E = MC2
We all know or have seen this formula before. It’s the formula describing Albert Einstein’s famous theory of special relativity. The theory is about the relationship between energy and mass, and it’s known as one of the most difficult things to comprehend and understand. At least, I don’t understand it. But then, I’m not a physicist, but merely a simple VAT person.
Therefore, I’m really impressed by a YouTube video I came across, made by a young student from the Philippines, Hillary. She explained Einstein’s theory wonderfully well.
The video can be seen HERE
What Hillary does, is following one of Einstein’s own quotes: “if you can’t explain it simply, you don’t understand it well enough”. And that’s a quote we can all relate to in our VAT world.
It can sometimes be hard to understand VAT. A new situation, new rules, or the same rules, but interpreted by someone else. It always helps to go back to the basics. Step away from the question at hand, and look at it from a distance. Sometimes that can help identifying the key elements and give (new) insights on how to approach or deal with the problem.
Unfortunately, that’s not always possible in a business. As a VAT person, you are asked to deal with a specific situation or question, and preferably give a straight answer on the spot. Perhaps it’s good to know that you can always rely on us, your always up-to-date website with all VAT information from around the world.
Oh, and perhaps nice to know: Hillary won USD 400.000 in scholarships by making the video. So if you ever get tired from VAT (which we cannot imagine), you can always start or make a blog on VAT. Because that’s for many people as difficult to understand as E=MC2…
If you have any comments, questions 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.
See you next week!
WORLD
- Incoterms – What you need to know
- January 2022: E-Invoicing & VAT compliance updates
- The Year Ahead in Global Indirect Tax
- Trends 13th Edition 2022
- What are the major impacts of VAT
- Job opportunities in Belgium, Canada, Denmark, Ireland and United Kingdom
- Job opportunities in Belgium, Germany, the Netherlands and Romania
- Job opportunities in Belgium, Germany, the Netherlands and United Kingdom
- Job opportunities in Belgium, Poland, Sweden and United Kingdom
- Job opportunities in Belgium, Romania & USA/Canada
WEBINARS / EVENTS
- SNI Webinar – Poland is ready to embrace a structured e-Invoicing mandate in 2022 (Jan 26)
- Sovos webinar – Trends: Using VAT digitization to your advantage (Feb 1)
- Vertex Webinar: Turning Data into Insight: Elevating the Tax Department to Drive Business Growth in 2022 (Jan 31)
- Webinar SNI: How will Norway’s new VAT Reporting rules come into practice? (Jan 20)
AFRICA
- 2022 Finance Law: VAT paid on behalf of foreign suppliers will not be deductible when the related services have not been subject to income tax
- Democratic Republic of the Congo Implementing Mandatory Electronic Filing
AMERICAS
- California: Upcoming public hearing will address proposed changes to marketplace sales regulation and audit manual changes on statistical sampling
- Colorado Legislator Proposes Extension of Sales Tax Sourcing Exception for Small Businesses
- Consumer’s Use Tax vs. Seller’s Use Tax: Nearly Every Business Owes Use Tax
- February 2022 sales tax due dates
- Illinois: Department of Revenue addresses taxation of service provider’s software as a service (SaaS) and cloud-based remote work tools
- Louisiana Issues Draft Regulations Proposing Voluntary Disclosure of Unpaid Sales Tax Liabilities Through the MTC
- Nevada Tax Commission Issues Draft Regulation Clarifying Online Sales Tax Collection Requirements
- Nevada: Draft Proposed Rule Reflects Remote Seller and Marketplace Facilitator Nexus Standards
- New Mexico: Determining gross receipts tax (GRT) location code and rate for professional services
- New York: Marketer’s subscriptions and information reports for distributors deemed not taxable
- Service Providers: Are you Making This Big Sales Tax Mistake?
- Tennessee Sales Tax Refunds Available for Storm Victims
- Tennessee: Department of Revenue explains procedures under recently repealed drop shipment rule for suppliers
- What Are Your Responsibilities For A Tennessee Sales Tax Return?
