Some highlights of this week’s newsletter:
- Last week we mentioned miscommunication and different opinions on the interpretation and execution of VAT rules. This week we see that some tax authorities are communicating a lot, e.g. in the UK.
- Twelve years is quite a long time. That’s the time a South African women has to spend in jail, after improperly claiming back VAT.
- Food delivery apps to pay GST on restaurant services sold through these apps. India is considering charging VAT on the total price paid for food, ordered via food delivery apps. This is because in some cases, the restaurants themselves are not paying GST.
This, and much more, you can read below. Please also click on our sponsors, as they enable us to provide you the VAT news every day.
WORLD
- Job opportunities in Belgium, The Netherlands and United Kingdom
- Job opportunities in Belgium, India, Netherlands, Romania, Spain and United Kingdom
- COVID-19: VAT Developments worldwide
- Looking to Cut Tax Compliance Costs? Consider Tax Solutions Before Migrating to SAP S/4HANA
- OECD Announces New Model Manual on Exchange of Information for Tax Purposes
- Webinar: VAT Reporting & SAF-T: What’s next on the horizon? (Sept 30, 2021)
- Cygnet Infotech acquires UK-based euVAT Online; to build foothold in Europe
- Sovos E-Book: VAT Guide for Finance Directors – Why it’s Now a Boardroom Concern
- Solving the 10 Most Common VAT Compliance Issues with Technology
- Technological upbringings embedded with Indirect Tax Journey in an organization can open many hidden opportunities & benefits for…
- SAP: who Is My Legal Customer For VAT Purposes?
- OECD Report: Developing countries tend to rely more heavily on VAT and corporate income tax on Tax Cooperation
MIDDLE EAST
EUROPE
- ECJ VAT Cases decided (incl. orders) in 2021 – Status Sept 16, 2021
- Agenda of the ECJ VAT cases – 6 decisions, 1 AG Opinion – Sept 23 – Oct 21, 2021
- Hungarian court according to AG CJEU bound by CJEU judgment despite deviating facts
- ECJ: Deduction of VAT in case of taxable & non-taxable activities
- ECJ C-398/21 (Conseil National des Barreaux and Others) – Referral on Reportable Cross-Border Arrangements (DAC6)
- Flashback on ECJ Cases – C-563/12 (BDV Hungary Trading) – Exemption on exportation – 90 days export time limit unacceptable
- ECJ C-458/21 (CIG Pannónia Életbiztosító) – Questions – Medical exemption for service used by an insurance company?
- Flashback on ECJ Cases – C-288/16 (L.Č.) – Only VAT exemption on export if service is provided directly to sender or receiver
- Recent changes to CJEU rulings in relation to VAT refunds
- EU E-Commerce VAT Package FAQs: Understanding OSS
- EU’s Major VAT Reform Has Turned E-Commerce Upside Down: Part 3
- Post-Brexit E-Commerce: a new are of challenges
- European Parliament clears the way for zero VAT on healthy food
- Reclaiming VAT: is a receipt sufficient?
- Carbon Border Adjustment Mechanism (CBAM) will stem ‘carbon leakage’, European Commission tax and customs chief tells MEPs
- EU VAT Committee: Minutes of the 118th meeting on April 19, 2021
- Focus on ”Exemption – Exportation of Goods” (Art. 146)
- Fiscal Representation Post-Brexit – Requirements for UK Companies Trading in the EU
- Plastic Tax Will Aid EU Recovery
- Wise Persons Group on Challenges Facing the Customs Union (WPG)
- Reduced VAT rates create a VAT Gap of 140Bn
- European Public Prosecution Service is chasing embezzled EU VAT
- Service of warranty extension as an insurance operation and ots impact on the pro-rata deduction
- EU’s Major VAT Reform Turns E-Commerce Upside Down: Part 1
- EU’s Major VAT Reform Has Turned E-Commerce Upside Down: Part 2
- EU: A 15 Percent VAT Rate Is Possible by Scrapping Reduced Rates
- Shopify VAT: A Guide to Compliantly Selling Cross-Border
- EU reporting rules for platform operators (DAC 7) and UK consultation on implementation of the OECD reporting rules
- Barter deals and VAT – Watch-Out for the unknown consequences!!!
