Control freak
The last VAT Return of the year is always the time to go through all your transactions and activities: Do you need to make any corrections? Are all the invoices for HQ services issued? What about the TP adjustments and bonus payments? Etc.
Even the Muppets are In Control: HERE
In other words: it’s a good time to go through your whole VAT compliance process again. Many companies have a Tax Control Framework. And in most cases, this would also include VAT. But you’d be surprised how many companies actually have a TCF that is up-to-date, that includes all relevant details, and which is effective and thus actually works.
The problem with VAT is that it’s a transaction tax. That means that a decision must be made for every transaction. And that decision is not always made by the person who’s in charge of VAT. We know from our own experience, that VAT is dealt with in almost all parts of a company.
Think about it: the logistics manager makes decisions on where goods are stored and delivered, the legal department makes the agreements and standard terms and conditions, the sales department determines the price, the finance person presses the button to send the invoice to the customer and the treasury department makes the payments and receives the payments.
As VAT manager, its’s therefore important that you know all these people and departments, and that you understand how their processes work. So that your TCF can use the responsibilities and tasks that are already used and laid down.
And of course, the IT set-up is also important. That big shoebox that contains all the master data, the orders, the contracts, and the invoices. Even if you don’t understand all of what’s going on in there, you must know the IT person (together with the finance person) who can help you with the tax codes and tax reporting.
And if it’s all to much, just come over to our website, VATupdate.com. Even if it’s just to giggle over some old ECJ-cases.
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 Denmark, Germany and Sweden
- Job opportunities in India, Switzerland and United Arab Emirates
- Worldwide Upcoming E-Invoicing mandates, implementations and changes – Chronological
- The VAT man is dead, long live the VAT man
- AP predictions for 2022 revisited – part one
- AP predictions for 2022 revisited – part two
- AP predictions for 2022 revisited – part one
- IBFD: Advanced Professional Certificate in VAT/GST
- Model Reporting Rules for Digital Platforms: FAQ
- Treatment of plants abroad in SAP
- Tax Managers’ Top Compliance Concerns
- Transfer Pricing and Customs Value: The challenge for X-border Intercompany transactions
WEBINARS / EVENTS
- SNI Webinar: How business can drive successful e-Invoice transformation in the Philippines? (Feb 1, 2023)
- Closing the gap: The E-Invoicing Exchange Summit is now operating globally
- SNI Recorded Webinar: KSA e-Invoicing Phase 2
- Pagero Webinar – (Re-)evaluating your e-invoicing strategy (Feb 2, 2023)
- E-Invoicing Exchange Summit Middle East & Africa (Feb 21-22, 2023)
- Pagero Webinar – 2023 E-Invoice Regulatory Outlook for U.S. Multinationals (Feb 15, 2023)
- Sovos webinar: Improving Compliance Data Quality with Automated VAT Determination for…
- IVA Conference: The world of VAT – a kind of fiscal theme park, Noordwijk (Amsterdam), The Netherlands (May 11-12, 2023)
AFRICA
- Kenya Tax Agency Seeks Comments on 2023 Draft Digital VAT Regulations
- Kenya To Introduce Digital VAT Regime
- Finance Law 2023: Exemption without right to deduct VAT for various professions under a certain threshold
- Finance Law 2023: Institution of administrative formalities for the VAT exemption of agricultural equipment
- Finance Law 2023: Increase in VAT rates applicable to certain liberal professions
- Customs Revenues Increase by 18.6% in 2022 (Treasury)
AMERICAS
- Argentina VAT on digital services update
- Customs continues to focus on customs valuation and transfer pricing issues
- Resolution Providing Special VAT Regime for Digital Platforms
- Argentina Gazettes Resolution Providing Special VAT Regime for Digital Platforms
- Brazil Excludes State VAT (ICMS) from PIS/COFINS Contributions Basis
- Provisional measure changes PIS and COFINS input credit calculation
- Publication of the EFD ICMS IPI program version 3.0.2
- Grenada delays introduction of increased tax on sugary, alcoholic, and tobacco products
- Tax department presents proposed 2023 Budget (a.o. rate changes)
- Is the national sales tax bill DEAD?
