VATupdate

VATupdate Newsletter Week 33 2021

As long as taxation exists, people have been trying to pay as less tax as possible, preferably nothing at all. It’s in our human DNA. However, most people also believe that the tax they pay is spent on general things that everyone benefits from, such as roads, a safe environment with police catching thieves, and firefighters and an army helping you when you need it, and access to healthcare and education.

More recently, companies that have been trying to minimize their tax payments have been scrutinized by the public opinion and politicians. And governments and international organizations are taking more and more measure to combat fraud. With a strong focus on VAT.

The new EU VAT e-commerce rules are supposed to create a level playing field for all e-commerce sales to EU consumers. Simply said: sellers must charge local VAT on their distance sales, irrespective of where they are based or where the goods are coming from. If the goods come from a non-EU country, they can use the iOSS scheme for reporting the VAT on their sales and to claim an exemption from VAT on the importation of goods.

And that last part is an opportunity for fraudsters, as they can abuse the iOSS number of sellers to get goods VAT free into Europe. It is therefore strange that tax authorities are communicating the iOSS numbers ‘openly’, where VAT intermediaries try to treat the numbers as confidential as possible.

What else is there this week?

  • The top 10 of the highest VAT rates in Europe. And the winner is… Let’s say that it’s not Portugal or Poland, two countries where you must pay close attention to the (new) SAF-T rules and reporting and invoicing requirements.
  • Watching a concert or a football match online is not the same as attending the event in person. With all the Covid-19 measures and solutions that governments and businesses develop, it is not possible to change the VAT rule in this regard. Online is standard rated, attending in person can be reduced rated.
  • In many EU countries books and magazines can be subject to a reduced VAT rate. And perhaps in future even a zero-rate. The new EU council chair (Slovenia) is considering this.
  • In some countries VAT is automatically withheld on payments if the service provider is established abroad. These withholding mechanisms are not always known or clear to foreign service providers, who are surprised if their invoices are not fully paid.
  • In a recent case the judge ruled that an online fantasy sports game should be considered a ‘game of skill’ and is not to be regarded ‘gambling’. Not really a VAT case, but still interesting to know.

Did you know that we have about 300 posts in our weekly newsletters? Because we want you to also see the regions and countries that are normally a bit more down in the Newsletter, we rearranged the order somewhat this week. If you have to look for your country, you may also come across interesting stuff in other countries.

See you next week!


MIDDLE EAST

GCC

KUWAIT

SAUDI ARABIA

UNITED ARAB EMIRATES


WORLD

JOB OPPORTUNITIES

WEBINARS

WORLD


AFRICA

GHANA

KENYA

NIGERIA

SOUTH AFRICA

TANZANIA


AMERICAS

BOLIVIA

CANADA

CHILE

ECUADOR

SURINAME

UNITED STATES

URUGUAY


ASIA-PACIFIC

BANGLADESH

BRUNEI

GEORGIA

INDIA

INDONESIA

KAZAKHSTAN

MALAYSIA

NEW ZEALAND

PAKISTAN

PHILIPPINES

SINGAPORE

THAILAND

TUVALU

VIETNAM


EUROPE

EUROPEAN UNION

EUROPEAN COURT OF JUSTICE

EUROPEAN UNION – E-COMMERCE

EUROPE

AUSTRIA

BELARUS

BELGIUM

BOSNIA AND HERZEGOVINA

CYPRUS

CZECH REPUBLIC

DENMARK

FRANCE

GERMANY

GREECE

HUNGARY

IRELAND

ITALY

NETHERLANDS

NORWAY

POLAND

PORTUGAL

ROMANIA

SLOVAKIA

SLOVENIA

SPAIN

TURKEY

UKRAINE

UNITED KINGDOM


 

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