Penguins
Doing VAT can sometimes be confusing. Especially for other people. And specifically, to other tax people.
If you’re into Corporate Tax or Income Tax, you are looking at profit or income that a person or company makes. You want to know ‘the financials’, and you’ll look at deductions. Your focus will be on the effective tax rate and if this is in the (low) 20’s, you are happy. And you’ll probably get a bonus.
For VAT people, the world looks completely different. We are not interested in the annual accounts, Tax Havens and Offshore Entities, tax credits and incentives, or even tax treaties. VAT people look at the business. At the operations. We are interested what’s cooking in the kitchen.
The following joke can be used to illustrate that a little:
A man was driving down the road when a policeman stopped him. The officer looked in the back of the man’s truck and said, “Why are these penguins in your truck?”
The man replied, “These are my penguins. They belong to me.”
“You need to take them to the zoo,” the policeman said.
The next day, the officer saw the same guy driving down the road. He pulled him over again. He saw the penguins were still in the truck, but they were wearing sunglasses this time. “I thought I told you to take these penguins to the zoo!”, the officer said.
“I did,” the man replied. “And today I’m taking them to the beach.”
VAT is like that. We don’t want to look at the animals in the zoo: we want to take them out and play with them. Having a good time is part of doing VAT. At least, that’s what we think. And that’s why the VATupdate Team will always bring you the latest VAT news from around the world. To make your day a little better!
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 directly to the region, click below:
WORLD
- com: Noteworthy VAT Updates and Rate Changes in March 2024
- E-Invoicing/Real Time Reporting – What can you find on VATupdate.com
- What’s Happening in the World of e-Invoicing?
- 6 reasons to embrace regular Data Archiving in SAP
- Exploring different models for Continuous Transactions Control
- What is Tax Data and why does it matter?
- Demystifying Indirect Tax Controls: E-invoicing and Digital Reporting Terminology Explained
- Trusted data: 5 essential considerations for the tax department
- The Tax Side of Coffee: VAT Treatment and International Varieties
- The Peppol 4-corner model and the 5-corner Peppol CTC
- Global VAT TV March 2024 News and Views
- SNI Webinar – E-Invoicing Evolution: Navigating Global Transactions (March 27)
- Event: E-Invoicing Exchange Summit in Miami – April 22-24, 2024
AFRICA
- FIRS Aims for N5 Trillion VAT Revenue Amid EU Concerns on Tax Evasion in Nigeria
- FG Targets N5 Trillion VAT Revenue in 2024, Aligns with ECOWAS Tax Reforms
- Nigeria forecast VAT rise to 15% 2027
- South Africa: Proposed Updates to Electronic Services Regulations
- VAT Treatment of Non-Executive Directors in South Africa: A Debate on Independence and Taxation
AMERICAS
- Tax Measures for Homeowners: CRA Guidelines for 2023 Home Purchases, Sales, and Renovations
- Tax Considerations for Toronto Freelancers: Income, Deductions, HST/GST, and Tax Planning Strategies
- CRA Clarifies Treatment of GST/HST in Appraised Value of New Residential Complexes
- Chilean Tax Agency Clarifies VAT Exemption for Individual Entrepreneurs in Recent Letter
- Chile’s Proposal: VAT on Low-Value Imported Goods (< 500$) for Consumers
- Chile Tax Reform Bill: VAT Liability for Low-Value Goods Sales and Marketplace Rules Clarified
- Chilean Tax Authority Expands VAT on Non-Alcoholic Beverages
- VAT Rate Adjusted for Economic Stability
- Ecuador Raises VAT Rate and Implements Security Measures to Fund Enhancements
- Ecuador Officially Increases VAT Rate from 12 to 15% as of April 1, 2024
- TTMA Urges Action on Ports and VAT Refunds for Manufacturers
- Government Confirms $6.54B Owed in VAT Refunds to Businesses
- California Senator Proposes Digital Advertising Tax Law to Tap into Internet Company Revenue
- Wisconsin Enacts Sales Tax Exemption for Precious Metal Bullion
- Understanding Sales Tax on Services in Utah
- Understanding U.S. Sales Tax Obligations for International Companies
- California Court of Appeal Ruling: Sales Tax on Cell Phone Bundles and Wireless Services
- Virginia Bill Allows Sales Tax Exemption for Indoor Farm Machinery
- Wisconsin Exempts Precious Metal Bullion
- Unanswered Questions: New Jersey Tax Court’s Decision on Corporation Business Tax Nexus Rules
- Michigan Department of Treasury Ruling on Sales Tax for SaaS and Downloaded Software Services
- Texas Denies GEO Group $4 Million Sales Tax Refund, Not Considered Government Entity
