The 2018 VAT Year in Review (FREE eBook)
VAT has been the word on everyone’s lips in 2018. Throughout the year, Taxback International has been keeping you updated on everything you need to know. Coming into 2018, we took a look at some major changes taking place in Tax and VAT for the year ahead. Now, as the year draws to a close, we’re taking another look at some key trends that took place in 2018.
Keeping informed on the latest VAT trends and changes is vital, in order to ensure full compliance around the world, as well as optimising VAT reclaim potential.
Below are some of the VAT updates from 2018. Download our FREE eBook to get all full details on all the Global VAT news, trends and rates from 2018.
Poland: Monthly VAT ReturnsÂ
The Ministry of Finance in Poland has announced that it may abolish the obligation to file VAT returns monthly, from the 1st of January 2019. The already mandatory Standard Audit File (SAF-T) for VAT will suffice. The new structure of the JPK_VDEK (SAF-T) uniform control file will replace the current JPK_VAT.
Germany: Approved a Bill for Annual Tax Act 2018
The German Ministry of Finance approved a bill for an Annual Tax Act 2018 (Entwurf einesJahressteuergesetzes 2018). If passed, the changes in the draft bill with impact foreign investors with German real estate investments. The main purpose of this bill is to adapt the German tax laws and make them more in line with EU law. The changes will take effect on 1st January 2019.
Italy: Digital Transactions & VAT Changes
There is mandatory e-invoicing for general supplies of goods and services from 1st January 2019). There will also be a new B2B tax on digital transactions (Web Tax) from 1st January 2019, applying to the provision of services effectuated by means of electronic devices to Italian resident corporations, government bodies, partnerships, sole proprietorship’s, self-employed professionals, and Italian permanent establishments of non-Italian resident persons.
UK-based companies currently reclaim VAT through Electronic VAT Refund (EVR) 8th Directive – with no paper receipts required. After Brexit, some or all foreign reclaim potential could be lost if business is not ready of the impact of Brexit i.e. changing to 13th Directive refund mechanism.
Making Tax Digital
Making Tax Digital is a key part of the UK government’s plans to make it easier for individuals and businesses to ensure their taxes are correct. The aim is to make the HMRC one of the most advanced tax administrations in the world.
United States: Tax Cuts and Jobs Act
The 2017 TCJA eliminated the deduction for any expenses related to activities generally considered entertainment, amusement or recreation. During 2018 the IRS issued a clarification to taxpayers, that they may continue to deduct 50 % of the cost of business meals if the taxpayer (or an employee of the taxpayer) is present and the food or beverages are not considered lavish or extravagant.
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To find out more information about the biggest impact and changes in VAT and Indirect Tax for 2018, download our FREE eBook.
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