The winter issue of Meridian’s VT magazine on VAT trends for global businesses is now available, it describes the main VAT and in Travel & Expenses expenditure changes in Europe:

• Albania is discussing cutting the Value Added Tax rate on tourism from 20% to 5%
• Austrian Government have announced the introduction of a new reduced VAT rate of 13% to come into effect in 2016. Also from 1 January 2016 Austria is to extend the application of its Tour Operator Margin Scheme (TOMS) to apply to VAT registered customers.
• Belgium changed its tax point rules in line with most EU countries when it introduced the new invoicing directive in January 2013. Since then, due to a difficulty for businesses to apply new tax point rules, the Belgian Authorities has tolerated transitional regimes. The Belgium government have requested an increase to the VAT registration threshold from €15,000 to €25,000.  If approved by Parliament this could come into effect from 1 January 2016. And a new tax on sugary drinks and other fattening produce will be introduced from 1 January 2016. Employer contributions will also be reduced from 33% to 25%. 
• Cyprus President Nicos Anastasiades has announced the news for a reduced VAT rate on renovating housing units from 19% to 5%
• France: 1) From 28 October 2015, it has been compulsory for French companies to pay VAT by direct debit. This new rule applies to foreign companies from 1 December 2015; they will be required to provide the French tax office with their foreign bank account details. 2) As part of the 2016 Finance Bill France is to lower its distance selling VAT threshold from €100,000 to €35,000 per annum from 1 January 2016.
• Germany: 1) The German Ministry of Finance has outlined the conditions on which the German tax authorities will accept, for VAT purposes, an electronic proof of export issued by the customs authorities of another EU member state. 2) The European Commission has issued Germany with a reasoned opinion to amend its value-added tax (VAT) legislation on the application of a special "price margin" scheme for travel agents. 3) The Intrastat threshold for intra-community purchases of goods (arrivals) will be increased from €500,000 to €800,000 with effect from 1 January 2016. The threshold for intra-community supplies (dispatches) will remain at €500,000.
• Greece: Greek Island VAT rates increase from October 1, 2015
• Hungary: As of 1 January 2016 there will be a new Hungarian regulation on invoicing, this new invoicing software will have to contain a new modification which allows data to be exported by the Hungarian tax authority. 
• Iceland: Set to raise VAT on tourism
• Ireland: Tourism VAT rate to remain at 9%
• Italy: On 6 November 2015 the Italian government approved a draft decree that will extend the reverse charge VAT to include the sales of laptops, tablets and gaming consoles, until 31 December 2018.
• Netherlands: threshold for EC Sales Listings to change in 2016
• Norway: 1) from 1 January 2016. Norway’s 8% VAT rate will rise to 10% and will apply to transport services and products related to entertainment. In order to boost investment and employment the Government will cut its corporate tax from 27% to 25% with a second stage seeing the rate drop to 22% in 2018. 2) will raise transport and hotel VAT in 2016 to 10%
• Poland: Court requests review on e-book VAT ruling
• Portugal: decreases VAT on restaurant food
• Romania: Government have made a number of changes to the standard and reduced VAT rates which will come into effect from 1 January 2016
• Serbia: New VAT rules in Serbia for foreign investors
• Spain: 1) 2016 Spanish budget have been published and include significant VAT exemptions and limits. 2) S.I.I System to be effective by 2017
• Sweden: VAT group relief to be abolished
• UK: VAT changes resulting from the ECJ judgment on Skandia plus other HMRC decisions on VAT: on direct marketing, pensions fund transitional period, and rules for cloud.

The Winter issues of VT Magazine also covers VAT and other tax changes in the Rest of World with details of changes in Australia, Brazil, China, Egypt, India, Israel, Japan, New Zealand, Saudi Arabia, South Korea and Tunisia.

For a copy of Meridian’s latest VT magazine go to: http://www.meridianglobalservices.com/subscribe/.

---

CTMfile take: The Meridian Global Services web-site - https://www.meridianglobalservices.com -is a vital tool for keeping track of the VAT and T&E expenditure compliance requirements world-wide.