Better late than never: here’s this week’s newsletter.
What’s special this week? Some highlights.
- VAT fraud is a global issue. There are cases all over the world. But some cases are more obvious than others. In Australia, a 65-year-old man faces a possible 22 years in jail for not reporting GST and Income Tax on royalty income he received. We especially liked the strong remarks of the Financial Police Force: “Financial criminals who think they can cheat the system and get away with it can think again — no one is beyond the reaches of the SFCT.”
- When it comes to VAT case-law, the UK is probably one of the countries where the strangest questions are raised. Whether this is due to the common law system, the wit of advisors trying to find the mazes in de VAT law, or low costs for starting procedures, or something else, we don’t know. The First Tier Tribunal had another interesting case on its hands: can a car wash be regarded a car park? We don’t know how long you would normally take to wash your car, but in this case, the car wash was located on a piece of land that was (also) used as a car park. Check-out the case if you want to find outie Tribunal found that the rental of the piece of land was x or standard rated for VAT.
- Last week we had an ECJ case dealing with the question where roaming services are subject to VAT. Telecom is an interesting market, and this week we had an item on US (Sales) Tax on wireless services included in the price of a mobile phone. The Maine Supreme Judicial Court held that the taxable “sale price” of smartphones sold at significantly discounted prices to customers who entered into wireless service contracts at the taxpayer’s retail stores included payments made by the wireless service carriers in connection with the sales. Bummer for Apple, who had not collected and remitted sales tax on the wireless services component in the sales price of their iPhones.
- We had an interesting article on the GST treatment of sports in India. According to the analysis in the article, “the structure of indirect tax on sports in India is such that it favours official / non-profit bodies, while it taxes the entrepreneur heavily.” Interesting read for this weekend. While you may o consider the fact that horse-riding at the beach and outdoor running classes can be reduced rated in the Netherlands, while mountain biking in the dunes and giving tennis lessons are standard rated.
- Job opportunities in Belgium and United Kingdom
- Job opportunities in Belgium, the Netherlands and United Kingdom
- Job opportunities in Belgium, Poland and United Kingdom
- EESPA Standard: E-Invoicing Compliance Definitions and Responsibility Allocation Framework
- E-invoicing compliance world map
- Global VAT rate changes as of May 1, 2021
- How VAT cuts can help the post-pandemic economy
- The Four Tax Reporting Trends SAP Customers Need to Know
- The Importance of Cloud-Based Technologies in E-Transformation Processes
- How VAT, or its absence, can help the post-Covid economy
- Is a digital tax war coming? Is the US considering slapping 25% tariffs on British exports?
- E-Book: VAT Guide for Finance Directors – Why it’s now a Boardroom Concern
- Technology and software related VAT/GST developments of the past months
- Delegation of Tokens, Staking Rewards and VAT
- Digital services tax jurisdiction activity summary updated
- OECD: Tax Policy Reforms 2021 – Special Edition on Tax Policy during the COVID-19 Pandemic
- Baker McKenzie Global Indirect Tax Newsletter First Quarter Issue, 2021
- Blockchain Technology: Shaping the Future of the Accountancy Profession
- EDICOM’s Invoicing Connector is Now Available in the Oracle Marketplace
- OECD: Digital platforms have an important role to play in VAT policy & can assist tax compliance efforts
EUROPE
- Brexit: European Union Ratifies EU-UK Trade and Cooperation Agreement
- EESPA Standard: E-Invoicing Compliance Definitions and Responsibility Allocation Framework
- ECJ C-146/21 (DGRFP Bucureşti) – Question – Application of Reverse-Charge before VAT registration
- European Commision lunches Public Consultation on Union Customs Code – mid-term evaluation
- European Commission launches Public consultation on VAT rules for financial and insurance services, input to be provided by May 3, 2021
- Customs representation: direct or indirect?
