The VAT updates that caught your attention in 2020
2020 was a year like no other – even in the world of VAT. We take a look back at the most popular stories VAT updates from 2020.
Covid-19 and VAT 2020
In March, as Covid-19 began to take hold, businesses begin to realise the impact that the fight against the fast-moving virus would have. Tax authorities began to communicate simplification and deferment measures to help affected businesses. At Taxback International, we continuously monitored this situation to provide updates to our clients, partners and readers as they were released.
In 2021, the fight against Coronavirus is still not won, but the rollout of multiple vaccines gives a renewed hope for a return to normality. We will continue to monitor the impact of Covid-19 on Value Added Tax globally.
In 2021, the UK and the EU will introduce a number of VAT compliance changes in relation to cross border, business to consumer activities.
In an attempt to remove some of the barriers to e-commerce trade and to enable more efficient and less burdensome international VAT compliance, there will be some big changes to e-commerce VAT requirements. Within the United Kingdom, these changes will be introduced on 1 January 2021 following Brexit. Within the EU the changes will be introduced on 1 July 2021.
Intrastat reporting after Brexit
It is vital that businesses of all sizes, take steps to understand the impact of Brexit and VAT on their company’s operations and processes. In light of this, it is no surprise that our content on Intrastat reporting after Brexit was a big hit in 2020. Failure to implement new requirements on Instrastat reporting and Fiscal representation requirements could hamper the ability to trade, lead to significant delays in processes and negatively affect your businesses’ VAT compliance.
Other popular VAT topics include:
The rules around VAT registration vary in each tax jurisdiction. The local VAT thresholds in each country are unique and may even vary for the provision of goods or services. Discover if your business has a VAT registration requirement here.
60% of businesses struggle to manage their VAT registrations, filings and returns. Learn more about the different type of VAT obligations that exist, including VIES, Intrastat Declarations and Control Lists here.
The immediate payment of import VAT will have an important financial impact for UK businesses post-Brexit. From a VAT perspective, the United Kingdom is a third country. Find out what this means for UK businesses here.
Work with real VAT experts
With over 15 years’ 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.