VATupdate Newsletter Week 47 2020

• Comparison between LRD, Commissionaire and Sales agent
• Event: 2020 OECD Global Blockchain Policy Forum – 16-20 November 2020
• What is the Difference between Consignee and Importer of Record?
• Five ways going back to basics can optimize indirect tax operations

TECHNOLOGY

• Tally’s Exception Reporting to Address Data Anomalies
• The Age of Automation: How Tech Can Support Finance Teams
• The first pillar of VAT Compliance lies within the electronic set-up of your Enterprise
• Tools to assist with the classification in the Harmonized System

JOB OPPORTUNITIES

• VAT/GST jobs and assignments around the world
• VAT/GST jobs in India, Latvia, Netherlands, Saudi Arabia, UK and US

• Are you ready to e-invoice?
• Overview of guidance on new fiscalization rules affecting invoicing procedures

BELGIUM

• COVID-19: Customs – Obligation to indicate a additional code for vaccines
• Extension of reduced VAT rate for residential demolition and reconstruction
• Possible changes for periodic VAT return – Move to real time reporting?
• Will financial services be subject to VAT in Belgium by 2025?

BULGARIA

• Proposal for the voluntary use of approved software for sales management

CYPRUS

• Cyprus Announces More VAT Payment Flexibility
• Cyprus Enhances VAT Payment Extension for COVID-19 with Installment Option

EUROPEAN COURT OF JUSTICE

• ECJ C-371/19 (Commission vs. Germany) – Judgment – VAT refund to non-resident taxable persons
• ECJ C-77/19 (Kaplan International Colleges UK Ltd) – Judgment – Exemption of supplies of services made by independent groups of…
• Flashback on ECJ Cases C-210/04 (FCE Bank) – Judgment – A fixed establishment is not a legal entity distinct from the business itself
• Flashback on ECJ cases C-7/13 (Skandia) – Judgment – Supply of services between head office and branch part of VAT group constitutes a taxable…
• CJEU scrutinizes VAT recovery due to unplanned use of funds by holding company
• ECJ C-19/19 (Pantochim SA) – Judgment – Statutory set-off of a VAT claim against tax debt of requested Member State
• ECJ comment: VAT deductions on professional services related to unrealized acquisition, capital set-aside
• ECJ settles dispute on VAT deduction abort costs
• ECJ: Overview of Financal Transactions and VAT Proportional Deduction
• Flashback on ECJ cases – C‑42/17 (MAS and MB vs IT) – In criminal VAT proceedings sometimes national deadlines should be ignored
• Flashback on ECJ cases – C‑500/16 (Caterpillar Financial Services vs PL) – Deadline is applicable, even if the ECJ judgement due to which…
• Flashback on ECJ cases – Joined Cases C-427/16 and C-428/16 (CHEZ Elektro Bulgaria and FrontEx International) – local pricing legislation may…

EUROPEAN UNION

• Brexit – ‘No deal’? Where should my yacht or private aircraft be on New Year’s Eve?
• Brexit – on March 31, 2021 the deadline for the VAT refund claims through the electronic portal
• Brexit Changes – Part 2
• Brussels no longer expects Brexit deal ahead of Thursday’s summit (on Nov 19, 2021)
• Council Implementing Decisions Published to Extend Authorization of Croatia’s and Malta’s Increased VAT Registration Thresholds
• Customs in the European Union – Recent developments (non-Brexit): Dual-use goods, Combined Nomencalture, ECJ cases on valuation, COVID-19
• EU publishes list of US products subject to additional duties following WTO authorization
• Import Control System 2 (ICS2) – a new customs pre-arrival security and safety programme
• List of gold coins meeting the criteria for the special scheme for investment gold
• One single EU market: towards an interoperable EU VAT system
• Overview VAT registration thresholds- Changes (some expected) in Albania, Croatia, Finland, Luxembourg
• Right to deduct VAT on “aborted deal” costs of holding company: Balanced decision of the Court of Justice of the European Union in the case…
• The Council green-lights mini tariff package with the US
• The European Commission proposes a “one-stop shop” for customs
• The importance of royalties and intercompany agreements in customs valuation
• VAT Committee 117th meeting on Nov 16, 2020 – Documents are available ….
• VAT in distance selling (B2C) – current rules
• Will EU Member States and Businesses be Ready for the July 2021 VAT E-Commerce Rules?