- Navigating Sales Tax vs Use Tax: Understanding the Key Differences for Businesses
- Utah Legislation Amends Pollution Control Tax Exemptions and Certifications
- New Jersey Sales Tax Exemption for Affordable Housing Projects Contractors and Repairmen
- Texas Local Sales Tax on Telecommunications Services Updated Effective April 1, 2024
- South Carolina Sales Tax Exemption for Digital Textbooks
ASIA PACIFIC
- Revenue Department is not empowered to seize Cash under GST
- Government issued Very important Guidelines for officials to Protect Taxpayers from Harassment During the Investigation
- Kazakhstan Economy Ministry Seeks Feedback on Proposed Tax Code Amendments
- New Protocol for VAT Collection on Digital Services in the EAEU: Kazakhstan Ratifies Amendments
- Laos Implements VAT on Cross-Border Digital Services Effective August 2024
- Laos Reverts Standard VAT Rate to 10% with New Presidential Decree
- Laos Issues New VAT Guidelines for Digital Goods and Services
- Laos President Reinstates 10% Standard VAT Rate to Boost Economy
- Laos Reverting Standard VAT Rate to 10%
- The Future of Financial Transactions: Adopting e-Invoicing in Malaysia
- Malaysia Implements 10% Sales Tax on Low Value Goods from January 2024
- E-Invoicing in Malaysia: What Are the Compliance Standards and Tax Implications?
- New Zealand Implements New GST Rules for Gig and Sharing Economy from April 1, 2024
- New Zealand’s GST and gaming duty measures taking effect for remote sellers
- New Zealand’s New GST and Gaming Duty Measures for Remote Sellers
- FBR Introduces Stricter Conditions for Exporters to Access Tax Concessions Under New Scheme
- Pakistan’s FBR Revolutionizes Tax System with Introduction of SWAPS for Digital Invoicing
- Pakistan introduces rules for online integration of businesses to process payment of digital…
- IMF Recommends Reviving 18% GST on Petrol and Increasing Excise Duty on Luxury Items
- Sri Lanka Increases VAT Rate and Lowers Registration Threshold in 2024 Amendment Act
- Sri Lanka Formally Increases Standard VAT Rate and Reduced VAT Registration Threshold
- Sri Lanka: VAT Law Amended with Increased Rates and Lower Thresholds
- Prohibition on Interchange or Borrowing of Uniform Invoices for Branch Offices to Avoid Penalties
- Monthly Sales Reaching Taxable Threshold: Online Sellers Must Apply for Tax Registration
- Calculation of unreported business tax amount and consequences of not providing valid…
- Tax Registration and Business Tax Imposition for Renting Rooftop to Telecom Operators by Building Management Committee
- Annual Business Tax Registration Inspection to Begin – Check for Violations to Tax Laws Now
- Foreign E-commerce Operators Selling Electronic Services Must Report Business Tax in New Taiwan…
- Updates in Taxation System Effective from April 1, 2024
- Importance of QQS Tax Rate Displayed on Online Cash Registers after Cancellation of Benefits
EUROPE
- This is what happened in the ECJ (VAT) in March 2024 – Clean-up time, 2 Orders, 2 Cases Removed
- EU Court of Justice: three judges and two advocates-general appointed
- Comments on ECJ C-606/22: Overpaid output tax on retail sales – right to refund – taxpayer win
- Agenda of the ECJ VAT cases – 4 Judgments, 2 AG Opinions announced till April 25, 2024
- Comments on ECJ C-606/22: ECJ confirms the possibility of recovering inflated VAT in consumer sales
- Comments on ECJ C-606/22: Also entitled to a VAT refund in the event of an incorrect rate on consumer services
- ECJ Removes Streaming Services VAT Case C-69/23 from Register
- ECJ Removes MAX7 Design VAT Case C-519/22 from Register:
- ECJ C-519/22 (MAX7 Design) – Removed from the register
- ECJ ruling on interest for overpaid VAT refunds: Gemeente Dinkelland case clarification
- ECJ Opinion: Dutch Pension Funds Not Eligible for VAT Exemption Under EU Law
- CJEU Ruling: Poland Must Accept Cash Register Receipts as Evidence of Overstated VAT
- ECJ: Credit Notes, VAT Adjustment, and Unjust Enrichment in Poland
- ECJ C-69/23 (Streaming Services Srl) – Removed from the register
- ECJ VAT Case C-576/23 (Elite Games) – Order – VAT rate: Entertainment machines do not fall in scope of ”entrance fee to amusement parks”
- EN 16931 Standards & Country-Specific Mandates for Digital Cross-Border Transactions
- Streamlining Cross-Border Trade: EU Directive EN 16931 for Standardised E-Invoicing Compliance
- Demystifying EU E-Invoicing: A Complete Guide to Compliance and Implementation
- Timeline of B2B E-Invoicing & E-Reporting mandates in the European Union
- 123rd meeting of the EU VAT Committee meeting on Nov 20, 2023 – Minutes
- EU e-invoicing and e-reporting overview
- Submit 2023 BTW customer listings by March 31, 2024 – FOD guidelines and exceptions.
