VATfaqs.com

Test your knowledge of obscure VAT rules with our quiz. We’ll present you with a few everyday items and you tell us if they are standard-rated, zero-rated or exempt: https://ow.ly/PkLZ50UuOHr #icaewDaily #accounting

https://lnkd.in/dEmRJnBt Happy Xmas from HMRC, some guidance on VAT and cladding

EU and VAT | The VAT gap report 2024 based on the figures of 2022 has been released. In 2022, total VAT revenue amounted to €1 187 bn in the EU. The VAT compliance gap was estimated at €89 bn or 7.0% of the VAT total tax liability, an increase of 0.4 percentage points or €13 bn compared to 2021 (€76bn in 2021). According to the EC this increase can be seen as levelling out the VAT compliance gap, given the sharp decline in the years before. However, over a 5-year period, there is a clear decreasing trend from c. EUR 30 bn between 2018 and 2022, to EUR 89 bn in 2022. Several factors contributing to the reduction in the VAT compliance gap are: i) electronic declarations, mandatory e-invoicing, online cash registers, and real time reporting requirements, ii) streamlining of the tax administration, and iii) the rise of digital payments. In the Netherlands the total VAT revenue was €69 928 million in the Netherlands. The VAT compliance gap was estimated at €5 991 million or 7.9% of the VAT total tax liability, an increase of 2.6 percentage points compared to 2021. With an EU VAT compliance gap of approximately 7.0%, the Netherlands ranked 16th among the EU Member States. Between 2018 and 2022 the VAT compliance gap decreased from 10.8% to 7.9%. Reason to introduce domestic e-invoicing for the Netherlands? To be continued... More info: https://lnkd.in/dirtuGWR #vat #vatgap #vatgapreport #mtic #fraud #einvoicing #digitalreporting

📢 On 22 November 2024, the Luxembourg first-tier court issued a ruling on the VAT treatment of directors' fees, following the 2023 EU Court decision. It confirmed that directors’ services are not subject to VAT as they are not considered independent. In response, the Luxembourg VAT authorities issued Circular 781-2 on 11 December 2024, outlining the regularisation process. From 16 December 2024, directors can take action via the MyGuichet platform to comply. Check out the full details here 👉 https://lnkd.in/d6YyvQGC #VAT #DirectorsFees #Luxembourg #PwCFlash #TaxNews

📢 Final Circular on VAT for Directors’ Fees – What’s Next? The Luxembourg VAT authorities have issued their final circular on the application of VAT to directors' fees. While this likely marks the end (for now?) of guidelines and court rulings, the practical application of these rules remains a complex and (to some extent) uncertain area. 💡 Every case is unique, requiring a tailored analysis to determine how and if VAT applies. With Maria Anna Nonweiler, Samuel Cazes, Frederic Raepers, Marko Vajdic Carlos Heinrich and our team, we’re here to help you navigate this uncertainty with clarity and confidence. For a deeper dive into the latest developments and their implications, check out our detailed newsletter: http://kpmginfo.lu/3Dp6gOf. KPMG Luxembourg

💡 Directors' fees and VAT - Clarity at last! 💡 The long-awaited decision on the VAT treatment of directors’ fees is finally here. PwC Luxembourg has taken the time to analyse the court’s ruling and the tax authorities’ guidance to bring you a comprehensive Flash News. ✅ What does this mean for directors? ✅ What steps should companies take? ✅ How to use the simplified procedure via MyGuichet? Find all the answers you’ve been waiting for 👉 https://lnkd.in/e5k46EkD

Europe is moving toward mandatory e-invoicing, but the approaches vary significantly across countries. Some countries adopt centralized models, requiring businesses to process invoices through national platforms, while others rely on certified service providers for invoice exchange or leave the method of invoice transmission completely unregulated. My latest Forbes article explores the upcoming e-invoicing mandates in Poland, Germany, Belgium, and France, highlighting their key differences and what they mean for businesses. https://lnkd.in/eYaAnZni

ICAEW believes the time for VAT reform is now. With greater freedom on VAT policy post-Brexit, and advancing technology, we have both the opportunity and tools to create lasting change. The current system’s inefficiencies cost the economy billions in lost revenue while burdening businesses with unnecessary complexity. Read the full article: https://lnkd.in/eGPg-MSt #tax #vat #taxpolicy #vatreform #howtofixvat

Future of VAT in the UK

📢 The New VAT Regularization Platform on Directors' Fees is Now Live! Following recent legal clarifications on VAT on directors' fees, the Luxembourg VAT authorities have launched a streamlined platform to facilitate VAT regularization for affected individuals. The platform is accessible via this link: https://lnkd.in/eq3j8FZV. This tool ensures a simple, efficient process for addressing past VAT declarations in compliance with the new guidelines outlined in Circular N°781-2.