Tax news: 7 of the latest updates from around the world
It can be tough to stay up to date with all the latest rates, rules and regulations from around the world, especially with new changes announced on a daily basis as governments battle the economic consequences of the pandemic.
In our latest round-up, we’re sharing some of the most important updates to be confirmed in recent days:
1) Norway to introduce new digital VAT return
Norway has confirmed it will introduce a new digital VAT return in 2022, with testing due to take place later this year. The country’s tax authority announced the move, explaining the new digital document will be more detailed than current versions. The authority is also considering whether to report transaction levels of data.
2) Italy set to abolish Esterometro
The Esterometro tax reporting system in Italy is set to be removed in 2022 and replaced by Sistema di Interscambio (SDI) reporting.
3) Ireland to return VAT rate to pre-Covid level
The headline rate of VAT in Ireland will return to 23% from 1st March. The government initially reduced the rate to 21% on 1st September 2020. However, the temporarily reduced VAT rate of 9% for the hospitality sector will remain in place until the end of the year.
4) Businesses given VAT extension in Cyprus
Businesses trading in Cyprus have been given more time to pay their VAT bills for the periods ending 31st December 2020 and 31st January 2021. Instead of requiring these payments by 10th February and 10th March respectively, the Department of Taxation will allow companies to pay in three equal instalments.
5) Seychelles hoping for EU green light
The Seychelles believes it is on course to be removed from the EU’s blacklist in 2021. Currently, the nation is listed as one of the EU’s non-cooperative jurisdictions, but its Ministry of Finance confirmed it has now taken several steps towards resolving certain issues and reforming its tax regime.
6) Belgium, Cyprus and Denmark take Brexit stance with UK companies
Belgium, Cyprus and Denmark have all confirmed that UK businesses will not need to appoint a fiscal representative for VAT purposes.
7) Motion tabled for UK to zero-rate VAT on renewable energy
A motion tabled in the UK parliament this week has called on the government to zero-rate VAT on all renewable energy. The motion suggests the UK leaving the EU – which stipulates that VAT is imposed on domestic renewables including solar PV, solar thermal and air and ground/water source heat pumps – creates an ideal opportunity to take a lead on reducing carbon emissions to net zero.