Global VAT Guide: June 2022 VAT Updates
June 2022 VAT Updates in Belgium
VAT Deadline Extended
The Belgian government has announced the filing deadline for the Q3 2022 / September 2022 VAT return has been extended. The original date was set for 20 October 2022. The filing deadline date is now changed to 25 October 2022.
If a company has a VAT return that contains a refundable VAT credit, the filing deadline is set to 24 October 2022. The VAT payment deadline has not been extended. The payment date is set to 20 October 2022.
VAT Exemption for Small Businesses
Companies that have an annual turnover of below EUR 25,000 in 2021 will soon receive a letter from the tax authorities via MyMinfin. A VAT exemption applies to businesses whose annual turnover in the previous year did not exceed EUR 25,000.
These businesses will not be obligated to:
- Charge VAT to customers;
- Pay VAT to the Treasury; and
- Submit periodic returns.
Businesses that meet the requirements and wish to avail of the VAT exemption need to submit a form 604B via MyMinfin.
June 2022 VAT Updates in Czech Republic
The Czech Republic received authorisation from the European Council to raise the VAT registration for small businesses.
Taxable persons whose annual turnover is no higher than EUR 85,000 will benefit from a VAT exemption.
The VAT registration threshold will be increased from EUR 35,000 to EUR 85,000 until 31 December 2024.
June 2022 VAT Updates in Italy
Extension of Electronic e-Invoicing
From 1 July 2022, Italy will extend the e-invoicing obligation to taxpayers:
- That benefit from the flat-rate basis; and
- Amateur sports associations.
Up until now, amateur sports associations and third sector entities that have revenues up to EUR 65,000 were exempt from mandatory e-invoicing.
From 1 January 2024, micro enterprises with revenues up to EUR 25,000 will be required to issue and receive e-invoices via the SDI portal.
VAT Refund for Non-EU Companies using Fiscal Reps
The Inland Revenue has confirmed that VAT refunds to a non-EU resident company are not allowed in situations where the invoice is made out to an Italian tax representative.
There was one situation where an Israeli claimant planned to import goods into Italy and sell the goods to Italian business customers and all sales transactions would be subject to the reverse-charge mechanism.
The company needed to use an Italian fiscal representative to carry out the import of goods as some customs offices did not allow them to carry out direct imports into Italy because of the lack of an Italian VAT number.
According to Revenue, the existence of the tax representative in Italy does not prevent the use of the simplified refund procedure for Non-EU companies however, the purchase invoices must:
- Be registered in the VAT number of the non-resident; and
- Do not flow into the periodic payments and the annual return presented by the tax representative.
If the above points are not followed, the only person that can recover the VAT is the tax representative who can deduct the VAT paid or request an annual
or quarterly refund according to the indications of article 38-bis of the VAT decree.
June 2022 VAT Updates in Poland
As previously mentioned in our newsletter, Poland was due to introduce VAT groups from 1 July 2022.
The government have decided to postpone the introduction of VAT groups until 1 January 2023.
June 2022 VAT Updates in Portugal
In the coming months, Portuguese taxpayers will need to include an additional element to their invoices – ATCUD codes.
From 1 January 2023, the inclusion of ATCUD on invoices will be mandatory.
An ATCUD code is a unique ID number that will confirm the validity of the invoices.
Companies will need to obtain a validation code from the Portuguese Tax Office.
The Tax Authorities will provide the company with a validation code and this will be used to generate the ATCUD code.
The ATCUD will be valid for at least a fiscal year.
The ATCUD code is made up of two parts and will be separated by a hyphen:
- A sequential number of the e-invoice within a series; and
- A validation code – this will be at least an eight digit code.
June 2022 VAT Updates in Slovenia
The EU Council authorized the application of a higher VAT registration threshold.
Slovenia can apply a threshold of EUR 50,000 through to 31 December 2024.
The EUR 50,000 VAT registration threshold does not apply to foreign taxable persons. Non-EU companies must appoint a fiscal representative.
June 2022 VAT Updates in Sweden
The Swedish government have confirmed a change to the VAT exemption threshold.
Taxable people are exempt from tax on turnover from goods and services that are made in Sweden if:
- The turnover does not excel SEK 80,000 during a tax year; and
- The turnover has not exceeded SEK 80,000 for the two immediate previous years.
June 2022 VAT Updates in Peru
Law number 31452 provides a temporary VAT exemption on the importation and sale of products that are included in the basic food basket until 31 July 2022.
Such items include:
- Poultry meat; and
June 2022 VAT Updates in the United Kingdom
New rules being introduced in the UK and EU will mean digital platforms are required to report income earned by sellers using their platforms to the tax authorities.
The United Kingdom has announced their decision to delay the introduction of reporting rules for digital platforms to 1 January 2024.
The delay will allow more time to prepare for the implementation of these new rules with the first reports due by the end of January 2025.
The new rules will affect:
1 – Digital platforms that allow their sellers to:
- Rent transport;
- Provided personal services;
- Rent immovable property, such as short term accommodation; and
- Sell goods.
2 – Sellers that utilize platforms to provide in-scope activities.
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