- Biden tweets about 30% national sales tax
- Roth: A federal consumption tax is a terrible idea
- Maryland Supreme Court Agrees to Review Case Invalidating Gross Receipts Tax on Digital Ad Services
- Texas: Credit Ratings of Legal Entities are Taxable, but Credit Ratings of Debt Obligations are Not
- Rhode Island: Hearing Officer Says Timing of Resale Exemption Certificate Acceptance Dictates Taxability
- California: February 7 Public Hearing Scheduled for Proposed Marketplace Sales Rule
- Consumption Taxes: An Overview
- What is the FairTax?
- What was new in December for state sales and use taxes
- Consumption Taxes: An Overview (Congressional Research Service report for Congress)
- Five Sales Tax Trends to Track in 2023
- Sales Tax Rates & Rules Trends 2023
- Ketchikan Gateway Borough & City of Ketchikan Sales Tax Holiday March 25, 2023
- Indiana: Guidance on Taxability of Sale, Lease, or Use of Computer Hardware, Software, and Digital…
- Indiana: Guidance Issued on Exemption for Unitary or Bundled Transactions of $0.07 or less
- Indiana: Guidance on Taxability of Cable, Satellite Television, or Radio Services Issued
- State and local tax, technology-related developments (table, fourth quarter 2022)
- Here’s How the Proposed National Sales Tax Would Work
- California: Guidance Provided on the Application of Tax to the Purchase or Sale of Cryptocurrency
- California: Guidance Provided on Application of Tax to Transactions in Which Payment is Made…
- Vertex 2022 End-Of-Year Rates and Rules Report
- Margin tax appointment (Texas)
- Sales tax refunds on software and hardware (Florida)
- KPMG reports: Florida, Texas, Virginia
- Massachusetts Lawmakers Propose Digital Advertising Tax
- Decree establishes exemptions from VAT and customs duties for certain goods
- Venezuela: Presidential decree establishes the Sub-Customs Office of Tienditas
ASIA-PACIFIC
- No entitlement to input tax credits
- Draft instrument for recipient created tax invoices
- Draft RCTI changes now open to public consultation
- No GST payable under RCM on Procurement of Renting of Immovable Property Services from SEZs
- Higher GST mop-up partly due to rise in economic activity: Piyush Goyal
- US industry urges FM to rationalise, simplify direct and indirect taxes in India
- GSTN will soon allow negative values in Table 4 of GSTR-3B
- Denial of ITC due to Cancellation of GST registration of Other Dealer: Calcutta HC directs Re-Adjudication
- GST DRC-07 Must be Issued “along with” Notice and SCN in Prescribed Format without Striking out…
- FAQs on Block credit under GST
- GSTN will soon allow negative values in Table 4 of GSTR-3B
- 18% GST on air freight leaves bad taste in the mouths of Indian betel leaf exporters
- MIDC plot transfers to third party under GST scanner
- No Late fees to be charged if returns not filed due to cancellation of GST registration, which…
- An additional fee imposed on car park customers without VAT
- Supreme Court notice on Kerala GST law permitting levy of tax under repealed VAT regime
- Clarifications On Applicable GST Rates on Certain Goods
- GST officers have no power to seize cash during search operations
- Launch of New GST Reports in ADVAIT
- working on making GST audits uniform across the country which will make scrutiny of GST compliance more predictable for businesses
- GST officers have no power to seize cash during search operations
- GSTN Issues Advisory on facility of ‘Initiating Drop Proceedings’ of Suspended GSTINs due to Non-filing of Returns
- Time of Supply of Services under GST
- Assessee allowed to rectify its GST Returns after the deadline
- Supply of telecommunication services to a local authority is a taxable service
- Administering of COVID-19 vaccine by hospitals is a composite supply and liable for GST at 5%
- Assessee permitted to make changes in Form GSTR-3B for the months of July 2017 and March, 2018
- DGFT issued clarification on the Implementation of the Paper Import Monitoring System
- CESTAT Weekly Round Up
- Forest Permit Fee attracts 18% GST: AAAR
- Weekly GST Communique dated January 23, 2023
- Recent Clarification on GST till 22nd January 2023
- Can refund of IGST be granted when mistakenly drawback is claimed under column “A” of drawback…
- Has your client’s GST Registration ever been cancelled for Non-Filing of the Return?