- 2026: Mandatory Structured e-Invoicing for B2B Transactions in Belgium
- Essential Guide for Registration and Rates
- Agreement to reinstate 6% VAT rate on demolition—reconstruction of rental properties
- Croatia extends heating VAT cut till March 2025
- Croatia Extends Reduced VAT Rate for Natural Gas and Heating Materials until 2025
- Croatia Extends Reduced VAT Rate on Heating Supplies Until 2025
- Danish Tax Agency Clarifies VAT Deduction Rules for Company Purchases and Resales
- Denmark Tax Agency Decision on VAT Deduction Conditions for Company Purchases and Resales
- Danish Tax Agency Denies VAT Refund for Jointly Registered British Companies
- ERST releases requirements for custom digital bookkeeping systems
- Finnish Tax Administration Issues New CESOP Guidance for Cross-Border Payment Transactions
- VAT Return: Obligations and Consequences for Businesses
- France Delays Compliance Date for Micro and Medium Taxpayers
- France’s New Decree: Changes to e-Invoicing Provider Registration Timeline and Mandate Implementation
- Decree No. 2024-266: Implementation of Electronic Invoicing and Transaction Data Transmission for VAT Taxpayers
- France Delays Implementation of E-Invoicing Regime to 2026, Small Businesses Get Extra Year
- France e-invoicing & e-reporting Sept 2026: new technical decree
- Demystifying ZUGFeRD: A Guide to Germany’s Revolutionary E-Invoicing System
- Taxable Supplies, Entrepreneurial Status, and Input Tax Deduction of a Spa Town
- Differential taxation for art objects; calculation of margin; no deduction of VAT on intra-Community acquisition
- Taxable Turnover, Entrepreneurial Status, and Input Tax Deduction of a Spa Town (BFH)
- Judgment: Input Tax Deduction at Spa Facilities
- Judgment: Participation of limited partner in general partner GmbH as (non)essential operating basis of his co-entrepreneur share
- Germany’s Mandatory E-Invoicing: Implementation Timeline and Buyer Consent Changes
- The Bundesrat Specifies Its Requirements for the Introduction of a Mandatory E-Invoice…
- E-invoicing in Germany: B2B mandate timeline for implementation
- Germany: Current Status of B2B E-Invoicing
- How e-invoicing becomes a digital driver
- E-Invoicing in Germany: Complete Guide
- Parliament Approves E-Invoicing Mandate for Businesses by 2028
- Bundesrat approves the Mediation Committee compromise on the text of the Growth Opportunities Act
- Germany: Ministry of Finance Issues VAT Invoice Guidance for End Consumers
- Tax Deduction for Landlord’s Heating System: BFH Decision
- E-invoicing Obligation in Germany from 2025: Federal Council Approves Legislation
- Bank’s full input VAT deduction for paydirekt and giropay related services allowed by FG Münster
- Penalties for non-submission and late submission on myDATA platform until March 30, 2024.
- Publication of List of Gold Coins Meeting Investment Criteria for 2024 by Customs Authorities
- Fuel Family Investigation: EPPO Reveals €300 Million VAT Fraud in Europe
- A comprehensive guide to VAT in Greece – 2024 update
- Guidelines for CESOP Registration and Filing: Updated Manual for Payment Service Providers
- Customs Export Procedures Manual Update: Clarification on Single Transport Contract and AES Introduction
- Guide to Recovering VAT on Motor Vehicles: Updated TDM
- Analysis of 2024 Budget Law changes on VAT by Assonime: Circular n. 8 review.
- VAT exemption for accredited legal training courses by National Forensic Council.
- Possible Conditional VAT Exemption for Aesthetic Medicine: Assonime’s Commentary on Latest Regulatory Updates
- Alignment of insurance tax assessment terms with VAT: implications for late declarations.
