Here it is again: your weekly VATupdate Newsletter. With 1 July 2021 getting nearer, we see a lot of news on the new EU e-commerce rules. But there’s much more.
We experienced some issues with accessing websites earlier this week. This seems to have been caused by a malfunction at the American cloud service provider. We hope that you haven’t had any trouble reaching our website. The websites of tax authorities were also hard to reach, which didn’t help in trying to register or submit tax returns. If you had any problems, you may want to check if their websites work again.
Access to the internet seems to be a necessity nowadays, and I believe that it’s even described as a first need and a human right. At least in Tanzania they understood that very well, and therefore they decided to no longer charge VAT on the supply of mobile phones, in order to ensure that people can more easily get access to online services and information.
In California, USA, a bill was presented which must clarify how much of the (local) sales tax actually remains in the local country, city or state. The background of this is that often the local sales tax that is paid on online purchases, may be paid by the online retailers in another city, country or state (where they are based).
Which brings us back to the EU VAT E-commerce rules. The rules are made to create a level playing field for local and foreign webshops. EU online retailers can use the OSS scheme and non-EU online retailers can use the iOSS scheme. For more information and news on these rules we refer you to the website. But for now we just wish to point out that you will have to act quickly, as 1 July 2021 is only two weeks away.
Have a nice week.
- Blockchain in Tax Administrations
- Blog series on Define Compliance Reports : Create a New Report Definition for VAT Reporting
- Consider Indirect Tax with SAP S/4HANA Migration to Ease the Burden on IT
- Introduction of real-time payments to e-commerce and in-store transactions are promising use-cases for national payment infrastructures
- VAT Rates … this was in the news in the week of June 7
- Calculate and collect sales tax, VAT, and GST with one line of code or the click of a button
- VAT Trends: A Shift Toward Destination Taxability for Certain Cross-Border Transactions
- Job opportunities in France, the Netherlands, Poland and United Kingdom
- Job opportunities in Belgium, India, Luxembourg, Switzerland and United Kingdom
- Job opportunities in Hungary, Switzerland, Turkey, United Arab Emirates and United Kingdom
- Better Together: supporting you with VAT compliance (free webinar by SOVOS)
- SNI Tax Digitalization Online Symposium – June 15
- Ryan – European VAT News Podcast – May 2021 Highlights
EUROPE
EUROPEAN UNION – ECJ CASE LAW
- ECJ C-58/20 (K) & C-59/20 (DBKAG) – Judgment – Tax work and use of software provided to investment fund management companies are VAT exempted
- ECJ C-188/21 (Megatherm-Csillaghegy) – Question – Right to deduct VAT when the tax authorities revoke the Tax Number
- Amazon FBA and VAT
- Prof. Lamensch @ European Parliament – Possible solutions to tackle fraud, solutions that involve new technologies (May 26, 2021)
- VAT Rates in Europe 2021
- Increase in e-invoicing in harmony with VAT process digitisation
- European Commission proposes a trusted and secure Digital Identity for all Europeans
- Proposals for New EU Revenue Streams Based on a Carbon Border Adjustment Mechanism, a Digital Levy, and the EU Emissions Trading System
- No fixed establishment for VAT purposes without own personnel
- Information for EU exporters and carriers regarding the optional deferral of UK import formalities
- E-commerce 2021 and the iOSS return: Frequently Asked Questions
- Understanding the New Import One Stop Shop (IOSS)
- Helping you get ready for the EU’s VAT e-commerce changes on 1 July 2021
- British Companies Must Appoint An Intermediary In Order To Benefit From IOSS
- Unboxing the Impact of the EU VAT E-commerce Package
- Belgium Announces Summer Holiday 2021 Extensions for VAT Declarations
- Extended deadlines for filing VAT returns
- Postponement VAT return filings during Summer period 2021
- French 13th Directive refund claims to be submitted electronically
- E-Commerce VAT Package – New Rules Regarding The Intrastat Obligation
- Reform 2023: Focus on the latest working hypotheses of the DGFiP with regard to the obligation of e-Reporting
- Uniform standard for electronic receipts!
