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KPMG Week in Tax: 22 – 26 May 2023

Tax developments or tax-related items reported this week include the following.


  • Egypt: The Ministry of Finance issued a decree providing for a change in the regulations concerning income tax, value added tax (VAT), and the unified law of tax procedures.


  • Chile: The tax authority clarified that the VAT exemption applicable to workers who work alone is not applicable to the activity carried out by a sole proprietorship.

Asia Pacific

  • India: The Supreme Court held that a transaction in which a manufacturer issued a credit note to an auto parts dealer with respect to auto parts the dealer purchased from the manufacturer, but the dealer had to subsequently replace under a warranty using its own auto parts stock, constituted a sale subject to sales tax.
  • India: The Karnataka High Court held that rummy is a game of skill and thus is not gambling, whether played online or offline, or with stakes or without stakes. Accordingly, a technology platform that allows users to play rummy against one another online was subject to GST at the 18% rate for online gaming services, rather than the 28% rate applicable to lottery, betting, and gambling.


  • EU: Proposed changes for a reform of the EU Union Customs Code (UCC)—if enacted—will have VAT implications, effective 2028.
  • EU: A KPMG report summarizes the most recent information on implementation of the new DAC7 rules into member states’ domestic legislation.
  • Poland: Legislation that would introduce mandatory use of the “National e-Invoicing System” (KSeF) from 1 July 2024 was submitted to the lower house of the Polish Parliament (Sejm).
  • Poland: The Court of Justice of the European Union (CJEU) held that Polish provisions precluding the reimbursement of excise duty on passenger cars exported from Poland (but previously registered in the Poland) are not contrary to EU principles, including the principle of proportionality and the principle that excise duty is a single-stage tax.
  • Spain: A bill implementing DAC7—which would introduce new reporting requirements for digital platform operators effective 1 January 2023—was approved by the Lower House of the Spanish Parliament.
  • Czech Republic: The government announced proposed direct and indirect tax changes expected to apply beginning 1 January 2024. The changes concern corporate and individual income tax, tax on gambling, real estate tax, VAT, and excise taxes.

State and local tax

  • Tennessee: The Tennessee Works Tax Act, which makes comprehensive changes to Tennessee’s tax laws, was signed into law by the governor. The changes include phasing in single-sales factor apportionment, conforming to federal bonus depreciation, a new three-month food sales tax holiday, and new excise and franchise tax exemptions. The bill also makes numerous business tax changes.

Trade & Customs

  • Korea: The Incheon District Court held that a taxpayer did not manipulate the prices of imported and exported goods for the unfair purpose of benefiting third parties.
  • A KPMG report summarizes certain global tax-related developments that are relevant for companies involved in shipping and related industries.

Source: KPMG


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