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.
Under Turkish VAT law, electronic supplies of newspapers, magazines and books have been subject to a reduced rate of 1% or 8%.
Businesses using the UK’s VAT Mini One Stop Shop (MOSS) to declare sales of digital services to consumers in the EU should continue to use the UK’s MOSS portal in the normal way to submit and pay their return for the first quarter of 2019.
A new VAT system for e-commerce sellers
The new framework is supposed to come into force in 2021.
Following years of discussion and campaigning, the EU have now formally adopted a directive which will allow member states to apply reduced or zero rates to the sale of e-publications.
Romania’s VAT decrease has been postponed because the country has been struggling to reduce its deficit Gross Domestic Product to 3%.