Tax 

VAT Act Amendment

On 4 December 2018, the Chamber of Deputies debated an amendment to the VAT Act. A series of motions to amend the Act were presented (which are likely to be subsequently voted on during the course of January) and we specifically draw attention to the proposal to retain the current VAT treatment of payments made to statutory executives and members of statutory bodies and the proposal to temporarily retain the current definition of a finance lease of goods (through the end of 2019).

In addition, the proposed changes include the postponement of the change affecting the public television station and the public radio broadcaster and special rules for determining the tax point in respect of the services of insolvency trustees as well as various alternatives for revisiting VAT rates or reclassifying certain supplies into a lower VAT rate (eg in respect of the delivery of organic food) have been proposed. In view of the date on which the amendment and related motions are to be voted on, it is realistic for the amended Act to become effective as of 1 April 2019.

 

VAT Act Amendment Indirect Taxes VAT