VAT is the best tax there is for governments. It’s easy for them to collect, as they hardly have to do anything: companies are collecting the tax for them. And it’s easy to impose, because 1 or 2 percent extra is not a lot, and acceptable for consumers.
OK, that last part is not always true, and especially nowadays, people will complain and even protest if a VAT rate is increased. Still, governments like the idea of increasing their income by making taxes ‘VATier’.
‘VATier’ isn’t an existing word. You have to be careful by making up such words. Of course what I mean is that there’s a global trend of making taxes more like a VAT, an indirect tax. That trend is not new, it’s going on for some decades already.
But back to making up words: that’s how the dinosaurs got extinguished. As the following joke confirms:
“3 dinosaurs walk up to a shiny lamp. One of them rubs it, and a mystical blue genie flies out of it! "Hello! I am genie! Since there are 3 of you, you each get 1 wish! "I wish for a large piece of meat!" The first dinosaur said. And so a large slab of meat materialized before his eyes and plopped down in front of him! "I wish for a meat shower!" The second dinosaur said. And so the genie made all different sorts of meats from different animals rain from a small cloud above the dinosaur's head. Not wanting to be outdone by his friends the third dinosaur quickly tries to think of something better. "I wish for a meatier shower!"
And that was the end of it.
But not the end of VAT. We will not be getting rid of that for a very long time! And you can read all about it on our website.
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.
WORLD
- Job opportunities in Belgium, Brazil, Netherlands, Sweden and United Kingdom
- Job opportunities in Belgium, Spain and United Kingdom
- Job opportunities in Czech Republic, Netherlands, United Kingdom and United States
- Job opportunities in Belgium, Netherlands, Singapore and United Kingdom
- How many countries have VAT or GST? 172
- International Tax Competitiveness Index 2021
- How to help cross-border businesses navigate tax challenges
- Voluntary disclosures – a valuable tool for dealing with value-added tax (VAT) errors
- Worldwide developments E-Invoicing, Real Time Reporting, SAF-T (July 1 – August 19, 2022)
- Global VAT rate changes/news (July 19 – Aug 18, 2022)
- VAT Talks – Marloes Lammers & Vanessa Huygen van Dyck-Jagersma
- Real Time 101 – The Basics
- Global Indirect Tax Updates on E-Commerce/Digital Services Tax (July 1-Aug 16, 2022)
- ICC Incoterms – Flowcharts & others
WEBINARS / EVENTS
- IVA 2022 Autumn Conference on 20 and 21 October 2022 in Barcelona, Spain
- Vertex webinar – Invoice IQ Webcast Experience Vertex Invoice IQ – Overview and Live Demonstration (August 24)
- Sovos webinar – VAT Snapshot: The latest updates to Continuous Transaction Controls (August 18, 2022)
- Webinar Pagero: How to Prepare for e-Invoicing Mandate in Saudi Arabia (Sept 20, 2022)
EUROPE
- The Ultimate Guide to EU VAT for Digital Taxes
- VAT cuts on energy & food as inflation hits record 8.9% in July 2022
- Flashback on ECJ cases C-212/01 (Unterpertinger) – No exemption for Expert medical report
- Flashback on ECJ cases C-287/00 (Commission v Germany) – Research activities carried out for consideration by higher education are taxable transactions
- Flashback on ECJ cases C-305/01 (MKG-Kraftfahrzeuge-Factoring) – Factoring qualifies as a service subject to VAT
- Flashback on ECJ Cases – C-102/08 (SALIX Grundstücks-Vermietungsgesellschaft) – Taxable person if…
- Flashback on ECJ Cases – C-377/11 (International Bingo Technology) – The amount that a bingo…
- Flashback on ECJ Cases – C-540/09 (Skandinaviska Enskilda Banken) – VAT exemption also applies to services provided by a credit institution in the form of…
- Flashback on ECJ cases C-223/03 (University of Huddersfield) – Taxable transactions even if carried out for the sole purpose of obtaining a tax advantage,…
- Comments on ECJ C-596/20: Place of supply of services and abuse of rights
- European VAT Refund Guide 2022
- Brazilian tax authority may use information from transfer pricing study in customs valuations
- EU – Future amendments to the Special Scheme for Small Enterprises
- Article: The Tax Strategy Group – Carbon Border Adjustment Mechanism (CBAM)
- Optimizing Your VAT When Selling B2B in the EU
- VAT in the New Reality (Digital Assets, Digital Communities, Virtual Events, Marketplaces, …)
- E-commerce – Cross-border payments under the scrutiny of tax authorities from 2024
- Optimizing Your VAT When Selling B2B in the EU
- VAT in the Digital Age: Mandatory E-invoicing in the EU
- Bulk VIES VAT number checker
- Status on the DAC7 implementation per Jan 1, 2023 in the EU Member States
- European Commission published its final report on “VAT in the Digital Age” – what kind of reforms can we expect?
