Global VAT Guide: November 2021 VAT Updates
November 2021 VAT Updates in Belgium
The Walloon government has announced that from 1 January 2022, invoices in word and PDF format sent by e-mail will no longer be accepted. Electronic invoices will be the preferred method for B2G invoicing. B2G suppliers can send invoices via post. From January 2022, invoices must be sent to the following address, SPW Finances – Centre de scanning – Avenue Gouverneur Bovesse 29 – 5100 Jambes.
When issuing B2G invoices, the below must be provided:
- Invoice date;
- Invoice reference;
- VAT / BCE number; and
- Supplier bank account number.
Taxpayers can send e-invoices through the Peppol network to public entities or submit invoices manually using the Mercuruis platform.
November 2021 VAT Updates in Bulgaria
Bulgaria has announced their 2022 Intrastat thresholds:
- Dispatches – BGN 780,000; and
- Arrivals – BGN 520,000.
November 2021 VAT Updates in Greece
As previously mentioned, the IAPR (Independent Authority of Public Revenue) created a platform where companies that are registered in Greece must declare certain tax and accounting data electronically using the book keeping application called my Data Accounting and Tax Application (myDATA).
myDATA will digitize the tax and accounting declarations of companies with the issuance of electronic accounting books.
Companies need to report:
- A synopsis of their expense and revenue documents;
- Characterising recorded transactions by type; and
- Record all necessary accounting entries (payroll, revenue and depreciation etc).
The myDATA platform will have two categories of e-books:
- The analytical book – companies will record a summary of all tax documents supporting their revenues/expenses, characterize the nature of their transactions and make all necessary year-end account entries to determine the annual accounting/tax results; and
- The summary book – companies will report aggregate monthly and annual accounting and tax results and any related tax liabilities.
From 1 October 2021, Greek taxpayers with revenues over €50,000 must report their sales invoices through the myDATA platform.
From 1 November 2021, all other taxpayers must begin reporting their sales.
From 1 January 2022, companies must report all summary and classification data of their revenue and expenses.
All historical data that was issued between 1 January 2021 – 30 September 2021 or 31 October 2021, must be transmitted to my DATA by 31 March 2022. The submission of data through myDATA must be completed before the 20th day following the end of the month in which the invoices were issued.
November 2021 VAT Updates in Hungary
From November 2021, Hungary will be offering pre-completed VAT returns to taxpayers, eVAT. This will decrease the administrative burden of companies. The first draft VAT return becomes available for the tax period October 2021. This means the first draft VAT return will be available from 12 November 2021. The drafts will be prepared using the data that is reported to the Hungarian Tax Authority.
This is voluntary and taxpayers can review their draft VAT returns and make changes online.
November 2021 VAT Updates in Latvia
The Ministry of Finance in Latvia prepared a report in relation to the introduction of e-invoicing and the Cabinet of Ministers have shown their support. The report mentions a plan to introduce mandatory B2B e-invoicing from 2025.
At present, local and state governments must comply with the EU e-invoicing specifications and must have the ability to accept e-invoices in public procurement.
November 2021 VAT Updates in Netherlands
The Netherlands Tax Authorities are urging taxpayers that are still using the old business portal for filing VAT returns to switch to a different filing method.
From 1 January 2022, this old business portal will no longer be available for the majority of taxpayers.
From 1 January 2022, taxpayers will need to file their VAT returns through:
- A tax service provider;
- Filing/administrative software; or
- The new portal, Mijn Belastingdienst Zakelijk.
The current online portal will be migrated to a new platform, Mijn Belastingdienst Zakelijk. This portal will only be accessible via eHerkenning digital authentication system with a level 3, or higher, security account. Companies that do not have an eHerkenning account that currently use the old portal should obtain this account as soon as possible.
The first VAT returns of 2022 must be submitted in the new portal, at the latest:
- 1st monthly return – February 2022 (January 2022 VAT return)
- 1st quarterly return – April 2022 (Q2 2022 VAT return)
Taxpayers that cannot register in the Trade Register of the Chamber of Commerce will be able to continue to use the old business portal for the VAT return for now.
November 2021 VAT Updates in Portugal
On 11 October 2021, the proposal for the 2022 State Budget was submitted to the Portuguese National Assembly. The proposal included changes to the submission deadline for VAT returns and the payment of VAT due on these returns.
