VAT Filing Deadlines for 2022 Summer Holiday Period Extended

Belgium has announced that the VAT filing deadlines for the 2022 summer holiday period have been extended. The new deadlines are as follows:

Taxable persons entitled to a VAT refund must file their return by:

• 22 July 2022 instead of 20 July for the June 2022 return
• 24 August 2022 instead of 22 August for the July 2022 return

The filing deadlines for the intracommunity supply listings are extended as follows:

However, the payment deadlines have remained unchanged.

Clarification of New VAT Rules on Provision of Furnished Accommodations

The Belgian tax authorities have issued “Frequently Asked Questions” with clarifications on the upcoming change to the VAT treatment on the provision of furnished accommodations.

Under those changes, the provision of furnished accommodation in hotels, motels, and establishments with a similar function is only subject to VAT where paying guests are normally accommodated for a period of less than three months. However, in case certain closely related services are not provided, a VAT exemption is applicable. The changes will take effect from 1 July 2022.

Authorisation to Apply a Higher VAT Exemption Threshold for Small Businesses

The European Commission has allowed Czech Republic to exempt from VAT taxable persons with an annual turnover up to €85,000, instead of the threshold of €35,000 foreseen in the VAT Directive for small enterprises. This will be applicable until 31 December 2024.

VAT Treatment of State Aid on Oil Prices

The payments performed by the French government of a determined part of the oil price (€0.15/litre for diesel and gasoline) should not be treated as a third-party consideration and, in this sense, are not subject to French VAT.

Procedure for Reassessments on Distance Sales of Goods of Non-Established Businesses

The General Directorate of Public Finance of France issued a communication regarding the reassessment of distance sales of goods by non-established businesses because of the new VAT rules on this type of transaction, stating the context of these reassessments, to establish the procedure and deadline of 30 September 2022 to submit them.

Deadline for Transmissions to MyDATA Platform Further Extended

Greece has extended the deadline for transmissions of invoicing income, self-invoicing expenses, and acquisition securities relating to fiscal year 2021 to MyDATA platform until 30 June 2022.

VAT Treatment of Transfer of Going Concern from Permanent Establishment to Head Office Clarified

The Italian tax authorities issued a ruling clarifying the principles related to the transfer of a going concern from an Italian permanent establishment (PE) to its EU head office. The case under analysis was of a banking institution established in another EU member state and having a PE in Italy providing services such as bank accounts, bank deposits, financing, and financial leasing. It decided to close the Italian PE and transfer the related going concern to the EU head office.

VAT Rate on Supplies of Seagoing Vessels to Intermediaries Clarified

According to clarifications provided by the Italian tax authorities in a ruling, supplies concerning the fuelling and provisioning of seagoing vessels will benefit from the VAT zero rate only if the purchaser is a shipowner. Consequently, the same supplies fall outside the scope of the beneficial rate if made to intermediaries. However, if the transaction is an export sale or intracommunity sale of goods, the VAT zero rated regime applies.

Relevance of Supplies Facilitated by Electronic Interfaces for VAT Refund Claims Clarified

The Italian tax authorities issued a ruling clarifying that supplies of goods or services facilitated by electronic interfaces are VAT exempt with right to deduct and relevant for the purposes of VAT refund claims.

Clarification About Settlement Agreements Treatment for VAT Purposes

The Italian tax authorities issued a ruling clarifying that a settlement agreement, under which one party takes the obligation not to start a controversy procedure against the other party and receives an amount of money as consideration, may qualify as a generic supply of services for VAT purposes.

Clarification on the VAT Treatment of Supplies of Food and Beverages in Company Canteens

The Italian tax authorities issued a ruling with clarifications on the time of supply and the VAT rate applicable to supplies of foods and beverage carried out in company canteens depending on the respective different contractual relationships applicable.

