Change on VAT Procedures and Collection Approved

The bill concerning the changes on the VAT procedures and collection has been adopted. Among the tax measures approved:

• A VAT provision account for excess deductible VAT
• Replacement VAT assessment for late filers
• VAT assessment in case of late submission of required documents
• VAT refund conditions and payment timelines
• Tax collection register notification
• The means of payments to settle the tax due

Once enacted, the bill is expected to come into force from 1 January 2024.

Tax Reform Proposal Published

The finance minister has published the first step of a tax reform proposal. Concerning the indirect taxes, the proposed measures include notably:

• Introduction of a single reduced VAT rate of 9% instead of the current reduced rates (6% and 12%)
• Introduction of a 0% VAT rate on supplies of vegetables, fruits, medicines, diapers and other products for intimate hygiene protection, and public transport
• Permanent application of a reduced VAT rate on demolition and reconstruction of buildings
• Simplification of the VAT compliance procedures through e-invoicing and reporting requirement

Directive on VAT Data Reporting Obligation for Payment Service Providers Adopted

A bill to implement in Belgium the Council Directive (EU) 2020/284 of 18 February 2020, amending Directive 2006/112/EC, which introduced certain reporting requirements for payment service providers, has been approved by the parliament. After the bill is promulgated by the King, the payment service providers will be required, as from 1 January 2024, to report certain payment data in case of providing payment services corresponding to more than 25 cross-border payments to the same payee in a quarter.

New Tax Portal

A new electronic tax administration portal [i.e., “Tax For All” (TFA)] has been announced, which will progressively replace the TAXISnet platform.

As from 27 March 2023, TFA shall be used notably for VAT reporting, payments, issue of certificates, and communication with the tax authority.

To facilitate the transition, the deadline for the submission of the regular quarterly VAT returns has been extended to 26 April 2023 (for the tax period of 1 December 2022 to 28 February 2023), and to 26 May 2023 (for the tax period of 1 January 2023 to 31 March 2023).

Directive on VAT Data Reporting Obligation for Payment Service Providers Adopted

The Council Directive (EU) 2020/284 of 18 February 2020, amending Directive 2006/112/EC, which introduced certain reporting requirements for payment service providers, has been implemented by Finland.

Therefore, as from 1 January 2024, the payment service provider must report certain payment data in case of providing payment services corresponding to more than 25 cross-border payments to the same payee in a quarter.

Reduced VAT Rate Extended to Certain Operations and Electronic Seal for E-Invoicing

The scope of application of the reduced VAT rate of 5.5% in Monaco was amended to cover, under certain conditions, certain foodstuffs for animal consumption; the installation and maintenance related to charging infrastructure for electric vehicles; and energy renovation services for buildings intended for residential use.

In addition, the electronic seal procedure for e-invoicing is now available to taxable persons.

Amendment of VAT Procedures for Commercial Leases, Volume Discounts, Immovable Property

On 24 February 2023, amendments to VAT procedures entered into force in Greece concerning commercial leases, volume discounts, and the qualification of immovable property owned by a third party as capital goods of a business.

Proposal to Extend the Application of Reduced and Super-Reduced Temporary VAT Rates

A proposal was submitted to extend the application of the following temporary rates until 31 December 2023 (instead of 30 June 2023):

• Super-reduced VAT rate of 6% to filters for dialysis, hemofiltration, and plasmapheresis, as well as products used for virus protection and the prevention of hospitalisation
• In line with a previous press release, reduced (13%) VAT rate to transportation, catering services, cinema tickets, coffee and non-alcoholic drinks, tourism, zoo tickets, gyms, and dance schools, as well as for the import of artwork, art collections, and antiquities

Proposal to Extend the Application of VAT Incentives for Optional E-Invoicing

A proposal was submitted to extend until 2023 the application of the incentives applicable to companies that have opted for e-invoicing (on or after 2020). The available VAT incentives include notably:

• The reduction of the deadline to issue a VAT assessment from five to two years
• VAT refunds within 45 days instead of 90 days since application

Such extension will only become effective if approved and after published in the official government gazette.

Directive on VAT Data Reporting Obligation for Payment Service Providers Adopted

The Council Directive (EU) 2020/284 of 18 February 2020, amending Directive 2006/112/EC, which introduced certain reporting requirements for payment service providers, has been implemented by the Netherlands.

Therefore, as from 1 January 2024, the payment service provider must report certain payment data in case of providing payment services corresponding to more than 25 cross-border payments to the same payee in a quarter.

Food Products Exempt of VAT

As from 18 April 2023, the importation or supply of certain food products is temporarily VAT exempt in Portugal. This temporary measure will be in force until 31 October 2023.