Summary of e-commerce changes (2021 VAT amendment)
From 1 July 2021, significant changes in VAT on the cross-border sale of goods over the internet enter into effect, concerning both sales within the EU and imports from third countries. The place of taxation will be the country of the recipient,…
VAT refunds post-Brexit
The General Financial Directorate has issued information on VAT refunds to UK entities after Brexit.
Amendment to VAT Act 2021: Goods from e-shops becoming more expensive?
From 1 July 2021, VAT will be collected on all import consignments regardless of their value. Thus, when purchasing goods from foreign e-shops, it will be necessary to consider, among other things, whether the product price includes or excludes VAT.…
Coordination Committee: Is compensation for unconsumed goods subject to VAT?
The Czech Chamber of Tax Advisors has come up with a proposal to unify the interpretation regarding the application of VAT in situations when the customer compensates the supplier for expenses incurred by the supplier for material unconsumed upon…
2021 amendment to VAT Act: platforms and One-Stop-Shops
A draft amendment to the VAT Act, to enter into effect on 1 July 2021, introduces the deemed supplier concept for electronic interface operators (platforms). This concept should be applied when a platform facilitates certain distance sales of goods…
Is additional tax assessment due to VAT fraud reason enough not to waive penalties?
If the tax administrator concludes that a VAT payer has even indirectly been involved in VAT fraud (typically, by having accepted a delivery affected by fraud), the entitlement to VAT deduction will be withheld from the payer. The payment of…
CJEU on reduction of taxable amount on provision of indirect bonuses
In C-802/19, the Firma Z case, the Court of Justice of the EU (CJEU) opined on the treatment of indirect bonuses provided to end customers where goods had originally been delivered to another member state as supplies exempt from VAT with entitlement…
Remuneration for making funds available using promissory note VAT exempt?
In judgment C 801/19 FRANCK, the Court of Justice of the European Union (CJEU) held that remuneration for the transfer of funds provided by a factoring company to a debtor is, from a VAT perspective, a transaction in securities, therefore exempt…
Waiver of VAT on COVID-19 vaccines, tests, and respirators
The Minister of Finance has decided to waive VAT on supplies of in-vitro diagnostic medical devices for COVID-19 testing and COVID-19 vaccinations. The decision shall be in effect from 16 December 2020 to 31 December 2022 and has been published in…
Amendment to VAT Act for 2021: Simplification not only for e-shops?
Are you offering your goods via e-shops? Shipping low-value consignments directly to end users also from countries outside the EU? Organising training seminars, concerts, trade fairs or sports events across the EU? Be on the alert and prepare…
When does entitlement to VAT deduction arise on provision of export insurance?
The Coordination Committee of the General Financial Directorate and the Chamber of Tax Advisors have discussed the entitlement to VAT deduction on insurance provided in connection with the export of goods to a third country. A few situations that…
VAT on the lease of real estate
On 1 January 2021, a provision of the VAT Act restricting the option to tax leases of selected real estate entered into effect. At the end of 2020, the General Financial Directorate (GFD) issued information to ensure a better understanding of the…