VAT changes - 2022.

  • E-VAT: The proposal repeals the provisions relating to the tax authority offering draft VAT returns, which means companies will have to bid farewell for now to the introduction of the eVAT system.
  • Reverse charging: The reverse charge on the supply of certain cereal and steel products and on the transfer of the marketable right (allowance) on greenhouse gas emissions would be extended in line with changes in EU law. This means that reverse charging would not be abolished in these sectors after 1 July 2022 either.
  • Tax exemption: The proposal provides a tax exemption in relation to product imports, purchases of goods and services by the European Commission or an agency or body established under EU law which are necessary for the performance of the tasks assigned to these institutions in order to respond to the coronavirus pandemic. The tax would have to be paid subsequently on goods and services imported and purchased free of tax if the goods are not used for the intended purpose. The exemption would apply retrospectively to transactions carried out after 31 December 2020.  (Pwc)