Intrastat Thresholds Increased for 2023

Bulgaria has announced an increase of the Intrastat reporting thresholds for 2023. It will be BGN 1,000,000 (currently BGN 780,000) for dispatches and BGN 700,000 (currently BGN 520,000) for arrivals.

Similarly, the thresholds to report the statistical value will also increase for 2023 to BGN 29,300,000 (currently BGN 18,600,000) for dispatches and BGN 11,000,000 (currently BGN 8,400,000) for arrivals.

Clarifications Related to Increase of VAT Registration Threshold for 2023

Considering the increase of the mandatory VAT registration threshold in Bulgaria, as of 1 January 2023, to BGN 100,000, the National Revenue Agency has clarified that taxable persons registered for VAT with a taxable turnover (in the last 12 months) under BGN 100,000 may, as of 1 January 2023, cancel their VAT registration.

New Criteria for Determining When the Supply of Buildings and Land Is VAT Exempt

The Cyprus government has introduced an amendment, effective from 11 November 2022, with new criteria to determine whether the supply of a building and land is considered as a taxable or an exempt supply for VAT purposes.

Increase of the VAT Registration Threshold Under Discussion

The Czech government has approved a bill that, among other measures, increases the VAT registration threshold to CZK 2 million. To become effective, the bill still needs to be signed by the President and published accordingly.

VAT Suspension for New Buildings and Other Tax Measures Proposed in the 2023 State Budget

Following a public consultation, a draft bill for 2023 was submitted to parliament for approval. It extends the application of the reduced VAT rates notably for transportation, coffee, and non-alcoholic beverages until June 2023; the super-reduced VAT rate of 6% for filters for dialysis, hemofiltration, and plasmapheresis, as well as for products used for virus protection and for the prevention of hospitalization until June 2023; and the suspension of VAT on new buildings until 31 December 2024.

Draft Budget Law for 2023

The draft Budget Law for 2023 currently under discussion in Italy foresees, namely, the application of the super-reduced VAT rate (5%) for the supply of specific feminine hygiene products and childcare products. Additionally, it also foresees the delay of the entry into force of the plastic tax and the sugar tax until 1 January 2024.

VAT Deduction on Purchases of Electric Cars

As from 1 January 2023, taxpayers will be able to deduct input or import VAT incurred with the purchase of electric cars, provided certain requirements are met.

Flexible VAT Payments for Cooperatives and Micro, Small, and Medium-Sized Companies

The Portuguese government has allowed flexible VAT payments for cooperatives and micro, small, and medium-sized companies regarding the VAT returns to be filed in November and December 2022. These payments can be made in three or six instalments in an amount equal to or higher than EUR 25.

Proposal to Extend the List of Goods and Services Subject to Reduced VAT Rate in Madeira

Under this proposal, electricity, natural gas, butane, and propane would be included in the list of goods and services to which the reduced VAT rate applies, and the supply of internet access services would also be added to this list.

Clarification of “Dwelling” for Reduced VAT Rate Purposes

The Romanian government has clarified the concept of “dwelling” to be considered for the application of the 5% VAT rate to its sale.