- E-book: EU E-Commerce VAT Package: New Rules for 2021
- EU VAT on roaming services: Trouble ahead – Non-EU operators to be VAT registered in every country they pay for roaming services (if the MS applies U&E)
- Article: Three New Requirements for Zero Rating Intra-Community Supplies: Barking Up the Wrong Tree (temporary free access)
- Flashback on ECJ cases C-434/05 (Horizon College) – A teacher providing education on a temporary basis may constitute a VAT-exempt transaction
- Flashback on ECJ Cases C-445/05 (Haderer) – A freelancer providing assistance with schoolwork and running ceramics and pottery courses in adult education…
- VAT Expert Group – Subgroup Platform Economy 6th and 7th meeting on April 20 and May 18, 2021
- European Commission published an overview of the VAT rates applied in the EU Member States – Situation per January 1, 2020
- E-Commerce One Stop Shop and Import One Stop Shop – Link to the registration process in the EU Member States
- New future-proof VAT rules- e-commerce made easy
- VAT e-Commerce changes – New One Stop Shop (OSS) & Import One Stop Shop (IOSS) schemes
- Purpose and characteristics of the VAT group regime as provided for by the recast directive (directive 2006/112 / EC)
- “Ready-to-eat meals” subject to reduced VAT rate (CJEU judgment)
- EU Invoicing Requirements: Material vs. Formal requirements of a valid invoice (based on AG Opinion in ECJ case C-80/20)
- EU 2021 VAT changes – selling via online marketplaces
- DAC7 – Reporting obligations for digital platform operators
- The new VAT regime for electronic commerce. It’s time to review your business flows and technology
- Online Sellers: Be Ready for EU VAT and Customs Changes
- The Future of VAT in Financial Services and Insurance for non-FSI parties
- Exemption from customs duties and VAT on imports of goods for protection against and control of covid-19 is extended.
- ECJ C-108/20 (Finanzamt Wilmersdorf) – Order – No VAT deduction on goods subject of input VAT fraud committed upstream in the supply chain
- ECJ C-573/20 (Casa di Cura Città di Parma) – Order – Deduction of input VAT by healthcare professionals based on a prorata
- New VAT rules for e-commerce from 1 July: are you ready?
- ECJ C-247/21 Luxury Trust Automobil vs. Austria (questions)
- Are tax authorities allowed to exclude persons from forming a VAT group? The European Court of Justice enlightens us again
- The Future of VAT in Financial Services and Insurance for non-FSI parties
- ECJ: Are tax authorities allowed to exclude persons from forming a VAT group?
- EU 2021 VAT changes – selling via online marketplaces
- ECJ Customs C-75/20 (Lifosa) – Calculation of Customs Value When Transport Costs Exceed Product Value
- E-Commerce: Austrian governement opened the registration for the One Stop Shop
- Implementation of VAT grouping in Austria
- VAT grouping – the Belgian experience
- Belgium Provides Reduced VAT Rate for Restaurant and Catering Services
- Czech Republic Guidance on Changes in Late Payment Interest
- Tax Cobra has already saved the state 13 billion
- Article: The Danish VAT Grouping Scheme and its compatibilitywith the EU VAT Directive
- Criminal tax fraud VAT fraud – unregistered company
- Technical guidance Interest rate
- VAT on margin – Important clarifications following a written question
- Electronic commerce: the registration campaign at the one-stop-shop of VAT (OSS-IOSS) is open
- Implementation of an optional VAT Group
- Retraction of the granting of collection basis in the year of foundation
- VAT due on Project funding through public financing?
