Poland Enforcing Split Payments

It has been confirmed that the Polish Authorities are planning on enforcing split payments for industries vulnerable to VAT fraud, in particular scrap metal, electronics, precious metals, steel and car parts for B2B transactions will come into force some time later this year. The impact on foreign businesses who currently settle by bank transfers which…

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China: VAT Rate Reduction

The Chinese authorities have confirmed they will reduce the rate of VAT on the manufacturing industry from the current 16% down to 13% as of 1 April 2019. For the transportation and construction industries, VAT will be reduced to 9% from 10% to help reduce tax burdens on the manufacturing sector and small businesses. The…

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HMRC Requirements For Valid Certificate of Status

Until recently, submission of the Certificate of Status document issued by non EU countries and the supporting cover letter that details any additional company information (such as registered business address) had been accepted by HMRC as sufficient proof of the legitimacy of the company requesting the VAT refund. Over the course of the last few…

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Input VAT Recovery and Time Limits

The CJEU (Court of Justice of the European Union) judgement in Volkswagen AG (C-533/16) confirmed that when VAT is charged by a supplier to a customer – several years after the supply took place – Member States cannot deny a VAT refund to that customer solely based on the expiry of a time limit running…

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Global VAT Roundup – November

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…

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Making Tax Digital – New Online Pilot

This month, HMRC launched a pilot for its new online VAT service, Making Tax Digital. The Making Tax Digital (MTD) scheme will require digital transactional recording and filing of UK VAT returns from 1st April 2019. From April, Making Tax Digital will mean that around 1 million businesses who are registered for VAT will need…

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VAT and Brexit: Latest Update

Preparation For No Deal Brexit As of the time of writing (5 November) the UK and EU have still not agreed the terms of Britain’s departure from the EU, scheduled for 29 March 2019. The UK has published a paper to assist businesses with the VAT aspects of a “No Deal” Brexit, should no agreement…

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VATLife Interview: Gill Hunter

Appeals processes are an important part of the world of tax, but are complex and often poorly understood. This quarter we thought we’d shine a light on this area by inviting Gill Hunter to answer a few questions. Gill sits on the judgment panel for First Tier Tax Tribunals in the UK, which are the…

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VAT Roundup

New Rules for Digital Sellers in the US… Change is in the offing for sellers of digital downloads into the USA. Many US states levy sales taxes on digital products such as software, videos, and games. Some have sought to implement an equivalent of the EU VOES system and force out-of-state retailers selling downloads into…

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