FINLAND

• COVID-19: Government’s proposal to Parliament on extending the tax exemption for goods needed to combat covid-19 till April 30, 2020

FRANCE

• 2023/2025 reform or the generalization of electronic invoicing in France: the outlines of the DGFIP report
• Amendment to implement Mandatory E-invoicing adopted by the Parliament
• France B2B e-invoicing will be mandatory
• How the EU’s 2nd largest economy plans to go CTC
• Paper and Electronic Invoicing: Reliable audit trail and CEPAF control
• Preparing for Brexit – Customs guidelines
• Soon a new Chorus Pro service portal – anticipation for mandatory E-invoicing?
• The VAT group option arrives in France

GERMANY

• 40-day delay on import VAT payments for December and delayed VAT reclaims by EU and non-EU businesses expected
• BMF: Valid VAT number required for the VAT exemption for Intra-EU supplies of goods 
• Deferral of due date for import VAT until the 26th of the second month following that of import
• German Courts Drop VAT Rate for Nightclubs, Ruling ‘Techno Is Music’
• Ministry of Finance: comments on amended requirements for ”Quick Fix” intra-community supplies
• MOF modifies definition of “supply of goods with installation”

GREECE

• Clarifications on reduced VAT rate applicable to face masks
• Greece Further Extends Customs and VAT Exemption on Imported Goods for COVID-19
• Proposal to Extend the VAT Reduced Rate for Face Masks until April 30, 2021

HUNGARY

• Online invoice 3.0 – is automation here? Worth switching to data reporting based on electronic invoicing
• Online Számla: Real Time e-Invoice Reporting – Slide deck SNI webinar

IRELAND

• Brexit: VAT and transfer pricing impacts for financial services & insurance firms
• Finance Bill 2020: Reduced VAT rate for restaurant & catering, appointment fiscal representative, zero rating PPE’s, …
• Postponed VAT accounting for imports
• Proposed tourist VAT refund changes threaten 1,200 jobs, claims report
• Revenue eBrief No. 206/20: VAT Treatment of the Hiring of Means of Transport
• VAT Treatment of Education and Vocational Training

ITALY

• 100 million euros available to support the Digital Transformation of SMEs, 10% of cash grant
• Draft Budget 2021: Cross-Border E-invoicing may be implemented as of 2022. Esterometro will be no longer applicable
• Electronic invoicing – New features version 1.6.1.
• How should intra-Community supplies be proven? Here are some explanations by the Italian Revenue Agency
• Leasing and chartering in pleasure boating – New VAT aspects
• Receipt lottery: prizes running into the millions, first draw on 14 January 2021
• The contract for commission sales and the mandate without representation under VAT – reflection on ECJ C-734/19
• UK companies will be required to appoint an Italian fiscal representative unless a Free Trade Agreement (FTA) is concluded beforehand

MALTA

• Malta To Continue To Apply EUR20,000 VAT Registration Threshold

NETHERLANDS

• 21% VAT for the installation of a green roof, but 9% VAT for the accompanying plants
• Civil law form decisive in determining who is the person that performs the supply
• Court of Justice: It is unlikely that seal bag deposits relate to sales to private individuals at trade fairs in Germany
• European Commission proposes to authorize the Netherlands to exclude VAT deduction right for goods and services mainly used for…
• High Council – Municipal VAT entrepreneur for making a tennis park available to a tennis club?
• No double VAT for small packages to the UK
• Supreme Court: general interest or profit motive not determinant for entrepreneurship
• Tax authorities on appeal against VAT exemption management services medical specialists
• Temporary employment agency arranges and pays accommodation in the Netherlands for temporary workers recruited abroad…
• VAT consequences of sale and lease back

NORWAY

• Budget 2021: Proposal to abolish the VAT exemption for cosmetic surgery and treatment, rules for timing VAT on construction activities are…
• No promise on VAT exception for electric cars after 2021

POLAND

• JPK_FA – Faktury VAT (VAT invoices) – Q&A
• JPK_MAG – Standard Audit File for a warehouse
• Planned changes to the VAT Act “SLIM VAT” from the perspective of local government units
• Poland will allow VAT taxpayers to group together
• SAC: Correction of the net amount and VAT without changing the gross amount is unacceptable if it does not reflect the actual course of…
• Tax authorities extend VAT refunds, often in violation of the law
• VAT grouping in Poland (most likely) as early as 2021? – Draft law available in the VAT Committee document?

SERBIA

• The Fight Against VAT Fraud – Is It Hurting Complying Businesses?

