Belgium Approves Temporary Reduction of VAT Rate on Electricity

The Belgian government has announced a temporary reduction of the VAT rate on electricity from 21% to 6% with effect from 1 March 2022 to help its citizens cope with the rising costs.

Bulgaria Gazettes Extended Scope and Period of Application of Reduced 9% VAT Rate

The Bulgarian government has recently published several amendments to the VAT Act. Among other measures, the 9% reduced VAT rate has been extended to include specialised milk formulas and dietary foods for special medical purposes intended for infants; food vouchers have been included in the scope of application of the special VAT rules for vouchers; rules have been introduced for adjusting incorrectly issued invoices; and various clarifications have been issued concerning the new VAT rules for e-commerce, applicable as of 1 July 2021, and supplies of goods between Bulgaria and Northern Ireland.

France Can Introduce Mandatory Electronic Invoicing in 2024

The European Union Council has authorised France to introduce mandatory electronic invoicing for transactions between taxable persons who are established in the territory of France. The measure will be applicable from 1 January 2024 until 31 December 2026.

In 2024, it will be applicable to large enterprises and, in 2025, enterprises with between 250 and 4,999 employees and a turnover below EUR 1.5 billion. It will then finally apply to small and medium-sized enterprises, including those businesses that benefit from the exemption for small enterprises in 2026.

France Sets Procedure for Filing Customers’ Recapitulative Statements for VAT Purposes

The recapitulative declaration should be submitted for all the supplies of goods carried out after 1 January 2022 by the 10th working day of the month following the month of reference.

Shareholder of Limited Liability Company Considered as a Taxable Person

The Polish government has ruled that if shareholders provide recurring non-pecuniary services for the benefit of a limited liability company, such as advisory or consulting services, those services should be considered as provided independently i.e., not on the grounds of employment or similar contracts. This means that they are subject to VAT.