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European court of Justice : Right to deduction - Incorrect description of the goods on the invoices

The tax authorities may not refuse a taxpayer the right to deduct input VAT on the sole ground that the purchase invoices contain an error relating to the identification of the goods which are covered by the transactions. Penalizing the taxpayer's failure to comply with formal conditions by refusing the right of deduction goes beyond what is necessary to achieve the objective of ensuring the correct application of the VAT neutrality principle. The authorities must also take into account the additional information and documents provided by that taxable person in order to assess whether the substantive conditions for the VAT deduction are met.

Furthermore, it is not necessary for the taxable person to issue an amending document to correct the mistake, nor to request corrective invoices from his supplier as long as he provides the tax authorities with the explanations and documents necessary to determine the actual purpose of the transactions (13/12/2018, C-491/18).

European Union:

Entry into force of the threshold for e-services

The 10,000 € threshold for e-services entered into force on 01/01/2019.

In principle, the place of supply of telecommunications, broadcasting and electronically supplied services to non-taxable persons is in the Member State of the customer. However, as from 01/01/2019, the place of supply may be in the Member State of the supplier where notably these supplies do not exceed 10,000 € (excl. VAT) in the current and the preceding calendar year. Where that new threshold is not exceeded the mini One Stop Shop (MOSS) may not be used.

VAT treatment of vouchers

EU Member States had to transpose Directive 2016/1065, which introduced new rules in relation to the issuance, transfer and redemption of vouchers. The new provisions mainly distinguish two types of vouchers: the single-purpose vouchers (SPV: VAT becomes due upon the issuance or the subsequent supply) and the multi-purpose vouchers (MPV: VAT becomes due upon the supply of goods or services of which payment is done through the redemption of the voucher).

Slovakia: VAT rate on accommodation

As of 01/01/2019, the reduced VAT rate of 10% (instead of the standard rate of 20%) is applicable to accommodation services (hotels and similar services).


Bulgaria: Introduction of deferred payment of VAT upon importation

Bulgaria will introduce on 01/07/2019 a deferred payment of import VAT. Under conditions and for a restricted list of goods only, the taxpayers shall report the import VAT in their periodical VAT returns (at the same time as the deductible VAT, in accordance with their right to deduction).