EU VAT updates: June 2020
VAT News Updates
8 June 2020: VAT updates from EU countries such as Poland, Italy and Finland.
Italy: Prepopulated VAT returns delayed until 2021
On 19 May 2020, the Italian Council Ministers approved Decree-Law no. 34.
With this came the news that the pre-populated VAT returns would no longer be introduced from 1 July 2020, this date has now been pushed back to 1 January 2021.
The plan for the prepopulated VAT returns is to take the transactional information processed through the Sdl e-invoicing system and the Esterometro to pre-populate a VAT return for resident Italian entities – these pre-populated forms will be regarded as drafts.
Businesses will have the ability to review and amend the pre-populated return before approval. The taxpayer will then later submit the approved draft return.
Italy: VAT rate increase postponed
The Italian Council Ministers approved Decree-Law no. 34 and with this also came the announcement to withdraw the planned increase to Italy’s VAT rates due to COVID-19 worries.
The below rates were due to increase:
- Standard rate increase from 22% to 25% on 1 January 2021. A further increase of the standard rate to 26.5% was planned for 1 January 2022; and
- An increase in the reduced VAT rate from 10% to 12% from 1 January 2021
This decision was made as part of a range of measures announced in May 2020 and the increase in these VAT rates has been postponed for the foreseeable future.
Poland: e-Invoicing 2021
In another attempt to reduce the VAT gap in Poland, the Ministry of Finance is set to introduce a centralised e-invoicing platform in 2022.
The Minister mentioned the government is considering many different approaches to introducing e-invoices in Poland – including an exchange platform where suppliers and buyers can exchange invoices electronically.
At present, Poland allows the use of e-invoices as a post audit regime without involvement from the tax authority.
The exact details of the new e-invoicing system are not known yet, but it is expected to involve the tax administration during the issuance process, i.e. Poland will move from post audit regime to a clearance regime.
It is believed that the Polish government will not request additional data from taxpayers as a result to introducing an e-invoice system but they will expect to receive the information quicker.
E-invoicing would communicate data in real-time to the tax authority and will therefore improve the overall efficiency of the tax system.
Businesses will benefit from the simplification and security of a standardised and centralised e-invoicing system. Other benefits include the availability of downloadable invoices for the buyers.
Poland: SAF-t delay
The Polish Ministry of Finance has announced that the new version of the SAF-T (JPK_K7) reporting regime that was due to be introduced on 1 July 2020 has been delayed until 1 October 2020.
To meet the expectations of taxpayers and to relieve them of the new obligations in connection with the current state of the Covid-19 outbreak, the deadline for the mandatory submission of new JPK_VAT for all taxpayers will now begin from October 2020.
It is hoped that the new JPK_VAT will be an analytical tool that will help the administration work even more efficiently and will also benefit companies as there will no longer be an obligation to submit VAT-7 and VAT-7K.
Finland: Threshold increase
Finland is set to increase the annual turnover threshold from €10,000 to €15,000 for VAT registration of businesses established in Finland. In May 7 2020, the European Commission published a proposal for a Council Implementing Decision authorising Finland to introduce this special measure.
These new rules will apply from 1 January 2021 to 31 December 2024.
This threshold increase will remove the VAT obligation for businesses operating with an annual turnover no higher than EUR 15,000.
It is estimated that the increase in the threshold will benefit around 6,000 additional entrepreneurs.
See more Taxback International Articles
Poland Split Payments: All you need to know.
9th May 2019: Everything you need to know about Poland's Split Payments regime
Italy announces change to VAT regime.
18th July 2019: Changes to the implementation rules for the issuance and receipt of electronic invoices and guidelines for simplified invoices announced.
French Tax Office extends June VAT Deadline
14 May 2020: The 13th Directive June VAT deadline has now been extended from June 30 2020 to September 30 2020.