The proposed deadline for the submission of VAT returns is:
- Monthly VAT returns for taxpayers with a turnover that exceeds €650,000 in the previous year, must be submitted by the 20th day of the second month following the tax period; and
- Quarterly VAT returns for taxpayers with a turnover that does not exceed €650,000 in the previous year, must be submitted by the 20th day of the second month following the tax period.
The proposed payment date of the VAT due is:
- For monthly VAT returns, the payment deadline is the 25th day of the second month following the tax period; and
- For quarterly VAT returns, the payment deadline is the 25th day of the second month following the tax period.
It was announced on 1 November 2021 the parliament rejected the 2022 draft budget. It is expected that there may be early elections in 2022, a new budget bill will likely follow this.
November 2021 VAT Updates in Romania
In October 2021, Romania published Government Ordinance no. 8/2021 in the Official Gazette. This ordinance relates to the implementation, administration and operation of the national e-invoicing system. The implementation of this system will lead to an increase in the effectiveness and efficiency in collecting taxes and duties.
Some things mentioned in the ordinance are:
- General rules for sending, validating, receiving and processing electronic invoices for B2G transactions;
- Functionality of the system and the set-up and registration into the e-Invoice Register;
- The Romanian e-invoice system, RO e-factura, will become operational within a maximum of 30 days from the date on which the Emergency Ordinance enters into force; and
- E-invoices will be subject to the general rules on invoicing provided by the Fiscal Code.
E-invoicing through the system is not mandatory and can be used for B2G or B2B transactions. For now, this programme allows for the upload, download and storage of invoices relating to B2G transactions.
For B2G transactions, once an operator has opted to use the new system, it must do so for all B2G transactions. For B2B transactions, both parties involved must be registered in the RO e-invoice register.
This register is public and will be displayed on the ANAF website.
November 2021 VAT Updates in Slovakia
The National Council of the Slovak Republic has passed an amendment bill to the VAT Act to introduce the obligation for new and existing VAT payers to notify their business bank accounts (domestic, foreign and in any currency) from 15 November 2021. The Financial Directorate will maintain and publish a list of VAT payers’ business bank accounts on their website.
The obligation to notify applies to existing and new VAT payers as follows:
- Taxable person registered in the Slovak Republic as a VAT payeron 15 November 2021 will be obliged to report all accounts that they use for business subject to VAT by November 30, 2021; and
- Taxable persons registered as a VAT payer from 15 November 2021 will be required to comply with the reporting obligation immediately from the date on which they became VAT payers or on the date on which they set up their business bank account if they have already been registered as VAT payers by the tax office.
Any subsequent changes, addition, or cancellation of bank accounts also need to be reported immediately.
The notifications will have to be made using the electronic form published on the Financial Directorate’s website that will be pre-filled with the VAT payer’s bank account details known to the tax administration. The VAT payer will have to identify and mark the bank accounts still in use or add new bank account numbers of which the tax administration is unaware. The business bank accounts subject to notification can be domestic, foreign, in any currency. Non-compliance with the notification obligation will be subject to a fine of up to EUR 10,000 and the refund of any input VAT may be affected as any refund will be made only to a notified business bank account.
The obligation is an anti-avoidance measure and customers paying their supplier invoices on a bank account that is not listed on the date of payment will be jointly liable with the supplier of any VAT due in case of non-declaration. The joint liability ceases if the customer pays only the invoiced VAT amount to the listed bank account of the supplier. This is a new method of tax payment called split payment, which allows customers to pay only the tax base to the supplier and pay the tax directly to the supplier’s listed account which is administered by the tax authorities. Therefore, customers should now pay attention to the supplier’s bank accounts to which they are required to make payments to minimise the risk of incurring any liability.
November 2021 VAT Updates in Northern Ireland
From 1 January 2022, movements between Great Britain (England, Scotland and Wales) will no longer be covered by Intrastat.
Intrastat will only apply for movements of goods between Northern Ireland and the EU.
From 1 January 2022, the Intrastat thresholds will be:
- £500,000 for arrivals (NI imports from EU); and
- £250,000 for dispatches (NI exports to EU).
November 2021 VAT Updates in Vietnam
Vietnam is proposing a 30% VAT rate reduction in order to boost economic recovery.
The reduction in the VAT rate will apply from 1 November 2021 to 31 December 2021.
This will apply to certain goods and services such as:
- Travel agency services;
- Tour operators;
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