Some legislative amendments, which primarily apply to the formal law but will also impact on VAT, will enter into force by the turn of the year. The threshold for invoices for small amounts will be increased from EUR 150 to EUR 200. A shortened retention period of delivery notes is also planned. Whether the latter will be implemented is not yet clear, due to the reluctance of the German Federal Council. The deadline for filing annual VAT returns will be extended until 31 July of the following year, for tax consulted businesses, until the end of February of the second following year. Accompanying this, penalties for late filing will be tightened

BULGARIA demands security deposit for fuel supplies +++ FRANCE eliminates prefinancing of import VAT +++ ITALY plans voluntary self-disclosure and offers invoices to be issued by the authorities +++ THE NETHERLANDS plans simplification on VAT refunds due to bad debt +++ POLAND requires security deposit for VAT registrations +++ ROMANIA reduces standard tax rate +++ SLOVAKIA pays interest input VAT refunds +++ CZECH REPUBLIC regulates input VAT correction in the case of insolvency +++ HUNGARY grants EKAER simplification for AEO

The German Federal Fiscal Court has recently decided that a US American operator of online communities is subject to VAT in Germany. The plaintiff’s services were partially rendered by staff members. Nevertheless, the Federal Fiscal Court regarded plaintiff’s services as being rendered electronically. This decision should catch every entrepreneur’s attention. They should examine whether they render electronically supplied services. If yes, the services could be subject to VAT abroad.