Poland: abolition of VAT Returns
In another “sign of things to come” Poland has become the first European country to announce the abolition of VAT returns. As of 1 July 2019, VAT returns will no longer be required, but will be replaced with a submission of a data file on all transactions in a standard format. The file – called JPK – is an updated version of the JPK file that Polish taxpayers must file already in addition to VAT returns.
Italy: 2019 rules for E-invoicing
The Italian 2017 Budget introduced mandatory electronic real-time invoicing for domestic transactions taking place between private businesses with effect from 1 January 2019. From this date, invoices must be issued using the Agenzia delle Entrate e-invoicing platform, Sistema di Intercambio or SdI. The use of the platform will allow the tax authorities to monitor all domestic VAT transactions in real time; hence, the old “Spesometro” periodic data file submissions become redundant and will be abolished from the same date.
Unlike in Poland, where data submissions are seen as rendering VAT returns obsolete, in Italy, the obligation to submit VAT returns will remain. This is a monthly data file submission declaration required from resident businesses only of all transactions concerning goods and services to be submitted electronically, unless these transactions are recorded via electronic invoicing.
If you would like to read further, here is a link to Agenzia delle Entrate’s guidance (in Italian).
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VAT Introduction In Bahrain
Bahrain will be introducing VAT from 1 January 2019. The VAT law, which was passed by the Bahraini parliament in October, is closely modelled on the systems in the EU and in its Gulf Co-operation Council neighbours of Saudi Arabia and the UAE. The standard rate is 5% with zero rates or exemptions for a range of supplies including medicines, education, oil and oil derivatives, financial services and international transport.
We are preparing an English translation and cross-referenced index of the law. If you would like a copy when it is ready, please contact firstname.lastname@example.org
Essentia and Quipsound will be delivering a webinar on Bahraini VAT introduction in Q1 2019 (date TBC). If you would like to attend, please email email@example.com