BDO publishes Indirect Tax news
24 July 2023
Issue 3/2023 - July 2023
The CBAM regulation on the EU Carbon Border Adjustment Mechanism contains detailed information on the reporting obligation of EU importers, as well as the methodology for allocating direct and indirect emissions released during the production of covered goods. As from October, importers will have to start collecting data on the embedded emissions of goods subject to complete the first report by the end of January 2024.
Recent developments of interest in the EU include:
- Costa Rica: As from 1 July 2023, tourism services provided by registered persons (e.g., tour operators, travel agencies, tourism transport companies) in the country are subject to a 13% VAT (up from 8%).
- Cyprus: A recent decree temporarily reduces the VAT rate to 0% for certain basic items, which will apply through 31 October 2023.
- Estonia: The standard VAT rate will increase from 20% to 22% on 1 January 2024, and as from 2025, the rate on accommodations will jump from 9% to 13% and the rate on newspaper and magazine publishing will go up to 9% from 5%.
- Hungary: Hungary may exempt from VAT taxable persons whose annual turnover does not exceed the equivalent of EUR 71,500 (increased from EUR 48,000). The Council of the European Union granted this derogation in a decision published on 23 May 2023; a previous authorisation to apply a higher threshold than that prescribed in the VAT directive was granted in 2022.
- Italy: The 5% super reduced VAT rate on natural gas used for domestic and industrial purposes and thermal energy produced with natural gas is extended to apply to supplies accounted for in invoices relating to consumption in July, August and September 2023.
News can be accessed here.