- Why Sales Tax Rates Might Start Decreasing Across the US
ASIA-PACIFIC
- Tax Ministry Expands Scope of Cash Registers, VAT Refunds
- Tax reforms to the VAT system effective from January 1, 2022
- Basic Food Products exempt from VAT in 2022/23
- Cambodia VAT on foreign goods & digital services 2022
- Delayed implementation of VAT on e-commerce transactions; VAT state-charge for “basic daily food”
- E-Commerce VAT Registration/Reverse Charge Implementation Date Extended
- 5% GST on Marine Engines and Spare Parts: AAR
- A list of GSTINs generating IRN (Invoice Reference Number) has been issued by National Informatics Centre
- A2ZTaxCorp’s Weekly GST Communique dated January 17, 2022
- Allocation of salary of head office employees to its branches liable for GST, says Maharashtra AAAR
- Assessee not liable to reverse CENVAT credit on amount written off as bad debts
- E-invoicing and SEZ
- GST Unique Identification Number (UIN) – Facts You Should Know
- GST Updates – Jan 17, 2022
- GST Updates – Jan 18, 2022
- GST Updates – Jan 19, 2022
- GST Updates – Jan 20, 2022
- GST Updates – Jan 21, 2022
- GST Updates – Jan 22, 2022
- Salary cost to be included in valuation for cross charge for supply of services between head office and branch office or vice versa
- Supply of service sub-contracted by recipient company cannot be considered as ‘intermediary’
- Telcos seek refund of Rs 35,000 crore input tax credit, GST waiver on licence fee, SUC
- Extension of the property fiscal incentive or the government-borne value added tax (PPN DTP) until June 2022
- Government simplifies the regulations on goods prohibited for export and import
- Indonesia to introduce new tax breaks on property, car sales
- A step towards the mandatory electronic invoice
- Philippines joins the ATA Carnetsystem
- Seniors exempted from paying VAT on utility bills
- National Assembly Approves VAT Rate Reduction as Part of Relief Package to Support Growth and Recovery from COVID-19
- Recent corporate income tax and VAT guidance
EUROPE
- Agenda of the ECJ VAT cases – 4 cases announced till February 10, 2022, 1 decisions, 3 AG Opinions
- ECJ C-90/20 (Apcoa Parking) – Judgment – VAT due on controlling fees for violation of private parking regulations are subject to VAT
- Comments on ECJ Case C-156/20 (Zipvit Ltd.): No refund for transactions assumed to be exempt
- ECJ C-42/22 Global, Companhia de Seguros vs PT (Questions)
- ECJ C-713/21 (Finanzamt X) – Question – Composite supply by owner of a competition horse training stable?
- ECJ on the need to have a Credit Note in case a supplier grants a rebate to its customer
- Flashback on ECJ Cases – C-400/15 (Landkreis Potsdam-Mittelmark) – No right to deduct VAT when on goods or services used for non-economic purposes…
- Flashback on ECJ Cases – C-643/11 (LVK) – VAT is due whether or not a taxable transaction has actually been performed
- Roadtrip through ECJ Cases – Focus on “Liability to pay VAT – VAT shall be payable by any person who enters the VAT on an invoice” (Art. 203)
- Commission Implementing Decision – An EU Green VAT to stimulate sustainable and eco-friendly products and services
- Council Implementing Decision: Extension VAT exemption for small businesses whose annual turnover is no higher than EUR 25,000
- Determining the Buyer’s VAT Status in EU E-Commerce Transactions
- EU Tax Alert Highlights 2021
- EU VAT Cuts Prompted by Energy Price Hikes Seen as Ineffective
- European Commission Extends Waiver of Customs Duties and VAT on the Import of Medical Equipment until June 2022
- European Commission launched public consultation on ”VAT in the digital age”
- European Parliament report: what is the missing part to reduce the EU VAT gap?
- Proposal Council Implementing Regulation – update of the VAT and/or excise duty exemption certificate
- Rita De La Feria on the Evolving VAT Concept of Fixed Establishment
- Stop blaming, the EU VAT Directive allows for 100 options
- Tax authorities have no influence on the functioning of the European system VIES
- The VAT Treatment of Online Events in the EU
- VAT and online events: Light at the end of the tunnel?
