Hello and welcome back. We finally had some European Court of Justice cases this week, but there was (much) more.
In the SK Telecom case, the ECJ decided that ‘roaming services’ are subject to VAT in the country where these services are used and enjoyed. This means that non-resident consumers must pay local VAT on their telephone bill, when they visit another country. The question that is not answered is if and how SK Telecom could receive a refund of the VAT paid to the telecom service provider in Austria. And if they should charge Austrian VAT and get a local VAT registration, or if they could use the MOSS scheme. Any thoughts on this? Please let us know.
In the JK case, the ECJ makes a distinction between food that is prepared and consumed ‘at the spot’, and food that is prepared for take-away. The food is prepared in the same kitchen, by the same people and delivered in the same way. Still, the ECJ makes a distinction between a ‘restaurant service’, subject to the standard VAT rate, and ‘sale of foodstuffs’, subject to the reduced VAT rate. In itself that is not that strange, but it reminds us of an earlier news item in Japan, where consumers were avoiding sales/service tax by ordering food as take-away, and then still consume the food on the sport, in front of the restaurant. Especially with the current Covid-19 measures in many countries, the latter is done quite often: we see people enjoying a coffee in front of the ‘pick-up point’ every day. What do you think, is that a restaurant service or supply of foodstuff?
The Gulf States intended to implement a VAT system as of 1 January 2018. Saudi Arabia and the UAE did this, and one year later, Bahrain followed. As of 16 April 2021, Oman also implemented a VAT. Kuwait and Qatar are next, but it’s unclear who will do so first. Kuwait is expected to do so in 2022, and Qatar may already be ready later this year. Keep an eye on our website, as we will bring you the latest updates always as you first source of VAT news.
Before you go to the actual news below, we would like to draw you attention to a webinar that was organized on 9 April 2021. In this webinar, VATupdate.com was mentioned as the number 1 resource for VAT information ad news. Well, ok, it was mentioned as the first source. At the top of the list. Well, you knew that already of course… But thank you Pedro, for mentioning us. The link to the post is mentioned below, but here is the linked to the YouTube recording: https://www.youtube.com/watch?v=NvHZlKpHEnY&t=458s
Stay safe, and have a nice week.
The VATupdate Team
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- From Use and Enjoyment to Geolocation: A Crossover from VAT to DST?
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- Document my customs valuation compliance
- OECD addresses VAT issues of sharing and gig economy
- The Global Tax Reporting Framework for Digital Platforms in the Sharing and Gig Economy: Importance for Tax Administrations
- Why companies should pay attention to climate change proposals
- IMF and OECD release joint report on carbon pricing
- More jurisdictions are dropping or removing customs duty, VAT and/or GST thresholds
- Real-time reporting and monitoring economic activity in a confidential way
EUROPE
- ECJ VAT C-703/19 (J.K.) – Decision – Clarification of the term ‘restaurant service’ and ‘food’ to which a reduced VAT rate applies
- Agenda of the ECJ VAT cases – 2 decisions, 3 AG Opinions expected till May 20, 2021
- EU Court of Justice: two judges and two advocates-general appointed
- ECJ rules that the VAT Directive precludes national rules prohibiting a partnership from VAT grouping
- ECJ: Member State registration ownership of vessel may levy insurance premium tax
- Two new ECJ VAT cases
- ECJ paves the way for broader application of VAT-group incl. impact Benelux (C-868/19)
- ECJ C-593/19 (SK Telecom) – Roaming services are taxes where used and enjoyed
- ECJ C-846/19 (EQ) – Principle of the protection of legitimate expectations allows taxing transactions which were not taxed since several years
- ECJ C-935/19 (Grupa Warzywna) – A 20% penalty is not in line with principle of proportionality if fraud is missing
- ECJ C-868/19 (M-GmbH) – Decision – Members of a partnership and the head entity can form a VAT group
- ECJ C-846/19 (EQ) – Decision – Mandates in connection with custody and guardianship cases is an Economic activity – principle of the protection of legitimate…
- Time limit for declaring intra-Community acquisitions: Poland condemned by the Court of Justice (C-895/19)
- ECJ judgment: 20% VAT sanction inconsistent with EU regulations
- ECJ C-935/19 (Grupa Warzywna) – Decision – Provisions on the possibility of imposing a 20% VAT sanction by tax authorities do not comply with the provisions of the…
- ECJ – C-80/20 (Wilo Salmson France) – AG Opinion – No Input VAT deduction without invoice, correction, tax point, refund request
- Monthly Customs and Excise update from EY (March update)
- When are online marketplaces responsible for VAT in the EU?
