Global VAT Guide: August 2024

The August edition of the Global VAT Guide features comprehensive updates on VAT regulations and developments from Belgium, Denmark, France, Greece, Latvia, Slovenia, Argentina, Switzerland, and the United Kingdom.

Belgium

On 11 July 2024, the Federal Public Service for Finance announced structured invoicing between companies subject to VAT will be mandatory from 1 January 2026.

The software of companies will need to be adjusted to enable the direct exchange of invoices.

In addition, companies will need to adjust their systems to receive structured electronic invoices from their suppliers.

The tax authorities will develop a list of compliant software providers.

Companies must send all structured electronic invoices via the decentralized Peppol network and install the required software for that purpose.

Issuing an invoice as a PDF by e-mail or via a platform will no longer be accepted.

The obligation does not apply to invoices that are sent to private individuals.

The new rules introduce two tax support measures to compensate for the costs of carrying out the technical adjustments:

• From 1 January 2025, the investment deduction for digital investments will be increased to 20%; and
• For the taxable periods 2024 to 2027, small businesses and independent contractors using subscription plans can apply an increased fee deduction of 120% for billing programs.

Denmark

In application of a law adopted in June 2023, all VAT-registered companies must state once a year, in connection with a VAT return, whether the company has, in addition to its VAT-liable activities, had VAT-exempt activities.

Effective 1 June 2024 the VAT return form changes and additional boxes were added so provisional pro-rata estimate on monthly or quarterly basis are indicated so the taxpayers can specify:

• Have they carried out VAT-exempt activities;
• Deductible percentage; and
• Financial Year End Date.

The new form version is applicable for reporting periods including June 2024 – i.e. the Monthly VAT return for June 2024 and the Quarterly VAT Return for the period April – June 2024.

The first due dates for filing are:

• 19 August 2024 for June monthly return; and
• 2 September 2024 for Q2 2024.

France

On 26 June 2024, the French Tax office in charge of VAT compliance obligations of the non-established companies (DINR) held a webinar presenting some recent developments and the good practices of ‘guichet unique’ – the e-portal for VAT registrations.

The topics discussed included:

• From 1 October 2024 the only way of correspondence with DINR – via Messagerie;
• DINR provided certain recommendations on how to expedite the VAT registration process i.e. by specifying:
  • Detailed description of the activity, of supply chain and of the reason for registration
  • An appropriate nature of activity code APE Code of Activity
  • Turnover in Euro – as an indication of a possible future activity
• DINR further commented on acceptance of an advance electronic signature upon completing registration/de-registration formalities.

Greece

The Greek Authority AADE has published Decision A.1058/2024/2 May 2024, whereby introducing a form version change:

• VAT Return form “050 VAT VERSION 2016, F2 TAXIS” is abolished for transactions from 1 July 2024 onwards;
• VAT Return form “050 VAT VERSION 2024, F2 TAXIS is applicable for transactions from 1 July 2024 onwards;
• Changes include:
  • New return boxes for intra-community transactions with 3% and 4% VAT rates;
  • Exemption for transactions in Mount Athos area with return box 912 added; and
  • Old return box 400 removed, new return boxes 313, 314, 315 added.

The 2024 Form Version applicable for reporting periods starting 1 July 2024:

• First due date to submit a Monthly Return for July 2024 is on 31 Aug 2024

Latvia

The Ministry of Finance presented draft amendments to the VAT Law, to change relevant EU directives and make other adjustments to legal regulation of VAT.

The draft amendments change the VAT registration threshold for taxable persons established in Latvia.

Under the new rules, businesses will not need to register for VAT if the total value of goods and services supplied in Latvia, excluding VAT, is below EUR 50,000 per calendar year.

If in a calendar year, the registration threshold is exceeded by no more than EUR 5,000, taxable persons have the right to postpone their VAT registration until the end of the calendar year.

Currently, the VAT registration rule provides that taxable persons do not need to register if the total taxable value of the goods and services supplied by them in the immediately preceding 12 month period does not exceed EUR 50,000.

In addition, the draft amendments provide for:

• Adjustments of the VAT regulation for applying a zero percent VAT rate to the export of goods within the framework of humanitarian aid and charity, and the special VAT regime applicable to supplies of second-hand goods, works of art, collectors’ items and antiques;
• Clarification of the definition of the acquisition of goods in the EU territory in certain cases;
• Simplification of applying the zero percent VAT rate for supplies to diplomatic and consular missions registered in Latvia; and
• Improvement of the legal framework in the field of VAT in accordance with EU requirements.

If the draft amendment is adopted, these amendments will come into effect on 1 January 2025.

Slovenia

Slovenia has released a draft law in relation to mandatory B2B e-invoicing.

Slovenia is proposing mandating e-invoice reporting for B2B transactions from 1 June 2026.

Under this new draft law, e-invoices are reported to the Slovenian tax authority in the e-SLOG standard within 8 days of issuance and receipt.

The government’s drat bill is with the National Assembly for review and approval.

B2G e-invoicing with the public administration has been mandatory in Slovenia since 2015.

Argentina

Taxable persons that sell goods or services to final consumers must show VAT and other indirect federal taxes on the transactions separately on the invoice.

Before now, taxable persons that sold goods and services to final consumers were not required to show VAT separately on invoices.

Taxable persons that sell goods and services to final consumers must indicate total price to be paid, as well as the price without VAT and other indirect taxes.

This change will come into effect from 1 January 2025.

Switzerland

On 6 June 2024, the Switzerland FTA (The Federal Council) announced that from 1 January 2025, all taxable companies must submit their VAT returns online via ePortal. 

VAT returns can no longer be ordered in paper format.

The last paper VAT returns will be sent by the Authority by the end November 2024.

This is a finalisation of the process of switching to e-filing of VAT returns in Switzerland.

United Kingdom

As per HMRC official announcement, from 5 August 2024, any request to change your VAT registration details should be made using the VAT online account, and not by using the VAT484 form or any other postal or electronic means.

Updated guidance will be available at ‘Change your VAT registration details’ on the HMRC from August 2024.

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