On 13th December 2021 a Bill amending and supplementing the Value Added Tax Act (“VATA”) was submitted to the National Assembly.
Bill amending and supplementing the VATA reflects the introduction of European directives into the law, the elimination of established inconsistencies with the law of the European Union (EU) and the alignment of VAT legislation with the decisions of the Court of Justice of the European Union (CJEU).
The bill makes proposals to clarify the existing from July 1st 2021 regimes for taxation of supplies of goods and services, carried out electronically to recipients – non-taxable persons. Provisions that create difficulties in the practical application of the law have also been clarified.
The main changes that are provided for in the bill amending the VATA are:
- VAT exemption on the purchase of goods and services intended for donation by the European Commission or by an agency or body established under European Union law, in the performance of tasks to deal with the consequences of the COVID-19 pandemic.
- VAT exemption, which covers the supply of goods or services intended either for use by the armed forces of an EU Member State or by accompanying civilian personnel, or for the supply of their dining rooms or canteens when those forces are involved in defense activities involving for the purpose of implementing Union action in the framework of the common security and defense policy outside its Member State.
- repeal of the provision excluding food vouchers from the scope of specific vouchers and multi-purpose vouchers.
- providing an opportunity for corrections in case of wrong tax treatment of supply, in the presence of an effective audit act.
- clarification of provisions relating to the application of the regime outside and within the Union, as well as the regime for distance selling of goods imported from third countries or territories.
- extension of the term for applying the reduced rate of 9 per cent for certain goods and services until the cessation of the declared epidemic emergency situation on the territory of the country, related to the epidemic spread of COVID-19.
The bills for voting in the National Assembly are to be submitted.