Commission proposes new VAT rules to support e-commerce and online businesses in the EU
Yesterday, the EU Commission has introduced a series of proposals to simplify the VAT rules for e-commerce and reduce compliance on online sales of goods. The proposals include: Broadening of the One-Stop-Shop system to companies selling goods online (distance sales); Thresholds for cross-border sales of electronic services; Removal of the VAT exemption for small value
Have you considered the VAT impact when dealing with Transactions?
In today’s tax world, considering VAT in a timely manner is key to limiting the negative impact it can have on your transaction budget. VAT on transactions can lead to either VAT savings or a VAT burden depending on various factors. Recent developments in EUCJ case law that allows VAT deduction for active management holding
VAT on directors’ fees: application as from 1 April instead of 1 January 2016
The Belgian VAT authorities have decided to abolish the tolerance for companies acting as directors to carry out their services without charging VAT. In practice this means that a company will not be able to charge directors’ fees without charging VAT. It has now been announced that the tolerance will be abolished as from 1
Sveda case: Can a Baltic mythology park trigger an important EUCJ judgment on VAT deduction ?
The EUCJ is sometimes taking key positions in an improbable context. This is such a case ! The VAT deduction on the construction of a Baltic mythology recreational park has been rejected, as the park is only having limited VAT taxable output linked to its souvenir shop, but the access to the park, whose construction was 90%
New administrative VAT decision: Travel package and insurance services – Impact for Belgian lease industry
The Belgian VAT authorities have published a new administrative decision clarifying the VAT treatment of offerings by travel agencies consisting of both travel services and insurance services, based on the ‘old’ CJEU case BGZ Leasing of 2011 (C-224/11). These guidelines adjust the initial viewpoint of the Belgian VAT authorities to the CJEU case BGZ Leasing
Belgian Court of Appeal: substance is also key for VAT
In the case at hand, the Belgian Court of Appeal ruled that a Luxembourg transportation company had an establishment in Belgium for VAT purposes as the company was mostly operating from Belgium and had limited substance in Luxembourg. Consequently, the Luxembourg company had to apply Belgian VAT on its operations. This judgment is in line
Belgium: agreement on tax shift
On 23 July 2015, the Belgian federal government reached an agreement on the so-called “tax shift”. The tax shift is mainly aimed at i) reducing the tax burden on labour, ii) improving the competitiveness of Belgian companies and iii) creating more jobs. It involves the introduction of a number of new tax measures that may impact
VAT: for B2B situations the former tax point rules will be reinstated for advance invoicing!
Upon proposal of the Finance Cabinet, the Council of Ministers has approved a draft bill that reinstates the issuance of an advance invoice in B2B situations; this causes the VAT to become due in the hands of the supplier, allowing at the same time input VAT deduction in the hands of the business customer. The new
