From 1 December 2013, a number of VAT changes will take effect, mainly to implement EU law. These include:

  • a reverse charge mechanism will apply to technical crops supplies until 31 December 2018
  • this transfers the obligation to pay VAT onto the recipient where technical crops (such as wheat or soya beans) are supplied, whether or not the recipient is VAT-registered.
  • the mechanism will not apply to intra-EU acquisitions, intra-EU supplies, triangular supplies, imports and certain zero-rated supplies of goods transported or received from non-EU countries.
  • where advance payment is made before 1 December for technical crops to be supplied after 1 December, the invoice must be annulled and a new invoice issued for the full price payable, with the recipient responsible for paying VAT on that amount.
  • In the protocol for self-charging VAT, apart from standard requisites of the protocol the recipient must specify the supplier’s general tax identification number as well as the number and date of the invoice.
  • agricultural producers will be eligible for a VAT refund (within 30 days of submitting a claim) if in the previous 12 months the total value of technical crops supplies exceeds 50% of the total value of their taxable supplies taxed at the 20% rate.

Law: amendment to Value Added Tax Act in §7 of the Transitional and Final Provisions of the Act for Amendment and Supplementation of the Tax and Social Security Proceedings Code (promulgated in the State Gazette on 12 November 2013); implementation of Directive 2013/43/EC.

This article first appeared in lexology.com.