We don’t know about you, but we find these Covid-19 measures sometimes pretty confusing. Luckily, confusing rules and many restrictions on how companies can do business, also can result in creative solutions.
Recently, I read a story about the Raines Sandwich. This was invented in the 1900s in the USA, when bars tried to find a way to legally serve beer to customers. This was not illegal as such at that time, but due to a special law (the ‘Raines Law’), bar owners were obliged to serve a ‘substantial meal’ with each drink. The background of this was that the US government tried to combat public drunkenness.
Obliged to serve a sandwich with each drink, the bartender duly served a sandwich with each drink. That is to say, the bartender served the same sandwich with each drink. Every drink order was accompanied by a sandwich, and as soon as that sandwich touched the table beside your beer or whiskey, it was whipped away and served up with the next drink order, and the next, and the next. Sometimes the same sandwich would be recycled for a week or more.
It was known as the Raines Sandwich, named after the Law. Sometimes the sandwich was made of rubber, and sometimes the joke became so absurd that bartenders presented a brick sandwiched between slices of bread.
Back to 2021: we can’t even go into a bar anymore because of a lockdown, or we have to test for Covid-19 first, or we have to show a QR code. Are companies finding ways around that? Probably yes, or, more likely, the visitors are. Not with fake sandwiches, but with fake QR codes for example. Which is stupid of course.
We are not against drinking beer. And we are not pro or con vaccinations or QR codes perse. But we do believe that endangering yourselves, but more importantly the people around you, by purposely avoiding or disobeying rules and thus taking the risk to infect yourselves or others, is a very stupid thing to do.
Moral of this week: stay safe, respect each other, but don’t go around with the Raines Sandwich.
Oh, and of course there’s lot’s of VAT news as well this week. Check it out on our website www.vatupdate.com. It’s very nice.
If you have any comments or ideas that you want to share with us, please send us an email at [email protected] or leave a comment under the posts of this newsletter on LinkedIn.
To go to the specific region of your interest, follow the link below.
We’re looking forward seeing you again next week.
WORLD
- Improve risk management by understanding the interplay between transfer pricing and indirect taxes
- Global VAT rate changes as of December 1, 2021
- 2022 international VAT & GST changes
- Decentralized Clinical Trials: Data Considerations & Value-Added Taxes
- What European OECD Countries Are Doing about Digital Services Taxes
- How to Gain Transparency and Control of Your Tax Engine
WEBINARS / EVENTS
- SNI Webinar: How can taxpayers adapt to the new SAF-T regulation in Romania? (Slide deck and recorded session)
- Webinar Sovos – VAT Reporting and SAF-T: Are these updates on your radar? (Dec 8, 2021)
- Sovos Webinar: Sink or swim: Preparing your business for a surge of Continuous Transaction Controls (Nov 30, 2021)
- Sovos webinar – VAT Snapshot: What’s new in the world of e-invoicing (Dec 2, 2021)
- SNI webinar: Get a head start on KSA’s e-Invoicing Mandate – Slide deck and recorded version
AFRICA
- Ghana’s Budget Statement and Economic Policy for 2022 Financial Year: What changes to expect for VAT?