- Get Ready for the 2021 EU e-Commerce VAT Package
- The Rise of Continuous Transaction Controls in Eastern Europe
- One-stop-shop (OSS) regime, VAT on remote sales made by e-commerce sellers and marketplaces
- The new e-commerce VAT regime. Time to review your business flows and technology
- 100th meeting of the Standing Committee on Administrative Cooperation (SCAC)
- EU 2021 VAT changes – Selling low value goods
- European Commission Extends VAT Exemption For PPE
- VAT Committee: 118th meeting on April 19, 2021 – Agenda, Working papers, Presentation available
- Presentation of the VAT Expert Group to the VAT Commitee on selected ECJ/CJEU Cases (April 19, 2021)
- From Use and Enjoyment to Geolocation: A Crossover from VAT to DST?
- VAT rules affecting e-commerce sellers and marketplaces effective beginning 1 July 2021
- eCommerce VAT changes in July 2021
- New VAT e-commerce rules: are you ready?
- Good things to remember … eLearning modules on VAT issued by the European Commission
- New VAT e-commerce rules: are you ready?
- Tools offered by European Commission – EU databases – Invoicing Rules
- Carbon tax as one option under carbon border adjustment mechanism
- Major changes for sellers via online platforms on 1 July 2021
- Import One Stop Shop (IOSS): a VAT shortcut for non-EU sellers in the EU
- European Commission waives customs duties and VAT on the import of medical equipment from non-EU countries till Dec 31, 2021
- New VAT exemptions apply retroactively as of 1 st January 2021?
- Roadtrip through ECJ Cases – Bad debts (Work in Progress)
- Upcoming changes to Intrastat returns in 2022
- VAT exemption, legal services for adults lacking legal capacity (ECJ judgment C-846/19)
- Introduction to EU VAT
- All change for e-commerce VAT rules in the EU
- E-Commerce: New Declarations Requirements for Low-Value Consignments
- Which Transactions Are Subject to VAT?
- 10 Types of Intra-Community Acquisitions Not Subject to VAT
- Use and enjoyment of services and VAT (roaming services, comment on case C-593/19)
- Penalties for inaccurate tax settlement must be proportional to the infringement
- VAT exemption, legal services for adults lacking legal capacity (CJEU judgment)
- VAT and online training where is the service provided?
- European Commission proposes VAT exemption for vital goods and services distributed by the EU in times of crisis
- The imposition of a VAT sanction without distinguishing whether the taxpayer’s error is due to fraud is incompatible with the VAT Directive
- European Council discussed with Member States the evaluation of the VAT travel agent scheme and our VAT Committee proposal
- Renting out premiss for the operation of a guesthouse qualifies as a tax-exempt rental for business purposes
- 0% VAT Rate on or local supplies and intra-community acquisitions of protective masks extended till June 30, 2021
- VAT rates in Austria
- VAT reduction for catering, also for alcohol till end of Sept 2021
- Update on VAT relief measures (COVID-19)
- Update on VAT relief measures (COVID-19)
- Belgium Announces Launch of Registration for One Stop Shop for VAT
- Postponement of submission of VAT returns for March 2021 and first quarter of 2021
- VAT rates in Belgium
- European Commission revoked a Belgian origin ruling that exempted Thai-made motorcycles from the EU’s 25% retaliatory tariff against certain U.S. goods
- ECJ & Belgium: VAT deduction while the local VAT authorities formally rejected the VAT refund claim
- UK companies without a fiscal representative in Bulgaria face VAT number deactivation
- VAT rates in Bulgaria
- The Rise of Continuous Transaction Controls in Eastern Europe
- Special scheme for travel agents is no longer applicable for suppliers established outside the EU and no fixed establishment in the EU
- VAT Application Threshold Increasement
- VAT rates in Croatia
- E-commerce rules effective from 1 July 2021 – amendment has not yet been approved even by Chamber of Deputies
- Decision on VAT remission
- VAT rates in Czech Republic
- Ministry of Finance to reform the taxation of the digital economy
- Is additional tax assessment due to VAT fraud reason enough not to waive penalties?
- Covid-19: Extension of the VAT loan scheme for small and medium-sized enterprises
- VAT Rates in Denmark
- Non-revocation of joint registration retroactively due to abuse
- Transfer of VAT-exempt companies not subject to VAT – Change in practice
- E-commerce reform: the one-stop-shop VAT (IOSS-OSS) is operational
- VAT rates in France
- What is an electronic signature?
