EU Member States
CYPRUS
Foods Products and Other Goods Exempt from VAT
As from 31 May 2023, the importation and supply of certain food products, baby and adult diapers, and female hygiene products is temporarily exempt from VAT in Cyprus. This measure will be in force until 31 October 2023.
CZECH REPUBLIC
Single Reduced VAT Rate Proposal
Amongst other tax measures, the Czech government has proposed to merge the current reduced VAT rates of 10% and 15% into a single reduced rate of 12%. These measures will only become effective if approved and after being published in the Official Government Gazette.
POLAND
Directive on VAT Data Reporting Obligation for Payment Service Providers Adopted
A bill to implement EU Council Directive 2020/284, of 18 February 2020, has been approved by the Polish parliament. After the bill is promulgated, 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.
ROMANIA
New Measures on the Fight Against VAT Fraud
Romania has enacted a bill introducing new criminal offenses and sanctions for cross-border VAT fraud, in accordance with EU Directive 2017/1371. These measures will come into force on 25 May 2023.
SPAIN
Financial and Insurance Services Excluded from the Use and Enjoyment Rule
As from 26 January 2023, both financial services and insurance services rendered to taxable persons (i.e., B2B services) established outside the EU are excluded from the use and enjoyment rule and therefore are no longer subject to Spanish VAT even if the effective use and exploitation of the service is carried out within the Spanish territory.