- IMF report: More revenues could be raised by unifying and raising consumption tax rate
- Intention to raise consumption tax rate?
- VAT refund for tourists
- New bill seeks to impose VAT on digital transactions
- Philippines Implements Quarterly VAT Return Filing from 2023
- Submission of inventory list and application of VAT to HMO plans of registered export enterprises
- VAT zero-rating application never goes out of style
- Philippines Introduces VAT Waiver for Single Parents
EUROPE
- Comments on ECJ C-641/21: How is the place of supply of a service assessed in case of VAT fraud?
- ECJ C-250/22 (Fallimento Villa di Campo Srl) – Order – TOGC artificially broken down into a number of different supplies
- ECJ to rule on VAT treatment of director fees
- Preliminary questions to the ECJ by Poland about expropriation of farmers
- January 2023: E-Invoicing & VAT compliance updates
- EU: what do you need to know about triangulation – recent developments
- European Commission Calls on 14 Member States to Fully Transpose DAC7 into National Law
- The European Commission published the key decisions of the January 2023 infringements package
- European Commission opened infringement procedures on DAC7 against 14 Member States
- Businesses call for further facilitation of VAT Registration
- European Union: Proposal for preliminary rulings in customs matters to be managed by lower EU…
- Get ready for phase 2 of Import Control System 2
- What Non-EU countries need to know about IOSS & OSS
- Commission Seeks Comments on Regulation to Assess DAC7 Equivalence of Non-EU National Laws
- Operation ‘Cheap Ink’: EPPO cracks down on €58 million VAT fraud involving office supplies
- Public Consultation: VAT package for travel and tourism (in preparation)
- The VAT Gap: What the New Report Says and Why It Matters
- Understanding VAT Between European Countries
- Draft Implementing Regulation to Exempt Non-EU Platform Operators from DAC7 Reporting in the EU
- Understanding VAT Between European Countries
- Obvious errors corrected in a number of language versions Council Directive (EU) 2017/2455
- Draft Implementing Regulation to Exempt Non-EU Platform Operators from DAC7 Reporting in the EU
- EPPO investigation into cross-border VAT fraud with estimated damages of €32 million: 61 searches in 10 countries and 5 arrests
- CESOP Non-Compliance penalties
- Intrastat thresholds in 2023
- VAT on Termination Payments
- DAC 6 — a year full of developments and more is to come
- Selling on electronic interfaces – who is accountable for VAT?
- European Commission Requests Feedback on DAC7 Implementing Regulation for Exchange of Information with Third Countries
- European Commission asks for the public’s view in the fight against corruption
- Provisional agreements in EU on emissions trading, carbon border adjustments, and climate funding
- New transparency rules proposed for crypto-asset transactions
- Modernising the EU’s VAT system by embracing the digital transition
- Carbon Border Adjustment Mechanism
- EU’s VAT in the digital age: implications for the UK
- Infringement Procedure against Ireland and Portugal Closed (Temporary COVID-19 VAT…
- ViDA and the abolishment of summary invoicing
- Pre-ViDA: Good things to remember about EU VAT invoicing rules
- ViDA: OSS & I-OSS
- ViDA: EU VAT Registrations – New Special Scheme for transfers of own goods, Extension OSS
- ViDA: Digital Reporting Requirements: EU Commission Proposals
- ViDA: Platform economy: main changes for accommodation and passenger transport
- ViDA – Impact on business processes – Part 11: Definition of a European Standard of Electronic Invoice (Art. 218)
- ViDA: Consultation of the Commission (in the meantime) extended till March 21, 2023
- Automation of movements under the « excise paid » regime and digitization of the Simplified Guidance…
- VAT deduction according to actual use method – Submission of notification now possible
- Mixed VAT payers are granted a postponement to communicate figures under real use system
- Unlawful VAT deduction? Late payment interest can only be imposed if the taxpayer is in a “payment position,” according to the Supreme Court!
- Real use method for VAT deduction: update on the new electronic notification procedure
- Belgian VAT return reforms 2024
- EU prosecutor focuses on Bulgaria and Slovenia in case on cross-border VAT fraud
- What is the timeline for changing currency into EUR in Bulgaria?