- Electronic invoices in France will be mandatory in 2023
- Info to register to the VAT mini-one stop shop (MOSS) as a non-resident company established outside the EU
- Liability of online marketplaces: Federal Ministry of Finance amends German VAT Circular
- Liability for sales tax when trading goods on the Internet
- MOF publishes final decree on application of DAC 6 rules
- VAT rates in Germany
- ECJ defines eligibility of partnerships as controlled companies
- VAT rates in Greece
- In Focus: Greece’s Upcoming VAT Reform
- Mandatory e-invoicing postponed in Greece to July 2021
- VAT rates in Hungary
- New residential property: tax refund support now available – Useful information on 5% VAT for residential property
- Transfer of VAT ceiling to the tax representative
- Guidance issued on digital services tax, payment and filing obligations deferred
- VAT rate for swabs with nylon tip to carry out the nasopharyngeal Covid-19 testing
- Sale of real estate unit with kitchen
- Split Payment for VAT and advance payment of the amount due in public procurement: some reflections
- Extension of VAT Deadlines & Criteria for Deregistration
- Further harmonization with the EU VAT: determining the place of supply of services, introduction of “tax representative”,
- Quick Fix on Call Off stock regulation adjusted in connection with Brexit
- VAT rates in the Netherlands
- Systematic fraud not proven, but rightly imposed a fine
- No right to a VAT refund, costs are not related to previous business activities
- Zero VAT rate for (electronic) newspapers not permitted and not an efficient tool
- Letter from the Tax Authorities about MOSS and new VAT rules for e-commerce
- No fine due to breach of defense principle
- Act on the implementation of guidelines for electronic commerce in the Official Gazette
- Approval of application of zero VAT rate on delivery of certain COVID (self) test kits expanded
- Annulment of an offense fine in case of additional assessment of turnover tax due to violation of the defense principle
- Free webinar VAT e-commerce for webshop entrepreneurs on April 20
- White paper Tax and Customs Administration E-commerce European VAT measures consequences for the Netherlands
- VAT rate for separate docking station for electronic handheld magnifier
- The balance sheet item sales tax stated in the corporate tax return is not a basis for a fine
- VAT Partly deductible on costs incurred for the transfer of a collective pension scheme
- 21% VAT for the delivery of a separate docking station for an electronic handheld magnifier
- Impact of the new VAT e-commerce rules on businesses in Poland
- Taxpayers may apply for a refund of VAT sanctions
- The theft of goods does not exclude the deduction of input VAT on their purchase
- How to show the import of goods in the VAT declaration?
- VAT penalty of 20% held incompatible with EU law (CJEU judgment)
- Question to ECJ: VAT taxation of subsidies for Renewable Energy Sources projects
- Poland’s Council of Ministers Adopts EU E-Commerce Package
- ECJ on the sanction provided for in the Polish VAT Act: it cannot be applied automatically
- Poland clarifies VAT rules on fuel card transactions
- ECJ decision simplified correction of reverse charge purchases in Poland
- Amendments intended to simplify customs procedures
- The tax on foodstuffs is included in the VAT tax base
- The European Commission questioning the exemption from excise duty for natural gas and coal products
- E-Commerce VAT package 2021: The role of electronic platforms in the light of the new VAT settlement rules
- VAT rates in Portugal
- VAT One Stop Shop (OSS) – Pre-registration or Update of Registration Data
- New VAT declaration form and instructions published for certain e-commerce sales
- SEAF 125/2021 XXII – Financial Leasing Contracts – VAT Liability
- VAT rates in Serbia
- Single Rulebook on VAT
- Serbia has postponed the B2G e-invoicing to the 1 January 2022
- Spanish Ministry of Taxation approves Mandatory Disclosure Regime reporting forms and deadlines
- President Sanchez Opposed VAT Reduction That Could Save 10,000 Spanish Hairdressing Salons
- Tax Agency informs about the new VAT regime of e-commerce
- Spanish Ministry of Taxation approves Mandatory Disclosure Regime reporting forms and deadlines
- VAT rates in Switzerland
- Draft practice specification: Input VAT reduction in connection with COVID-19 contributions
- VAT refund claims due by 30 June 2021
- Provision of warranty repair services: what is the VAT taxation procedure?
- What will be the fine if you do not VAT register?
- PN and RK of large VAT payers are almost never blocked
- VAT on transactions for the provision of warranty repair services
- In April we report for March in a new form. Deadline for submission is April 20, 2021
- Drawing up tax invoices and adjustment calculations: how can a VAT payer delegate this right to his / her branch?
