KPMG Week in Tax: 12 – 16 June 2023

Africa

Nigeria: The Tax Appeal Tribunal Lagos Zone held that the Federal Inland Revenue Service (FIRS) validly exercised its powers under the value added tax (VAT) law to appoint a non-resident supplier as an agent of collection of VAT from both the activities of the food vendors and drivers that use the company’s platform to provide services to customers.

Americas

Chile: The minimum amount for which taxpayers must issue tax receipts was reduced from $180 to $1—effective 1 July 2023. Taxpayers thus must issue tax receipts for all transactions subject to or exempt from VAT, regardless of their amount.

Asia Pacific

Bahrain: The National Bureau for Revenue (NBR) announced that starting from 18 June 2023, all waterpipe tobacco “molasses” products in the local market must have digital stamps.
Malaysia: A monthly summary of tax developments includes discussions of income tax, stamp duty (tax), and indirect tax.
Saudi Arabia: The Zakat, Tax and Customs Authority (ZATCA) published proposed amendments to Zakat, income tax, excise tax, VAT, and real estate transaction tax laws and implementing regulations for public consultation purposes.
Poland: A number of amendments to the VAT law and certain other laws (containing the “slim VAT 3 package”) are designed to further simplify and accelerate VAT settlements, thus improving companies’ liquidity, and to reduce formalities for businesses in international trade.
Poland: The Supreme Administrative Court issued decisions concerning revenue from business in a special economic zone and the deduction of VAT in cross-border transactions and residential leases.
EU: The ECOFIN Council approved a report that provides an overview of the progress achieved in the Council on a range of direct tax measures, including on the so-called “Unshell” Directive proposal and the most recent amendment to the Directive on Administrative Cooperation (DAC8).
Czech Republic: In connection with the amendment to the “Construction Act,” an amendment to the VAT law changes the definition of family houses and apartment buildings, to have a broader definition from 1 July 2023.