Non-EU Taxable Persons with Italian VAT Representative May Still Use Direct Refund Procedure

The Italian tax authorities clarified in a ruling that, subject to certain conditions, a taxable person established outside the EU and registered for VAT purposes in Italy via the appointment of a fiscal representative may file a refund request directly under the procedure set out under Article 38-ter of the Italian VAT Act.

Tax Authorities Clarify Measures to Contain Energy Costs

The Italian tax authorities clarified in a circular the reduced VAT rates and tax credits introduced to help individuals and businesses deal with rising energy prices, namely the reduced VAT rate in the gas sector and the tax credits granted to qualifying enterprises with a high energy consumption.

Changes to the VAT Treatment of Defense Efforts

Several amendments to the VAT Act were introduced in Malta, transposing Articles 1(1) and (2) of Council Directive (EU) 2019/2235. These changes shall be effective from 1 July 2022 onwards. The second and fifth schedules of the Maltese VAT Act now include supplies to armed forces of other member states taking part in a defense effort carried out for the implementation of an EU activity under the common security and defense policy.

Reduced VAT Rates on Energy and Foodstuffs Extended

The temporary application of reduced VAT rates on foodstuffs, fuel, and electricity was extended in Poland until 31 October 2022. The following VAT rates temporarily apply:

• 0% on foodstuffs, fertilisers, and gas
• 5% on heat energy and electricity
• 8% on fuel

Poland to Extend Zero VAT Rate Application for Ukrainian Aid

The government has announced the extension until 31 December 2022 of the application of the zero VAT rate for donations and the gratuitous provision of services to support Ukraine and Ukrainian refugees.

Portuguese Budget Eases VAT Rules

The final version of the 2022 state budget was approved, and the following measures were introduced:

• Several goods and services used for defense purposes within the EU framework become VAT exempt, as well as those used for the performance of legally allocated functions under EU law within the context of combatting the COVID-19 pandemic.
• The list of goods and services to which the reduced VAT rate applies has increased; among others, the following were added: products similar to cheeses, without milk and dairy, made from dried fruits, cereals, fruits, or vegetables and delivery and installation services of thermal solar and photovoltaic panels.
• The VAT return filing deadlines are extended to the 20th day of the second month following that to which the VAT operations relate for entities in the monthly VAT regime and, for quarterly VAT regime, to the 20th day of the second month following the quarter to which the VAT operations relate. The VAT payment deadline is extended to the 25th day of the month of deadline applicable for VAT return submission, respectively for monthly and quarterly VAT regimes.
• The taxpayers must deliver the VAT unduly charged within 20 days of the date on which the invoice was issued. In case of single taxable supply, it should be delivered until the end of the month following the conclusion of the transaction.
• The monthly obligation to communicate to the tax authorities the elements of the invoices issued was extended to all entities that issue invoices under Portuguese VAT regulations, including non-resident entities. The communication deadline was changed to the fifth day of the following month. These specific changes related to the monthly communication will be in force only as from 1 January 2023.

Extension of Applicability of VAT Reverse Charge Mechanism on Some Domestic Supplies

The Romanian government extended until 31 December 2026 the currently applicable VAT reverse charge mechanism on the internal supplies of cereals and technical plants; greenhouse gas emission certificates; electric energy performed towards a taxable trader established in Romania for VAT purposes; green certificates; and mobile phones, integrated circuit devices not yet incorporated into products for end consumers, game consoles, tablets, and laptops in cases where the respective total value does not exceed RON 22,500 (excluding VAT).

The reverse charge mechanism will continue to only be applicable in cases where both the supplier and the beneficiary are VAT registered in Romania.

Non-Fungible Token Sales Classified as Electronically Supplied Services for VAT Purposes

A ruling was published by the Spanish General Directorate of Taxes stating that the transfer of a non-fungible token (“NFT”) implies the provision of digital art services. Accordingly, they concluded that it should be classified as services provided by electronic means and taxed at the general rate of 21%, in case it is understood that the provision of services was to be carried out in the territory of application of Spanish VAT.