Author: Europe News Desk

Switzerland has taken a unique stance on digital taxation by adopting a value-added tax (VAT) system instead of implementing a Digital Services Tax (DST). Under this framework, non-resident providers of digital services will need to register for VAT if their global sales surpass CHF 100,000 in a 12-month period. Starting January 2025, digital platforms will bear new VAT obligations, shifting the responsibility for tax collection from individual sellers to the marketplaces themselves. Additionally, beginning in January 2024, all streaming services generating over CHF 2.5 million annually in Switzerland will be required to invest 4% of their Swiss revenue into local…

Travelers planning to fly from France are in for a financial surprise next month, as the French government prepares to more than double the “solidarity tax” imposed on airline tickets. This move has sparked controversy, with industry leaders criticizing the increase as potentially detrimental to France’s competitiveness in the global aviation market. The government defends this policy update on both ecological and fiscal grounds, asserting that it aligns with broader goals of sustainability and fiscal responsibility. However, airline executives fear that such a significant increase could make it more difficult for French airlines to compete internationally. What You Need to…

Hungary is set to roll out an extensive digital tax framework that will take effect in 2025, introducing significant changes that will affect both local and international businesses. This newly proposed system incorporates a retail sales tax, ranging from 0.1% to 2.7%, which will apply to both resident and non-resident platform operators. Additionally, the framework includes a 7.5% advertising tax that applies to revenues exceeding HUF 100 million; while currently suspended, it could be reinstated post-2025. Furthermore, Hungary has established a robust VAT system for digital services, mandating that non-EU vendors register and collect VAT on all sales. In contrast,…

In a recent meeting with domestic business leaders on February 7, President Tokayev highlighted the importance of strategic planning in implementing changes to the tax system. He underlined that any adjustments must be informed by thorough analysis and tailored strategies that reflect the unique characteristics of various economic sectors. A key point of discussion centered around the government’s proposal regarding the upper limit for Value Added Tax (VAT). Tokayev remarked that decisions should rely on detailed calculations and insights from a diverse group of stakeholders, including qualified experts, entrepreneurs, and legislators. “One thing is clear: the rate proposed by the…

As we move into 2025, navigating the complex world of VAT (Value Added Tax) continues to pose challenges, especially for businesses involved in international trade. Whether you’re a small e-commerce retailer expanding into new markets or a well-established company moving goods across borders, understanding VAT and the role of EORI numbers is crucial to ensuring smooth operations and compliance. This guide will provide clear, practical insights into EORI numbers, Amazon’s Pan-European FBA model, and HMRC’s updated VAT compliance controls to help businesses thrive in a changing tax landscape. What is an EORI Number and Who Needs One? The Economic Operator…

The French Senate has recently passed the 2025 Budget Law, introducing a significant reduction in the value-added tax (VAT) for photovoltaic (PV) systems under 9 kW, lowering the rate to 5.5% effective October 1, 2025. While this move is celebrated by industry professionals, there are concerns that the implementation delay may lead homeowners to postpone installations in hopes of benefitting from the new, lower rate. Prior to this law, only PV systems that were 3 kW or smaller could take advantage of a preferential VAT rate of 10%. This limitation has often forced homeowners to restrict the size of their…

In a significant ruling, a federal jury in Manhattan awarded Denmark’s tax authority, known as SKAT, $500 million on February 10, marking a pivotal moment in a case involving alleged fraudulent tax refunds. This trial is the first of its kind in the United States related to SKAT’s ongoing endeavor to reclaim $2.1 billion in refunds that it believes were fraudulently obtained. The jury’s decision came after deliberating for two days, siding with SKAT in a trial that highlighted the misconduct of four individuals and 17 pension plans under their management. This case centers around complex financial transactions known as…

The EU VAT Gap 2024 Report presents a comprehensive analysis of value-added tax (VAT) compliance and policy discrepancies throughout the European Union. Conducted in partnership with a consortium, Oxford Economics delves into the differences between the theoretical VAT Total Tax Liability (VTTL) and the actual revenue collected. This examination sheds light on compliance inefficiencies and revenue losses prompted by policy gaps. VAT is a significant tax levied on goods and services consumed within the EU, representing a crucial source of revenue for EU Member States. In 2023, VAT revenue accounted for 7.2% of the EU’s GDP and 15.7% of total…

The European Union is reportedly contemplating a significant reduction in tariffs on U.S. auto imports, aiming to align them with those applied to European exports. This move could bring considerable relief to investors and reshape the landscape of transatlantic trade relations at a pivotal moment. With automakers like Porsche ramping up investments in internal combustion engine (ICE) vehicles amidst dwindling electric vehicle sales, access to the U.S. market has never been more crucial. The United States remains one of the last large markets for ICE vehicles and losing that access could have dire financial consequences for European manufacturers. Former U.S.…

The Living City Initiative (LCI), as outlined in the Tax and Duty Manual Part 10-13-01, offers valuable property tax incentives for refurbishing and converting residential and commercial properties in historic areas of Cork, Dublin, Galway, Kilkenny, Limerick, and Waterford. This initiative, detailed in Chapter 13 of Part 10 of the Taxes Consolidation Act 1997, is designed to encourage revitalization in these key urban centers. Eligibility and Relief Property owners can benefit from tax relief on qualifying expenses incurred for refurbishment or conversion projects that are completed by December 31, 2027, provided they meet specific criteria outlined in the guidance. Recent…