- German Federal Ministry of Finance tightens marketplace liability rules
- “Rental” of virtual land in an online game is subject to VAT
- TOMS no longer applicable for all non-EU companies as of 2021
- Incorrect application of the reverse charge: administrative sanction for each mistake
- Italian guidance re VAT OSS/import scheme
- Moldova Tax Agency Announces Reduced VAT Rate for Hospitality Services Due to Coronavirus
- Moldova Extends VAT Refund Program for COVID-19 and Introduces Other Measures
- Mandatory B2G e-invoicing as of Jan 1, 2021
- Amendment – completing the list of economic agents obliged to use the electronic fiscal invoice (e-invoice)
- Amendment of the certificate of registration and application for registration as a VAT payer
- COVID-19 Pandemic: Moldova Extends VAT Refund Programme
- Moldova Exempts COVID-19 Vaccines from VAT and Customs Duties till May 31, 2021
- Right to VAT refund for rental construction with hockey club
- Less VAT administration for solar panel owners
- Tax structure with provision of sports fields is no abuse of VAT right
- Administrative lighting in VAT for owners of solar panels
- Article (2020): Fundamentals of VAT grouping in the Netherlands
- No mixed pro rata calculation for deduction of input tax
- Credit rating agency services not exempt from VAT
- Pension fund not exempt from VAT
- Actual use only applicable if actual use as a whole does not correspond to pro rata
- Actual use-method deduction of VAT only on all mixed-use services
- Quick Fix on Call Off stock regulation adjusted in connection with Brexit
- Tax structure with the provision of sports fields to a hockey association, no abuse of law
- SLIM VAT 2 package – tickets as invoices
- E-receipts not yet, the seller must issue a printed tax ruling
- Digital Service Tax in Poland – Introduction planned for 1 July 2021
- Tax authorities issued clarifications regarding the package of “Slim VAT” solutions
- Norwegian VAT is neither an income nor an expense in Poland
- The CJEU will answer questions about VAT from local government subsidies
- Apply for VAT refund connected with intra-Community acquisition of goods, reverse charge transactions, or import of services!
- Changes to Portugal’s OSS scheme and VAT filing and payment deadlines discussed
- Portugal nonresidents must use authorized software to issue VAT invoices from 1 July 2021
- Repeal and replacement of special VAT regime and creation of the BALCÃO ÚNICO
- Extension deadline VAT return submission and payment of April and May 2021 + PDF considered e-invoices
- June and the 2nd Quarter VAT returns can be submitted and VAT paid until 31.08.2021.
- New VAT declaration form and instructions published for certain e-commerce sales
SLOVENIA
- VAT on women’s sanitary products lowered from 22% to 9.5% as of May 3, 2021
- New VAT changes are proposed in Slovenia
- VAT rates in Slovenia
- What is the VAT equivalence surcharge?
- Royal Decree published on the new VAT rules applicable to distance sales (electronic commerce) as of July 1, 2021
- Spanish tax authorities on the E-Commerce rules as of July 1, 2021 and OSS registration
- Article – The special VAT regime for groups of entities: an analysis of the Spanish experience in the light of its evolution legislation
- Starting shot for DAC6 reporting obligations in Spain
- VAT rates in Spain
- Swedish tax authorities on new E-Commerce rules and One Stop Shop registration as of July 1, 2021
- VAT Grouping: How does it work in Sweden?
- Guidance tax authorities: Education can be exempted from VAT for certain purposes if certain conditions are met
- Implementation of VAT Grouping in Sweden
- VAT rates in Sweden
- ECJ answers a question concerning services performed by a trustee / good man
- Interest is paid to a non-resident on a commodity loan
- Registration obligation in 2022 for electronic services for turnover of Euro 30’000 a year
- 7% or 20%: determined by the VAT rate on hotel services
- VAT Grouping in the UK – HMRC internal manual on VAT Groups
- Supplying Financial or Insurance Services to Customers outside the UK? A VAT Opportunity exists
- VAT & Partial Exemption – Ability to adjust for Covid Impact
- VAT exemption for solar products supported by majority of public, survey finds
- HMRC Guidance: Check if you can claim VAT relief on goods imported into Northern Ireland for onward supply to the EU
- HMRC Guidance: How to claim VAT relief on goods imported for onward supply to an EU country
- Performance Fees Agreed Within a VAT Group Not Subject to VAT Even Though Payment Happens At a Later Stage, First-tier Tribunal Says
