Key takeaways
- Stay alert to legislative updates: Check for changes to tax return forms, VAT rates, and Intrastat reporting thresholds in 2023.
- Plan for country-specific rules: Croatia’s move to the Euro and advance payment requirements in countries like Italy may affect reporting.
- Review annual filings carefully: Ensure 2022 tax returns and adjustments are accurate to avoid compliance issues in the new reporting year.
Taxually's team of tax experts and researchers have highlighted some of the following changes to the legislative landscape, which could impact our customers and your business in 2023. Below are some highlights you will need to consider.
Changes to Tax Return Forms
Keep an eye out for any changes to tax return forms and ensure they are updated for reporting. In some countries, where reporting happens on the web portal of the tax authority, the forms will be updated for us, but in others, it is the taxpayer's responsibility to check for updates.
Changes to VAT Rates
Be aware of any changes to VAT rates that may have occurred in January, and make sure to follow any relevant transitional measures for tax rate changes when determining and reporting taxes.
Croatia introducing the Euro
This year, Croatia will be retiring its national currency, the Kuna, and introducing the Euro. This can raise questions about invoicing and tax in the transition.
Introduction of special payment and reporting steps
Before the end of the calendar year, some countries require special payment and reporting steps (such as advance payments in Italy), and you may need to consider advance payments when calculating the VAT balance for the last return of the year.
Annual reporting for 2022
The start of the year marked the beginning of the annual reporting season for the 2022 period. Some of the first annual returns are for Ireland, Spain, and the Canary Islands.
Consider the impact of your last Tax Returns of 2022 and adjustments needed
Be aware that the last tax returns of the previous year may have an impact on the annual tax returns, and consider any possible adjustments and corrections that may need to be made.
Monitor Intrastat reporting thresholds
Intrastat reporting thresholds change from time to time, and this is also expected to happen in 2023.
Other legislative changes
Keep an eye out for any legislative changes in indirect tax, as they may have an impact on your organisation, whether at the EU or country level. It is important to plan ahead and consider what needs your attention.
Frequently asked questions
What tax changes should businesses be aware of in 2023?
Businesses should review updates to tax return forms, VAT rate changes, and annual reporting requirements for 2022. It’s also important to monitor new country-specific obligations, such as Croatia’s switch to the Euro and advance payment rules in markets like Italy.
How do VAT rate changes affect tax reporting?
When VAT rates change, transitional measures may apply that impact how you calculate and report taxes. Always confirm the correct VAT rate for your transactions and update your invoicing systems accordingly to stay compliant.
What is Intrastat reporting, and why should I monitor thresholds?
Intrastat reporting tracks the movement of goods between EU Member States, and the reporting thresholds can change yearly. Keeping track of these updates ensures your business remains compliant and avoids penalties for missing reporting obligations.
