Amendment to the VAT Act
As we have already informed you, the debate on the amendment to the VAT Act has been delayed and the relevant changes could become effective on 1 April 2019 at the earliest (instead of the originally anticipated date of 1 January 2019). In addition, a series of revisions have been submitted in relation to the amendment, which could further complicate the debate (these most frequently include proposed amendments to the application of VAT rates). At the same time, the signals that the existing VAT treatment should be preserved in respect of bonuses to statutory executives and members of statutory bodies have been ever greater.

Let us hope that as this dReport issue goes to press, the debate about revisions will have been concluded and the wording in which the amendment will enter the third reading in the Chamber of Deputies will be clear.

Reverse-Charge Extension
Starting from 1 January 2019, the VAT Directive was supposed to make it impossible for member states to apply selected reverse-charge treatments (eg, to trading in industrial crops or selected computer technology). However, the Council of the EU has adopted an amendment that also makes it possible to apply the reverse charge in the years to come (until the expected transition to the “Definitive VAT Regime”).

The article is part of dReport – December 2018, Tax news; Grants and investment Incentives.