- VAT in the Digital Age reforms public consultation launched
- What is happening in the EU on VAT?
- Postponement of electronic invoicing for certain category of taxpayers
- VAT reduced rate for sale of agricultural inputs (10%) instead of the VAT exemption
- Belgian Tax authorities publish FAQs on reporting obligations for digital platform operators
- Does the legal validity of an invoice have an impact on the right to deduct VAT?
- Walloon government has announced that B2G invoices issued in PDF format or paper invoices will no longer be accepted
- External specifications for B2B E-invoicing in France
- Foreign head offices providing services to French branches subject to VAT
- Introduction Of A Transitional Period For The Reverse Charge Of VAT On Imports
- Management and collection of import VAT has been transferred to the Direction générale des Finances publiques
- Transition period on new import reverse charge in France
- VAT recovery on petrol and diesel on equal footing in France
- VAT Treatment of Operations between Head Office and Branches in France
- E-Invoicing: Which European accounting system could serve as a model?
- German city Tübingen has implemented Packaging Tax as of 1 January 2022
- Lump sums for material withdrawals (own consumption) 2022; Temporary application of the reduced VAT rate for restaurant and catering services
- VAT liability of slot machine sales is doubtful
- VAT treatment of transactions on weight accounts
- Has the time come for Greece to have again the best VAT Deferment System in Europe?
- myData platform to allow automatic VAT repayments
- New guidelines on the definition of “exporter”
- 2022 Budget Law – New provisions in the VAT, excise and consumption tax field
- Clarification 35/2022: VAT rate for boxes containing ingredients for the preparation of meals – art. 16 DPR n. 633 of 1972
- E-archiving manual: new requirement as of 1° January 2022
- Fiscalization in Italy
- Flat-rate scheme: treatment of non-deductible VAT for tax relief purposes
- Italian Tax Authorities provide clarifications on VAT treatment of derivatives
- Italy Approves Annual VAT Return 2022
- Italy cuts domestic gas to 5% for start of 2022
- OSS & IOSS: Answers to the most frequently asked questions
- Ruling 701/2021 on VAT Treatment of Publishing Fees
- Ruling 757/2021: Effective date inclusion of newly established companies in the VAT Group
- Ruling 762/2021: Clarification on the procedure to correct invoices
- Ruling 859/2021: Correct determination of VAT advance payment within the scope of the VAT group
- SDI Italy: All about the 2022 cross-border e-invoicing mandate
- Standard VAT rate for in vitro diagnostic tests for narcotic drugs and psychotropic substances, and not aimed at combating Covid-19
- Supply of kits for the preparation of meals: which VAT rate applies
- Tax Authorities Clarify VAT Exemption of Library Services
- Tax Authorities Confirm Application of Reverse Charge Mechanism to Supplies of Game Consoles, Tablet PCs and Laptops
- The scope of VAT exemption for the international transport of goods has been restricted
- Transfer Pricing Adjustments and Their Impact on VAT and DAC6
- European Council: Latvia May Continue Applying Reverse Charge Mechanism to Timber Supplies
- Latvia’s governing coalition parties discuss cutting VAT on energy from 21% to 5% to stem rising energy costs
- COVID-19 Pandemic: Moldova Further Extends Application of Reduced VAT Rate for Hotel and Restaurant Services
- Moldova Further Extends 6% Reduced VAT Rate for Accommodation and Restaurant Services
- Moldova VAT on digital services (already per 1 April 2020)
- Clarification on switching new portal ”Mijn Belastingdienst Zakelijk” and ”eHerkenning” for VAT returns
- COVID-19 Pandemic: Netherlands Applies Temporarily Reduced 9% VAT Rate to Online Sport Services Provided by Sport Schools
- Investigation into VAT fraud
- No doubt about performance when agreement is clear
- Platform VAT due in the period of service provision
- Rabobank: separate zero VAT rate for fruit and vegetables has many issues
- Rental of apartment and associated parking space is one exempt service
- Renting an apartment and parking space in the same complex to the same tenant is one economic transaction
- Tax authorities appoint points for attention for VAT return 4th quarter 2021
