Category Archives: Value Added Tax (VAT)

Cross-border rebates and VAT

rebates VAT

Rebates regularly trigger VAT questions. This particularly applies to cross-border rebates. The European Court of Justice (ECJ) has recently commented on this. Basic VAT principle Rebates are price corrections. They decrease the VAT tax base. In case of transactions subject to VAT, the rebate amount is a gross amount including the related VAT. Retroactive rebate […]

VAT Quick fixes: Guidelines for Italy

VAT Quick fixes Italy

The implementation of the VAT Quick Fixes keeps businesses still busy. Now, the Italian Tax Authorities published a new circular letter on May 12, 2020 and a ruling in this matter on April 23, 2020. Both documents give some insight views, particularly on the requirements for the VAT exemption of EU supplies. You can find […]

VAT Quick fixes: Guidelines for Belgium

The VAT Quick Fixes entered into force three month ago. Already before implementation, they triggered many questions as regards the details and how to apply them in practice. Now, Belgium Tax Authorities published a new  circular letter 2020/C/50 giving some guidance. You can find the letter (in Dutch) HERE           Picture: VAT […]

COVID-19: VAT specific actions

Corona crisis VAT Actions liquidity

Businesses face heavy economic impacts due to the COVID-19 crisis. All the more it is important to ensure liquidity. Read here which VAT actions businesses can take.   Check potential VAT reliefs in your country Most of the EU countries meanwhile announced specific VAT actions and reliefs due to the corona crisis. Some countries have […]

How to ensure VAT Compliance

VAT Compliance

The adherence to VAT rules is based on different pillars. Read here how to ensure VAT compliance in all of them.   VAT Compliance requires clean data Adherence to VAT rules starts with proper data in sales and accounting systems. A later correction of wrong data means extra workload. In case of local VAT real-time […]

VAT Quick fixes: Implementation in EU Member States

Quick fix VAT

  The EU has published the implementation status of the four VAT Quick fixes in the single Member States. The overview also includes the references and the texts of the local law, if available. The information are provided by the EU Member States. Thus, it may be possible that the list does not yet contain […]

VAT Quick fixes: EU Commission publishes Explanatory Notes

VAT Quick fixes Explanatory Notes

  Today, the EU Commission’s VAT expert group has released the final version of the Explanatory Notes on the VAT Quick fixes.   Explanatory Notes on the VAT Quick fixes The VAT Quick Fixes will come into effect as of 01.01.2020. They concern the following areas: VAT Identification number and EC Sales list as mandatory […]

EU Council adopts new VAT rules for E-commerce

VAT rules E -commerce

  The European Council has adopted new VAT rules for E-commerce which shall become effective as of 2021. Background On 21.11.2019, the European Council has adopted Council Directive (EU) 2019/1995 establishing new VAT rules for the e-commerce. The new VAT rules are part of the EU’s ‘digital single market’ strategy. They concern distance sales of […]

VAT handling of down-payments

VAT Down payments

  The correct handling of down-payments is a typical “VAT trap”. This article summarizes the most relevant VAT rules for these constellations. What is a down-payment?  A VAT relevant transaction generally requires the supply of a service or good of an entrepreneur for a consideration in return. In case of a down-payment, the recipient arranges […]