Roshni Jaiswal CTA ACA’s Post

𝗩𝗔𝗧 & 𝗜𝗡𝗧𝗥𝗔-𝗘𝗨 𝗧𝗥𝗔𝗗𝗘 | The Court of Justice of the European Union is asked whether the VAT exemption / 0% rate for an intra-EU supply can be denied due to formal defects in one of the documents required under Article 45a(1) VIR. Under Article 138 VD, applying the VAT exemption for intra-EU supplies requires proof of cross-border movement to another Member State. As part of the "2020 Quick Fixes", Article 45a VIR introduced a rebuttable presumption that the intra-EU transport condition is fulfilled if specific evidence is available. In this case, Article 45a(1)(b) VIR applies, as the goods were picked up by the customer rather than shipped by the supplier. Although the supplier had a written statement from the customer (Article 45a(1)(b)(i) VIR), the signed CMR document (Art. 45(3)(a) VIR) contained a formal defect. Despite this defect, there is no question about the intra-EU cross-border movement of the goods. However, the tax authority denied the VAT exemption, arguing that the conditions for the rebuttable 'proof of transport' presumption were not met. The Croatian referring court asks whether this denial is permissible under Union law, given that the substantive requirements for the VAT exemption are undisputedly satisfied. The Court has previously ruled that failing to meet a formal requirement can only result in loss of entitlement to a VAT exemption in two situations (cf. Euro Tyre, C-21/16, para 42): 1)     where a taxable person has intentionally participated in tax evasion; and 2)     where non-compliance with a formal requirement prevents conclusive proof that substantive conditions are met. Nothing suggests that either situation applies to this case. It’s fairly predictable how the Court might respond, as it’s hard to imagine this approach by the Croatian authorities gaining the Court’s approval. Article 45a VIR serves as a safe harbour provision rather than a minimum evidentiary threshold. #VAT #trade #tax

Ireland On 1 October 2024, Budget 2025 was announced. Some changes relating to VAT rates include: * The VAT rate on heat pumps will be reduced to 9%; and * The reduced VAT rate of 9% on gas (excluding gas as fuel) and electricity will be extended to 30 April 2025. VAT Registration Threshold From 1 January 2025, the below changes will come into effect: * The VAT registration threshold will be increased from €80,000 to €85,000 for goods; and * The VAT registration threshold will be increased from €40,000 to €42,500 for services.

To make sure you and your business remain up-do date on legislative reforms, we have compiled the key VAT changes to be implemented by January 1, 2025. Please find a brief overview below, with the full details available in the attached document. 1. Dutch Small Enterprise Scheme (KOR): businesses with turnover up to €20,000 will be able to register or deregister on the Dutch Tax Authority portal without the 3-year participation and exclusion period limits. 2. EU Small Enterprise Scheme (EU-KOR):  a new EU-wide scheme is introduced for businesses under €100,000 turnover limit, who under conditions may apply for VAT exemption in any EU member state. 3. VAT on virtual events will be due in the customer's country. In case of cross-border B2C transactions the supplier may need to opt for VAT registration in the country of the customer or report and remit the local VAT via the EU One-Stop Shop (OSS) regime 4. VAT on service costs for real estate rentals (e.g., utilities) will either be separately charged with VAT or included in the rental, depending on the VAT status of the rental. 5. Additional changes: VAT on certain agricultural goods will rise from 9% to 21% and there will be an adjustment of the margin scheme is as well. Should you require any additional information, please do not hesitate to reach out to us via https://lnkd.in/dMeGYKQg. #buildingbridges #dutchtax #vatsupport #vatchanges #taxupdate

#Italy: Announces the deadline and requirments for submiting EU VAT refund applications for purchases and imports made during 2023. Read More: https://lnkd.in/eVcq5_jh Follow us for the latest VAT updates. #vatcompliance #taxlaws #vat #GlobalVATCompliance

#Turkey: On October 31, Turkey issued Communique No. 52, amending VAT regulations with new exemptions and clarifications on VAT refunds. Read More: https://lnkd.in/eiC3YzqG Follow us for the latest VAT updates. #vatcompliance #vat #GlobalVATCompliance #Turkey

Czech Republic The changes to the Czech VAT Refund procedure for non-EU businesses, as outlined in the draft amendments to Act No. 235/2004 Coll., will significantly impact how VAT refunds are processed for non-European Union (EU) claimants. Here’s a breakdown of the key points: 1) Introduction of Reciprocity List: Starting in January 2025 2) Electronic Submission: From January 2026 onwards 3) Extended Deadline: December of the year following the refund period.

