Extension of the Reduced 9% VAT Rate for Tourism and Hospitality

The Irish government has confirmed that the reduced 9% VAT rate for the tourism and hospitality sector will be extended only until 28 February 2023, and that the 13.5% VAT rate will apply to these sectors from 1 March 2023 onwards.

Extension of Mandatory Electronic Invoicing to Small Businesses

As from 1 July 2022, electronic invoicing will become mandatory for all businesses whose annual turnover exceeded EUR 25,000 in the preceding year. This requirement will then be extended to all remaining businesses with effect from 1 January 2024.

Parliament Enacts Urgent Measures to Counter Rising Energy Costs

To counter the rising cost of electricity and natural gas, the Italian government has extended the temporary reduction of the VAT rate applicable to qualifying supplies of natural gas and approved the introduction of targeted tax credits.

Enactment of Energy Relief

Luxembourg has enacted an energy relief to reduce the sales prices of certain petroleum products by EUR 0.075 per litre (including taxes). The reduction applies until 31 December 2022 for diesel used as fuel oil and until 31 July 2022 for diesel used as fuel for other industrial and commercial uses.

Measures for Countering Higher Energy Costs

The Portuguese Parliament has recently approved new measures to counter the increase in fuel prices. Among other measures, it has introduced a VAT exemption for all fertilisers, soil correctives, and products for feeding cattle, poultry, and other animals, when used in agricultural production activities, until 31 December 2022.

Invoice Submission through RO E-Invoice System for Business-to-Government Transactions is Now Mandatory

Following the publication of Law no. 139, regarding the administration, functioning, and implementation of the national RO e-Invoice System, economic operators established in Romania for VAT purposes will become liable to issue electronic invoices for business-to-government (B2G) transactions and transmit them through the national RO e-Invoice System from 1 July 2022 onwards.

Increased Turnover Limit for VAT Exemption

The Swedish government has approved an amendment to the VAT Act and announced that local businesses will be exempt from tax on turnover that arises in Sweden from the sale of goods and services during a tax year if:

• The turnover does not exceed SEK 80,000 during the tax year
• The turnover does not exceed SEK 80,000 for either of the two immediately preceding tax years

In case the turnover exceeds the threshold of SEK 80,000 during the current tax year, the exemption ceases and the taxable person must register with the Swedish tax authority and pay VAT on the amounts exceeding the threshold. Businesses providing taxable supplies below this threshold may voluntarily opt to VAT-register. This amendment enters into force on 1 July 2022.