ETL GLOBAL Tax Update is a series designed to provide critical insights into recent developments in international taxation. This initiative is presented by the ETL GLOBAL Tax Working Group, a closely interconnected team of international tax experts within the ETL GLOBAL network. The group’s objective is to share their collective expertise on tax matters and ensure that businesses are well-informed about the latest tax regulations and legislative changes worldwide.
This edition of the ETL GLOBAL Tax Update brings important tax news from the European Union and Poland, with insights from key experts Fernando Matesanz and Janina Fornalik. These updates are crucial for understanding the ongoing developments in tax laws and their potential impact on international investments and operations.
🇪🇺 EU – Fernando Matesanz, ETL VAT Services
Project on VAT Compliance Services
Fernando Matesanz presented the project “Providing VAT Compliance Services in All European Countries,” which integrates VAT knowledge with technology (automation). ETL VAT Services has developed a platform capable of delivering global VAT compliance services across key European markets. This platform will allow companies selling online in different countries to join ETL VAT Services, enabling them to generate VAT returns—including OSS—across all operational territories and submit these to local tax authorities. Furthermore, ETL VAT Services can offer additional tax services, such as VAT registration, payment management, OSS returns, representation before tax authorities, VAT refund management, Intrastat, and proforma invoices.
New VAT Scheme for SMEs and ViDA Proposal
As of January 1, 2025, a new VAT scheme will be introduced in the EU, featuring two layers for SMEs: one for domestic transactions and another for cross-border activities. This framework allows SMEs to exempt supplies in Member States where they are not established, simplifying compliance obligations and promoting cross-border trade. The VAT in the Digital Age (ViDA) proposal is also under discussion, aiming to modernize the VAT system through changes such as a single VAT registration, new rules for the platform economy, and real-time VAT reporting.
🇵🇱 Poland – Janina Fornalik, MDDP
Electronic Invoicing Obligation
Poland has introduced a new electronic invoicing obligation, requiring all VAT-registered businesses to issue invoices through the National e-Invoice System (KSeF). This initiative aims to streamline invoicing processes, enhance compliance, and improve the oversight of VAT reporting, ultimately reducing the risk of VAT fraud.
Recent ECJ Rulings on VAT
Additionally, recent rulings from the European Court of Justice have provided critical insights into VAT regulations, addressing key issues such as the treatment of cross-border supplies and the interpretation of VAT exemptions. These rulings serve as valuable guidance for businesses navigating the complexities of VAT compliance within the EU framework.