- Postponed VAT Accounting (PVA) – What is it and how does PVA work
- Connecticut considers Digital Advertising Tax
- Form: Apply for VAT group treatment
- Supreme Court rules on care home VAT lease back
- Policy paper: The Taxation Cross-border Trade (Northern Ireland) (EU Exit) (Amendment) Regulations 2021
- HMRC Guidance: How to value goods for import VAT
- HMRC Guidance: Goods you do not include when valuing for import VAT
- Statutory guidance: Notices made under the Customs (Northern Ireland) (EU Exit) Regulations 2020 (Update April 20, 2021)
- Bad Debt Relief – Saint-Gobain case
- HMRC Guidance: Exporting excise goods to the EU
- HMRC Guidance: VAT and overseas goods sold directly to customers in the UK
- HMRC Guidance: VAT and overseas goods sold to customers in the UK using online marketplaces
- Form: Report incorrect Customs Duty or VAT on items imported by post (BOR286)
- Freeports reintroduced; simplified import procedures, suspended customs tariffs and import VAT
- Court ruling could save care homes charities and universities millions in VAT
- Car parking provided by a hospital – Exempt? Non-Business? Taxable?
- Isle of Man Notes Relief for VAT Returns and Payments
- Car parking provided by a hospital – Exempt? Non-Business? Taxable?
- Negotiating the Complexities of Import VAT
- VAT exemption ‘could cut PCR test costs below £50’
- Northern Ireland – Top 10 Brexit-related changes for VAT and customs
- Customs Warehousing – Distributing to the World
- UK Brexit killed dropshipping?
- Brexit: GB to NI trade
- Charities: HMRC update on the VAT liability of digital publications
- E-Commerce: Tutorial for sales made to the UK
- Failure to Notify HMRC of Requirement to Register for UK VAT
- VAT Partial Exemption Changes
- Freeports reintroduced; simplified import procedures, suspended customs tariffs and import VAT
- No VAT on transactions rendered while a VAT group, but invoiced/paid after the supplier left the VAT group (FTT)
MIDDLE EAST
- VAT Laws in the GCC – Links to the applicable laws
- GCC Indirect Tax Weekly Digest – 20 April 2021
- Nuances of GCC VAT: Input VAT Claim before the Registration Paid VAT
- Oman becomes fourth GCC country to introduce VAT
- Oman Introduces VAT System – Implementation in phases based on turnover
- List of medicines and medical equipments that are subject to 0% VAT rate
- Simplified Tax Invoices: Approval to Issue
- Companies can pay VAT on behalf of customers in Oman
- VAT registration procedures for Oman non-resident applicants
- VAT social protection initiatives announced
- Social protection initiatives including VAT reliefs approved
- Oman to apply VAT on fuel
- Oman VAT system went live April 16, 2021: a result of years of planning
- Regulatory Update: E-invoicing regulations in the Kingdom of Saudi Arabia (KSA)
- Doing business guide KSA – Understanding the Kingdom of Saudi Arabia’s tax position
- KSA e-invoicing 2021 – Regulatory & technical outlook
- Updated Real Estate VAT Guide
- Complete Guide on Tax Audits in UAE
- Basic Tax Information Bulletin for the automotive sector
- Penalties For VAT Deregistration In UAE
- New Public Clarification on Extended Temporary Zero-rating of Certain Medical Equipment
- UAE Announces New Tax Information Bulletin for VAT on Vehicle Repairs and Maintenance Services
AFRICA
- Rwanda exempts electric cars from VAT
- Zero VAT rate for electric vehicles, spare parts, batteries and charging station equipment
- New Investment Promotion and Facilitation Law: Exemption, VAT Refunds
AMERICAS
- Brazil E-Invoicing: New rules on NF-e invoices
- Covid-19: Temporary reduction of the Import Duty to 0% on Medical Supplies
- Review of digital services tax proposals
- Cheaper fuel: Amapá reduces 72% of the ICMS calculation base for public transport companies
- B.C. eliminates provincial sales tax on e-bikes
- Tax measures in 2021 federal budget
- British Columbia Expands Out-of-Province PST Collection Requirements for Software and Telecommunications
- Federal Budget 2021/22: Implementation Digital Services Tax, GST liability for foreign-based suppliers and digital platforms, ….
