2021 is already up and running. This also holds true for the world of VAT and GST, which can be seen from the insights coming from various countries gathered in our first edition of the WTS Global VAT Newsletter 2021.
The Czech Republic is changing the VAT treatment for the rental of real estate, whereas Denmark is modifying its rules for the reconciliation of input VAT deduction in case the actual use differs from the initial intentions.
France is implementing VAT group regulations for the near future and the French Supreme VAT Court provides taxpayers with an extended timeframe for the reporting of input VAT.
Germany is narrowing the application of the tour operator margin scheme by partially excluding companies from outside of the EU.
An extension of the scope of invoices subject to the online reporting system in combination with pre-completed VAT returns can be seen in Hungary.
In Ireland, the period of temporarily reduced VAT rates is coming to an end, but companies may benefit from cash flow advantages due to a “postponed accounting” mechanism for import VAT.
Italy is taking the next steps in digitalising compliance procedures.
Latvia is tightening the payment due dates for VAT payments and refunds, but is also extending the application of reduced VAT rates.
The United Kingdom is aiming at reducing ties with EU VAT rules by shortening the filing deadline for input VAT recovery claims of EU businesses to 31 March 2021.
Beyond Europe, we can see Brazil potentially changing the tax treatment for supplies of software.
Chile is extending the scope for electronic invoicing and the same is also happening in China.
A new Finance Act is bringing changes for the VAT landscape in Nigeria.
By April 2021, the Sultanate of Oman will be the fourth Gulf State to introduce VAT, whereas the Kingdom of Saudi Arabia, having implemented VAT at an earlier stage, is extending the duration of its tax amnesty scheme.
Vietnam is implementing enforced tax collection measures by making payment service providers liable for tax debts of overseas businesses.
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