The Act for Modernization of Taxation aims to enhance the exclusive automatic assessment. By implementing a new “qualified free-text field” the taxpayer is given the opportunity of having his VAT return dealt with by an official. This should minimize the risk of fiscal offences. Vice versa, refraining from entering information in this field might also give rise to such a risk. Special care should therefore be taken regarding the proper handling of the free-text field.

Only a few weeks ago, the ECJ published its judgment in the legal case Senatex. Therein, it acknowledged that an invoice may be corrected with retroactive effect for the purpose of input VAT deduction. In its decision of 21 December 2016, the Federal Fiscal Court referred to the Senatex case. It amended its case law and acknowledged that invoice correction, with retroactive effect, is possible at any time prior to the end of a hearing before the tax court.

AUSTRIA simplifies burden of proof for intra-Community triangular supplies +++ BELGIUM is to abolish advance payments if quarterly VAT returns are filed +++ FRANCE may raise its standard VAT rate +++ HUNGARY is chang-ing its mandatory invoice requirements +++ ITALY is implementing quarterly VAT returns and is postponing an increase to its VAT rate +++ NORWAY is implementing the reverse charge mechanism for import VAT +++ POLAND is implementing automatic deregistration and further penalties +++ ROMANIA to lower standard VAT rate +++ SPAIN is expanding electronic reporting obligations +++