Pan European VAT update Deloitte Global Tax Center (Europe) - 24 September 2018
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Pan European VAT update Deloitte Global Tax Center (Europe) 24 September 2018 Olivier Hody, Partner Bruno Roelands, Senior Director David Elliot, Associate Director Deloitte UK Karen Truyers, Senior Manager Sandeep Shinde, Manager
Agenda
• Introduction
• Global and EU VAT developments
• VAT Compliance 2.O: MTD, SAF-T, real time reporting and split payment updates
• Pan EU VAT compliance update
• Conclusion
2
Global and EU
VAT developments
3
GCC
Gulf Cooperation Council states (GCC)
VAT Implementation progress timeline
All GCC countries to
implement VAT by 2019?
GCC VAT
Bahrain, Oman and Qatar
Agreement Domestic are still considering VAT
signed by all legislation implementation end 2018/
six Member in KSA & January 2019. No official
States in June UAE announcements yet
2016 released
2016
2017 2018 ‘18 2019
UAE & KSA Kuwait is rumored to
commit to further postpone the
go live on 1 implementation to 2021
January
2018
1 January 2018
VAT went live in the UAE & KSA
5
Gulf Cooperation Council states (GCC)
UAE and KSA – compliance highlights
UAE KSA
• Voluntary disclosure to be • Stricter approach:
submitted within 20 business high number of VAT
days of discovering an error inspections already taken
(VAT 211) place and penalties for non-
compliance
• Using daily exchange rates
from the Central Bank’s • Extensive guidance published
published list only on Record keeping and VAT
invoicing requirements
• Bank account validation letter
must be submitted when
requesting a VAT refund
Intra-GCC transactions are still considered
as imports/exports
Deloitte Middle
East Tax Handbook
6
European Council & Commission
European Council & Commission
Progress towards e-commerce and definitive VAT
regimes
Communication on the future
of VAT Digital Single Market Strategy VAT action plan
December 2011 May 2015 April 2016
Definitive VAT regime proposals
October 2017
E-commerce proposals
Directive amending the VAT December 2016
Directive:
• Concept of certified taxable
person (CTP)
• ‘Quick fixes’
• Cornerstones of the
definitive VAT system Digital
Entry into Services Tax ?
Amending of the Adoption of VAT e-Com force of MOSS January 2020
Implementing package improvements
Regulation (EU) No December 2017 January 2019
282/2011:
Entry into
4th “quick fix”
force
Amending of the VAT of new VAT
Regulation on SME and Digital Definitive VAT
rules for
Administrative VAT rate Taxation regime proposal
online sales of
Cooperation IT tool proposals proposal (CTP/limited
goods January
January March 2018 ambition)
2021
2018 May 2018
2022: Definitive VAT
regime? 8
Full taxation of
destination principle
European Council & Commission
Progress towards e-commerce and definitive VAT
regimes
Definitive VAT regime E-COM Package
Quick Fixes Current OSS for TBE services
Legal issue with a 5th quick fix -> 1 Improvements (invoicing rules, EUR 10k
year delay expected (entry into force threshold, opening for VAT registered
in 2020 rather than 2019) non-EU businesses) are still expected
for 2019
Destination principle and taxable Extension of OSS to distance sales
intra-EU supply Proposals of Implementing Regulations
Austrian presidency in favour of are drafted and expected to be issued
generalised reverse charge by the Commission still in 2018
CTP Concept Simplified customs arrangements
Many Member States still to be Union Customs Code (and UCC IA – DA)
convinced -> Back to Commission for will be adapted
“rework”
Detailed Proposals for Definitive Supplies facilitated by electronic
VAT regime interfaces
It will not be discussed in the Council Implementing provisions are drafted
before 2019 and discussions are progressing (e.g.
VEG on September 24)
9CJEU cases
European Court of Justice
Interesting CJEU cases
Case Facts
2008-2010 2011 3
Biosafe, Biosafe
C-8/17, 12 incorrectly Correction Expired right to
April 2018 charged the (debit notes) deduct
reduced rate
The substantive and formal conditions giving rise to a right to deduct VAT were met only after
Comment Decision
the adjustment since beforehand it was objectively impossible to exercise the right to deduct
No corrective document
No knowledge about the additional VAT due
Substance
Right to deduct cannot be denied on the ground that the period for the
over form
exercise of that right started to run from the date of issue of the initial
invoices and had expired.
Direct effect
11European Court of Justice
Interesting CJEU cases
Case
Facts
• Gamesa was declared an ‘inactive taxpayer’
on the ground that, for half a calendar year, it had not filed any of its
Siemens returns
• VAT on the purchases was recovered via later VAT returns when the
Gamesa,
VAT number was re-activated
C-69/17, 12
September
2018 Tax audit
Rejection of its right of deduction + penalties
on the ground that the acquisitions were made in the period during
which it had been declared inactive
Comment Decision
A taxable person is entitled to assert its right of deduction
by means of VAT returns filed or invoices issued after the reactivation of its VAT identification number
Substance over even though the acquisitions were made during the period in which its VAT identification number was
form principle revoked
in so far as
the substantive requirements conferring a right to deduct input VAT have been satisfied
and that right of deduction is not being invoked fraudulently or abusively
12European Court of Justice
Interesting CJEU cases
Case
Facts
Immovable let
Marle, Question referred:
C-320/17, 5
Acquisition of shares Does the (intended) letting of an immovable property to
July 2018 a subsidiary constitutes direct or indirect involvement in
the management of that subsidiary.
