Servicios de cumplimiento

Coalition parties have been putting forward the proposal to reduce VAT on fruits and vegetables.

As we have seen with ‘green’ initiatives both in Europe and globally, fiscal measures are often intrinsically linked to social and political reforms. Coalition parties in the Netherlands are hoping that reducing VAT will help curb obesity and other health-related illnesses in the country.

Proposals for a reduced rate are yet to be carved into law and are currently being discussed.

Tungsten Network is continually reviewing tax rate changes in Europe. The Tungsten Web Form facility currently includes the option to select all valid Dutch VAT rates. We will ensure that any new valid VAT rates, if applicable, will be integrated as part of our portal solution.

Romania has one of the largest tax gaps Europe. In 2019, it saw 34.9% of its VAT revenues disappear. To counter this, Romania is deploying several fiscal measures to drastically reduce the VAT gap.

The B2G mandate and upcoming B2B e-invoicing mandate on 1^st July 2022 relating to high-risk fiscal product is viewed as a significant measure to achieve this aim.

In addition to the e-invoicing mandate, the operation of the reverse charge mechanism also serves to reduce the VAT gap. This is where the responsibility to pay tax shifts from the supplier to the buyer.

To this effect, the domestic reverse charge in Romania has been extended until 2026 on the following products:

• Sale of ferrous and non-ferrous waste
• Sale of wood
• Sale of cereals
• Sale of electrical energy
• Sale of construction, partial construction, land (subject to the VAT regime by option or by law)
• Sale of mobile phones
• Sale of devices with integrated circuits
• Sale of PCs, tablets or laptops

Both the seller and buyer must be Romanian taxpayers for the reverse charge to apply.

We have recently communicated about the upcoming partial e-invoicing mandate in Romania, where high-risk fiscal B2B transactions will need to be cleared through the Romania e-invoicing platform, the RO e-Factura.

However, Romania wants to advance its e-invoice mandate yet further- it has requested approval from the European Council for a derogation from the VAT Directive articles 178, 218 and 232 for mandatory transmission of all B2B invoices through the RO e-Factura system.

Tungsten is already assisting its suppliers and buyers with the upcoming partial mandate in Romania, and we will continue to monitor developments in the country regarding the derogation.

The French Tax Authorities have issued an updated version of the FAQs on electronic invoicing.

The latest version of the FAQs is available here.

Luxembourg is following the lead of e-invoicing developments in neighbouring countries Belgium and the Netherlands, by mandating B2G e-invoicing in the country.

E-invoicing is projected to take place in a phased implementation in line with the following timeframes:

• 18 May 2022: Large companies in Luxembourg will be required to send e-invoices to the public authorities
• 18 October 2022: medium-sized taxpayers will follow suit
• 15 March 2023: small and new businesses will complete the transition to e-invoicing

Luxembourg will follow the path of many European countries by using the PEPPOL Network for B2G e-invoicing. This means that invoices will be converted into the standard PEPPOL BIS 3.0 format and transferred through the PEPPOL channel (AS4). It will also require companies to be connected to a PEPPOL Access Point, to facilitate connection with other participants on the PEPPOL Network.

The move to e-invoicing will provide greater automation of the e-invoicing process, leading to reduced errors and cost-saving.

Tungsten Network is compliant in Luxembourg and will follow e-invoicing developments in the country.

The adoption of e-invoicing across Europe is gaining some momentum. There are indications that Bulgaria has been influenced by countries in close proximity and intends to introduce an e-invoicing mandate for B2B transactions.

Authorities in Bulgaria are holding public consultations, and e-invoicing is being considered amongst other digital VAT-related incentives.

At the moment, the proposal to introduce e-invoicing has not yet been crafted into law. However, this does demonstrate the inclination of countries to digitalise their tax-related processes for a more automated and efficient framework of their fiscal operations.

Tungsten Network is compliant in Bulgaria, and we will closely monitor growing e-invoicing impetus in the country.

Bulgaria has been deploying a range of fiscal measures to combat spiralling inflation in the country. In the past few months, Bulgaria has extended reduced rates and applied zero-rate VAT on certain products to reduce the burden on taxpayers.

The Bulgarian government has acknowledged the effect of rising inflation on taxpayers and has responded accordingly with an anti-crisis fiscal package.

Significant fiscal measures within the package include:

• VAT on bread reduced to 0%;
• VAT on heating, hot water and natural gas for household consumers to 9%;
• An increase in the VAT threshold registration – from BGN 50,000 to BGN 100,000.

The Bulgarian government has now accepted a bill to increase the VAT registration threshold in the country. Currently, the VAT registration threshold is set at BGN 50,000 (or 25,500 Euros).

The proposed VAT registration threshold would increase in line with the following:

• 1^st January 2023: BGN 100,000 (c. 51,300 Euros)
• 1^st January 2024: BGN 166,000 (c. 85,000 Euros)

The introduction of new VAT groups in Poland was expected to come into effect on 1^st July 2022. However, there are indications that the applicable legislation will not be enacted in time.

It is envisaged that the introduction of new VAT groups in Poland will now take place from January 2023.

If so, this may affect the changes to the VAT-R form in Poland referred to below.

There have been some significant changes on the VAT-R form in Poland.

The VAT-R is the form necessary to initiate VAT registration in Poland. Further to the two changes above, the form will now include the option to indicate that a particular taxpayer is part of a VAT group. The form also allows taxpayers to select whether financial services are taxed, or whether they are exempt from taxation.

An English version of the form is also available.

The new form came into effect from 1 July 2022. A transitional period has allowed taxpayers some flexibility and meant that the previous version could be used until 31 June 2022.

Last month we communicated around the derogation granted to Poland by the European commission to mandate e-invoicing in the country. We expected the Polish mandate to be enforced through the course of 2023.

The European Council has revised the date from which the derogation applies to 1^st January 2024. This was approved by the European Council on 17 June 2022. This means Poland, at the earliest, can start mandating e-invoicing in the country from 1^st January 2024. The derogation is effective until 31 March 2026.

The legislation has now been published in the official Journal of the EU Union and the derogation is not legally binding.

Tungsten Network is preparing to be ready for the Polish mandate and we will continue to update you on our progress.