- Standard Audit File Tax – a file format with revolutionary potential
- Austrian Federal Finance Court on input VAT deduction of a managing holding
- Period of waiver of penalties for late submission of DAC 6 filings further extended
- Further extension of non-application of administrative fines for DAC6 submissions to 30 November 2021
- At last … (was the Czech VAT Act amendment implementing new e-commerce rules passed)
- VAT liability and payment to an undisclosed account through the lens of the SAC’s decision
- VAT and financial services: Toward a selective “option to tax” regime
- France Publishes Ordinance on Implementation of E-Invoicing and E-Reporting Requirements
- France E-invoicing Postponed
- Ax throwing subject to 10%
- VAT and financial services: towards a selective option to tax regime
- Management of real estate funds – potential evolution of the rules concerning the option
- French E-invoicing Mandate Update: Government Revises Rollout Schedule
- Uniform Digital Interface For Pos Systems (DSFinV-K)
- VAT treatment of amusement parks and fun fairs
- BZSt capitulates before the first OSS report: Taxdoo helps 100 traders for free
- Plastic Tax in Germany
- Overhaul of the provisions of the German VAT Application Guidelines about the VAT treatment of travel services
- Guidance re cases where persons may be jointly and severally liable for tax
- Guidance re document which is in the same format as a VAT invoice in respect of all supplies for which a VAT invoice has not been issued
- The 4% VAT rate is applicable to the olive oil regardless the use
- Electronic invoicing for cross border transactions – News applicable from 2022
- Malta Transposes Directive for Temporary VAT Exemption on Imports and Certain Supplies for COVID-19
- VAT evasion costs at least €120 million annually
- Car deliveries to Estonia were partially wrongly applied to zero rates
- Change in policy decision on the right to deduct VAT when providing food and drinks
- Man arrested for VAT fraud
- Budget Day 2022: Negative OSS returns, VAT for mind sports and “old portal” closed
- The Netherlands wants a limit for cash payments throughout the EU
- Budget day 2022 – E-commerce – No need to file VAT refund request if VAT receivable balance
- VAT deduction for temporary housing (foreign) employees
- Import VAT only deductible for owner of goods with correct documents
- Article: VAT deduction for temporary housing (foreign) employees
- No excusable term overrun due to starting a new company with a new advisor
- No VAT education exemption for exams taken by a non-educational institution
- VAT education exemption only for educational institution
- How does VAT carousel (missing trader) fraud work (and what is the penalty)?
- Qualified signature using the SHA-1 algorithm only until the end of 2021
- Making stock exchange transactions for the purchase and sale of bitcoins is not a business activity
- Proposal: Optional taxation of financial services, VAT grouping, Amendments in VAT compliance and reporting obligations
- Sellers must register with Tax Free
- Virtual cash register will not have to print receipts
- Cost participation does not affect the VAT settlement
- The Sejm started work on the National System of e-Invoices
- 7 companies took out VAT fraud. KAS recovered PLN 6 million
- Electronic Invoicing for Microenterprises: more than an obligation, a universe of advantages
- Brand new changes in fiscalization and e-invoicing in Portugal
- SAF-T obligation timeline for large, medium and small taxpayers
- ANAF extends the grace period for SAF-T by six months
- How Does Saft Declaration Work in Romania?
- Updated (detailed) VAT guidance by Ministry of Finance
- New technical instruction for completing the DAC6 form
- Slovenia Tax Agency Clarifies VAT Liability on Termination of Financial Leases
- Slovenia Tax Agency Clarifies VAT Treatment of Sale, Leaseback Transactions
- New Slovenian automated import system (SIAIS2) postponed to 1 January 2022
- Spain to cut energy taxes amid anger over soaring electricity costs
- Deadline to claim VAT refund for 2020 is 30 September 2021
- 2022 Budget: Repeal advertising tax, Increase VAT exemption threshold, Reduced VAT rate on repairs, etc
- 2022 budget bill: increased SME threshold and lower rate for repairs of bicycles, shoes, leather goods, clothing and household linen
- Clarification: Purchase of a car by the tenant
- Elimination of Swiss import customs duties on industrial goods may enter into force on 1 January 2022
- Standardization of interest rates for late payment and refunds of taxes and duties from 2022 onwards
- Vessel rental services are provided to a non-resident together with the crew: VAT consequences
- VAT on non-profit transactions: questions and answers
- How are VAT amounts taken into account when determining the object of corporate income tax?
- Is the revaluation of non-current assets subject to VAT?
- Transfer by the customer of toll raw materials to the resident for its processing and receipt of finished products by the resident: VAT taxation
- Features of filling in the PN when supplying goods to the duty-free shop
- How to charge VAT when paying non-resident interest on a trade credit?
- More than 5 billion 751 million hryvnias of VAT were reimbursed to taxpayers of the capital
- How and when to charge VAT to the commission agent?