- AGI commends govt for zero VAT policy on textiles
- Ghana Proposes Levy on Electronic Transactions as Part of 2022 Budget
- Kenya cracking down on VAT evasion with real-time monitoring
- Requirements for Uptake of the Electronic Tax Invoice
- Nowhere to run as KRA installs VAT system to nab tax cheats
- VAT suit will prove whether Nigeria respects rule of law – Wike
- VAT dispute will strengthen rule of law, says Wike
AMERICAS
- Turkey announces Joint Statement with the United States on Unilateral Measures Compromise – Digital Services Tax
- United States and Turkey announce digital services tax agreement
- New York: ALJ Holds that Fees Charged Were for Nontaxable Services Rather than Taxable Software
- Louisiana Sales and Use Tax Commission for Remote Sellers Posts Draft VDA Guidance
- Arizona DOR’s Draft Ruling for Comment Addresses Taxability of Rented Servers and Web Hosting
- Missouri sales tax on foreign e-commerce sellers Jan 2023
- Louisiana sales tax suit may lead to simpler system
- Louisiana: Electronic filing and payment for consolidated Sales and Use tax filers
- E-invoice Exchange Market Pilot program aims to create an e-invoicing network between businesses in the US
ASIA-PACIFIC
- Armenia introducing new digital services VAT regulations
- Armenia VAT on B2C digital services; platform liabilities clarified
- Armenia Introducing VAT Obligations for Non-Resident Digital Service Providers
- VAT system now fully automated
- NBR launches real-time A-Challan system
- Danish Foods sued for ‘evading’ VAT of Tk 3.46 crore
- Fiji Revenue and Customs Service invites submissions on draft VAT Bill
- FRCS invites submissions on draft VAT Bill
- Representation on increase in GST on textile & footwear
- Auto-rickshaw services provided through e-commerce platforms to attract 5% GST
- GST evaders of Prayagraj zone under scanner of tax department
- Passenger Transport Services under GST
- ITC not allowed to be claimed if Concessional Rate of 5% GST is opted
- GSTN enhances version of GSTR-1/IFF on GST Portal: Know the Updated Functionality, their benefits
- Fast food chain Subway drags taxman to court over GST on intellectual property rights
- Taking credit and then reversing the same entry is as good as not taking the credit at all
- Bring in three-rate GST structure, says study by Finance Ministry-backed think-tank
- 62-year-old held for pretending to be sales tax officer, extorting money
- Nimbooz classified under Category of Fruit Juice based Drinks and not Lemonade, No GST payable: CESTAT
- Punjab & Haryana HC directs GST Dept. to grant appropriate time to Subway before forcing it to pay differential GST on IPR
- Producers’ association writes to Sitharaman to abolish GST on film industry
- GoM to meet on Nov 27 to finalise report on GST rate rationalisation
- Service tax not leviable on commercial coaching or training services
- Effects of GST returns and portal; incentives for automobile production
- India could levy GST on cryptocurrency exchanges
- Liquor to get cheaper in Maharashtra as Uddhav govt slashes VAT
- Fitment committee proposes raising GST slab of 5% to 7% and 18% to 20%
- How GST authorities are using data analytics and technology for investigations
- A2ZTaxCorp’s Weekly GST Communique dated November 22, 2021
- Security Service Provider liable to pay GST on entire consideration charged including EPF and ESI amount: AAR
- Industry divided over 12% uniform GST rate on apparel and footwear
- VAT on digital transactions
- BIR exempts more COVID-19 supplies from VAT
- VAT exemption now covers imported fruits, vegetables
- Thailand Tax Agency Issues Guidance on Sales Tax Deduction for Bad Debts
- Thailand to raise VAT rate to 10% Sept 2023
EUROPE
- Environmental Taxes – A brief overview of the incoming developments
- Roadmap “Electronic trade in the Eurasian Economic Union (EAEU)”
- Flashback on ECJ Cases – C-103/09 (Weald Leasing) – Contractual conditions constituting abuse must be redefined
- Flashback on ECJ VAT Cases – C-412/03 (Hotel Scandic Gåsabäck) – Provision of meals in company canteen at a lower price than cost
- Flashback on ECJ Cases – C-285/10 (Campsa Estaciones de Servicio) – Extension of withdrawal rules to transactions between related parties at prices…
- ECJ C-620/21 Momtrade Ruse vs BG (Questions): VAT exemption for social services to natural persons in other member states?
- ECJ VAT C-519/21 (DGRFP Cluj) – Questions – Cooperation agreement, VAT arrears, right to deduct
- Flashback on ECJ Cases – C-572/11 (Menidzherski biznes reshenia) – No VAT deduction if transaction did not take place
- Flashback on ECJ Cases – C-153/11 (Klub) – VAT Deduction even if capital good is not immediately used for business purposes
- ECJ C-334/20 (Amper Metal Kft.) – Judgment – Excessive advertising costs allow for Input VAT deduction
- Roadtrip through ECJ Cases – Focus on ”Right to deduct VAT on good and services supplied” (Art. 168(a))
- Three new ECJ VAT cases before the European Court of Justice
- Agenda of the ECJ VAT cases – ECJ already in X-Mas modus? 1 judgments in December 2021
- Changes to Intrastat Reporting Obligations per Jan 1, 2022
- Arm’s Length Principle and Taxable Amount in the VAT Directive
- EU – The VAT Commission discussed the OSS regime for VAT groups
- VAT Cross Border Rulings (CBR)
- The responsibility of digital platforms in the collection of VAT from July 1, 2021
- AmCham EU – Position paper – Technology and software transfers in the context of export controls
- Breakthrough on EU reduced VAT rate freedoms for 2022?
