Global VAT Guide: February 2024

Belgium

A message appeared on the Federal Public Service Finance website that the current applicable way of submitting of excise refund request will expire in 2024 (an exact date is not specified).
A new fully online way of submission is presented – PDIE 2 – with which there is no need to print the application and send it by post.
To access the new online application the claimants need to register for the services first.

Click here for information and details of the documents needed to register for the services.

It should be mentioned that login with a commercial certificate is not a possible option.

Bulgaria

By Law on amendments and additions to the Law on Value Added Tax (Published in Official Gazette No 106, dd 22 Dec 2023) several amendments were introduced.

Some of the changes that came into effect on 1 January 2024 include:

Deferred payment of the tax in case of centralized clearance for import of goods upon completing certain listed conditions (i.e. holding a permit for centralized clearance of goods). The obligation to pay the tax for the relevant period no later than the 16th of the month following the month of acceptance of the customs declaration, newly added Art 57f, 57g и 57h);

80 (2) is changed as to waive the requirement to adjust already claimed VAT Deduction in case of proven or confirmed destruction, loss or absence of goods as a result of circumstances l such as:

• force majeure;
• accidents or catastrophes for which the person can prove that they were not caused by his fault or by the fault of the person who uses the goods;
• natural fibers as a result of a change in the physico-chemical properties during the storage and transportation of goods, determined within the established norms for the limit sizes of natural fibers according to a normative act or company standards and norms; and
• other events, beyond the control of the taxable person, for which the person can prove that they were not caused by his fault;

Change in certain formalities regarding documenting supplies in case of late registration (Art. 102, newly added sections (6) to (12);

Option so electronic cash register receipts are handled electronically to the recipient (art 118, section (21), newly added;

Certain administrative penalties are significantly increased (art 182, art 185)

Ireland

On 1 January 2024, the Revenue updated its website in the sections “VAT Registrations” and “VAT Rates” – changes adopted with the 2024 Budget:

From 1 January 2024 the VAT registration threshold has been changed.

• For persons supplying services only:
  • Increase from €37,500 to €40,000
• For persons supplying goods:
  • Increase from €75,000 to €80,000 for persons supplying goods

From 1 January 2024, the below VAT rates are in place:

• 9% VAT rate on gas and electricity supplies is extended until 31 October 2024
• The VAT rate on the supply of electronic books and audiobooks is reduced to 0% (This VAT rate was previously 9%)
• The supply and installation of solar panels on school buildings reduced to 0%

Italy

The Annual Return form for 2024, reportable period January to December 2023 was published on 22 December 2023.

The English version of this form is still not published.

The due date to file the annual return from 1 February 2024 until 30 April 2024.

Some of the changes to the from include:

• Box VA16 is removed;
• The rate of 7% is replaced with 7.3% in all tables where mentioned; and
• Page 23 or Quadro CS is removed from the 2024 (taxable period 2023) and thus from all related calculations

Lithuania

On 20 December 2023, the Lithuanian State tax inspectorates published order no. VA-97 amending the rules for completing and submitting VAT refund requests by taxpayers outside the EU.

The main change is the electronic way of submission of the refund application (Form FR0445) via STI portal – VMI Services (My VMI / Mano VMI).

• The application must be accompanied by copies of VAT invoices and a Certificate showing that the claimant is a VAT payer in his own country;
• The accepted format of the files is docx, xlsx, pptx, ppsx, odt, ods, odp, pdf, tif, tiff, jpg, jpeg, jfif, png, adoc. The size of one file cannot exceed 4 MB, but the number of submitted files is not limited; and
• Corrective applications are not allowed. If corrections are needed, the initial application must be cancelled and a new one must be submitted.

The new rules enter into force on 1 January 2024.

Luxembourg

By Law of 22 December 22 2023, amending the amended law of 12 February 1979 concerning value added tax, effective 1 January 2024 the scope of supplies subject to reverse charge is expanded as to include certain listed deliveries of goods where the amount exceeds EUR 10,000 excluding tax.

These are:

• Deliveries of mobile telephones, namely devices designed or adapted for use in connection with a licensed network operating at specific frequencies, whether or not they have any other use;
• Deliveries of integrated circuits such as microprocessors and central processing units, before their incorporation into end-user products;
• Deliveries of game consoles, computer tablets, laptops and headphones; and
• Deliveries of raw or semi-finished metals, as referred to in Annex F, including precious metals, but excluding those covered by the special profit margin taxation regimes in the field of goods second-hand objects of art, collectibles or antiques, established in Articles 56 ter to 56 ter-3 , or by the special regime applicable to investment gold, established in Article 56 quater.

Portugal

Portuguese Parliament approved an extension until 31 December 2024 for the PDF invoices to be accepted and considered as electronic invoices for all purposes provided for in tax legislation.

From January 2025, companies must use a qualified electronic signature for their PDF or XML invoices to be legally recognized.

Saudi Arabia

The Zakat, Tax and Customs Authority (ZATCA) exempted its taxpayers from fines, penalties and violations and extended its validity until June 2024.

This initiative initially introduced form 1 June 2022 until 30 November 2022.

An extension was announced at the end of November 2022 and made the amnesty applicable until 31 May 2023.

Then on 25 July 2023, ZATCA announced a new extension until the end of the year, 31 December 2023.

The current extension was announced on 29 December 2023 and is applicable until 30 June 2024.

The exemption covers the following:

• Fines for late registration in all tax systems;
• Late payment;
• Late filing of returns fines in all tax systems; and
• Fines to correct VAT returns, as well as fines for violations of VAT field control related to applying the e-invoicing regulations and other general regulations.

Turkey

On 30 December 2023, the Ministry of Treasury and Finance published in Official Gazette Communique No. 556 to the Tax Procedure Law updating thresholds for 2024 by the revaluation rate.

The threshold for issuing simplified invoices from1 January 2024 has been increased from TRY 4,400 to TRY 6,900.

Work with real VAT experts

With over 15 years of experience in the area of VAT compliance and consultancy, we handle all countries and languages where VAT obligations exist. We have a dedicated & centralized team of VAT experts, with a reputation of excellence within all global tax offices ready to speak to you about your VAT obligations.

Taxback International

With over 15 years of experience in the area of VAT compliance and consultancy, we handle all countries and languages where VAT obligations exist. We have a dedicated & centralized team of VAT experts, with a reputation of excellence within all global tax offices ready to speak to you about your VAT obligations.