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Global VAT Guide

Global VAT Guide: January 2024

Bulgaria – Intrastat threshold

The Intrastat thresholds for 2024 are:

Intra-Union exports (Intrastat Dispatches):

  • The threshold is currently set at BGN 1,000,000
  • The threshold will increase to BGN 1,900,000

Intra-Union imports (Intrastat Arrivals):

  • The threshold is currently set at BGN 700,000
  • The threshold will increase to BGN 1,650,000

The threshold for declaring statistical values are:

Intra-Union exports (Dispatches):

  • The threshold is currently set at BGN 29,300,000
  • The threshold will increase to BGN 37,200,000

Intra-Union imports (Arrivals):

  • The threshold is currently set at BGN 11,000,000
  • The threshold will increase to BGN 16,000,000

The threshold for simplified reporting of single low-value transactions will be increased from BGN 390 to BGN 500.

Bulgaria – VAT registration threshold

There have been some amendments to the VAT Act in Bulgaria.

The mandatory VAT registration threshold in Bulgaria will change.

From 1 January 2025, the mandatory VAT registration threshold will increase from BGN 100,000 (roughly EUR 50,000) to BGN 166,000 (roughly EUR 85,000).

Cyprus

The Tax Authorities in Cyprus announced an extension for the submission of the VAT return and payment relating to the period concluding 30 November 2023.

The extended deadline is 15 January 2024.

The extension was necessary due to the temporary suspension of the TFA (Taxpayers Portal) because of an upgrade. This upgrade took place on 18 December 2023 to 21 December 2023.

If submission of the VAT return and payment occurs after the 15 January 2024, this will be considered overdue. Cases of late submission and late payment will be subject to penalties and interest.

European Union

From 1 January 2024, an obligation was introduced for PSP (payment service providers) in the European Union.

From the beginning of January 2024, PSP’s must monitor and report information on cross-border payments.

The reporting requirements will apply to payments facilitated by PSP offering the below:

  • Direct debits
  • Credit transfers
  • Card payments
  • Money remittances
  • E-money

PSP in the European Union will now be required to keep detailed records of payments and payees in relation to payment services it provides each quarter in situations where the below conditions are met:

When PSP provides payment services in respect of cross-border payments:

  • A cross-border payment is when the payer is located within the EU Member States and the payee/beneficiary is located in another Member State, in a third territory or third country; and

When during the course of a calendar quarter, the PSP provides payment services corresponding to more than 25 cross-border payments to the same payee:

  • The number of payments is calculated by reference to the payment services provided by the PSP per Member State and per account identifier

The location of payers and payees is verified by an identifier which can be an IBAN of the payer/payees account, the BIC or an identifier that explicitly gives the location.

If PSP of the payee is not located within an EU Member State, the PSP of the payer will be subject to the record-keeping and reporting obligations for the cross-border payment.

In situations where the PSP of the payee and the PSP of the payer are located within an EU Member State, then the PSP of the payee will be subject to the record-keeping and reporting obligations. The PSP of the payer shall include payment services for the purpose of the calculation of the number of cross-border payments in a quarter.

Records should be kept in electronic format for three calendar years from the end of the calendar year of the payment date.

The records kept must be available to relevant tax authorities.

This data will be stored on a database of the EU. This database is called CESOP (Central Electronic System of Payment Information).

The information to be contained in the records is:

  • Name / Business name of the payee as it appears in the records of the PSP;
  • BIC or other business identifier codes that explicitly identify the PSP;
  • IBAN or any other identifier that explicitly gives the location of the payee;
  • VAT identification number or national tax umber of the payee (if available);
  • Address of the payee as it appears in the records of the PSP;
  • Details of any cross-border payment;
  • Details of any payment refunds identified in relation to the cross-border payment;
  • Date and time of payment / refund;
  • The amount and currency of the payment refund
  • Member State of origin of the payment received by or on behalf of the payee;
  • Member State destination of any refund;
  • Any reference that explicitly identifies the payment; and
  • Information that the payment was initiated at the physical premises of the merchant (where applicable)

PSPs need to report cross-border payment information on a quarterly basis, with the first report due by 30 April 2024.

The objective of this reporting obligation is to provide anti-fraud experts in EU Member States with information that can be used to detect and investigate VAT fraud.

Latvia

Some amendments that are included in the Budget for 2024 that will come into effect from 1 January 2024 include:

  • VAT registration threshold will increase from EUR 40,000 to EUR 50,000;
  • From 1 January 2024 to 31 December 2024, a 12% reduced VAT rate will apply to supplies of some varieties of fruits, vegetables and berries;
  • Participation fees for participating in sports competitions organised by foundations/associations are exempt from VAT;
  • Sports lessons provided by foundations/persons engaged in sports are exempt from VAT; and
  • Fees for children’s stay at children’s camps will be exempt from VAT

Netherlands

On 30 October 2023, the State Secretary of Finance announced that no penalties will be imposed to foreign companies in the OSS Scheme for default payments until 1 June 2024.

In addition, the payment default fines that have already been imposed will be reversed and the objections to payment default fines that have already been imposed will be declared to be well-founded.

This decision was issued in the Government Gazette on 21 November 2023.

This change came into force from 22 November 2023 and is applicable retroactively from 1 July 2021 and all penalties from this date will be waived.

Poland

The Trade and Services Department informs that the President of the Statistics Poland has approved the Intrastat thresholds for 2024.

The thresholds for declaration in 2024 (Simplified Reporting of Intrastat):

Intrastat Dispatches:

  • The threshold is currently set at 2 700 000 PLN
  • The threshold will increase to 2 800 000 PLN

Intrastat Arrivals:

  • The threshold is currently set at 5 000 000 PLN
  • The threshold will increase to 6 200 000 PLN

Thresholds for statistical value in 2024 (Detailed Reporting of Intrastat):

Intrastat Dispatches:

  • The threshold is currently set at 128 000 000 PLN
  • The threshold will increase to 150 000 000 PLN

Intrastat Arrivals:

  • The threshold is currently set at increased from 80 000 000 PLN
  • The threshold will increase to 103 000 000 PLN

Slovakia

The Slovakian parliament has accepted for consideration a draft bill proposing an increase to the VAT registration threshold from EUR 49,790 to EUR 75,000.

The voluntary registration for VAT purposes would remain in effect.

If this draft bill is approved, the new threshold would come into effect from 1 July 2024.

At present, if turnover exceeds EUR 49,790 in the 12 previous consecutive calendar months, VAT registration is obligatory.

If this draft bill and the new threshold is approved, taxable persons with turnover less than EUR 75,000 have the option to request deregistration.

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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.

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