- Reports issued by the EU VAT Reform
- Council Implementing Decisions allowing Member States to implement…
- EU to end duty benefits for 1,800 goods under Generalised Tariff Preference Scheme
- VAT treatment of charging stations for electric vehicles: installation and charging of the vehicles
- VAT rate painting works
- The impact of the new six- and ten-year tax and investigation periods
- Providing furnished accommodation: additional conditions to determine the VAT regime
- Cyprus Financed Minister warns opposition on VAT: don’t make comparisons with Germany
- Petrides warns opposition on VAT: don’t make comparisons with Germany
- Cyprus: Government announces VAT Exemption on petroleum goods and fuel costs until the end of 2022
- Czech VAT Guide
- 5 Major VAT Developments in Czech Republic
- DAC 7: Implications of new obligations for digital platform operators
- Press Release: Generalization of electronic invoicing: new milestones achieved
- France VAT B2B e-invoicing and B2C e-reporting July 2024 – v2.1 update
- What is the method for sending Invoices under the e-Invoicing mandate in France?
- Germany lowers VAT on gas to relieve consumers
- Germany slashes VAT on gas to 7% following EU block
- Place of supply for boat excursions on the river Moselle
- Germany seeks EU Commission approval to cut VAT on Gas Levy
- Germany awaiting response from Brussels on VAT exemption for gas levy
- German finance minister writes to Brussels over VAT exemption for gas levy
- Carousel fraud
- Foreign natural person can open a VAT number in Italy
- Court of Cassation: no exemption if the nature of services is “purely cosmetic”
- Italy extends again gas VAT cut to 5% until 31 December 2022
- Lithuania to Amend VAT Registration Anti-Abuse Rule for Related Entities
- Anti-avoidance provisions in new bill which amends VAT registration requirements for…
- Draft legislation on the VAT registration threshold
- Inspector refuses to deduct unnecessary costs and costs to improve own home
- Do not pay VAT on the purchase of a business car in another EU Member State
- Limited input tax deduction due to failure to provide proof
- VAT refund requests of €63,000 are overdue
- Knowledge group views no personal policy views for internal deliberation
- Cleaning company deliberately evaded sales tax by including invoices for services not performed and private expenses in administration and declarations
- VAT refund requests of €63,000 are overdue
- Magic truffles no food no reduced VAT rate
- 50% penalty fines for ‘shoddy’ cleaning company
- Norway: VAT rates for charitable and benevolent organisations
- Tax Agency publishes guidance clarifying VAT compensation for swimming facilities
- Investments in photovoltaic panels, i.e. when is the commune obliged to comply with excise duties?
- Summary of recent indirect tax developments (SLIM3, DAC7, Meaning of “first occupation”)
- Amendment to the Tax Code – securing the liabilities of the VAT group
- Advance VAT invoices will sometimes be unnecessary
- The right to deduct input tax based on a duplicate invoice
- Government amends Reduced VAT Rate on Certain Goods effective July 16
- SLIM VAT 3 – another simplification package for VAT taxpayers?
- Poland increases penalty for late VAT payments and incorrect returns
- Poland: Government amends reduced VAT Rate on certain goods effective July 16, 2022
- Government amends Reduced VAT Rate on Certain Goods effective July 16
- Anti-carousel rules work well
- VAT groups will be a facilitation for enterprises
- Poland Consulting Further on SLIM VAT 3 Package
- Clarifications and further details on the contribution on single-use packaging made of plastic or multi-material with plastic
- Tax reforms in Portugal starting January 1st, 2023
- Adding ATCUD code to fiscal document mandatory from 2023
- The postponement of the SAF-T accounting document in Portugal
- VAT Reverse Charge mechanism extended until December 31, 2026
- Romania Extends SAF-T Filing Grace Period
- RO e-Transport penalties postponed
- 1st round of Romanian Standard Audit File for Tax returns delayed to January 2023
- Declarative VAT refund procedure: when is a bank guarantee required?
- VAT exemption for semi-finished culinary products?
