+++ Belgium - updated requirements on electronic invoice retention requirements +++ Belgium - the 9.25% insurance premium tax on credit insurance has been withdrawn +++ Bulgaria - Intrastat reporting thresholds increased +++ Bulgaria - New proposals being pushed with the World Bank to introduce mandatory Catastrope Fund to cover earthquakes etc. +++ Bulgaria - intra-community supplies included in calculating VAT registration threshold +++ Croatia - a 10% motor 3rd party liablitiy risk premium will be charged from 2009 to cover traffic accident costs +++ Czech Republic - new rules on non-resident traders extends the requirement to VAT register +++ Czech Republic - proposal to change VAT payment point to when cash received +++ Denmark - extension of VAT reverse charge on services from non-resident suppliers +++ Denmark - overhaul of VAT registration process to comply with EU employment law +++ Estonia - reduced VAT increased from 5% to 9%; many items now on standard rate +++ Estonia - 2% increase in VAT from July 09 to help combat financial crisis +++ EU - New proposals to force all EU member states to switch to monthly VAT reporting to help combat fraud +++ EU - more proof required for VAT import exemptions for onward supply relief +++ EU - Revised Mutual Assistance Directive issued to assist tax authorities share information on VAT +++ EU - Revised Mutual Assistance Directive issued to assist tax authorities share information on IPT +++ EU - new electronic service to verify authenticity of VAT numbers +++ Finland - Traffic Safety Charge for 2009 will be Euro 7.2m +++ France - Tough new invoice requirements to help combat fraud +++ France - French Motor Insurance Parafiscal Charge hike from 0.1% to 0.6% +++ France - Natural Disaster Compensation Scheme has increased again from 8% to 12% +++ France - New information requirements for foreign companies applying for non-resident VAT registrations +++ France - Confirmation of changes to ACOSS levies, which are now managed by URSSAF +++ Germany - New IPT levy on Surety and Financial Guarantee reinsurance +++ Germany - valid VAT number may not be sufficient evidence alone to allow for zero rating on intra-community supply +++ Germany - proposal to scap the requirement for annual VAT returns +++ Greece - withdrawal of Stamp Duty underway; Life and Damage insurance now exempt +++ Greece - Stamp duty on Life and Damage scrapped Jan 09; will be withdrawn on all other classes Jan 10 +++ Hungary - rules on tax point (now when invoice paid) creates risks for VAT recovery +++ Hungary - standard VAT rates increased by 5% to 25% from July 2009 +++ Hungary - Aircraft hull and aviation liability is now exempt from the 1.5% Fire Brigade Charge +++ Ireland - New retrictions on VAT relief on bad debts +++ Ireland - standard rate VAT increased from 21% to 21.5% from 1st December 2008 +++ Ireland - government insurance levy on non-Life increases from 2% to 3%; new 1% levy on Life +++ Italy - New fiscal budget introduces tax increases for branches and subsidiaries of foreign insurers +++ Italy - Hunting Accident Victims' Fund changed to 5% of 94% of premium +++ Italy - Scraping of the requirement on VAT-registered businesses for the annual filing of lists of customers and suppliers +++ Italy - Court ruling that VAT reclaims deadline should be two years +++ Italy - potential to defer VAT payments to point where cash received +++ Latvia - standard rate VAT increased by 3% to 21% from Jan 2009 +++ Latvia - 2% VAT increase proposed to take standard rate to 23% from 2010 +++ Lithuania - VAT rate increased by 1% from 18% to 19% +++ Luxembourg - Fiscal representation revived for importers of goods +++ Luxembourg - international shipping vessels registered in Lux are IPT exempt +++ Netherlands, The - Tax authorities increase IPT rate from 7% to 7.5% +++ Netherlands, The - drops plans for Jan 2009 1% VAT rate increase due to recession fears +++ Poland - Potential for quarterly VAT returns +++ Poland - Plans for reverse charge on consignment stock +++ Poland - New 12% Parafiscal Charge on Motor Liability contracts to cover medical care at accidents +++ Poland - improved import VAT set-off scheme for established importers +++ Poland - Polish insurance chamber of commerce says 12% levy on 3rd party motor insurance to go +++ Poland - motor liability insurance is now exempt from the Fire Brigade Tax +++ Portugal - VAT rate cut from 21% to 20% from 1st July +++ Romania - Proposals being drawn up with the World Bank for new compulsory national catastrophe program +++ Romania - invoice issuing deadline has been extended to 15 days after the month of the taxable supply +++ Slovakia - adoption of the Euro brings new VAT return form +++ Slovenia - VAT credits will now be refunded after three weeks instead of usual three months +++ Spain - switch from quarterly to monthly VAT returns proposed +++ Spain - online submissions for non-residents; local bank account still required +++ Sweden - IPT now introduced at 32% of gross premiums on 3rd party liability risks +++ Sweden - group life insurance from Swedish or EU insurers is exempt from IPT +++ Switzerland - upcoming popular vote on potential VAT increase +++ Ukraine - All VAT returns must now include information about customers and suppliers +++ Ukraine - joins World Trade Organisation and introduces many new duties +++ United Kingdom - VAT registration threshold increased to GBP67k +++ United Kingdom - Requirement to appoint fiscal representative for FOS insurance dropped +++ United Kingdom - New guidance issued on duty suspension for warehousing goods +++ United Kingdom - Arrangers of insurance contracts may now have to charge IPT even if a separate 'admin' contract is put in place +++ United Kingdom - Standard VAT rate cut from 17.5% to 15.0% until end of 2009 to help stimulate economy +++ United Kingdom - 2009 budget imposes potential personal fines on senior officers who submit incorrect IPT filings +++