- Place of performance of educational or similar courses
- New (IOSS) customs IT system not ready
- MOF expands VAT exemption for supplies provided by crypto exchange operators
- Cross-post German business association DMB: the benefits of real-time reporting systems for SMEs
- Tax liability of the service recipient
- MOF expands VAT exemption for supplies provided by crypto exchange operators
- Change in the case law on input tax deduction and free valuation – follow-up judgment “Mitteldeutsche Hartstein Industrie AG”
- Union law entitlement to interest on input VAT credits or VAT refunds
- Manufacturer discount as part of the remuneration for the intra-community purchase of pharmaceuticals
- Use of yacht for promotional vs. private purposes & place of supply
- VAT deduction on costs incurred in relation to the acquisition of a reversionary interest in a property subject to a legacy lease
- Infographic: A guide to VAT in Italy
- Implementation of EU E-Commerce Directives published in national gazette
- Offsetting of VAT credits with other taxes – Increase of the limit up to 2 million euros
- Booking.com suspected of VAT fraud in Italy
- Directive proposal VAT exemption EU bodies may be detrimental to treasury
- Rental boxes subject to VAT as they could be used for parking space
- Complex regulations for import and export cars leads to VAT abuse
- Dutch railways: reverse VAT increase on train ticket
- New proposal for a directive could lead to loss of VAT revenue for the Netherlands
- Entertainment hall services are subject to the general VAT rate (21%)
- Rethinking VAT compliance (1): single VAT return
- Brexit and call off stock
- Tax authorities’ systems cannot handle a second reduced VAT rate
- Reduced VAT rate for laughing gas cartridges
- Main contractor housing foundation renovation project performs taxable services that have not been moved
- Arrests in investigation into VAT fraud involving exclusive watches
- Broad incentives for investors – Implementation VAT grouping & Option to tax financial services
- KAS smashed a tax carousel that swindled PLN 11 million in VAT
- An advance invoice is sometimes not needed
- Rules on reporting and deducting Intra-Community Acquisition VAT
- New ruling on factoring in Poland – A step towards clarifying deductibility of costs under factoring contracts
- Putin renews VAT exemption for services at Russia’s Formula 1 stage — decree
- Foreign companies will be required to pay digital tax in Russia
- Cafes and restaurants with revenues below $28 mln to be exempted from VAT in Russia
- E-Commerce VAT Reform 2021 – Publication Of Detailed Information Regarding OSS/IOSS
- Website Slovenian Tax authorities on the implementation of the new EU VAT E-Commerce regulation/OSS & IOSS
- Spain Approves New Form for DST Self-Assessment
- Digital Services Tax approved by the government
- Spanish Prosecutors Call For Eight Years In Prison For Two Men Involved In €2M Vat Fraud
- Spain Publishes Decree Regulating Certain Aspects of the New DST
- Medical companies with operations at a medical center provided medical care to patients and not services to the medical center
- Providing a license for the use of an insurance product is not an insurance or reinsurance service
- Draft Law establishes a limitation for a budget refund of VAT for intermediary taxpayers if purchased or imported goods will be further supplied in the…
- Ukraine moves closer to digital services VAT
- HMRC internal manual: VAT Taxable Person Manual – agency and disbursements: revenue risks associated with agency
- HMRC internal manual: VAT Transfer of a going concern
- HMRC Guidance: Guidance Problems using Government Gateway
- Finance Act 2021 published: temporary VAT rate of 5% for hospitality, etc, MTD, E-Commerce, …
- VAT liability of day-care services supplied by private bodies in England and Wales (Revenue and Customs Brief 9 (2021))
- HMRC Guidance: Claim VAT refunds in Northern Ireland or the EU, if you’re established in Northern Ireland or in the EU
- HMRC Policy paper: The Taxation Cross-border Trade (Miscellaneous Amendments) (EU Exit) Regulations 2021
- HMRC Statutory guidance – Notices made under the Customs (Import Duty) (EU Exit) Regulations 2018
- HMRC Collection: Customs, VAT and Excise UK transition legislation from 1 January 2021
- UK Parliament – e-Commerce: VAT legislative changes
- Free trade agreement between Australia and UK
MIDDLE EAST
- VAT Guideline: Insurance & reinsurance activities
- Saudi inflation driven up by food and vehicle prices as VAT hangover lingers
- Saudi Arabia Publishes Final Rules on E-invoicing
- UAE Federal Tax Authority Issues Release on Penalty Relief Introduced by Cabinet Decision No. 49 of 2021
- VAT update on Redetermination of administrative penalties levied (TAXP002)
- VAT on Sale or Disposal of motor vehicle held as business asset in UAE
AFRICA
- Egypt imposes 14% VAT on online delivery services
- Decision to impose 14% VAT on Egypt’s online food deliveries necessary to achieve tax justice: Official