- EU reporting rules for platform operators (DAC 7) and UK consultation on implementation of the OECD reporting rules
- HMRC Policy paper: Repeal of the VAT (Treatment of Transactions) Order 1992
- HMRC Guidance: Apply for authorisation for the UK Trader Scheme if you bring goods into Northern Ireland
- HMRC Guidance: Default surcharge (VAT Notice 700/50)
- MTD for income tax for landlords explained
- Form: Appoint a tax representative if you’re distance selling into Northern Ireland
- Get an EORI number – Apply for an EORI number
- Brexit Update: major changes for imports of food products from EU to UK
- HMRC Guidance: Seeds and plants that can be zero-rated (VAT Notice 701/38)
- KSM Henryk Zeman – Tribunal can consider ‘legitimate expectation’ arguments in VAT appeal
- Online VAT return is closing to 800 traders
- Import VAT accounting issues
- All VAT registered persons in the UK will need to comply with MTD from 1 April 2022
- HMRC Guidance: Bringing commercial goods into Northern Ireland in your baggage
- HMRC Guidance: Bringing commercial goods into Great Britain in your baggage
- HMRC Guidance: Find out when to make an exit summary declaration
- HMRC Guidance: Making an entry summary declaration
- Press release: Government sets out pragmatic new timetable for introducing border controls
- HMRC Guidance: Register to report and pay VAT on distance sales of goods from Northern Ireland to the EU
- Farm in business? The Babylon case
- HMRC Guidance: Caravans and houseboats (VAT Notice 701/20)
- HMRC Guidance: Submit your One Stop Shop Return and VAT payment
- Form: Tell HMRC about an option to tax land and buildings (updated)
- HMRC Collection: VAT manuals for HMRC staff (Updated)
- Form: Apply for VAT group registration or amend your details
- HMRC Guidance: Declaring reusable packaging for Great Britain imports and exports
- HMRC Guidance: Register to report and pay VAT on distance sales of goods from Northern Ireland to the EU
- The tax gap was £35bn in 2019/20
- Hay sales were not economic activity for VAT
- Thorntons Investments scraps VAT charges on MPS
- VAT: overseas repayments for non-UK businesses – How to contact UK authorities?
- Freemason membership fees still subject to VAT
AFRICA
- State to reduce VAT on electricity, water tariffs from 15 pct to 8 pct
- Government of Cape Verde reduces VAT on electricity and water from 15% to 8%
- Does The Federal Government Have The Constitutional Powers To Legislate On VAT?
- Dispute between states and the Federal Government on who has the right to collect VAT
- Uncertainty over Supreme Court hearing of Rivers, Lagos case
- El-Rufai To Govs: Don’t Confuse VAT With Sales Tax
- VAT Collection By States Wake-Up Call for Gombe, Says Gov Yahaya
- VAT crisis, wake up call for northern govs
- Insights on VAT collection and distribution in Nigeria
- Lagos preparing for VAT collection, says LIRS
- Southern governors support collection of VAT by state governments
- Ondo to Implement VAT Law
- FG Should Continue Collecting VAT, Umahi Declares
- Governors meet in Enugu over VAT, others
- Fallouts of the VAT brouhaha
- Rivers State government asks high court to dismiss order staying VAT enforcement
- SARS may apply broad interpretation of “electronic services” for VAT purposes
- The tug of war over VAT refunds
- ‘Brace yourselves for possible VAT increase,’ says analyst
- Woman sentenced to 12 years in jail for VAT crime
AMERICAS
- Credit of import VAT only if the import documentation (pedimentos) is issued in the name of the taxpayer claiming the credit
- Proposal: No tax credit if linked to ”non-object” activities
- State Tax Matters (17 September 2021) by Deloitte
- Louisiana: Sales and Use Tax Return Filing Deadline Extended for Businesses Impacted by Hurricane Ida
- Three Issues with Proposed Regulations for Maryland’s Digital Advertising Tax
- Louisiana Extends Sales and Use Tax Relief Due to Hurricane Ida
- California Extends Sales Tax Exemption for Qualified Pawned Property Transfers
- California Legislature Approves New Sales Tax Reporting Requirements for Certain Online Retailers
- Partial sales tax exemption, farming equipment (California)
- Indiana DOR Addresses Impact of Drop Shipments in Calculating Economic Nexus Threshold
- Illinois DOR Addresses Impact of Drop Shipments in Calculating Economic Nexus Threshold
- Florida: Proposed Rules Reflect New Remote Seller and Marketplace Laws and Rounding Algorithm
- California: Proposed Changes to Drop Shipment Rule Address Marketplace Sales Transactions