- VAT Expert Group meeting on Nov 29, 2021: Agenda + Report subgroup on platform economy
- 119th VAT Committee meeting on Nov 22, 2021: Agenda & Documents
- Analysis: The Import One Stop Shop (IOSS) Four Months On
- VAT on digital services
- Belarus President Signs Decree Providing VAT Incentives for Electric Vehicles
- Fiscal reps can reduce the amount of their bank guarantee
- Abolition of VAT certificate 6% from 01.01.2022
- B2G Electronic Invoice Will Be Mandatory in Wallonia
- VAT exemptions for logistics services and (sea)port activities: watch out for the VAT officer!
- Circular 2021/C/101 on the VAT exemption for transport services directly related to an export of goods – postponed till April 1, 2022
- Belgium B2B e-invoicing Ministry of Finance update
- Extension non-application of administrative fines for DAC6 submissions until 31 January 2022
- Reduced VAT rates on electricity supply for households from November 2022
- EU greenlights VAT cuts on electricity bills
- Czech Republic DST Bill Withdrawn from Parliament
- Supply of respirators will continue to be exempt from VAT until the end of the year
- Waiver of VAT on the supply of electricity and gas from 1 November to 31 December 2021
- France Standard Audit File for Tax (SAF-T)
- Penalties for sale without invoice – Consequences in terms of a reliable audit trail
- France splits DEB submission into Intrastat and ESL Jan 2022
- Preparation for the implementation of the e-invoicing reform in France
- Management of VAT numbers: an under-exploited tax data
- France plans to introduce the concept of a VAT Group from 1 January 2023
- Germany intends to introduce a countrywide CTC model
- Governmental agreement: Introduction of electronic reporting system and support for the definitive VAT regime
- Coalition agreement: Not too bad – from a VAT perspective – modernise VAT (e-invoicing, reverse charge and import VAT)
- Update on the VAT treatment of recharging electric vehicles
- Germany e-invoicing as soon as possible – new government
- VAT declaration (Germany) in Microsoft Dynamics
- How non-resident landlords in Germany can prepare for VAT rule changes
- Reduced VAT rates on products and services are extended until June 2022 (AADE Circular)
- Electronic Tax Reporting Revolution in Greece: MyData (my Digital Accounting and Tax Application) Electronic Books
- Parliament to reduce VAT rates on Specific Food Products effective 1 January 2022
- Hungary SAF-T proposal
- Postponement of e-VAT system
- Budget 2022: Cancellation fees including forfeited deposits would be vatable, …
- Taoiseach dismisses proposal to waive VAT on energy bills
- Not possible to clip VAT on fuel due to EU rules, says Taoiseach
- VAT treatment of post-Brexit transactions between an Italian branch and a parent company belonging to a UK VAT Group
- Developments in Italia – Cosa succede in Italia?
