Q4 2023 VAT Updates

Global VAT Guide: Q4 2023 VAT Updates

Q4 2023 VAT Updates in Bulgaria

2024 Intrastat Threshold

In October 2023, the Bulgarian National Statistics Institute published an Order defining the thresholds and reportable data for the Intrastat declaration during 2024.

There is a significant increase in all thresholds.

Below are the threshold changes coming into effect from 1 January 2024.

Thresholds for declaration in 2024 (Simplified Reporting of Intrastat):

  • Intrastat Dispatches:
    • The threshold is currently set at BGN 1,000,000
    • The new threshold is set at BGN 1,900,000
  • Intrastat Arrivals:
    • The threshold is currently set at BGN 700,000
    • The new threshold is set at BGN 1,650,000

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

  • Intrastat Dispatches:
    • The threshold is currently set at BGN 29,300,000
    • The new threshold is set at BGN 37,200,000
  • Intrastat Arrivals:
    • The threshold is currently set at BGN 11,000,000
    • The new threshold is set at BGN 16,000,000

Threshold for Small Consignments for 2024:

  • The threshold is currently set at BGN 390.00
  • The new threshold is set at BGN 500

Reportable data for the Intrastat declaration in 2024:

  • Product Code (Commodity Code)
    • Partner Member state:
      1. intra-Union export – Member state of receipt
      1. intra-Union import – Member state of dispatch
  • Country of Origin
  • Type of transaction
  • Delivery Conditions
  • Mode of Transport
  • Nationality of the Means of transport
    • Region of:
      1. intra-Union export: Region of Origin
      1. intra-Union import: Region of Consumption
  • Net weight
  • Quantity in supplementary unit
  • Value
  • Statistical Value
  • Individual identification number assigned to the partner operator in the Member State of import, in accordance with Article 214 of Directive 2006/112/ EO (for intra-Union exports).
New Filing Obligation

The State Budget Act of Bulgaria for 2023 announced a new filing obligation for VAT Registered persons, which is under the Personal Income Law and Corporate Income Taxation Law.

This is “Declaration under Art. 55, para. 1 of the Income Tax Act and Art. 201, para. 1 of ZKPO”.

The obligation is added in the Value Added Tax Act with the new paragraph 10 of Article 123.

The declaration should be submitted by VAT Registered persons. This includes foreign natural persons with a proxy with a permanent address in the country or by a legal representative.

The information of the proxy or legal representative is populated in “Part III – Data on the authorized person or the legal representative” section of the form.

The below are some of the information that needs to be reported:

  • Amount of cash available in cash registers;
  • Amount of receivables (including from granted loans) from owners, natural persons;
  • Amount of receivables (including from granted loans) from workers, employees, persons employed under a management and control contract, and accountable persons; and
  • Total amount of the three points.

When the total amount of the above points exceeds BGN 50,000 this declaration should be prepared quarterly.

The information should be declared by the end of the month following the quarter.

The very first filing for VAT Registered persons for Q3 2023 was due by 14 November 2023.

NRA Introduce Regime for Mandatory Declaration of Data on Transportation of Goods with High Fiscal Risk

At the end of September 2023, the National Revenue Agency in Bulgaria announced the mandatory filing of advance declaration of data on the transportation of goods with a high fiscal risk.

It applies to vehicles over 3.5 tons that transport goods with a high fiscal risk from another EU member state to Bulgaria or from our country to an EU country.

The obligation came into force from 1 October 2023.

The data that should be declared in advance is:

  • The recipient/buyer of the goods in the case of intra-community purchase;
  • The supplier/seller of the goods in the case of intra-community supply;
  • The acquirer/transferor of the goods in a tripartite operation or the final recipient/first supplier in a chain of consecutive deliveries of goods – identification number, names/designation;
  • Carrier – identification number, names/designation;
  • The means of transport – registration number of the main and additional means of transport;
  • The transported goods – type, quantity, value, date, time, place of unloading/loading and purpose of the goods.

The option to pre-declare data for each individual transport before starting the loading of the means of transport is given to the:

  • Supplier for intra-community delivery within the meaning of art. 7 of VAT;
  • Seller/transferor in a tripartite transaction within the meaning of Art. 15 of VAT;
  • The first supplier in a chain of consecutive deliveries of goods within the meaning of Art. 65a of VAT.

Up until now, the filing of advance declaration of data on the transportation of goods with a high fiscal risk was provided on a voluntary basis.

Q4 2023 VAT Updates in Finland

The Finnish Customs Administration has confirmed the thresholds for Intrastat for 2024.

They threshold will remain unchanged:

  • Intrastat Arrivals: EUR 800,000
  • Intrastat Dispatches: EUR 800,000

Q4 2023 VAT Updates in France

eInvoicing

In September 2023, meetings with parties participating in the development of e-invoicing solution took place.

French tax officials announced revised schedule for implementation of e-invoicing.

The revised schedule includes:

  • Pilot in 2025; and
  • Start of the reform in 2026.

Initially planned for the first half of 2024, the pilot phase will be postponed to 2025.

Non-Established VAT Payers

On 12 September 2023, DINR published updated information on the competent authority in charge of non-established taxpayers.

This included a list of non-EU countries for which no Fiscal Representative is required upon completing the VAT registration and related VAT Compliance formalities.

