Tax developments or tax-related items reported this week include the following.
Africa
- Uganda: The tax authority published a public notice implementing the 5% digital services tax (DST). Nonresidents earning income from digital services provided to customers in Uganda must register through the Uganda Revenue Authority website.
- OECD: The African Tax Administration Forum (ATAF) and the Organisation for Economic Cooperation and Development (OECD) signed a renewal of their memorandum of understanding (MoU) for a period of five years, agreeing to continue to work together towards promoting fair and efficient tax systems and administrations in Africa.
Americas
- Canada: The fall economic update includes proposals to remove the provincial 8% harmonized sales tax (HST) on qualifying new purpose-built rental housing, and an extension of the gas and fuel tax reductions until mid-2024.
Asia Pacific
- Cambodia: Guidance specifies the methods of calculation for the tax invoice and commercial invoice on the specific tax and VAT to be imposed on the supply of locally produced non-alcoholic beverages.
- India: The Goods and Services Tax (GST) Council made recommendations relating to changes in tax rates for a few goods and services, amnesty scheme for filing of appeals, taxability of personal guarantee and corporate guarantee, automatic restoration of provisional attachment of property, allowing supplies to special economic zone (SEZ) unit or developer for authorized operations on payment of integrated tax, and other trade facilitation measures.
- Oman: The tax authority issued a decision that specifies additional cases and conditions for VAT refund.
Europe
- Sweden: A case before the Supreme Administrative Court (SAC) in Sweden concerned whether a holding company that provides management services to its subsidiaries can recover VAT on costs it incurred in relation to the disposal of shares in its subsidiaries as input tax.
- France: The 2024 Finance Bill, if approved, would introduce several measures to enhance the fight against tax fraud, focusing particularly on VAT non-compliance in the digital economy.
- Poland: Recent court decisions concluded that (1) a taxable person can be struck off the active VAT taxpayer register; (2) the Polish exit tax was compatible with EU law; and (3) comprehensive investment process management services provided by the taxpayer with respect to the construction of residential premises was subject to VAT at the rate of 23%.
Source: KPMG