- New rules for e-invoicing, effective Jan. 1, 2022
- Vof is retroactively part of the VAT fiscal unity
- Partnership is retroactively part of the VAT group
- Imprisonment and fine for deliberately making incorrect sales tax returns several times
- VAT due on subscriptions with separate bundles for telephony, SMS and mobile internet (data bundle)
- No VAT exemption for mouth masks
- Change regarding the online portal of the DTA as from 1 January 2022 for resident entities
- Telecom provider also owes VAT on data bundle subscription fees
- Court puts an end to VAT exemption alternative therapist
- No offense fine for additional VAT assessment after supplementation
- Extra reward in the event of a profit from the procedure is also part of VAT reimbursement
- No low VAT rate for a four-day photo festival
- Mandatory installation of solar panels does not lead to deduction of input tax on the construction of a home
- VAT due on result-related compensation for legal advice victims of share lease
- Municipality has supplied built-up land, no abuse of right
- Homeopath registered with NOAG not exempt from VAT after all
- Pre-tax construction home not deductible for non-integrated solar panels
- No reduced rate of turnover tax for arcade
- eVAT returns as of Jan 1, 2022
- Norway Requires a New Electronic Tax Reporting
- New VAT Return in Norway 2022 (Microsoft Dynamics forum)
- Digital VAT return to be introduced in Norway in 2022
- Deduction for input VAT on transaction costs when purchasing shares
- Poland VAT cut for domestic electricity and gas; excise duties reduction
- Lowering of the limit for B2B cash transactions to PLN 8000
- Agreements with universities – graduates exempt from the part of the tax advisor exam
- Lower VAT on gas and electricity and fuel taxes to fight inflation
- Poland to Cut VAT on Power, Gas to Help Curb CPI: Wyborcza
- Extending the application of the bad debt relief under SLIM VAT 2
- Lack of document IE-599 and possibility to apply 0% VAT rate in the export of goods
- VAT Split Payment – 20 things that you have to know
- Invoices in PDF format accepted as electronic invoices until 30 June 2022
- 2022 VAT filing and payment deadlines extensions as part of the COVID-19 measures
- Key VAT takeaways for non-resident registers
- SAF-T implementation will be mandatory for taxpayers per Jan 1, 2022 – 3 months grace period
- VAT reimbursements will be made on a general principle without prior tax audit
- Zero-rating of work related to aircraft repair
- VAT treatment of compensation for discounts provided to end consumers
- Russia Reduces VAT Rate on Sale of Freshwater Trout
- Draft communiqué regarding e-invoicing, online advertising, etc
- VAT exemption for social content production and software development for mobile devices
- Turkey publishes draft Communiqué regarding electronic documents
- Turkey announces Joint Statement with the United States on Unilateral Measures Compromise – Digital Services Tax
- United States and Turkey announce digital services tax agreement
- For non-residents-providers of E-services – a new procedure for VAT taxation: what information will they be required to provide?
- Tax authorities continue to fight VAT schemes
- COVID-19: operations on import of equipment for the production of vaccines are exempt from VAT
- Ukraine VAT digital services from foreign providers – January 2022
- HMRC Guidance: Work out which packaging is subject to Plastic Packaging Tax
- HMRC Guidance: CDS UK Trade Tariff Volume 3: Import Declaration Completion Guide
- HMRC Guidance: Agent Update: issue 90
- Conservatory roof boards still not insulation for VAT
- How to inform HMRC about changes to IOSS status
- Getting Ready for the U.K.’s New Plastic Tax
- VAT row ‘bad news’ for DRS roll-out says Food and Drink Federation
- Is The VAT Flat Rate Scheme Right For Your Business?
- Storage sounds simple – but VAT rules are complex
- HMRC Guidance: Tell HMRC about changes to your VAT IOSS registration in the EU
- HMRC Collection: Customs, VAT and Excise UK transition legislation from 1 January 2021 (Updated)
- HMRC Guidance: VAT on goods exported from the UK (VAT Notice 703)
- VAT ruling delivers £80m payout for Rank Group
MIDDLE EAST
- 122,842 cases of VAT violations recorded
- Bahrain VAT rate change: Potential transitional considerations
- Bahrain VAT rate increase: Issues to consider
- 30, the deadline for filing October monthly VAT returns
- Saudi Arabia aims to provide a structured approach in line with e-Invoice arrangements announced by GAZT
- Your Questions Answered: Saudi Arabia E-Invoicing Mandate
- SNI webinar: Get a head start on KSA’s e-Invoicing Mandate – Slide deck and recorded version
- Saudi Arabia Announces Fines for Failing to Meet E-Invoicing Obligations
- ZATCA announces penalties for E-Invoicing (FATOORA) violations
- UAE e-invoice plans 2022
- e-Invoicing and VAT return in the United Arab Emirates (UAE)
- UAE Compliance Requirements
