7 talking points from the last 7 days in tax
It’s been another busy week in the world of tax. If you haven’t kept up to date with all the latest changes and updates from around Europe, sit back and take a few minutes to catch up in our weekly round-up of seven headlines you can’t afford to miss:
1) Ireland cuts VAT rate
The standard rate of VAT in Ireland has been temporarily reduced from 23% to 21%. The new rate will apply until 28th February 2021. Approximately 53% of all supplies purchased by taxable people in the country are done so under the standard rate of VAT.
2) Dutch authorities remind businesses of tax deferral rules
Tax authorities in the Netherlands have issued updated guidance on a scheme to allow businesses to automatically defer numerous taxes – including VAT – for three months. Companies must now apply for the deferral by 1st October 2020 if they are to
3) New VAT manual published in Germany
The German Ministry of Finance has published a new VAT manual for 2019-20. It contains new information on how to navigate German tax legislation and offers guidance on bringing together all the regulations relevant to VAT and, ultimately, remaining compliant.
4) Covid-19 essentials granted tax exemption in Switzerland
The Swiss government has extended a tax exemption for surface disinfectant. Following the impact of Covid-19, the government will not charge tax on the item until 31st December 2021.
5) Turkey lowers VAT on education
Turkey has announced a temporary reduction in the rate of VAT applied to education and training services. It will lower the rate from 8% to 1% until 30th June 2021.
6) Germany expects digital tax agreement in 2020
German Finance Minister Olaf Scholz is hopeful that international agreement on taxing the digital economy will be achieved by the end of 2020. The OECD is planning rules that would give countries taxing rights on digital services, regardless of whether a supplier has a physical base there.
7) UK Charities to benefit from zero-rated VAT for digital advertising
HMRC has confirmed charities in the UK will not be liable to pay VAT on digital advertising, covering the majority of online search browsing promotions. The news follows a three-year campaign by the Charity Tax Group to zero-rate VAT in order to save charities millions of pounds of irrecoverable tax.
Taxes, rates, codes, exemptions and deadlines continue to change on a daily basis; and the Covid-19 pandemic has only served to increase the speed at which many countries turn to tax to rescue their ailing economy.
The Innovate Tax solution gives businesses the flexibility and responsiveness they need to react to updated regulations across the world and remain fully compliant throughout. Contact us to find out more.