- HMRC Guidance: Claim VAT refunds in Northern Ireland or the EU, if you’re established in Northern Ireland or in the EU
- Is a car wash a car park? The RK Fuels Ltd case
- Deferred VAT payments have to be paid by June 30, 2021
- Reverse charge for construction services – some early complexities
- Movement of goods under transit at your own premises
MIDDLE EAST
- Oman Continues to Accept VAT Registration and Publishes English Guidance for Non-Residents
- Tax Authority continues to accept VAT registrations even if deadline has passed
- Zero VAT for transportation of goods and services in Oman’s special zones
- VAT guidance by the Sultanate of Oman
- VAT introduced as from 16 April 2021, new guidance issued
- When to register for VAT
- 15% is temporary and will last one to five years, then it will go down to between 5% to 10%
- VAT increase is temporary: Saudi Crown Prince Mohammed bin Salman
AFRICA
- PwC cites hiccups in implementing digital services tax
- Kenyans react after KRA introduced a 16% VAT on cooking gas
- VAT treatment of services provided by financial institutions
- FIRS Issues Guidelines on the Applicability of VAT on Financial Services
AMERICAS
LATIN AMERICA
- Bolivia plan to extend VAT to foreign-supplied digital services
- Bolivia Proposes Value-Added Tax on Offshore Digital Providers
- VAT Applies to Provision of Software as Service by Non-Residents
- Invoicing Requirements for a Foreign Company in Chile
- Local Taxes in Colombia: a VAT Overview
- Colombia’s Executive branch submits tax reform bill to Congress
- What are Invoicing Requirements for a Foreign Company in Ecuador?
- Temporary measures on commercial E-Invoices
- Mexican Congress approves labor reform addressing outsourcing services
- Mexico amends tax rules on outsourcing, insourcing services
ASIA-PACIFIC
- GST in sales contracts – Get it right or you could regret it
- ATO finalises guidance on new discretion to retain refunds
- WA man charged over $2.57m tax evasion, ATO impersonation
- China removes VAT rebate on steel exports, cuts tax on raw material imports to zero
- China Introduces New Import Tax Exemptions for Integrated Circuit Production
- Effects of China’s VAT system transition on firms’ investment and employment
- Centre may waive GST on vaccines
- No GST can be demanded from Buyer for the fault of Seller of non-payment of taxes
- A Loaded Question: Cryptocurrency Taxable under GST or Not
- No Service Tax on Free Warranty and Labour Services
- Tax Compliance & Statutory due dates for May, 2021
- No GST can be demanded from Buyer for fault of Seller of non-payment of taxes to Govt
- Recent Developments & Amendments in Goods and Services Tax
- Need of Voluntary Certification of GSTR-9C (by Chartered Accountant / Cost Accountant)
- Relief to Popular Vehicles: No Service Tax on Free Warranty and Labour Services, rules CESTAT
- Sports in India: the indirect tax structure
- GSTN: Registered taxpayers can now check their returns for last 5 return periods
- Refund of CENVAT Credit being legitimate export incentive given to exporters can’t be denied merely because of implementation of GST: Madras HC
- Another Amendment in ITC provisions on charts?
- The facility to file GST returns through OTP/EVC again enabled on portal
- Vouchers are neither the goods nor the services, but a means for payment of consideration for a future supply
- Ahemdabad Municipal Transport Services not liable to pay GST under RCM on receipt of security services being local authority
- Companies face customs duty, IGST on fake goods from China
- Major Jurisprudence in Indirect Taxation January- March 2021
- A2ZTaxCorp’s Weekly GST Communique dated April 26, 2021
- Repair services provided to fulfil warranty obligation involving supply of parts to be classified as composite supply of services
- No GST on Books delivered from warehouse located in USA to customers outside India
- GST on Notice Pay Recovery – Detailed Analysis
- Supply of medicines, food, room on rent etc. to in-patients is a composite supply of healthcare service
- GST on E-Commerce Operators – Detailed Analysis
- Government must provide handholding for GST compliances to Industries
- Lawyers in Rourkela, Bhubaneswar exempted from GST
- Supply of license of pre-developed or pre-designed software amounts to supply of goods covered under heading 8523
- Covid related vaccines & Oxygen exempted from basic customs duty
- Time of supply of gift vouchers / gift cards under GST
- No GST on Books delivered from warehouse located in USA to customers outside India
