Tax plan 2020 - Indirect taxes

• On 1 January 2020, the VAT rules for intra-EU cross-border supplies of goods (intra-Community supplies) will be further streamlined. These new rules have a major impact on your VAT position and administrative obligations if you supply or purchase goods across borders within the EU. In such cases, you will have to implement the new rules in the ERP systems. Four new rules (quick fixes) are proposed:
• For the application of the zero rate to intra-Community supplies, the supplier will be obliged to provide proof of cross-border transport as well as being required to do the following:
  • to have a valid VAT number of its customer, and
  • to submit a proper intra-Community transactions declaration (ICP declaration).
• In order to prove that goods have been transported to another EU country, a basic set of accepted documents has been drawn up. If the supplier has a combination of these documents, it will comply with the evidence to apply the zero rate. Otherwise, the existing rules will be invoked.
• In chain transactions (ABC supplies), where B transports the goods from A across borders, as a starting point, the zero rate can (only) be applied to the supply to B.
• Uniform EU-wide simplifications are being introduced for the VAT treatment of call-off stock. The simplifications are intended to prevent VAT registration in the country where the stock is held and delivered to the customer on a call-off basis.

Please read our brochure for more information about the quick fixes.

The transfer tax rate for non-residential property will be increased from 6% to 7% on 1 January 2021. This rate will apply both to the acquisition of immovable property, not being residential property, and to the acquisition of shares in real estate legal entities, insofar as these shares represent non-residential property. This measure is intended to cover the measures provided for in the Climate Agreement.

The transfer tax rate for residential property does not change and remains at 2%.

From 1 January 2020, the reduced VAT rate of 9% will apply to the supply or lending of e-books, e-newspapers and e-magazines. Unlike physical publications, the standard rate of 21% currently applies to electronic publications.

Modernisation of the small businesses scheme

As was adopted last year in the Tax Plan 2019, the small businesses scheme (kleineondernemersregeling, KOR) will be amended on 1 January 2020 on a number of essential points. From 2020, legal entities will also be able to use the small businesses scheme. Entrepreneurs who make use of the small businesses scheme will be exempted from the obligation to submit a VAT return and a simplified VAT administration will suffice. In order to be able to make use of the small businesses scheme, a turnover threshold of €20,000 per calendar year will apply. Under the new small businesses scheme, no VAT is due on the turnover, but the input tax cannot be deducted either. This means that the balance of the VAT due is no longer taken into account.