The Government has passed a far-reaching tax evasion crackdown which involves, among others, a tighter control of inbound shipments with high risks of evasion, and apply reverse taxation of VAT for goods such as grains, vegetables and meat.
The Government has also introduced reverse taxation of VAT for goods such as grains, cereals, vegetables, fruits, flowers, meat and sugar, and “intra-community operator registry”, in an attempt to combat VAT fraud schemes.
Duty-free shops will pay VAT, excises and customs duties in advance.
As for bonded warehouses, production bonded warehouses will remain and while the storage warehouses will be eliminated except those held by tobacco companies and refineries.
To combat tax evasion through assignors and insolvency, the Government has introduced the liability of requesting the permit from the Fiscal Authority for assignments and a joint liability of the administrator in the event of insolvency.
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