SLOVENIA

• Disrupted operation of the eDavki system and G2G services, 20-23 November 2020

SPAIN

• Possible IVA reduction too little, too late according to Mallorca businesses
• Some VAT measures with cash flow impact (to be requested before 30 November 2020)

SWEDEN

• COVID-19: Exentension for VAT payment deferral till end of 2021
• Supreme Administrative Court on the tax basis lower than market value

TURKEY

• Extension of the implementation period for certain VAT Exemptions

UKRAINE

• Purchased imported goods were stolen outside the customs territory of Ukraine – charge VAT liabilities when writing off such goods?
• Royalties in favor of a non-resident: are such payments reported in the VAT return?
• The government has expanded the list of exempt goods needed to combat COVID-19
• VAT Liability of consulting services to a non-resident
• VAT liability of goods supplied to customers for free as part of a promotion
• VAT liability of transactions on commission sale of goods
• VAT On E Services

UNITED KINGDOM

• Brexit – selling digital goods? Reapplied for MOSS VAT return?
• Brexit grace period for NI retailers considered
• Brexit ready VAT update – Claiming VAT Refunds from EU countries from 1 Jan 2021
• Brexit ready VAT update – How will an EU business claim a UK VAT Refund from 1 Jan 2021?
• Brexit: Businesses in Northern Ireland to suffer costly dual-VAT regime
• Brexit: Report of the National Audit Office identifies 5 customs disasters awaiting cross-border traders in 2021
• Changes to legal rulings for the classification of goods from 1 January 2021
• Customs – 5 Brexit tax rules you need to know before 1st January
• Government draws up Brexit checklist for construction
• HMRC – Notice 60: Intrastat general guide
• HMRC has confirmed that many B2C services will follow the same rules for both EU and non-EU customers
• HMRC Policy paper – Moving goods under the Northern Ireland Protocol (updated Nov 17, 2020)
• HMRC’s retrospective change on VAT and contract terminations: practical options for businesses
• Recovery of import VAT by non-owners
• Subway (Staines Central) Ltd (FTT): Standard rated sales incorrectly recorded as zero rated
• Summary of responses to Plastic Packaging Tax consultation
• Trade with the UK from 1 January 2021 as a business based in the EU
• U.K. Seeks Views on Plan to Start Corporate Tax E-Invoicing
• UK ecommerce 2021 VAT changes – Northern Ireland
• UK ecommerce 2021 VAT changes for sellers & marketplaces
• UK Government issues details of new Plastics Packaging Tax effective 1 April 2022
• UK VAT-Bad Brexit News for Non-Established Businesses; Take Action
• Upper Tribunal: Juice Cleanse Programme was a meal replacement programme, so classified as ”food” for VAT purposes
• VAT on Compensation Payments in Intellectual Property Settlements
• VAT, Brexit and B2C activities
• VAT: Changes to services post Brexit

• The new Customs law no. 207 of 2020

GHANA

• COVID-19: Reduction of the Communication Service Tax from 9% to 5%, effective September 2020.

KENYA

• Court of Appeals rules that withholding tax is due on payments to card companies and interchange fees

NIGERIA

• Nigeria’s Power Industry and Value Added Tax Question
• Senate Queries FIRS Over Unremitted N1.4 Billion Tax, VAT Deductions

SOUTH AFRICA

• VAT neutral re-organisation transactions

UGANDA

• Uganda’s Court of Appeal outlaws domestic VAT

• Status on the implementation of the new federal VAT regime

CHILE

• Developments in 2020: Digital Services Tax & VAT on services used in Chile

COLOMBIA

• Developments in 2020: VAT withholding collection system through debit and credit card issuers & COVID-19 measures

ECUADOR

• Developments in 2020: 12% VAT on Digital Services, small companies to defer VAT payments
• Ecuador Issues Rules for Withholding VAT on Digital Services

MEXICO

• Developments in 2020: VAT on digital services

UNITED STATES

• Are There Sales Tax Nexus Laws in Oklahoma?
• California is tackling Amazon FBA sellers for Franchise Tax
• How the Economic Nexus in Maine Applies to Businesses
• Increase in sales taxes in Denver & Arkansas
• Iowa Clarifies That Affiliated Corporations Are Not Exempt from Sales and Use Tax
• Is There a Delaware Economic Nexus?
• Is There a Sales Tax Nexus in Hawaii?
• Key Points in the Kentucky Sales Tax Nexus
• Key Points on the Arizona Economic Nexus
• New York Advises That Digital Ads Trigger State and Local Sales Taxes
• New York: Receipts from digital advertisements produced by the taxpayer’s prewritten computer software were subject to sales and use tax
• Texas: Guidance on interpreting the location where a service is considered performed
• Understanding the Connecticut Sales Tax Nexus
• Understanding the New Jersey Economic Nexus Details
• What are the Colorado Economic Nexus Sales Tax Details?
• What is the Ohio Economic Nexus?

ASIA-PACIFIC