The 16% VAT rate currently applicable to general VAT taxpayers will be reduced to 13%, whilst the 13% VAT will be reduced to 9%. Correspondingly, the VAT export refund rates will be respectively reduced from 16% to 13% and from 13% to 9%.
The Italian government are preparing for the worst ahead of the upcoming UK Brexit vote after releasing guidance on the VAT treatment of goods which move within the UK in the case of a no-deal UK Brexit departure on 29th March 2019.
This week HMRC published a letter to 145,000 UK businesses who currently trade goods with non-EU countries. The letter outline important changes to customs procedures and VAT for UK-EU trade that will occur if the UK leaves the EU without a deal, which is looking more and more likely.
It was announced this week that the Polish government are planning on enforcing split payments for industries susceptible to VAT fraud, in particular: trading fuel, scrap metal, electronics, precious metals, steel and car parts.
The Belgian tax authorities have recently issued a letter outlining the post-Brexit implications for UK established businesses VAT registered in Belgium.
HMRC have recently advised that UK businesses wishing to use the EU VAT refund electronic system (8th directive) to submit a refund claim for 2018 must do so by 11pm on 29 March 2019.
Throughout December, HMRC issued letters to business trading exclusively or heavily with customers based in the EU, outlining steps that they feel businesses should take in case a deal for the UK’s withdrawal from the EU cannot be reached prior to their exit.
Since 2015, businesses who have made B2C supplies of broadcasting, telecommunications and e-services (“BTE”) to EU based consumers have been required to charge VAT according to the member state where the supply is made.
Under Turkish VAT law, electronic supplies of newspapers, magazines and books have been subject to a reduced rate of 1% or 8%.
The government of Costa Rica has confirmed that the existing sales tax system will be replaced by a VAT system, with effect from 1 July 2019. The tax will apply to the majority of goods and services.