAT has been paid on expenses within the European Union (EU) after 1 January 2017, the invoices should be gathered and sent to our office as soon as possible in order to meet the June 2018 VAT filing deadline.
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2017

December 27, 2017
The Swiss government decreases standard VAT rate on January 1, 2018

The Swiss government decided to decrease their standard VAT rate from 8% to 7.7%, and reduced VAT rate (accommodation) from 3.8% to 3.7% on January 1, 2018.
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December 22, 2017
Norway increases their reduced VAT rate from 10% to 12%

The Norwegian government decided to raise their reduced VAT rate from 10% to 12% starting January 1, 2018.
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August 31, 2017
VAT Registration Attention to Amazon Sellers

Euro VAT Refund, Inc. receives calls and emails on a daily bases from North American companies that are ready to sell through the Amazon websites in the EU. Amazon generally advise that companies import to, and store goods at their fulfillment warehouses in different EU countries, and from there ship and sell to customers around the EU. Many North American companies are unaware of their VAT registration liabilities in each of these countries, and the associated cost for appropriate VAT compliance.
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August 25, 2017
United Kingdom VAT Filing Deadline is Around the Corner

The deadline for filing a VAT refund claim to the United Kingdom'’s tax authorities for invoices dated from July 1, 2016 through June 30, 2017 is fast approaching.
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August 22, 2017
New Split Payment Systems in Poland & Romania

In order to further combat VAT fraud, Poland and Romania have introduced a new Split Payment System that will go into effect in 2017 and 2018.
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June 28, 2017
United Kingdom VAT Filing Deadline is Approaching

The deadline for filing a VAT refund claim to the United Kingdom'’s tax authorities for invoices dated from July 1, 2016 through June 30, 2017 is fast approaching.
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April 10, 2017
Last chance to apply for a VAT refund on EU invoices issued in 2016!

If VAT has been paid on expenses within the European Union (EU) after January 1, 2016, the invoices should be gathered and sent to our office as soon as possible in order to meet the June 2017 VAT filing deadline.
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February 17, 2017
Launch of our newly updated website!

We are pleased to announce the launch of our updated website, designed with a fresh new look, user-friendly navigation and updated with the latest VAT information, news, webinars and brochures.
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February 15, 2017
The VAT filing deadline in most European countries is approaching

If VAT has been paid on expenses within the European Union (EU) after 1 January 2016, the invoices should be gathered and sent to our office as soon as possible in order to meet the June 2017 VAT filing deadline.
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February 7, 2017
The Romanian government decreases standard VAT rate once more on 1 January 2017

The Romanian Government has recognized a steady growth in the country and have therefore decided to once again cut its VAT rate on January 1, 2017 from 20% to 19%.
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January 26, 2017
New Italian VAT rules on short term house rentals

The Italian government has confirmed that North American companies offering online services for short-term house rentals are liable to charge VAT on their booking services.
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2016

October 12, 2016
The European Union calls the 160 Billion VAT Gap “unacceptable”

This year a study was conducted by the EU commission providing an estimate of revenue loss to fraud among the EU countries, also called the VAT Gap – the difference between expected VAT revenues and VAT actually collected.
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October 10, 2016
Sweden introduces a reduced VAT rate on repairs and home services in order to manage consumption and help refugees

The Swedish government introduced a tax break from 25% to 12% for minor repair work on clothing, shoes, bicycles, household appliances and leather goods.
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June 27, 2016
The United Kingdom has voted to leave the European Union, Thursday, June 23, 2016

Britain has voted in a referendum to exit the European Union, also referred to as ‘BREXIT’.
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June 20, 2016
The Danish Tax Authorities are closely following the footsteps of the German Tax Authorities

Several U.S. companies doing business within Germany have indicated that they have been contacted by the German tax authorities, and now the Danish tax authorities are doing the same.
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June 10, 2016
New VAT rules when registering for VAT in Norway

In previous years Norway required North American companies to appoint a fiscal representative when registering for VAT in Norway.
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May 25, 2016
Greece increases their standard VAT rate from 23% to 24%

The Greek government decided to raise their standard VAT rate from 23% to 24%.
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April 11, 2016
Euro VAT Refund, Inc. is listed on U.S. Commercial Services website as Business Service Provider to the European Union

Euro VAT Refund, Inc. is now listed as a Business Service Provider to the European Union on U.S. Commercial Services website export.gov - Please feel free to visit our listing under "Accounting, Auditing and Tax Services"

April 8, 2016
New stricter VAT rules for North American companies selling online to customers in Europe

The United Kingdom (UK) has realized that many North American companies are not following the local VAT regulations when selling goods in the UK via online marketplaces.
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January 14, 2016
VAT Refund Possibilities when attending Hannover Fair in Germany, April 2016

For the first time in history, the US will be the official partner country of the Hannover Messe in Germany, April 25-29, 2016.
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January 4, 2016
Austria increases their reduced VAT (MWST) rate from 10% to 13% this month

The Austrian government has decided to increase their reduced VAT (MWST) rate from 10% to 13% on January 1, 2016.
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January 4, 2016
The Romanian government decreases standard VAT rate on January 1, 2016

The Romanian government has decided to decrease their standard VAT rate from 24% to 20% on January 1, 2016.
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January 4, 2016
Italy increases standard VAT rate on January 1, 2017

The Italian government has decided to increase their standard VAT rate from 22% to 24% starting January 1, 2017.
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January 4, 2016
New VAT rules when arranging conferences in Switzerland

In previous years Switzerland did not require North American companies to register for VAT when arranging events within Switzerland where there is an attendee fee charged.
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