Estonia: Planned changes to the Estonian Value-Added Tax Act
The Estonian Ministry of Finance has been initiated draft Value-Added Tax Act. Planned changes foresee that upon purchase or use under an operational lease for of an automobile used for business purposes, only 50% of the VAT paid can be deducted. Planed changes will also affect goods and services related to an automobile used for business purposes, while buying those goods and services only 50% of the VAT paid will be deductible.
In Estonian society began serious discussing, since they planned changes have come under intense scrutiny by the companies.
The draft law also imposes a new form to the VAT declaration, on which data about all invoices which exceed EUR 1 000 per business contact must be shown in detail. The changes in are planned to be effective as of 1 July 2014.
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