- Tax Treatment for Mandatory Legal Training Courses – Exemption under Article 10, DPR 633/1972
- VAT due on unredeemed single-use vouchers: implications for suppliers under Italian law
- Exempt from VAT: Third Party Litigation Funding clarified by Italian Tax Agency
- Third Party Litigation Funding: VAT Treatment
- VAT exemption for accredited legal training courses by National Forensic Council
- VAT refund with guarantee for businesses less than two years old
- VAT exemption for ‘Litigation Finance’ activities
- Subscription by the Italian Republic to the Additional Protocol concerning the electronic consignment note (e-CMR)
- The so-called “Decreto Anticipi” – Clarifications on the VAT regime applicable to nutritional…
- Massive Fuel VAT Evasion Scheme Uncovered: €300 Million Seized in Italy’s Biggest Fraud Operation
- 10% VAT for road construction in urban areas: eligibility, benefits, and conditions.
- Error on the VAT number of the assignee only formal until the end of 2019.
- VAT on Airport Services: Clarification from Revenue Agency
- Error on the VAT number of the assignee only formal until the end of 2019
- Tax treatment of primary urbanization works: 10% VAT rate for urban road construction.
- Customs and Excise Reform: New Legislative Decree Under Government Examination
- 10% VAT for road construction in urban areas: benefits and conditions for reduced rate
- Application of VAT on airport services provided by municipalities: clarification by the…
- Regularization of omitted reverse charge using TD20 code for incorrect VAT billing by non-resident
- Fuel Family Fraud: EPPO Busts Criminal Gang in €300 Million VAT Scam
- Maltese Businessman to be Extradited to Sweden Over €195 Million VAT Fraud
- Malta Offers Lower VAT Rate of 12% for Short-Term Yacht Charters Starting in Country
- Company Director’s Liability for Company Tax Payments: True or False?
- Gelderland Court: Failure to meet conditions for VAT exemption on sale of land with buildings
- Proposal for Revision of VAT Reversal on Real Estate Services: A Unwelcome Improvement
- Wholesale owner suspected of over 1 million fraud with consumption tax and VAT
- Hedge did not qualify for VAT reduction
- ICT Company’s Right to VAT Deduction for Purchased Nickel as Working Capital
- Appeal Dismissed: Hedging Adjustment Payment Not Taxable under Dutch VAT Law
- Deductibility of input tax on incidental purchase of nickel batch – Court ruling 21 Feb 2024
- No reduced VAT rate for fish attractants based on the principle of the protection of legitimate expectations
- Knowledge group: mouthguards athletes are not exempt from VAT
- Accountant admits to aiding VAT fraud, risks losing title after years of misconduct
- VAT deduction denied for renting military vehicle – input tax correctly assessed
- Tax Fraud: Prison Sentence and Community Service – Court of Overijssel
- Free donations for meditation retreats taxed with VAT
- Filing Polish ESPL Returns: Due Date and Frequency for Intra-Community Transactions
- ECJ: Funfair and vending machines – not every joy is subject to reduced VAT rate
- From April, higher VAT on food and lower VAT on beauticians
- KAS dismantles VAT fraud group in polymer and steel trade, causing potential losses of 50 million PLN.
- VAT can be deducted if Invoice are issued outside KSeF
- VAT Deduction Allowed for Invoices Outside KSeF System: Recent Tax Interpretation
- Poland Delays E-Invoicing Requirements to 2025, Introduces New Implementation Plan
- VAT on assignment of developer agreement still pending NSA verdict
- MPs question Ministry of Finance about holiday VAT rate change on food
- NSA: No answer as to whether the assignment of a development contract is a service or a supply
- Updated Questions and Answers on KSEF after the Consultation
- KSeF more business-friendly. Changes in the system after consultation meetings
- Proposed changes to KSeF system after the consultation meetings
- VAT implications of renting a car withdrawn from business activity for private use
- Summary of Consultations and Upcoming Changes in KSeF: March 25, 2024 Meeting Highlights
- Poland’s KSeF: Proposed Changes in E-Invoicing Mandate and Public Consultation Results
- Romania’s E-Invoicing Mandate: Extended Grace Period Eases Compliance Pressure
- Romania Extends E-Invoicing Fines Deadline to June 2024: Impact and Timeline
- Romania e-Invoicing Grace Period Extended
- Romania E-Invoice Generator: Mobile App for Compliance with RO e-Factura Platform
- Romania publishes a draft law extending penalty grace period for not complying with e-invoicing
- EPPO Seizes €2.4 Million in Romania in Fuel Fraud Investigation Leading to Italy
- Romania B2B RO e-invoicing eFactură 2024 penalty foregiveness
- Romania Delays e-Reporting Penalties Deadline to May 31, 2024: Draft Legislation Update
- New registries for 0% VAT rate exporters should be used now: News from Tax Authorities
- Submission of 0% VAT registries now available through “Exporter’s Office” service
- Updated List of Equipment Exempt from VAT Import as of March 27, 2024
- Changes in VAT calculation for resale of used vehicles from April 1, 2024
- Russia Eliminates Zero VAT Rate for Silver Bullion Sales to Individuals
- Understanding Spanish Plastic Tax and EPR Rules
- VAT Rate for Home Improvements: 10% or 21% Depending on Circumstances
- Tax Control Plan 2024: Measures and Guidelines for Effective Compliance and Enforcement
- Transferring Receipts for Accounting: Fiscalization Requirements in Spain
- Sweden Tax Agency Clarifies VAT Rules for Non-Fungible Tokens with Digital Works
- Sweden Implements VAT Exemption for NATO Armed Forces
- Taxation of NFT with digital artwork in Sweden: VAT implications and rates explained
- Sweden Ministry of Finance’s Proposal: VAT Exemptions for NATO Armed Forces.