ASIA-PACIFIC
- Prime Bank joins NBR’s Integrated VAT Administration System
- Microsoft pays VAT for the first time
- VAT registration suspension looms on 1,400 Ctg businesses
- Buildtrade Group’s Bashundhara Steel Complex sued for Tk 8.48 crore VAT evasion
- Two New Prakas Now in Force – Tax on Salary and VAT on E-Commerce
- VAT rules for non-resident operators in e-commerce
- China’s indirect tax changes – what to expect for the rest of 2021 and 2022 (webinar October 11)
- Local tax supplementing VAT and consumption tax
- GST Council addresses longstanding GST issues; Seeks to streamline compliances, correct duty inversion
- Key Action points to be considered before filing GSTR-1 & GSTR-3B of September 2021
- Recommendation of the 45th Meeting of India’s GST Council
- Orissa High Court directs GST Authority to Re-Open Online Portal to enable filing of Form TRAN-1 Electronically or Accept Manually by Nov 2021
- Managerial, Leadership Services provided by Corporate Office to its Group Companies covered under ‘Supply of Service’, rules AAR
- No GST on back-office sector, says govt in intermediary services dispute
- Highlights of 45th GST Council meeting
- Don’t delay in filling returns, otherwise it may result to immediate notice
- 45th GST Council Meeting: Latest Updates of Tax Deduction and New GST Rates
- Clarification relating to export of services-condition (v) of Section 2(6) of the IGST Act, 2017
- Clarification in respect of certain GST related issues
- Clarification on doubts related to scope of “Intermediary”
- A2ZTaxCorp’s Weekly GST Communique dated September 20, 2021
- GST on ice cream parlours may lead to litigation, say experts
- CBIC issues Clarification on doubts related to Scope of ‘Intermediary’
- Physical Invoice need not be carried when E-Invoice has been issued, says CBIC
- KDK Software launches one of the most advanced GSTR-2A/2B tool for reconciliation
- Aviation Ministry Calls For A Reduction In VAT On Aviation Turbine Fuel
- Works contract under GST
- 45th meeting of GST Council: Agreement reached to make these things cheaper!
- GST on discount offered by Company through dealers to Customers
- Recommendations of 45th Meeting of GST Council, Lucknow (Sept 17, 2021)
- Press release on recommendations made in 45th GST Council Meeting
- 30 Suggestions For Simplification of GST Law, Procedures & Returns
- Indian Companies and Foreign Entities shall be treated as Separate Entities for considering a Supply of Service as Export of…
- GST Council Meet: Two GoMs formed for Tax Rate Rationalization and E-Way Bills, FASTags and Technology
- Date of Issuance of Debit Note shall determine relevant FY for claiming ITC on Supply of Goods or Services: GST Council
- No TDS on Interest from Bank Deposit for Scheduled Tribe Category: CBDT
- 5% GST on Services by Cloud Kitchens covered under ‘Restaurant Service’, , GST Council issues Clarification on GST rate on Services
- GST Council proposes changes in GST Rate for various Goods and Services w.e.f. January 1, 2022
- 45th GST Council meeting today; here’s what to expect
- Indirect Tax Monthly Updates 16 September 2021 by Trilegal
- Compliances under various rules and regulations under the GST Act in regard to FY 2020-21 before 30th Sep-21
- Food delivery apps may be treated as restaurants, told to pay GST
- CBIC issues Advisory for Generation of E-Way Bill where the Principal Supply is Supply of Services
- Indonesian VAT reform should level the playing field for women
- Extension of the 100% car discount until December 2021
- New Zealand Publishes Final Interpretation Statement on Determining Whether a Person is Resident for GST Purposes
- Proposal: Changes to GST tax invoice requirements, treatment of cryptoassets, domestic freight services, GST apportionment
- The need for clearer VAT-zero rating rules under Create
- House approves 12% VAT on digital transactions
- BIR to penalize importers misdeclaring meat as animal feeds to escape VAT
- Thailand Publishes Decree Extending 7% VAT Rate for Two Years
- Thailand Publishes Decree Extending Deduction Incentive and VAT Exemption for COVID-19 Donations
- Vietnam Provides Import Tax and VAT Exemption for Good Imported for COVID-19 Prevention and Control
- Vietnam is considering reducing VAT by 30 percent to boost economic recovery
- Proposal to reduce VAT by 30% in the last three months this year for certain sectors
- Vietnam MOF Proposes VAT Rules for E-Commerce Transactions