- Update on mandatory new portal for VAT related matters and eRecognition
- VAT Deduction Exclusion Decree adjustment and VAT adjustment for the private use of company cars 2021
- It was supposed to be easier, there are a lot of problems. The e-Invoice system is full of errors
- Ministry of Finance has launched an application for storing receipts and submitting reports
- Poland Provides Further VAT Reduction as Part of “Anti-Inflation Shield 2.0”
- Temporary VAT reduction from February 1
- The road to e-Invoices – Episode 1: Getting to know key legal regulations and the XSD scheme
- Trends in inspections and proceedings for 2022 – Area’s for VAT inspection
- VAT obligation for permanent legal services after issuing an invoice
- Contribution on single-use plastic packaging
- Portugal Makes it Mandatory to Declare the SAF-T Accounting File
- Portugal makes the declaration of the SAF-T accounting file mandatory
- Government’s priority is to reduce the VAT fiscal deficit and to reduce tax evasion
- High-risk products are defined as part of the new e-invoicing framework in Romania
- EU E-Commerce Directives implemented in national law
- Introduction of reverse charge on supplies made by non-established companies starting January 2022
- Paper invoices only to be delivered to consumers upon request
- Slovenia Removes VAT Registration for Non-Residents Only Making Supplies Subject to Reverse Charge
- VAT fully deductible on emission free cars up to a value of 80K
- Export for multi-stage sales with only one transport of the product out of the EU
- Legal case: an interbank fee for card payments has been considered to constitute turnover
- How to Electronically Invoice in Turkey
- Turkey Increases Upper and Lower Limits for VAT Exemption Application under Framework Agreement to Pre-Accession Assistance with European Union
- Is there a limit to the number of rows in the VAT payer’s table?
- Taxation of e-services provided by non-residents in Ukraine
- Ukraine Amends VAT Registration Regulations for Non-Resident Suppliers of Electronic Services
- VAT supply operations to a resident / non-resident for staff services: what about VAT
- What is the VAT tax base for tobacco imports?
- Brooks: moving back to the UK post-Brexit – FTT
- Cantina Levorato: delay between making and notifying assessments – FTT
- Caravan dealers & caravan/lodge park owners – could you be due a VAT windfall?
- Court ruling adds to doubts about HMRC’s VAT policy on early termination fees
- Deferral of new VAT penalty and interest rules to 2023
- Future of VAT in the UK survey
- HMRC Collection: Plastic Packaging Tax
- HMRC Guidance: Exports, sending goods abroad and charging VAT
- HMRC Guidance: Movements to temporary storage facilities
- HMRC Statutory guidance: Notices made under the Taxation (Cross-border Trade) Act 2018
- Implementation of the new VAT penalty regime postponed until January 2023 – what does it mean for your business?
- Is your room rental subject to VAT?
- Legal victory for Errol Willy Salon over HMRC additional VAT charge for spare room rentals
- Minutes of the 117th Joint VAT Consultative Committee (JVCC) meeting held on 27 September 2021
- Necessary activities due to the new UK plastic packaging tax starting in April 2022
- Open/Technical consultation: Uncertain Tax Treatment guidance
- Reflections on the first year of ‘Future of VAT in the UK’
- Sequential invoice numbering for tax invoices
- UK goods import Brexit checklist since Jan 2022
- Update on Application of UK Customs Controls from 1 January 2022
- What is the information to be mentioned on an invoice in the UK?
MIDDLE EAST
- GCC Indirect Tax Digest – 20 January 2022
- Publication: GCC Tax Round-Up 2021
- What are the major impacts of VAT?
- Instalments and waivers possible as from 1 March 2022 for UAE tax penalties
- Trading and commodities in the United Arab Emirates
- Authorities issued ”Get to know your tax obligations”
- Grace period extended till 31 Dec 2022 for Amnesty scheme
- Guide to VAT Refund for UAE Nationals Building New Residences
- UAE Issues Rules on Instalment and Waiver of Administrative Penalties
- UAE’s VAT revenues reach $26bn since implementation
- Update on New Cabinet decision No 105 of 2021 (Penalty waiver and Penalty instalments)