- Sweden Introducing VAT Exemption for NATO Armed Forces
- Swedish Ministry of Finance proposes new VAT rules to benefit small businesses
- Government Proposes Higher VAT Threshold to Boost Business Growth in Sweden
- Sweden Proposes VAT Registration Threshold Increase in Response to Record Inflation
- Switzerland Considers VAT Hike to Fund Pension Increase
- Switzerland Considers VAT Hike to Fund 13th AHV Pension Expansion in 2026
- Swiss further VAT rise proposal from 8.1% to 8.5% in 2026
- Annual VAT Reporting: Changes and Considerations for Swiss Companies from 2025
- Real Estate VAT Structuring: Options for Transfer of Real Estate under VAT Regulations
- Ukraine Implements Lower VAT Rate for Select Medications
- Common Mistakes Made by VAT Payers When Filling Data Tables: A Guide from Cherkasy Tax Office
- Taxation of Medical Services: Exemptions from VAT Reminder by Tax Authorities
- Unified Mechanism for Reflecting VAT Amount in Tax Declaration: Guidelines and Procedures.
- How to Fill Out Application for Budget VAT Refund: Step-by-Step Guide
- Taxation Order of VAT on Medical Services
- Cases of VAT payer deregistration due to reorganization: merger, division, transformation, and failure to re-register
- Budget VAT Refund During Martial Law: Tax Inspection and Documentation Challenges
- How to Obtain VAT Registry Extract: Explanation from Tax Authorities
- Registration of VAT payer: verification of data by tax authorities
- Significant Increase in VAT Declarations by Major Taxpayers in February Exceeding 9 Billion UAH
- Penalties for Non-Compliance with E-Invoicing Regulations in Ukraine
- What Are the e-Invoice Requirements in Ukraine (Full Guide)
- Registration of VAT adjustment calculation before Monday and its consequences: clarification from the tax authorities
- VAT Applies to Freight Forwarding Services for Residents, STS Confirms
- Reasons for VAT payer re-registration: filling out form № 1-VAT
- VAT Groups and Continuous Supplies: Court of Appeal Decision on Prudential Assurance Company…
- VAT Registration and Deregistration Thresholds to Increase from 1 April 2024
- Consultation on VAT treatment of private hire bookings following Uber Britannia Ltd v Sefton MBC
- Expansion of VAT Terminal Markets Order to Include Carbon Credits Trading by Government
- Import VAT Relief: Date of Importation vs. Arrival for Transfer of Residence – FTT Decision
- Proposed Changes to VAT Refund Scheme for Museums and Galleries: Seeking Feedback by 19 April
- FTT rules fruit, nut and oat bars are ‘confectionery’ and standard-rated for VAT purposes
- HMRC to Decommission VAT Online Service for Agents
- NHS Trust not required to charge VAT on car parking: Court of Appeal ruling
- UK Court Rules Performance Fees Within VAT Group Are Subject to Tax
- WTGIL Ltd v Commissioners for HMRC: VAT Treatment of ‘Black Box’ Device Installation in Cars
- UK launches EU IOSS VAT portal
- Newcastle United Football Company Ltd – FTT – Procedural case relating to input tax on agent fees
- Consultation Launched for UK CBAM Design and Administration
- Consultation launched on proposed UK Carbon Border Adjustment Mechanism
- UK Government Seeks Input on CBAM Design and Implementation
MIDDLE EAST