- PFM dialogue on “20 Years of VAT: The Good The Bad, The Ugly” comes off tomorrow
- Grant VAT exemption to exploration firms to avert dwindling investments – Ghana Chamber of Mines
- VAT exemptions on solar key to universal electrification by 2022
- The Essential Guide to Partial Exemption rules for VAT
- Relief for Kenyans as Treasury exempts bread from VAT
- Nigeria Issues Public Notice on Requirement to File Returns via TaxPro-Max e-Filing Solution
- FIRS Requires Taxpayers To File VAT Returns On The E-filing Platform
- Tax treatment of non-profit entities in Nigeria
- Govt Freezes Vat On Imported Artificial Grass
- Tanzania to remove VAT on smartphones to boost access to internet
AMERICAS
- ‘Astonishing’ if case on taxation of Aeroplan Miles doesn’t make it to SCC, lawyer says
- New Rules for Digital Service Providers Starting July 2021
- New Goods and Services/Harmonized Sales Tax Rules
- Rejected Invoice Control Service in Chile
- Chile Tax Agency Clarifies VAT on International Financing Operations
- US-EU announce Joint Cooperative Framework for Large Civil Aircraft; Suspend punitive tariffs on wide range of products for five-year period
- Non-refundable Value Added Tax on Lease Payments (IFRS 16)
- Louisiana Aims To End The Madness Surrounding Their Sales Tax System With House Bill 199
- Nevada Enacts Sales Tax Collection and Remittance Rules for Peer-to-Peer Car Share Programs
- Transfer price adjustments don’t necessarily increase import duty costs
- U.S. Senate passes bill that includes trade-related measures
- Tennessee to hold nearly yearlong sales tax holiday on gun safes, gun safety devices
- California cities kick back sales tax to online retailers
- Maryland Delays Digital Advertising Services Tax; Revises Guidance For Sales Tax Of Digital Products
- Massachusetts Takes A New Approach To Sales Tax Deadlines
- Missouri – The Last State To Enact Economic Nexus Legislation
- Nevada Revises Sales and Use Tax Abatement Requirements
- Washington DOR Adopts New Rule on Marketplace Facilitator Tax Collection and Reporting
- Tennessee: Online Platform Uninvolved with Payment Processing is Not a Marketplace Facilitator
- Maryland: Updated Guidance on Taxation of Digital Products Reflects Newly Enacted Legislation
ASIA-PACIFIC
- Mandatory e-invoicing by 1 July 2022 in Australia
- GST treatment of care services and accommodation in retirement villages and privately funded nursing homes and hostels
- Is the supply of a burial right in respect of a public cemetery subject to GST?
- When is the supply of an adjustable bed GST-free?
- Free trade agreement between Australia and UK
- Facebook now registered taxpayer in Bangladesh
- Bangladesh Budget for 2021-2022 Delivered
- VAT bar association demands customs, VAT reforms
- How Changes in GST Rate affect Your Business Process?
- Govt. notifies Changes in Tariff Item Number of Hand Sanitizer
- Process of Filing ITR-1 under New Income Tax e-Filing Portal 2.0
- GST: Whose headache is it anyway?
- E-way bills signal coming jump in GST collections
- E-way bills signal coming jump in GST collections
- Placement of medical instruments without consideration in hospitals is a Supply of Service
- TCS on sale of scrap – An unintended controversy
- Waiver & Reduction of GST Rates for Covid Management
- Rajasthan lowers VAT on diesel for mining sector
- Reduced the rate on construction services w.r.t. a structure for funeral, burial or cremation of deceased to 2.5%
- Amnesty scheme for state GST goes live
- 12% GST on Service of Operating Mini AC Buses: AAR
- HSN & SAC Code Mandatory in Invoice & Form GSTR-1
- 12% GST on Service of Operating Mini AC Buses: AAR [Read Order]
- A contract price comprises of three components viz. cost factors, profit margin
- A2ZTaxCorp’s Weekly GST Communique dated June 14, 2021
- GoM recommended rate rationalisation till August, 2021, GST Council extended till September 30, 2021
- Upcoming functionalities to be deployed on GST Portal for the Taxpayers
- New facility to find HSN/SAC codes on GST Portal
- Recommendations of 44th GST Council meeting on changes in GST rates w.r.t Covid-19 related items
- Archiving of documents under GST
- Automatic GSTR-3B PDF Summary in Excel
- Export of services under GST
- GST Council meet today: what to expect
- Export of services under GST
- TDS on Purchase of Goods to be effective from July 1
- The real complexities of VAT reform
- Tax office defends proposed VAT on education, staple foods
- VAT on food and education services: government confirms that there are no regulations yet
- Government should review VAT imposition plan on basic needs: DPR
- Apart from VAT rate increase, govt also plans to impose VAT on additional goods/services
- Pakistan Budget 2021-2022 Presented to Parliament
- FBR Finds $3.8 Billion Gap In VAT Collection
- Pakistan slashes taxes on small, electric cars
- Singapore Publishes Updated E-Tax Guide on GST for the Advertising Industry
- IRAS e-Tax Guide for Advertising Industry