- Electronic records of sales cancelled effective 1 January
- Change of the deadline for submitting a subsequent VAT control statement at the request of the tax authority
- New guidance on the waiver of tax penalties introduces the assessment of the factual aspects of the additional tax charge
- New methodology for the remission of fines for failure to submit a control statement
- VAT news [January 2023]
- Change of practice – Right to deduct VAT in grant-funded companies
- Shipment of goods from Norway to Germany has not been completed correctly (import VAT)
- Denmark increases 2023 Intrastat thresholds
- Denmark Tax Agency Explains VAT Deduction for Holding Companies
- Proposal on Tax Adjustment for 2023
- Finland Submits Letter Incorporating New EU VAT Directives for Digital Age
- France launched a new portal for company administration
- VAT group simplification from 2023
- Bofip on ”Place of supply of tangible movable property – General rules”
- Import VAT declaration: the new rules commented on at BOFiP
- The distinction between a tax number and a VAT number in Germany
- European Commission Closes Infringement Procedure Against Germany Regarding Special VAT Travel Agent Scheme
- VAT registrations and simplifications in Germany
- VAT treatment of the provision of mobile advertising
- Circular about thresholds for submitting an Intrastat declaration
- Transmission of Greek myDATA via ERP goes live in January 2024
- Ireland Extends VAT Zero Rate for COVID-19 Tests
- Six Month VAT Adjustments – Are You Making Yours?
- Infringement Procedure against Ireland and Portugal Closed (Temporary COVID-19 VAT…
- Technical specifications electronic transmission of data in annual VAT return for the year 2022
- 2023 Budget Law – New provisions in the VAT, excise duties and consumption tax field
- E-invoicing Italy: All you need to know
- What happens if the goods to be exported are stolen?
- Ruling 148: VAT Group – Foreign ”intermediate” company in the chain of control
- Ruling 157: Merger between entities in different countries, including a stock of assets
- Transfer for export, theft and VAT reflexes
- Ruling 136: “Chain” exports with application of frequent exporter rules
- There is a deadline for an adjustment for cash register manufacturers in Italy
- Supreme Court rules about solar panels and SMEs
- Latest VAT developments in real estate
- VAT exemption partnership integrated primary care
- Tax advisor with solar panels is not a small entrepreneur
- e-Recognition remains the sole and mandatory login method for Mijn Belastingdienst Zakelijk
- Court of Gelderland about abuse of law
- Paved parking lot delivered to individuals divided into lots for housing is building
- VAT assessment for Belize company
- PKIsigning makes it possible to send and pay VAT returns via iDEAL
- Directors’ liability for directors who deliberately submitted incorrect VAT returns
- DAC7 Decree on collection and verification requirements for reporting platform operators for the automatic exchange of information regarding the digital…
- Are the Dutch simplified triangulation rules in line with the EU VAT Directive?
- VAT losses due to carousel fraud in the Netherlands are relatively low
- Restoring the full functionality of the List of VAT Taxpayers
- Full functionality of the List of VAT Taxpayers has been restored
- Technical problems with the List of VAT Payers
- The government has adopted another package of changes in VAT settlements (SLIM VAT 3)
- An entrepreneur can give a post-leasing car to his wife without VAT
- Transfer of assets under an annuity contract without PIT and VAT
- SLIM VAT 3 package adopted by the government
- Slim VAT 3 adopted by the government. What does the change package contain?
