VAT Rates for 2024

The interest rate for the calculation of VAT interest rates applicable in Belgium for 2024 will remain the same as in 2023. As a result, VAT late payments and refunds will remain subject to an 8% and 6% rate, respectively.

Thresholds for 2024 Intrastat

In 2024, the intrastat thresholds applicable in Bulgaria will increase to BGN 1,900,000 for dispatches and BGN 1,650,000 for arrivals. Moreover, the threshold to report statistical value will increase to BGN 37,200,000 for dispatches and BGN 16,000,000 for arrivals.

Amendments to the VAT Act – Adjustments and Reporting Obligation for Payment Service Providers

Changes to the VAT Act have been approved in Croatia. Among several changes, Croatia has namely implemented the VAT Data Reporting for Payment Service Providers Directive (2020/284). In this context, as from 1 January 2024, payment service providers must report payment data, on a quarterly basis, in the event of facilitating more than 25 payments related to cross-border supplies in a given quarter.

In addition, a simplified procedure for VAT adjustments was introduced, allowing under certain conditions the supplier to correct the output VAT in case of non-payment, cancellation, or discount, without waiting for customer’s confirmation that their input VAT has been adjusted.

Single Reduced VAT Rate Introduced

The 2024 tax package has been approved and several tax amendments introduced. Concerning indirect taxes, the bill introduced a new single reduced VAT rate of 12% and abolished the two current reduced VAT rates (10% and 15%). This change is effective as from 1 January 2024.

VAT Rate Increase

As from 1 January 2024, the standard VAT rate will increase to 22% (currently 20%). In addition, as from 1 January 2025, the supply of accommodation services and press publications will increase from 9 to 13% and from 5 to 9%, respectively.

List of Airlines That Meet the Criteria for the VAT Zero Rate Updated

France has updated the list of airlines that fulfil the requirements for the application of the VAT zero rate under Article 262(II)(4) of the General Tax Code.

Revised VAT Exemption Procedure for Free Zones Postponed

The implementation of the updated VAT exemption procedure for free zones was postponed until 1 February 2024. The aim is to match the start of the VAT exemption procedure with the implementation of the new software for digitizing the exemption procedure.

Reduced VAT Rates for Agricultural Products and Services to Overcome Architectural Barriers

As from 1 November 2023, certain goods used in agriculture, livestock farming, and forestry will be subject to a reduced VAT rate of 13%. Moreover, a new reduced VAT rate of 4% will apply to services provided to overcome or eliminate architectural barriers that limit the mobility of people with disabilities.

List of Entities Subject to the Split Payment Mechanism in 2024

The list of entities subject to the VAT split payment mechanism for 2024 was published by the Department of Finance of the Ministry of Economy and Finance of Italy.

Directive on VAT Data Reporting Obligation for Payment Service Providers Adopted

The VAT Data Reporting for Payment Service Providers Directive (2020/284) has been implemented by Italy. In this context, as from 1 January 2024, payment service providers must report payment data, on a quarterly basis, in the event of facilitating more than 25 payments related to cross-border supplies in a given quarter.

Directive on VAT Data Reporting Obligation for Payment Service Providers Adopted

The VAT Data Reporting for Payment Service Providers Directive (2020/284) has been implemented by Latvia. In this context, as from 1 January 2024, payment service providers must report payment data, on a quarterly basis, in the event of facilitating more than 25 payments related to cross-border supplies in a given quarter.

Reduced VAT Rate Introduced for Certain Services

As from 1 January 2024, a reduced VAT rate of 12% will, under certain conditions, apply to the following services: custody and management of securities, management of credit and credit guarantees, short-term hiring of pleasure boat, and services consisting of the care of the human body by health care professionals.

Temporary Waiver of Penalties for Non-Compliance of the EU VAT E-Commerce Regime

The Secretary of State for Finance has announced a temporary waiver of administrative penalties for non-compliance with the EU VAT E-commerce package. This measure will apply retroactively from 1 July 2021 and until 1 June 2024.

Mandatory Electronic Invoicing for B2B Transactions as from July 2024

Poland has approved the bill on mandatory electronic invoicing for B2B transactions, as from 1 July 2024 (i.e., excluding VAT-exempt businesses, which are only required to comply as from January 2025). This requirement will not apply to non-established taxable persons.

VAT Return Form Amended

Following the introduction of new VAT exemptions with the right of deduction (e.g., supply of specific goods and services to hospitals, orthopaedic products, and prostheses), the VAT form (300) was amended to add specific fields for the separate reporting of those transactions.

Mandatory E-Invoicing for B2B Transactions as from January 2024

The bill on mandatory e-invoicing for B2B transactions has been approved by Parliament and the President and will be in effect from 1 January 2024. The government has granted a transitional period (i.e., from 1 January 2024 until 31 March 2024) during which no penalties apply for non-compliance with these new regulations.

Directive on VAT Data Reporting Obligation for Payment Service Providers Adopted

The VAT Data Reporting for Payment Service Providers Directive (2020/284) has been implemented by Sweden. In this context, as from 1 January 2024, payment service providers must report payment data, on a quarterly basis, in the event of facilitating more than 25 payments related to cross-border supplies in a given quarter.