ARE YOU ON TRACK TO COMPLY WITH THE 70% "HIGH SEAS" RULE TO BENEFIT FROM VAT EXEMPTION NEXT YEAR?🔍 Want to stay informed with regular updates on your yacht's 70% compliance progress?📢💡 Contact us and take advantage of our PREMIUM offer to receive updates on your 70% ratio after each commercial operation, helping you avoid unpleasant surprises at the end of the year. What happens if the ratio falls below 70%? The yacht will lose its VAT exemption status and will be subject to VAT in 2025 on supplier invoices, goods, services, and the yacht's value (if VAT has never been paid or accounted for previously). This VAT may be reclaimed from the tax authority by your fiscal representative. What happens if the ratio is 70% or higher? The yacht will issue a certificate of commercial activity and continue to benefit from VAT exemption for 2025. 👉We remain at your disposal for more info at noemie@flyn-yachting.com

Have you paid VAT abroad in countries where you are not registered for VAT? Then you can apply for a refund of this VAT ☝️ Companies whose employees have many travel days abroad can often have quite a significant amount refunded in this way. But it is a complicated process - and the application deadline is 30 September 2024 for the year 2023! Learn what you can have refunded and what you must account for in this post 👇 https://lnkd.in/daxuDFrn

Interesting interpretation of the Italian Tax Authorities on ruling no. 87/2024 dated 8th April 2024 regarding a UK company with VAT #FixedEstablishment (FE) in Italy: 1) the VAT refund according to (so called) 13th EU VAT Directive (assuming reciprocal conditions are met - see my separate post in this respect) is not allowed since the FE is intervening in the purchases; consequently input VAT needs to be recovered via the domestic VAT refund procedure by the Italian FE; 2) the domestic VAT refund procedure cannot be requested for the total amount relying on the condition that output supplies are subject to reverse-charge (the only output activities of the FE are rendered to the UK HO belonging to a UK VAT Group); indeed such possibility is only granted to non-established companies which are VAT registered in Italy and not to Italian FE; 3) the domestic VAT refund procedure cannot be requested for the total amount relying on the condition that output supplies are without VAT for lack of place of supply requirement; indeed such possibility is not granted in the case at stake since transactions between FE and HO are out of scope for lack of the subjective/objective requirement due to ECJ FCE Bank case (FE and HO are the same legal entity) and not for lack of place of supply requirement (which would be applicable only to B2B generic services rendered by the FE to non-Italian customers different than the HO); 4) consequently the general rule for VAT refund apply (i.e. being in a VAT credit position for at least 3 consecutive years and ask for refund the lowest amount), unless other derogations apply (e.g. zero-rated transactions like exports and intra-EU supplies for at least 25% of the total turnover, purchases of depreciable assets, etc.); alternatively the VAT credit can be carried forward to following years.

💶 𝐖𝐨𝐮𝐥𝐝 𝐲𝐨𝐮 𝐥𝐢𝐤𝐞 𝐭𝐨 𝐬𝐚𝐯𝐞 𝐲𝐨𝐮𝐫 𝐟𝐨𝐫𝐞𝐢𝐠𝐧 𝐞𝐱𝐩𝐞𝐧𝐬𝐞𝐬 𝐮𝐩𝐭𝐨 27%? 💶 Businesses face additional VAT charges on employee trips within the EU. This VAT charged can be recovered though a VAT registration in each EU country, leading to added administrative and compliance costs. The EU VAT Law, provides an alternative to apply refund for such VAT charged, resulting in saving as much as 27% of eligible expenses. Key points to note filing refund claim under Council Directive 2008/9/EC: ✔ Eligibility- Only EU businesses can apply for refund. The business must not be registered or obliged to register for VAT in refund seeking country. ✔ Claimable Expenses- VAT refund can be claimed on a variety of business expenses, including, accommodation, transport costs, food, drink and restaurant services, fairs & exhibitions. ✔ Application Process-Claims must be submitted electronically through the VAT refund portal of the country where your business is established. ✔ Supporting Documentation-Invoices and import documents may be required to support your claim. The specific requirements can vary by country. ✔ Deadline-The deadline for submitting claims is September 30 of the year following the year in which the VAT was incurred. ✔ Minimum Amount-If the claim period is one year, the minimum claim amount is €50. If the claim period is less than one year, the minimum amount is €400 ✔ Processing Time-Refunds are generally paid within six months of claim receipt. Late refunds require interest payment by EU countries. ✔ Appeals- All EU countries allow businesses to file an appeal if the refund is denied. Note-There is a separate refund scheme (EU 13th VAT Directive) available for non-EU businesses. Some EU countries may require mutual refund of indirect tax levied in claimant’s country. 𝐑𝐞𝐚𝐝𝐲 𝐭𝐨 𝐨𝐩𝐭𝐢𝐦𝐢𝐬𝐞 𝐲𝐨𝐮𝐫 𝐄𝐔 𝐕𝐀𝐓 𝐫𝐞𝐟𝐮𝐧𝐝 𝐩𝐫𝐨𝐜𝐞𝐬𝐬 𝐚𝐧𝐝 𝐦𝐚𝐱𝐢𝐦𝐢𝐳𝐞 𝐬𝐚𝐯𝐢𝐧𝐠𝐬? 𝐋𝐞𝐭 𝐮𝐬 𝐜𝐨𝐧𝐧𝐞𝐜𝐭 𝐟𝐨𝐫 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐠𝐮𝐢𝐝𝐚𝐧𝐜𝐞… #EUVATRefund #TaxSavings #Cashflow #VineetIDTtalks