Switzerland: VAT rate reduced
The Swiss tax office will be reducing their VAT rates with effect from 1st January 2018. The normal VAT rate will be reduced to 7.7% and the special rate for accommodation will be 3.7%. The reduced rate of 2.5% will remain unchanged.
Norway: Translations required
The Norwegian Tax Office has requested that foreign Certificates of Tax Status are accompanied by a translation with the exception of Norwegian, Swedish, Danish or English.
Netherlands: Increase in Reduced VAT Rate
It has been announced that the Dutch Government is set to increase the reduced rate from 6% to 9% from January 2019. The standard rate of 21% will remain unchanged.
Germany & Austria
There has been a level of inconsistency at the tax offices recently regarding restyled invoices. We have now had confirmation that the date of the amendment should still determine the claim period.
Italy: VAT rate increases delayed until 2019
In October 2017, VAT rate increases were scheduled under Law Decree no. 148/2017 to be effective 1 January 2018. However, the draft budget law 2018 does not provide for VAT rate increases in 2018. Instead, the draft budget law postpones a gradual increase in the VAT rates to 1 January 2019.
The schedule for the VAT rate increases are proposed to be:
The “reduced” 10% VAT rate would increase:
- From 10% to 11.5% as of 1 January 2019
- From 11.5% to 13% as of 1 January 2020
The “standard” 22% VAT rate would increase:
- From 22% to 24.2% as of 1 January 2019
- From 24.2% to 24.9% as of 1 January 2020
- From 24.9% to 25% as of 1 January 2021
These VAT increases, however, would not apply if certain budgetary targets are met.
VAT Refunds from Germany simplified
Refunds of the 19% German VAT (called MWSt) are possible on such items as exhibition and conference costs, car rental, entertainment, and taxis, although it is likely that exhibition costs will fall under the Reverse Charge mechanism.
Some expenses, such as hotel bills, will bear the reduced rate of 7%. All European travelers and many from outside of Europe can claim refunds. Contact us to check eligibility (OR link to 13thD guidelines on website)
It is important that invoices are correctly issued. They should bear the name and address of the supplier, their VAT number and a breakdown of the total, clearly indicating the VAT element. It should also show the recipient’s business name and address.
Smaller receipts, such as restaurant bills must be machine generated, with the exception of taxis which can be handwritten.
For more detailed advice contact www.quipsound.com
This story was originally posted on VAT Life, Quipsounds quarterly newsletter in association with Essentia Global Services. Click here to see the story and more on VAT Life.