Holding
MARLE GROUP
Comment Decision
a consideration Letting of a building by a holding company to its subsidiary
(ECJ Larentia) ‘involvement in the management’ of that subsidiary
economic activity
right to deduct the VAT on the expenditure incurred for the purpose of acquiring shares in
that subsidiary
AG opinion
Expenditure connected with the acquisition of shareholdings
Ryanair
belonging to its general expenditure + fully VAT deductible if the holding involves itself in
the management of all its subsidiaries
only partially belonging to its general expenditure + proportionally VAT deductible if the
holding involves itself in the management of only some of those subsidiaries
13VAT Compliance 2.O
(MTD, SAF-T, real time reporting
and split payment updates)
14Making Tax Digital (MTD)
Making Tax Digital
16Making Tax Digital
17SAF-T
SAF-T updates
Poland
• Since July 2018 all taxpayers are subject to a full on-demand SAF-T
• Discussions are taking place to abolish the VAT return in 2019
19Real time reporting
Real time reporting
Hungary
•Since 1 July 2018 •Immediately ~ real time
•All taxpayers with a VAT (within 24 hours requirement has been
registration in Hungary removed)
•B2B transactions above •Without any human intervention
the threshold of HUF
Technical •Upload file in XML format
100000 (VAT amount)
Scope (new version released)
•B2C transaction are out
of scope details •Unique identification number – to be
maintained in the ERP system
•LSPL threshold has been reduced
from HUF 1 million to HUF 100 000 Penalties & •Penalties up to HUF
500 000 per invoice
•Local Sales Listing return is no
longer required in certain Impact further •Official guidance &
circumstances guidance FAQ in English : Link
•Unique identification number is not
required to be mentioned on the
invoice (as previously proposed)
• 1865M box 6 and 1865A-01-05 box 107 are
not required to be completed in the periodical
VAT return
• System outage for more than 48 hours:
o Online Invoicing System
(https://onlineszamla.nav.gov.hu)
o Manual reporting
21Real time reporting
Canary Islands (IGIC)
Due dates
Dates of implementation
Issued invoices: 4 days from its issuance.
However, always before the 16th day of the
Entry intro force from 1 January 2019
following month from the accrual date.
Received invoices: 4 days from its accounting. Mandatory for monthly taxpayer who are:
However always, before the 16th
day of the (i) registered in the Monthly VAT Refund
following month from the accrual date. Register, (ii) registered under VAT Grouping
Regime, or (iii) transactions performed
during last year exceeded EUR 6.010.121,04.
Optional for taxpayers who voluntary want to
enroll the system, by submitting the
corresponding census form.
Submission/due date change for
other Canary Islands returns
Following returns will not be required upon SII
implementation:
Annual IGIC return (form 425)
Local sales and purchase listing (form 415)
Ways of submission
Monthly (form 340) Tax Authorities on-line platform
Change in the statutory date:
Monthly IGIC return (form 420): due date extended to
the last day of the month, following the end of
reporting period
New VAT return form:
A new VAT return form will be introduced applicable
from 1 January 2019
22Split Payment
Split payment
Key updates
Romania
• In force since 1 March 2018
• Mandatory, in case of unreliable taxpayer
• Special VAT Bank Account Register
• Register of ‘Reliable’ taxable persons
• Customer to split the taxable base and VAT payment
Poland
• In force since 1 July 2018
• Optional regime (however it might become mandatory for certain fraud-
prone industry sectors such as telecom)
• A single payment into supplier’s Polish bank account. The supplier’s bank
then segregates the taxable base and VAT amount. VAT then flows into a
special account (“VAT account”)
United Kingdom
• Public consultation closed on 29 June 2018
• A technology-based split-payment mechanism, which extracts VAT in real time
and deposits it with HMRC
24E-invoicing via government platform
E-invoicing via government platform
Italy
Scope:
Established
companies only
Foreign companies
with a direct VAT
registration are no
longer in the scope
Start Date:
1 January 2019 Transmission of e-
invoices:
- The Interchange
(Also e-invoicing Mandatory system (SDI)
applicable to supplies E-Invoicing
of fuel has been - XML / Fattura PA
postponed from 1 format
July 2018 to 1
January 2019)
Spesometro return is set to be abolished from 1
January 2019*. (A new return is expected to replace Spesometro)
Paper invoices can be requested by foreign
established companies VAT registered in Italy.
.
