VATupdate Newsletter week 37 2019

____________________________ WORLD ICC has released Incoterms 2020 ICC Issues brief: Taxation of Physical Goods in the Context of E-Commerce Incoterms 2020 – Main changes MERCOSUR-EFTA new free trade agreement would eliminate import duties for raw materials and basic products OECD: Tax Policy Reforms 2019

____________________________ EUROPE AUSTRIA Austria makes Amazon liable for the sellers´ VAT obligations BOSNIA AND HERZEGOVINA Challenges of the new VAT regulations in Bosnia and Herzegovina BULGARIA Postponed accounting of import VAT introduced in Bulgaria CZECH REPUBLIC Czech Republic: VAT measures proposed, compliance with CJEU judgment Introduction of general reverse charge as from 2020 probable Tax on selected digital services advances EUROPEAN UNION A look at upcoming EU legislation to harmonise cross-border VAT AEO – Transition to the online system Bulk VIES number check ECJ Case C-13/18 (Sole Mizo) – Opinion – Interest paid on VAT refund ECJ rules that Danish tax authority must treat transfer of land with an old building as VAT exempt even if planned to be demolished EU Overview of deadlines for VAT returns, ECSL Intrastat and other Indirect tax filings. EU´s VAT quick fixes explained – Evidence of intra-Community supplies EU´s VAT quick fixes explained – Quick fix on customer´s VAT number EU´s VAT quick fixes explained – VAT treatment of chain transactions EU´s VAT quick fixes explained: Call-off stock European Commission presents statistics for the VAT Mini One-Stop-Shop (MOSS) European Commission services publishes report on EU energy taxation rules Fiscal representative obligations Intrastat Thresholds 2019 New EU tool to combat carousel fraud Political Guidelines for the next European Commission 2019-2024 Statute of limitations in Europe Tax and VAT Group and Green Tax Group: European Commissioner for Economy incl. Taxation Tax authorities advised to increase auditing of MOSS traders and distance VAT e-learning courses to help you with VAT VAT number formats – Structure of the VAT identification number in each country. VAT on online sales – distance selling thresholds VAT rates in Europe When can you reclaim VAT on your Christmas party? FRANCE France announces no tax on crypto-to-crypto trades, only crypto-to-fiat GREECE Greek e-books and e-invoices myDATA 2020 HUNGARY Changes to VAT in Hungarian summer tax law amendments – Implementation of Quick Fixes per Jan 1, 2020 Electronic invoices in Hungary Quick Fixes approved by Parliament Special tax reimbursement in Hungary – New rule in the VAT Act IRELAND Possible considerations if “no deal” Brexit ITALY Threshold increased for simplified invoices in Italy NORWAY Simplified VAT registrations for online sellers in Norway POLAND Mandatory split payment regime in Poland to be introduced from November 2019 Significant Changes to Polish VAT System ROMANIA New fiscal measures adopted: VAT regime, modified when delivering goods, including for the settlement of debts Tax authorities approve SAF-T pilot RUSSIA Russia Clarifies VAT Rate for Services Provided in 2018 SLOVAKIA Slovak MPs submit amended bill to cut VAT on healthy foods TURKEY Late Payment Interest Rate Increased UKRAINE VAT on freight transportation activities carried on by non-resident – STS clarifications UNITED KINGDOM Disaggregation – The Caton case Legal ruling applies VAT to Botox treatments Marosa: Our notes on Brexit HMRC’s webinar Recovery of Import VAT in the UK Reliefs from VAT for disabled and older people (VAT Notice 701/7) Super Sales Tax Tuesday – U.S. transformation a global phenomenon – UK to take the European lead Supplies qualify as exempt welfare services – The Lilias Graham Trust UK – EU VAT refunds legislation amended in connection with Brexit Update – VAT Notice 700: The VAT Guide (credit and debit notes) VAT Reverse Charge for Construction Services Postponed VAT Tour Operators Margin Scheme and retained payments and deposits

____________________________ MIDDLE EAST BAHRAIN NBR releases a VAT Public Clarification on Directors’ Fees SAUDI ARABIA Saudi Arabia should consider raising VAT to 10% says IMF UNITED ARAB EMIRATES UAE’s Federal Tax Authority issues warning about VAT scam VAT claims processed only via official site, not any other: FTA

____________________________ AFRICA NIGERIA Nigeria e-commerce VAT 2020 plan Nigeria raises VAT to 7.2% 2020 VAT increment is 7.5%, not 7.2%, says FG

____________________________ AMERICAS BRAZIL Brazil’s Minister of Finance announces intention to levy tax on payments and financial transactions at a rate that may be between 0.2% and 1% CANADA How Does GST/HST Apply to Airbnb? CHILE Approval tax reform bill – VAT on digital services; simplified VAT registration Chile bill VAT on non-resident e-services COSTA RICA Costa Rica signs new free trade agreements with the United Kingdom and Korea MEXICO Budget Proposal 2020 VAT on digital services bill submitted to Mexico’s Chamber of Deputies UNITED STATES Death by sales tax Georgia: Taxpayer not allowed sales tax bad debt deduction Maximum sales tax thresholds and what they mean for you SC hauls in $47M in online sales tax collections after Supreme Court ruling Washington’s new Remote Seller Relief Program: Will it start a new trend?

____________________________ ASIA-PACIFIC AUSTRALIA Fake car salesmans GST scheme runs out of gas CHINA China publishes first punitive tariff exclusions while US postpones 5% increase to Lists 1, 2 and 3 INDIA Cash CSR donations face GST implications Final call at September 20 meeting: GST Council may lower levies on auto, biscuits Tax refunds under new export scheme may be tough INDONESIA Indonesia announces plan for key tax changes Indonesia VAT on non-resident e-services KAZAKHSTAN Kazakhstan planning to introduce VAT obligations for foreign digital service providers MALAYSIA Malaysia publishes service tax (Amendment) regulations 2019 Malaysia: Digital Service Tax SRI LANKA In report to UNGA, expert notes concerns on VAT in Sri Lanka TAIWAN Taiwan issues new VAT ruling for transfers of renewable energy certificates THAILAND VAT stays at 7% for another year UZBEKISTAN Uzbekistan plans to cut VAT rate