Webinar on August 10 “Updates on Value Added Tax Rules”
Euro VAT Refund's CEO Britta Eriksson will provide an update on Value Added Tax (VAT) registration liabilities and VAT refund possibilities when North American companies sell products and services online (e-commerce) to customers in the EU at a webinar hosted by The Office of International Commerce, the U.S. Commercial Services Office and Granite State District Export Council; “Updates on Value Added Tax Rules” - At Your Desk on Wednesday, Aug 10, 2016, 11:30 am EST, 8:30 am PST. Webinar details and registration: nhexportassistance.com/event/webinar-updates-on-value-added-tax-rules/
United Kingdom VAT Filing Deadline is Approaching
The deadline for filing a VAT refund claim to the United Kingdom’s tax authorities for invoices dated from July 1, 2015 through June 30, 2016 is fast approaching. Please contact our office no later than September 1, 2016, if interested in proceeding with a UK VAT refund. The filing preparation has to begin 3 months before the December VAT filing deadline because an IRS certificate has to be ordered, which can sometimes take up to 3 months to receive.
The United Kingdom has voted to leave the European Union, Thursday, June 23, 2016
Britain has voted in a referendum to exit the European Union, also referred to as ‘BREXIT’. A fixed, two-year negotiation period will take place after the UK parliament votes to exit, however, the good news is that no changes will be implemented until the end of 2018 at the earliest. All existing VAT rules will remain intact for now, and companies can continue their business activities and trade as usual until the negotiations have concluded. Euro VAT Refund will make sure to inform our clients and contacts of any updates and VAT liability changes as a result of BREXIT.
New stricter VAT rules for North American companies selling online to customers in Europe
The United Kingdom (UK) has realized that many North American companies are not following the local VAT regulations when selling goods in the UK via online marketplaces. In attempt to make non UK companies VAT compliant, the UK has decided to take action by giving HM Revenue & Customs (“HMRC”) the power to make an overseas business appoint a UK VAT representative. Together they will be responsible and liable for any unpaid UK VAT. In addition, the newly introduced UK VAT laws will also allow HMRC to hold an online marketplace liable for any unpaid VAT on behalf of an overseas company that sells goods in the UK via the online marketplace’s website.
The reason for these new VAT laws within the UK is that HMRC has noticed that overseas businesses that sell goods that are located in a UK warehouse at the time of sale to UK costumers via online marketplaces such as Amazon, Ebay and others are not registered for VAT, and are also not paying VAT on the full retail price. This makes it challenging for non UK companies that are legally registered for VAT since goods that shipped and stored in a UK fulfilment warehouses by non VAT registered companies before being sold to UK consumers are offered a lower price.
These new measures will begin in 2017, and HMRC will be on the lookout for any North American company that is not VAT compliant. These companies will be tracked down one by one to appoint them with a UK tax representative, or have them register for a local VAT number. In order to avoid back taxes and penalties, and to find out if your company is required to register and charge VAT within the EU, please contact our VAT experts.
The Danish Tax Authorities are closely following the footsteps of the German Tax Authorities
Several U.S. companies doing business within Germany have indicated that they have been contacted by the German tax authorities, and now the Danish tax authorities are doing the same. Since January 1 of this year the Danish tax authorities have the authority to access information from banks and credit card companies in order to trace any non-Danish vendor that sells goods and services online to private people within Denmark. These companies are often unaware that they might be required to register for VAT and charge VAT to the private customers. The call from the Danish tax authorities might come as an unpleasant surprise since they demand that the company declares and pays in the VAT due from sales to Denmark. If this is not done per Danish law, the North American company can expect back taxes and penalties. To find out if your company is required to register and charge VAT within the EU, please contact our VAT experts.
New VAT rules when registering for VAT in Norway In previous years Norway required North American companies to appoint a fiscal representative when registering for VAT in Norway. The Norwegian government has now decided that it is optional for non-resident businesses to appoint a fiscal representative. This is good news for North American companies planning to register for VAT in Norway since it will significantly reduce the administration costs.
Greece increases their standard VAT rate from 23% to 24%
The Greek government decided to raise their standard VAT rate from 23% to 24%. The change went into effect on July 1, 2016. The rate is increased due to an attempt to help boost the Greek economy.
Change in Spanish VAT Refund Regulations as of January 2015
The Spanish government has decided to refund VAT on some of their services to non-EU entities as of January of this year. This is a major breakthrough since Spain previously did not refund VAT 13 Directive to North American companies. Some of the expenses on which VAT will be refundable are services related to the attendance of fairs, congresses and expositions of commercial or professional events. Related services include event access, accommodation, meals and transportation. Please contact our VAT experts for further information.