26E-invoicing via government platform
Portugal and Greece
Portugal
• Mandatory e-invoicing will be introduced for B2G transactions from 1 January 2019,
• Taxpayers are expected to use a designated via the government platform (further details
are expected in October)
Greece
• Greece is also considering introduction of a mandatory e-invoicing for B2G transactions
from 1 January 2019; and
• Other transactions as from 1 January 2020
27Pan EU VAT compliance
update
28VAT rate updates
VAT rates
Average VAT standard rate remains stable in the EU
source: The EU Taxation Trends report 2018
• In June 2018, the EU Council has adopted 15% as the minimum standard rate (on a 30
permanent basis)VAT rates
Recent updates
Greece
• Special VAT status will be abolished for the remaining 5 islands from 1 January 2019
(Lesbos, Chios, Samos, Kos, and Leros)
The Netherlands
• The reduced VAT rate will increase from 6% to 9% from 1 January 2019
Croatia
• The standard VAT rate may decrease from 25% to 24% from 1 January 2019 - subject to
further approval from the Parliament.
31General VAT compliance updates
General VAT compliance updates
Input VAT recovery
Italy
• Purchase of fuel, oil and other transport related services from 1 July 2018
provided the payment is performed using one of the following means of payment
methods:
o Cheque or electronic bank transfer, any other e-payment method
o Direct debit
o Credit card, debit card, prepaid card
Greece and Hungary
• VAT incurred prior to VAT registration can now be recovered in certain circumstances
Portugal
• In a recent domestic case, the Administrative Court has concluded that the right to
deduct VAT incurred with a ceased supplier is not restricted; and therefore the
customer is entitled to a VAT deduction in respect of such transaction
• The tax authorities have also published recent binding rulings on bad debts
concerning:
o Sale of receivables and
o Due date by which the invoice is considered as due
33General VAT compliance update
E-filing/ Software/ E-communication
Estonia
• Change of VAT e-filing login system:
o An Estonian nationality ID card is required for e-filing purposes
o In force from 1 January 2019
Norway
• A valid email address is required for primary / authorized contact person to receive
communication electronically from the tax authorities
• Paper correspondence is also abolished in certain cases (such as: notifications concerning
late submissions, change in a VAT registration details). The e-messages will appear on
Altinn (official web platform of the tax authorities)
United Kingdom
• Two-step verification has become mandatory for all taxpayersGeneral VAT compliance updates
Penalty regime
Belgium
• New policy on VAT administrative penalties
o Applicable retrospectively for all penalties issued since 1 January 2018
o Based on the assumption that a taxpayer is in good faith
o Under the new policy, the imposed penalty will be fully waived at the taxpayer’s
request if the following conditions are (cumulatively) met: -
- It is a first offense of its nature (in a reference period of four years)
- The offense was committed in good faith
- The offense has no impact on the amount of VAT due
Latvia
• Proposed changes in the penalty legislation from January 2019
Czech Republic
• Czech tax authorities have started freezing bank accounts of the taxpayers having
recurring outstanding VAT liabilities (i.e. unreliable taxpayers)
35General VAT compliance updates
New bank account of the tax authorities
Germany
• Some local tax offices in Germany have recently changed their bank accounts used for
receiving VAT payments from the taxpayers
• A full list of valid bank account details of the German tax authorities can be found using
the tax authorities website
Romania
• Non-established companies should use the new IBAN account of the tax authorities when
performing a payment of VAT liability in Romania
Bulgaria
• Since 1 August 2018, the bank account is changed for all companies registered with NRA
Sofia, Office Center
36General VAT compliance updates
Import VAT
United Kingdom
• A new Customs Declaration Service (CDS) has been implemented in the UK from 1
August 2018 and will replace the existing Customs Handling of Import and Export
Freight (CHIEF) system over three waves:
o Wave 1: August 2018 - HMRC invited certain companies to test/implement the
system
o Wave 2: November 2019 – CDS will be officially launched for all importers
o Wave 3: Date TBC – CDS will also become available for all exporters
• The new system is intended to meet the requirements Union Customs Code (UCC)
concerning the additional data requirements
• A CDS compatible software is a requirement
Portugal
• In case of imports, exchange rate published via monthly circular should be used to
determine the Euro equivalent of customs value
37General VAT compliance updates
Other
Hungary
• LSPL return: HUF 100 000 (VAT amount) per invoice, from 1 July 2018
Poland and Canary Islands
• New VAT return form is applicable from 1 July 2018 and 1 January 2019 respectively
Malta and Luxembourg
• VAT grouping is introduced from 1 June 2018 and 31 July 2018 respectively
Sweden
• PAYE report needs to be submitted per employee from 1 January 2019
Switzerland
• Radio and Television corporate fee (RTV) will be introduced from 1 January 2019
• Applicable only the Swiss established companies
• Foreign companies are out of scope
38Conclusion
Upcoming Webinar
Brexit
Title:
Brexit - What Would a No-Deal Mean for VAT Compliance?
When:
26 September, 11 am CET
Registration:
Link
40Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms. Deloitte provides audit, tax and legal, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 225,000 professionals, all committed to becoming the standard of excellence. This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication. © 2018 Deloitte Belgium
You can also read