- Declarative VAT refund procedure: in which cases a bank guarantee is not required
- Federal Tax Service explains changes for calculating and paying VAT for electronic services by foreign organizations
- VAT-free limit on advertising expenses will be increased
- Russia Limits VAT Obligations of Non-Resident Electronic Service Providers
- Ukraine Supreme Court Holds Documentation Not Made Available During a Tax Audit is Not Admissible in Court
- Ukraine to resume excise tax on fuel to replenish budget during war
- Warranty replacement of goods previously imported into the customs territory: what about VAT?
- When is the zero VAT rate applied to the supply of goods for the Armed Forces?
- Risk criteria for VAT payers may be updated soon
- Scotland’s single-use plastics ban: fully effective from 12 August 2022
- Transition to Customs Declaration Service (CDS) will affect all importers from October 1, 2022
- HMRC Guidance: Making a simplified frontier declaration
- HMRC Guidance: Amend or cancel simplified import declarations
- HMRC late payment interest rates revised after Bank of England increases base rate
- FTT Spectrum Community Health CIC – Taxpayer argues it makes separate zero rated and reduced rate supplies and should be VAT registered
- FTT Silverdoor Ltd – Disclosed agent for accommodation providers – 2.95% fee charged for…
- HMRC Form: Revoke an option to tax for VAT purposes within the first 6 months
- Business or non-business? The Towards Zero Foundation case
- Changes to UK customs declarations – CDS is nearly here
- New VAT Registration Service – further feedback from HMRC 12 August 2022
- Customs Declaration Service: deadline approaching
- LSAM: credit notes in insolvency – FTT
- Spectrum: outsourcing primary healthcare in prisons – FTT
- Guidance UK Domestic Advisory Group membership and Civil Society Forum participation under the UK-EU Trade and Cooperation Agreement: expressions of interest
- UTT Chelmsford City Council: sports and leisure facilities
- UK implements new Customs Declaration Service for imports as of 1 October 2022
- New Online VAT Registration Service
- What is and is not a “business” for VAT purposes?
AFRICA
- Guidance on transitional rules for reduction in VAT rate issued
- Botswana Guidance on Temporary VAT Rate Reduction
- Guidance note on the VAT transitional rules (rate change)
- New law provides 65% waiver of additional taxes and late payment delay fines
- Suez Customs collects over $182mln taxes, customs in July
- Mozambique to cut VAT to 17%
- Mozambique Extends VAT Regularization Regime to Additional Companies in the Mining and Oil and Gas Sectors
- MOF announces excise duty tax in telecom sector
- Low tax compliance: Trust deficit between government, citizens responsible – CITN
- Finance Minister insists on 5% Telecom Tax
- VAT Regulations on Domestic VAT Reverse Charge Treatment for Valuable Metals
- Delayed decisions on custom duties cost South Africa $76mln
- Guide about Foreign Suppliers of Electronic Services, has been revised to include a process for cancellation of VAT registration
- VAT implementation delayed till Jan 1, 2024, Turnover tax will increase by 1/1.5% on Jan 1, 2023
- Aruba delays 12.5% VAT implementation until 2024
- VAT on supply of electricity will be reduced from 17.5% to 7.5% on the first 250-kilowatt hours used by households
- Barbados VAT Act
- Consumers To Pay Less For Gasoline And Diesel as of Aug 19, 2022, also due to VAT cap
- Corporate Service Tax – Intro & Act
- The ‘sugar tax’ in Bermuda: a mixed methods study of general population and key stakeholder perceptions
- GST in Canada: How it works for online businesses
- Canada’s Department of Finance releases draft legislation for remaining 2022 budget measures
- Potential implications of formal noncompliance regarding issuance of credit notes
- Salvadoran Minister of Finance submitted a bill to Congress to establish a tax amnesty program
- General Consumption Tax Act
- Guide: Reduction in Standard GCT Rate – Issues impacting time of supply when there is a change to the…
- Civil law debt offsetting system not a means of payment to credit VAT (court decision)
- Deadline for cancelling electronic invoices (CFDI) issued before fiscal year 2022 has been extended to December 31, 2022
- Peru Providing Temporary 8% VAT Rate for Tourism and Hospitality Sectors
- VAT reduced to 8% to promote reactivation of hotels, restaurants and accommodation
- Texas Comptroller Failed to Comply with Procedural Requirements for Local Tax Situsing Rule
- You Can’t Solve Sales Tax Problems with Technology Only
- Ensure Company Success with a Nimble Sales Tax Strategy
- President Biden has signed into law the Inflation Reduction Act of 2022
- What to do when your California Sales Tax Audit turns criminal?
