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  • Indirect Tax News Issue 4/2020 - December 2020

Indirect Tax News Issue 4/2020 - December 2020

17 December 2020

The latest edition of BDO Indirect Tax News is now live.

At the end of December, with the holidays approaching, it is always a time to look back at the past year. 2020 has undoubtedly been a particularly difficult year in which everything is different. Although the consequences of the COVID-19 pandemic will certainly be felt in the first half of 2021, there is light at the end of the tunnel with vaccinations taking place in some countries already in December and much countries will follow in January 2021. Although some countries are still implementing and running tax measures relating to the COVID-19 pandemic, others are putting an end to such measures. Entrepreneurs trading in Germany, for example, will have to take into account that the temporary reduction in VAT rates will end.

It seems that the pandemic and the associated lock-downs have accelerated digitalisation. More countries are introducing a form of e-invoicing or e-reporting. It is therefore not surprising that the European Commission organised a Fiscalis seminar on this subject in September 2020.

In this edition of BDO Indirect Tax News, you can read about such measures in countries such as Italy, India and Japan. Developments on rules on levying VAT/GST on digital supplies have not taken a halt either. Significant changes in the field of VAT and B2C e-commerce will take place in the UK on 1 January 2021 and in the EU on 1 July 2021.

Last but not least the UK’s departure from the European Union will take final effect as of 1 January 2021 and, at the time of writing, it remains unclear if a free trade agreement with the European Union will be agreed. Nevertheless, with or without a deal, there will be a number of fundamental changes in processes required for businesses in the UK and in the European Union because of the requirement to have full customs entry and exit processes in place, and delays should be taken into account and preparations made to mitigate against the impacts. To make matters more complex, as a result of the Northern Ireland protocol, it will be the case that Northern Ireland will have a dual status, of being both a member of the European Union ‘single market’ for goods whilst also being part of the United Kingdom customs union. 

Find out more about Temporary reintroduction of the second reduced VAT rate for the Tourism and Hospitality sector in Ireland. 

In this issue: 

Content adapted from BDO Global