Non-EU Countries
ISLE OF MAN
New Penalty and Interest Regime
As from 1 January 2023, a new penalty regime for late VAT returns and payments will apply. The new regime establishes namely that:
- The late filing of the VAT return is subject to a penalty of GBP 200
- A late payment penalty between 2% and 4% for the outstanding VAT and an annualized amount accruing daily until the payment is received may be applied, unless the payment occurs (or a payment plan is proposed) within the first 15 days after the due date
- Late payment interest may also be charged at the rate set by the Treasury
NORWAY
New VAT Measures for Electric Vehicles and Electronic News Services
Amendments to the VAT legislation became effective on 1 January 2023, including notably the following:
- The sale and lease of electric vehicles, with purchase price above NOK 500,000, is subject to the standard VAT rate (currently 25%) concerning the amount that exceeds such exemption threshold
- The VAT exemption on electronic news services has been abolished
- The VOEC scheme (simplified VAT scheme) has been expanded to non-established suppliers offering remotely deliverable services, to private individuals and non-business customers (B2C) in Norway – for example, legal services and consulting services. Before, it only applied to low value goods and electronic services.
UNITED KINGDOM
New VAT Penalty Regime
As from 1 January 2023, a new points-based penalty system for late returns and payments will apply. According to the new regime:
- For each return submitted late, a penalty point will be received until the penalty point threshold has been reached
- Once threshold has been reached, a £200 penalty will be levied, and, again, for every subsequent late submission while at the threshold
- Penalty will also apply to late payments: After 15 days, a penalty of 2% will apply for the outstanding VAT and again after 30 days. An additional penalty will then be applied at an annual rate of 4% a year from the 31st day until payment is made
- In addition, late payment interest at the Bank of England base rate plus 2.5% will be charged on late VAT payments
Until 31 December 2023, HMRC will not charge the first late payment penalty, provided full payment or a payment time arrangement is made within 30 days of the due date.