Global VAT Guide: September 2023 VAT Updates

September 2023 VAT Updates in Croatia

Croatia is planning to introduce a new e-invoicing system and CTC (Continuous Transaction Control) by the end of 2024.

This project is called Fiscalization 2.0 project.

The aim of this project is to simplify tax administration, improve tax compliance and prevent VAT fraud.

September 2023 VAT Updates in Greece

B2G e-Invoicing

From 12 September 2023, B2G e-invoicing will become mandatory.

Public entities will need to process and receive invoices in electronic format and suppliers will need to send e-invoices using the Peppol model.

The Greek government published a schedule based on the classification of public entities. The Ministry of Infrastructure and Transport, Ministry of Digital Governance, and Ministry of Immigration and Asylum are required to comply from 12 September 2023.

From 1 January 2024, the rest of the central administration entities will be required to comply.

The remaining administrative bodies required to comply from 1 June 2024 and the rest of general state administrative expenses required to comply from 1 January 2025.

VAT Exemption

Pre-packaged food and alcoholic beverages will benefit from the VAT exemption procedure if they meet national and EU labelling requirements and are pre-packed.

This applies to the delivery of goods by a taxable person established in Greece to a buyer/traveller not established within the EU and departs from Greece to a third country or through another Member State.

The VAT exemption will apply if:

• The buyer lives outside the EU;
• The goods are for family/personal use;
• The total tax value is more than EUR 50.00; and
• The goods leave the EU within 3 months following the issuance of tax documentation

September 2023 VAT Updates in The Netherlands

On 14 August 2023, the Netherlands enacted a bill that amended EU VAT directive 2006/112 in relation to special scheme for small enterprises.

This scheme will not apply if the 2024 turnover exceeds EUR 20,000.

Any entrepreneurs that wish to apply the new rules from 2023 or terminate their existing exemption need to notify the Tax Administration by 3 December 2023 at the latest.

The bill will apply from 1 January 2025.

September 2023 VAT Updates in Romania

By Ordin nr. 1.176 on 26 July 2023, published in Official Monitor no. 720 of August 4, 2023, additional fields are introduced in the Romanian VAT return to report tax-exempt activities: Line 14.1 and Line 14.2.

The changes are applicable for the returns for reporting periods starting from August 2023, due to be filed in September 2023.

“3. In annex no. 2, paragraph “Line 14” is amended.

On Line 14, information taken from the sales journal for operations whose liability occurs in the reporting period or in previous fiscal periods, regarding:

• the tax base for the supplies of goods/the provision of services exempted with the right of deduction, provided for in art. 294 para. (1), art. 295 and 296 of the Fiscal Code;
• the tax base for tax-exempt operations, according to art. 292 para. (2) lit. a) points 1-5 and letter b) from the Fiscal Code, if the buyer or client is established outside the European Union or if these operations are directly related to goods that will be exported, as well as in the case of operations carried out by intermediaries acting on behalf of and on behalf of another person, when they intervene in such operations; and
• the tax base for the supplies of goods/the provision of services exempted with the right of deduction, provided for in art. 294 para. (5) from the Fiscal Code – the tax base for tax-exempt operations with the right to deduct according to other legal provisions.

In annex no. 2, after paragraph “Line14”, two new paragraphs are inserted, paragraphs “Line14.1” and “Line  14.2”, with the following content:

• Line 14.1 – enter the information taken from the sales journal for operations whose liability occurs in the reporting period or in previous fiscal periods, regarding the tax base for tax-exempt operations, according to art . 294 para. (5) lit. a) and b) from the Fiscal Code; and
• Line 14.2 – enter the information taken from the sales journal*) for operations whose liability occurs in the reporting period or in previous fiscal periods, regarding the tax base for tax-exempt operations, according to art . 294 para. (5 lit. c) and d) of the Fiscal Code

September 2023 VAT Updates in Argentina

The AFIP (Tax Authority) has postponed the monthly payment deadline date for massive consumption companies until 20 March 2024.

The postponed payment date applies to the below tax returns:

• August 2023;
• September 2023; and
• October 2023

September 2023 VAT Updates in South Africa

A new provision has been introduced in South Africa to alleviate the administrative burden for those foreign entities that are required to VAT register in South Africa.

If one or more foreign entities part of the same “group of companies”, they may opt for a single VAT registration for the separate entities.

One of the entities must be registered as a vendor and conducting business in South Africa. This is the main registered vendor.

The main registered vendor can then register a separate branch for all foreign entities.

The main registered vendor will submit a VAT return to account for its own VAT and a separate VAT return to account for the separate branches VAT.

September 2023 VAT Updates in Saudi Arabia

The ZATCA (Zakat, Tax and Customs Authority) has announced the conditions for the entities in Group 8 that will be entering the integration phase of e-invoicing.

Group 8 contains all taxpayers with an annual turnover that exceeds SAR 40 million for the year 2021 or 2022.

These taxpayers will be required to connect their e-invoicing system to the ZATCA from 1 March 2024 to 30 June 2024.

Below is a schedule of integration periods for the various Groups:

• Group 1 – Sales exceeding SAR 3 billion in the year 2021
  • Period of integration – 1 January 2023 to 30 June 2023

• Group 2 – Sales exceeding SAR 500 million in the year 2021
  • Period of integration – 1 July 2023 to 31 December 2023

• Group 3 – Sales exceeding SAR 250 million in the year 2021 or 2022
  • Period of integration – 1 October 2023 to 1 February 2024

• Group 4 – Sales exceeding SAR 150 million in the year 2021 or 2022
  • Period of integration – 1 November 2023 to 29 February 2024

• Group 5 – Sales exceeding SAR 100 million in the year 2021 or 2022
  • Period of integration – 1 December 2023 to 31 March 2024

• Group 6 – Sales exceeding SAR 70 million in the year 2021 or 2022
  • Period of integration – 1 January 2024 to 30 April 2024

• Group 7 – Sales exceeding SAR 50 million in the year 2021 or 2022
  • Period of integration – 1 February 2024 to 31 May 2024

• Group 8 – Sales exceeding SAR 40 million in the year 2021 or 2022

Period of integration – 1 March 2024 to 30 June 2024

September 2023 VAT Updates in The United Kingdom

The HMRC have issued guidance in relation to error reporting and the ways of correcting these errors if below or above certain threshold.

HMRC announced a new tool that allows you to check if you need to notify the HMRC about errors in the VAT Return and how to report them.

You can adjust or correct the amounts in your next return if the net difference from the correction is: 

• 10,000 GBP or less; and
• Between 10 000 GBP and 50 000 GBP but less than 1% of the total value of your sales

Or you can tell HMRC about errors in your VAT return by filling in either:

• The online form; and
• Form VAT652

This is in case the net difference amount is:

• 50 000 GBP;
• Over 10 000 GBP and exceeds 1% of the total value of sales; and
• In case of deliberate errors

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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.