- Museum can deduct 100%
- Preferential origin of goods – recent changes
- Fictitious outsourcing without VAT deduction. But the tax office must have evidence
- Infringement Procedure against Ireland and Portugal Closed (Temporary COVID-19 VAT…
- Obligation for unique document code (ATCUD) live from January 1st 2023
- Electronic Tax Requirements
- Key Information About SAFT-PT Portugal Declarations
- Electronic invoices must bear electronic signature in Portugal
- Portugal new Intrastat reporting thresholds 2023
- Be prepared for Portugal’s Billing SAF-T changes from January 2023
- Training mode as one of the POS requirements in Portugal
- Regulations for introducing tip taxation into the Romanian fiscal system (RO)
- Romania Introduces Initial VAT Registration as Part of Registration at Trade Register
- Romania SAF-T
- Romania significantly reduced the amount of time businesses were required to keep certain data on fiscal devices
- Belarus Gazettes Law Ratifying Agreement on General Principles of Indirect Taxation with Russia
- Russia Tax Agency Clarifies VAT Deduction for Goods Purchased Under Simplified Taxation System
- Russia cuts tourism VAT to zero from 20% – update
- Tax Agency Clarifies VAT Deduction for Goods Purchased Under Simplified Taxation System
- Absence of a bill of lading does not affect the right to a “commodity” VAT deduction
- DAC7: Rules for digital platforms operators in Slovakia entered into force
- Correction of deducted VAT from outstanding liabilities from January 1, 2023, in Slovakia
- Slovakia Continues to Advance its e-Invoicing Project
- Tax and other statutory obligations in Slovakia
- e-Invoicing in Spain
- Spanish plastic tax: frequently asked questions
- New Requirements for Computerized Invoicing Systems (SIF)
- SII AEAT | Immediate Supply of Information in Spain
- “Crea y Crece” law makes the use of the Electronic Invoice mandatory among companies, SMEs and self-employed in Spain
- Deduction of VAT on the purchase of tickets to sporting events
- Spanish anti-inflation package approved despite right-wing abstention
- Note on the new types of VAT equivalence surcharge
- Conflict No. 10. Exempt activities. Artificial filing of a company for the deduction of VAT paid
- Conflict No. 11. Artificial splitting of language teaching activity in two companies for the deduction of input VAT
- Does the TicketBai obligation affect SII requirements?
- Swedish business organization reaction to ViDA
- What is a control unit device in the fiscalization system of Sweden?
- The Swedish Tax Agency restricts the possibility of forming VAT groups in the financial sector
- Swedish guidance: C-247/21, Luxury Trust Automobile
- New forms of tax invoice and VAT reporting
- Nuances of VAT recalculation in case of cancellation of registration
- Government publishes FAQS on VAT exemptions
- EU’s VAT in the digital age: implications for the UK
- Exchequer collected 40% more VAT on electricity last year
- HMRC Guidance: Check which motor vehicles are eligible for the second-hand motor vehicle payment…
- Who bears the burden of VAT rate changes?
- Tax Agents’ Experience with HMRC’s Digital Services
- HMRC Guidance: Claim a VAT-related payment if you buy second-hand motor vehicles in Great Britain and export them to the EU for resale
- HMRC Guidance: Sales of second-hand motor vehicles in Northern Ireland
- HMRC Guidance: Check which records to keep for second-hand vehicles you export to the EU for resale
- HM Revenue and Customs: New penalties for submitting VAT returns or paying VAT late
- VAT registration chaos at HMRC
- HMRC Guidance – Agent Update: issue 104
- Ince Gordon Dadds LLP – FTT – input tax recovery on professional fees – taxpayer loss
- HBOS & Lloyds Banking Group – UT – Bad Debt Relief and interest – date from which interest runs – taxpayer win
- HMRC: New penalties for submitting VAT returns or paying VAT late
- Option To Tax – HMRC processes have changed
- HMRC Guidance: Local authorities and similar bodies (VAT Notice 749)
- Deduction of input VAT incurred on fundraising-related services: Ince Gordon Dadds LLP v HMRC [2023] UKFTT 00044 (TC)
- Upper Tribunal Sides with Morrisons in Confectionery VAT Dispute
- Insurance partial exemption
- UK Northern Ireland Brexit complexities on EU VAT in the Digital Age
- Official Statistics Value Added Tax (VAT) annual statistics
- VAT penalties in UK in 2023
- HMRC Guidance: How to fill in and submit your VAT Return (VAT Notice 700/12)
- The future of VAT in the UK
- Thousands march against GST introduction in Guernsey
- HMRC Guidance: Insurance sector partial exemption framework
MIDDLE EAST
- E-Invoicing: Phase 2 now commencing roll out by company size
- Saudi Arabia Tax Agency Announces VAT Return Filing Deadline for December 2022, Q4 2022
- User Manual on Login to EmaraTax using UAE PASS
- Digital ID for Customer Due Diligence: New AML Requirement in the UAE