- KPMG reports: Arkansas, California, New Mexico
- Remote Sales Tax Audits: What to Expect and How to Handle Them
- Pending vote on full sales and use tax exemption for equipment (California)
ASIA-PACIFIC
- B2B e-Invoice will be mandatory in Australia
- What is E-Invoicing?
- ATO hosts eInvoicing Week to help eInvoicing adoption among businesses
- GoM readies report on GST appellate tribunals
- Concessional rate of 10% customs duty to apply on mobile display assembly
- State has no Obligation to indicate HSN Code and GST Rates in Public Tender: Supreme Court
- Daily GST Updates – August 18, 2022
- 5 new Functionality for Tax Payers in GST Portal wef 16.08.2022
- Analysis of GST circulars 177, 178 & 179 issued on 3rd August 2022
- GST Council unlikely to correct inverted duty structure on textiles next month
- Guidelines for arrest & bail for offences punishable under CGST Act 2017
- Kerala government releases ‘Lucky Bill App’ to check evasion of GST
- GST officials detect tax credit abuse with data analytics
- GST rates could change to correct inverted duty, exemptions
- Guidelines on Issuance of Summons under Section 70 of CGST Act 2017
- GST Daily – August 17, 2022
- Daily GST Updates – August 17, 2022
- GST: One-Line Order dismissing Appeal on ground of Delay in filing is Invalid, rules Calcutta HC
- 50 Practical FAQ’s – GST on Renting of residential dwellings [Everything you must know – A 360-degree analysis]
- Recent Updates In GST till 16th August, 2022
- India cuts diesel export duties as trade deficit widens
- Refund allowed of IGST paid by assessee on ocean freight charges
- Sovos E-Invoice Solution for India 1.0 is Certified by SAP® for Integration with SAP S/4HANA®
- GST on House Rent: Clarifications and Concerns
- GST Due Date Reminder: GSTN advises Taxpayers to file IFF under QRMP Scheme and GSTR-6
- GSTN portals working ‘pretty well’: Infosys CEO
- ITC denied if buyer having knowledge of investigation going on against his supplier
- Refund allowed of IGST paid by assessee on ocean freight charges
- No GST on residential premises if rented out for personal use: Govt
- GST rates on certain goods and services: 4 Myths cleared
- Kerala Government to launch the ‘Lucky Bill App’ to curb GST Evasion
- Sale of Robinson Barley and Purity Barley Taxable @12% under Orissa Sales Tax Act: Orissa HC
- Mobil Oil obtained from Cleaning process, not a Manufactured Product, No Sales Tax: CESTAT
- Contract of Supply of Goods can’t be classifiable under ‘Commercial or Industrial Construction’, demand of Service Tax not sustainable
- More GST rate changes likely to address inverted duty, exemptions
- Daily GST Updates – August 15, 2022
- Malaysia to Introduce Electronic Invoicing Staged Implementation
- Malaysia Service Tax Exemption for Certain Digital Payment Service Providers
- Service Tax Exemption for Certain Digital Payment Service Providers
- Malaysia: Monthly summary of income and indirect tax developments
- Malaysia Exempts Digital Payment Services by Local Non-Bank Service Providers from Service Tax
- KPMG Monthly summary of indirect tax developments
- GST Exemption for the Supply of Portable Units on Residential Accommodation
- GST Exemption for the Supply of Portable Units on Residential Accommodation
- House body OKs bill slapping VAT on digital services
- Philippines VAT on digital services non-residents bill update
- Guidelines on VAT exemption for senior citizens and persons with disabilities on certain online purchases
- Sworn declaration for VAT-zero rating of local purchases of registered business enterprises
- Singapore Tax Agency Updates e-Tax Guide on GST Concession for S-REITs, S-RBTs
- Property Developers Updates of their E-Tax Guide on GST
- Property Developers Updates of their E-Tax Guide on GST
- Singapore Updates Several GST e-TAX Guides in Relation to Upcoming Reverse Charge Requirements for Low-Value Imports
MIDDLE EAST
- IMF recommends that Saudi Arabia maintains the current VAT rate
- Five key questions about e-Invoicing in Saudi Arabia in phase 2
- Federal Tax Authority’s Tax Clinic will help you solve any VAT or Excise Tax related inquiries
- VAT Treatment on Export Goods
- Dubai Customs launches Self-Audit Findings service
- Digital Taxes in the UAE
- Dubai Customs introduced a new service, Submit Self-Audit Findings, to companies and…
- Tax on buying and selling NFTs
- Dubai Customs Voluntary Disclosure Program “Self-Audit Finding Service”
- Issuance of the Corporate Tax law within a month