Importing VAT

If goods are imported into the European Union, then there is generally an immediate requirement for local VAT (and duty) to be paid on the goods by the business acting as the importer.  For the importer, this usually requires VAT registration in the country of import.

Increasingly, there are facilities to simplify this process, such as in the Netherlands and Belgium (see below).  TMF can organise the paperwork and applications for such schemes, and ensure any cash flow burden is kept to a minimum.

Click here if you would like free guidance on VAT compliance on importing and which countries offer the best deferment schemes.

VAT on imports

When a company imports goods into any EU country, VAT becomes due.  This is payable immediately at the port or airport, or when the goods are released from a bonded warehouse.  To record and report this process, most EU countries will expect the importer of record to VAT register in the relevant state.  This can be done as a non-resident trader, and there is generally no requirement to form a local company.

This import VAT is recorded as a recoverable deduction on the next VAT return filing of the importer.  If it then sells the goods in the country of import, it would apply local VAT on the sale, subject to local rules.  Importation VAT can be offset against the sales VAT.  Alternatively, the importer may seek to sell these imports across Europe from its base, which requires VAT compliance in the target territories.

Non-EU importers registering for VAT have to appoint local fiscal representatives in most European countries.  The fiscal representative is responsible for all of the importer's VAT compliance, including the filing of returns.

VAT Deferment

A number of countries offer special importer schemes to allow for the postponement of this import VAT.  Often, this means having a one month delay on the payment by opening a special account with the local tax authorities, e.g. in the UK and Italy.

The Netherlands importing VAT

One of the most convenient importer regimes can be found in the Netherlands.  The import VAT is declared in the VAT return, but does not have to be paid, thus providing significant cash flow benefits.  To take advantage of this facility, companies without a permanent establishment in the Netherlands must appoint a local fiscal representative.  There are two types of representative:

1. Limited  general representative.  These can bring clients' goods into the country for immediate despatch to other countries or customers.  This option does not require the importer to VAT register in the Netherlands.

2. General fiscal representative. This alternative provides the faciltiy to hold goods in the Netherlands prior to re-sale.   It requires the VAT importer to VAT register in the Netherlands for a special licence.

Typically, the Dutch tax authorities will require a bank guarantee for the above.

How TMF can help

With Europe's largest VAT fiscal and agency representation network in Europe, TMF regularly assists importers meet their VAT compliance requirements.  This includes services to both EU and non-EU importers, covering: fiscal representation; VAT registrations & returns; Import licence applications; Intrastat and EC Sales filings; and Import VAT credit and recovery claims.

To learn more about how TMF assists importers contact our European co-ordination service, which can provide initial guidance for the whole of Europe:

vat@tmf-group.com

+44 (0)870 067 8881
 
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