- Updated VAT Return & Withholding Tax Return
- El Salvador Modifies VAT Return (Form 07) and Withholding Tax Return (Form 14)
- El Salvador Clarifies Application of 0% VAT Rate in Industrial and Commercial Free Zones Regime
- Understanding Mexico’s Miscellaneous Fiscal Resolution for 2021 and its Modifications (Part I)
- Understanding Mexico’s Miscellaneous Fiscal Resolution for 2021 and its Modifications (Part II)
- Massachusetts Accelerates Sales Tax Remittance
- Emergency supplies sales tax holiday
- Updated guidance on Taxable Services
- Important Updates About Wayfair Legislation In 2021
- Florida: Sales tax economic nexus, marketplace provider laws enacted
- State and local tax, technology-related guidance (table, first quarter 2021)
- Maryland Legislature Passes Bill that Pushes Start Date of New Digital Advertising Tax to 2022
- U.S. sanctions imposed on entities and individuals in Russia
- First sale rule, goods produced in non-market economy countries
- U.S. company agrees to pay $435,000 for imports of engineering services from Iran
- Florida Requires Sales Tax Collection on All In-Person and Online Sales, Effective July 1
- Maryland: Taxation of digital advertising services; sales and use tax on digital products and services
- SALT Alert: Florida Adopts Economic Nexus Rules For Sales And Use Taxes
ASIA-PACIFIC
- Azerbaijan Tax Ministry Clarifies VAT Rules on International E-Commerce Transactions
- State Tax Service of Azerbaijan talks tax fees for online services
- Cambodia Issues Decree on Tax for E-Commerce Transactions: How Can Businesses Comply?
- Cambodia is latest South-East Asia jurisdiction to reveal plans to tax foreign digital businesses
- VAT and e-commerce transactions
- Implementation mechanism for VAT on foreign e-commerce set out in sub-decree
- Cambodia Introduces VAT Registration Requirements for Non-Resident E-Commerce Providers
- Import VAT installments
- China clarifies procedures for processing payments for transfer pricing adjustments
- Are you ready for the special VAT e-invoicing of China?
- COVID-19 tax incentives extended
- Georgia VAT registration obligations for digital businesses
- Reform of the Georgian Tax Code – New VAT Rules
- Budget 2021: Detention, Seizure & Confiscation of Goods under GST
- E-Commerce Business Compliances In India
- Analysis of Aggregate Turnover in GST
- Allowed use of Form-C to purchase Petroleum, Natural Gas & Liquor products post GST
- Taxability Of Intermediary Services
- e-Commerce and Compliance under Income Tax & GST
- Forward Charge And Reverse Charge Concept Under GST
- GST Invoice Excel Utility cum GST Return Generator V.1 (Mini ERP) (Free)
- Short Analysis of Composition Scheme Under GST
- SOP to cancel GST Registration
- Export of services under GST Detailed Analysis
- 12% GST leviable on Oxygen and Remedisvir, States demand exemption
- FORM GSTR-2B – Advisory
- Want to Start an E-commerce business? (Online selling)
- E-way Bill – A Journey of Three Years
- Is Post Facto GST Registration Cancellation Affects ITC already claimed?
- Supply of items such as Birthday Stickers, Candles, Birthday Caps, Snow Sprays doesn’t qualifies as Composite Supply
- SC explains law for provisional attachment of Bank Account under GST
- Analysis of Provisional Attachment of Property under GST
- If Tax has not reached Govt, then the Liability may have to be borne by One Party, either the Seller or the Buyer: Madras HC
- GST officers to soon have real-time data on vehicles moving without e-way
- GST officers to soon have real-time data on vehicles moving without e-way bills
- Hold urgent GST meet to cut tax on key medicines, equipment: States
- Limitation not applicable to refund of customs duty paid in excess
- Updates in Forms GSTR-1, GSTR-3B & Matching Offline Tool for Taxpayers in QRMP Scheme
- New Features of Form GSTR-2B & GSTR-3B Made Available To Taxpayers Under QRMP Scheme
- 10 Things to Consider before Filing March 2021 GST Return
- Due date of filing Form GSTR-3B, from January, 2021, onwards
- Input Tax Credit claimed on ITC Blocked transactions – reg
- No GST to be paid during Search & Seizure unless accepted as GST liability
- Flavoured milk to draw 12% GST: Gujarat-based Authority for Advance Rulings
- GST e-Invoicing and time of supply provisions: Should they be in sync?
- Mandal: Make GST regulations trader-friendly
- Qualified invoice system for consumption tax purposes to be introduced in 2023
- Introduction of tax incentives for carbon neutrality and digital transformation
- Qualified invoice system for consumption tax purposes to be introduced in 2023
