Withholding income tax

The withholding income tax came into force on January 1, 2019.

Personal income tax withholding system is intended to adapt the recovery of the tax for one year to the actual situation of the user (income, life events) in respect of that same year, without changing the rules of calculation. Its objective is to eliminate the one-year lag between the collection of income and the payment of income tax.

Read more

New confirmation of the VAT treatment of chain sales where the intermediate buyer-reseller is in charge of the intra-Community transport of the goods

Background

The European Court of Justice (ECJ) recently confirmed the exemption conditions applicable to the first supply made within the framework of cross-border chain sales (e.g. triangular transactions) where intermediate buyer-resellers (e.g. a trading company ‘B’ in chain sales between businesses A-B-C) are in charge of the intra-EU shipment of the goods.  In this case, the key point is whether the intra-EU transport made by or on behalf of B should be ascribed to his purchases (e.g. under incoterms EXW, FOB, FCA where the point of delivery of the first supply A-B is in the first EU member State) or to his sales.

 

Read more

Centralized customs clearance

Since May 1, 2016, the single clearance procedure is no longer granted and is replaced by the centralized clearance procedure.

Centralized clearance allows a person to submit to a customs office (known as “Declaration”) a customs declaration in respect of goods presented in the jurisdiction of another customs office (called “Presentation”). Read more