The listed non-EU countries are: Antigua and Barbuda, Armenia, Aruba, Australia, Azerbaijan, Bosnia-Herzegovina, Cabo Verde, Cook Islands, Curaçao, Dominica, Ecuador, Faroe Islands, French Polynesia, Georgia, Ghana, Greenland, Grenada, India, Iceland, Jamaica, Japan, Kenya, Kuwait, Mauritius, Mexico, Moldavia, Nauru, New Zealand, Niue, North Macedonia, Norway, Pakistan, Republic of Korea, Saint Barthelemy, Saint-Martin, Sint-Maarten, South Africa, Tunisia, United Kingdom of Great Britain and Northern Ireland, Ukraine, Vanuatu.

The listed countries are the countries with which France has executed a legal instrument for mutual assistance with a scope similar to that defined in Council Directive 2010/24/EU of 16 March 2010 and in Council Regulation (EU) No 904/2010 of 7 October 2010.

Businesses with VAT registration and reporting obligations from the remaining countries must appoint an accredited French fiscal representative.

Q4 2023 VAT Updates in Germany

Germany’s Bundestag approved a plan to extend the timeline for implementing an e-invoice issuing mandate.

The first stage will now commence on 1 January 2025.

There will be an obligation to accept structured e-invoices, and companies will be required to issue e-invoices by 1 January 2027.

The bill requires approval from the parliament’s upper house. It is expected this bill will be passed without any issues.

Q4 2023 VAT Updates in Latvia

On 26 September 2023, the Cabinet of Ministers examined the informative report on the development progress of the National Tax Policy Guidelines for 2024-2027.

The informative report includes a proposal to include favourable norms for Latvian based entrepreneurs by increasing the value added tax (VAT) registration threshold from EUR 40,000 to EUR 50,000.

This proposal will be a part of the Budget for 2024, which was submitted for approval in November 2023.

If approved, the increase of the VAT Registration threshold will be applicable from January 2024.

Q4 2023 VAT Updates in Lithuania

The Official Statistics Office has published the thresholds for Intrastat which will be applicable as of 2024.

  • Intrastat Dispatches (Form UPS-01)
    • The threshold is currently set at EUR 300,000
    • The new threshold is set at EUR 400,000
  • Intrastat Arrivals (Form UPS-02)
    • The threshold is currently EUR 500,000
    • The new threshold is set at EUR 550,000

The thresholds for statistical value in 2024 (Detailed Reporting of Intrastat) have not changed:

  • Intrastat Dispatches (Form UPS-01)
    • The threshold will remain at EUR 10,000,000; and
  • Intrastat Arrivals (Form UPS-02)
    • The threshold will remain at EUR 7,000,000

Q4 2023 VAT Updates in Portugal

On 8 November 2023 Ordinance No. 338/2023 and Ordinance No. 339/2023 came into force.

With this, the Secretary of State for Fiscal Affairs amended the VIES and VAT declarations with the following.

  • For VIES:
    • In table 07 of the summary declaration, intended for the tax identification of the certified accountant, a field is added to record the date on which the event determining the situation of fair short-term impediment ceased, under the terms set out in article 12-A of the Statute of the Order of Certified Accountants
      1. The instructions for completing the summary declaration are amended in accordance with the provisions of the previous paragraph.
        1. This ordinance amending the VIES, No. 338/2023 comes into force on the day following its publication, 8 November 2023.
  • For the VAT Return:
    • Changes to the periodic VAT declaration model:
      • In table 03, relating to «Operations in a space other than the headquarters», the expression « Decree-Law no. 347/85 , of 23 August» is replaced by the expression «No. 16 and 17 of article 6 CIVA number”;
      • In table 20, intended for the tax identification of the certified accountant, a field is added to record the date on which the event determining the situation of fair short-term impediment ceased, under the terms set out in article 12-A of the Statute of Order of Certified Accountants.
  • Changes to Annex R:
    • In the header, the expression « Decree-Law no. 347/85 , of 23 August» is replaced by the expression «Nos. 16 and 17 of article 6 of the CIVA».

The instructions for completing the periodic VAT declaration and Annex R are amended, in accordance with the provisions of the previous paragraphs.

This ordinance amending the VAT Return, No. 339/2023 comes into force on the day following its publication – 8 of November 2023 and is effective retrospectively from 1 January 2023. At this stage, the technical documentation (XML-XSD) has not been updated for either of the forms.

Q4 2023 VAT Updates in South Africa

In September 2023, SARS (South African Revenue Services) published a Discussion Paper on VAT Modernisation.

The purpose of this document is to:

  • Explain, at a high level, the modernisation of the South African Value-Added Tax (VAT) administrative framework;
  • The modernisation will impact businesses that are registered or required to be registered for VAT (vendors). In line with international trends in making the VAT system agile and easy to administer (both for the tax authority and vendors), there is a growing acceptance for the adoption and implementation of real-time or close to real-time transmission of VAT data from vendors to the tax authority, and the reporting of VAT data using the modern VAT return; and
  • Invite businesses (vendors), accounting system software developers or suppliers, recognised controlling bodies, public finance entities, municipal finance entities and the public to submit contributions, and comments, as part of a consultative process to modernise the VAT administrative framework.

This modernisation initiative will entail a staged approach, which will include, amongst others, the following:

  • Development of VAT data models;
  • Determining suitable technologies to be used;
  • Consultation and collaboration with vendors and other relevant stakeholders;
  • Integration of vendors accounting information systems with SARS systems; and
  • Testing and implementation of the data models, the vendors accounting information systems and SARS systems.

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