The reduced VAT rate of 9% (percentage 2019) will also apply to books, educational information for education, newspapers, periodicals and the like in electronic form. As an entrepreneur, you may also apply the reduced rate to the granting of access to news websites such as those of newspapers, weekly newspapers and magazines. Electronic publications and news websites that consist exclusively or mainly of advertising material, video content or listenable music may not apply the reduced VAT rate.
Proof of intra-Community transport
Proof that an asset has left the Member State is important for the application of the zero rate of VAT. The number of supporting documents required is reduced to two non-contradictory pieces of evidence. This removes difficulties and uncertainties for businesses. In the case of two non-controversial supporting documents, the goods are deemed to have been dispatched or transported from the territory of the Member State of supply. These include a signed CMR document and a transport document signed by an independent third party. The customer’s declaration must reach the supplier no later than the tenth day of the month following the month in which the intra-Community supply took place. The supporting documents must come from two independent parties.
Correct VAT identification number
The submission of a correct periodic Intra-Community Performance Statement (ICP Statement) is required for the application of the zero rate of VAT. The inclusion of a correct VAT identification number is necessary for the submission of a correct CPI Statement and will therefore also become compulsory. This removes the consequences of some judgments of the Court of Justice of the European Union. If an entrepreneur has not met the conditions, the entitlement to the zero rate on the supply in question will lapse. Recovery is possible if, in the inspector’s opinion, the conditions are still met, e.g. by submitting the customer’s correct VAT identification number within a certain period of time.
Arrangements for chain transactions
The proposed article determines to which of the subsequent deliveries in the chain the intra-Community transport or dispatch is to be attributed. Only that supply will then be considered to be the intra-Community supply. The other supplies in the chain are regarded as domestic supplies. The supplies in the chain prior to the intra-Community supply take place in the Member State of commencement of the intra-Community transport. The supplies in the chain after the intra-Community supply take place in the Member State where the intra-Community transport ends.
Increase in public funds for non-residential property
Currently, the general rate of real estate transfer tax is 6%. As of 1 January 2021 this rate will be 7%. Non-residential properties are, for example, industrial buildings, land intended for housing and hotels and guesthouses. The rate for residences will remain at 2%. The increase in the general rate will take effect on 1 January 2021. By means of this measure, the government aims to protect the public and allow the business community to contribute to the financing of the climate agreement.