Global: Q4 2023 VAT Updates

VAT changes for Q4 2023 in Bulgaria include adjustments to the Intrastat thresholds for 2024. In October 2023, the Bulgarian National Statistics Institute issued an Order which set out the updated thresholds and reportable data for the Intrastat declaration in 2024. Notably, all thresholds are set to experience a substantial increase, effective from January 1, 2024.

Threshold adjustments for 2024 (Simplified Reporting of Intrastat) are as follows:

Intrastat Dispatches:

• Current threshold: BGN 1,000,000
• New threshold: BGN 1,900,000

Intrastat Arrivals:

• Current threshold: BGN 700,000
• New threshold: BGN 1,650,000

Thresholds for statistical value in 2024 are outlined below:

Intrastat Dispatches:

• Current threshold: BGN 29,300,000
• New threshold: BGN 37,200,000

Intrastat Arrivals:

• Current threshold: BGN 11,000,000
• New threshold: BGN 16,000,000

Threshold for Small Consignments in 2024:

• Current threshold: BGN 390.00
• New threshold: BGN 500

Additionally, a new filing obligation has been introduced for VAT Registered persons in Bulgaria under the Personal Income Law and Corporate Income Taxation Law. This declaration, specified in the Value Added Tax Act as the “Declaration under Art. 55, para. 1 of the Income Tax Act and Art. 201, para. 1 of ZKPO,” must be submitted by VAT Registered persons, including foreign individuals with a proxy possessing a permanent address in the country or by a legal representative. The filing threshold is set at BGN 50,000, above which a declaration is required quarterly, with submissions due by the end of the month following the quarter. The first filing for Q3 2023 was due by November 14, 2023.

The National Revenue Agency in Bulgaria has also mandated the advance declaration of data on the transportation of goods with high fiscal risk, effective from October 1, 2023. This requirement applies to vehicles over 3.5 tons transporting goods with high fiscal risk between EU member states and Bulgaria or vice versa.

Finland: Q4 2023 VAT Updates

Finland’s Customs Administration has confirmed that the thresholds for Intrastat in 2024 will remain unchanged:

Intrastat Arrivals: EUR 800,000

Intrastat Dispatches: EUR 800,000

France: Q4 2023 VAT Updates

In France, discussions regarding the development of an e-invoicing solution took place in September 2023. Tax officials announced a revised schedule for e-invoicing implementation, with a pilot set for 2025 and the reform commencing in 2026, delaying the initially planned pilot phase for the first half of 2024.

Concerning non-established VAT payers, updated information from DINR on September 12, 2023, clarified the competent authority for non-established taxpayers. Certain non-EU countries, are exempt from requiring a Fiscal Representative upon completing VAT registration and related compliance formalities. For countries not on the list, businesses must appoint an accredited French fiscal representative.

Germany: Q4 2023 VAT Updates

Germany’s Bundestag approved a plan to extend the timeline for implementing an e-invoice issuing mandate. The first stage will commence on January 1, 2025, with an obligation for companies to accept structured e-invoices. By January 1, 2027, companies will be required to issue e-invoices. The bill is expected to pass without issues.

Latvia: Q4 2023 VAT Updates

Latvia’s Cabinet of Ministers, on September 26, 2023, reviewed an informative report on the National Tax Policy Guidelines for 2024-2027. The report proposed favourable norms for Latvian entrepreneurs, including an increase in the VAT registration threshold from EUR 40,000 to EUR 50,000. If approved in the 2024 Budget, this change will be effective from January 1, 2024.

Lithuania: Q4 2023 VAT Updates

The Official Statistics Office in Lithuania published updated thresholds for Intrastat in 2024. Intrastat Dispatches (Form UPS-01) will have a new threshold of EUR 400,000, up from the current EUR 300,000. Intrastat Arrivals (Form UPS-02) will have a new threshold of EUR 550,000, up from the current EUR 500,000. The thresholds for statistical value in 2024 remain unchanged at EUR 10,000,000 for Intrastat Dispatches and EUR 7,000,000 for Intrastat Arrivals.

Portugal: Q4 2023 VAT Updates

On November 8, 2023, Ordinance No. 338/2023 and Ordinance No. 339/2023 came into force in Portugal, amending VIES and VAT declarations. The changes include the addition of fields for recording specific information and alterations to expressions in periodic VAT declarations. The amendments are effective retrospectively from January 1, 2023.

South Africa: Q4 2023 VAT Updates

In September 2023, SARS published a Discussion Paper on VAT Modernisation in South Africa. The document outlines the modernisation of the VAT administrative framework, emphasizing real-time or close-to-real-time transmission of VAT data from vendors to the tax authority. The initiative invites contributions and comments from various stakeholders, and the modernisation will be implemented through a staged approach, involving the development of VAT data models, technology selection, collaboration with vendors, integration of accounting information systems, and testing.