EU: European Commission proposes stronger cooperation on VAT
Recently, the European Commission began consultations with Russia and Norway on administrative cooperation agreements in the area of Value Added Tax (VAT). The aim of the agreements is "to establish a framework of mutual assistance in combatting
See MoreCzech Republic – Coalition government’s tax policy
The agreement establishing the new government in the Czech Republic indicates that there are currently no plans to raise income taxes. With respect to corporate income tax, however, the coalition agreement mentions that a “sector tax” with
See MoreCyprus – New VAT rates in 2014
Following changes to the tax legislation, from 2014 the rates of value added tax in Cyprus are as follows: The standard VAT rate is 19% (increased from 18%) effective from 13 January 2014. Also the reduced VAT rate is 9% (increased from 8%)
See MoreBulgarian government will maintain low rates of direct taxes
On February 11, 2014, a forum entitled: Government-Business: Economic Restart National Forum: was organized at the initiative of the Bulgarian Prime Minister. The forum was organized in four different panels that discussed the following
See MoreBulgaria confirms that it will keep its 20% VAT rate
The government of Bulgaria has confirmed that it will keep its 20% VAT rate for the foreseeable future as part of its flat tax policy. Bulgaria has one of the lowest VAT rates in the region. Some other countries in central Europe have been
See MoreBelgium enforces electronic VAT return
The tax office of Belgium has confirmed that it is to require all taxable persons to file electronic VAT filings over the next year. Corporations will have to submit their monthly or quarterly VAT returns through the online portal of the Ministry
See MoreUK announces termination of DTA with Tajikistan
The United Kingdom has announced that it will terminate its double tax arrangements with Tajikistan for profits arising on or after April 1, 2014, in the case of corporation tax; and for income and gains arising on or after April 6, 2014, in the
See MoreDTA between China and France
An income tax treaty, and Protocol, between China and France was signed in late November 2013. The treaty and related Protocol-once ratified and in force-would replace the existing treaty and Protocol originally signed in 1984. If the ratification
See MoreGermany: VAT rates on multiple rate supplies
The German Federal Ministry of Finance has clarified the procedures for German VAT rates on a single supply where there are different VAT rates applicable. Where a supplier is offering for a single price goods with multiple VAT rates attached, the
See MoreCroatia ratifies convention on Mutual Administrative Assistance in Tax Matters
On 31 January 2014, the Croatian parliament ratified the multilateral Convention on Mutual Administrative Assistance in Tax Matters, signed on 25 January 1988 and the amending protocol signed on 27 May 2010. This multilateral Convention is seen as
See MoreUnited Kingdom – Supreme Court addresses cross-border group losses
The UK Supreme Court on 19 February 2014 issued its judgment relating to three remaining issues in the Marks & Spencer case—i.e., the case addressing a cross-border group relief claims. The Court found that the conditions for the “no
See MorePoland – VAT reduction with respect to motor vehicles
On 20 February 2014, the Polish Senate adopted a bill introducing limited deductibility of input VAT on the purchase of certain motor vehicles and related expenditures. The draft amendments to the VAT Law are based on the EU authorization for the
See MoreGermany and EU Redesigning Energy Tax Rebate
The Federation of German Industry has said a quick resolution is expected in talks between Germany and the European Union concerning Germany's renewable energy tax rebate on offer to energy-intensive companies in Germany. The Commission is
See MoreFrance – DTA with China
An income tax treaty, and Protocol, between France and China was signed in late November 2013. The treaty and related Protocol—once ratified and in force—would replace the existing treaty and Protocol (1984). If the ratification processes are
See MoreEU and France reach Deal on Saint-Barthelme Savings Tax
The European Union (EU) and France have drafted an agreement on the application of savings tax legislation to the collectivity of Saint-Barthelme. The island of Saint-Barthélemy ceased to be a region of the EU with effect from January 1, 2012.
See MoreBulgarian Government approved the signing of a DTA with Norway
The Bulgarian Council of Ministers approved the signing of a double tax agreement (DTA) between Bulgaria and Norway on 19 February 2014. Once signed, in force and effective, the new treaty will replace the Bulgaria - Norway Income and Capital Tax
See MoreSpain: 2014 Budget is in Effect
The 2014 Budget published by the Spanish government is now in effect as of 1 January 2014. The budget includes a long-term strategy targeting employee training, advance payments regulation and changes to corporate income tax. The main tax changes
See MoreItaly withdraws WHT on inbound payments
An instruction from the Italian Revenue Agency for all Italian banks to withhold a 20 percent tax on all payments from abroad received by Italian individual taxpayers, has been withdrawn with effect from 1 February 2014 as it is being examined by
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