The Rubik’s Cube was designed by Ernő Rubik, a mathematician from Hungary. If you grew up in the 80s, this is probably one of the toys that you (and many others) have played with. And you either got very frustrated, or you managed to ‘break the code’, and solve the puzzle in a record time (either use the ‘layer-by-layer method’, the ‘corner method’ or just peel of the stickers…).
VAT is somewhat similar to the Rubik’s Cube. It seems very simple from the outside, but it may get you frustrated, and if you don’t understand the underlying mechanism and logic, you easily get lost. Therefore, many people just throw it away or just give up trying after some time.
Which is a pity. Because even if the mechanics and logics are not appealing to you, there’s a beauty in the outcome and principles. The problem is politics: they change the stickers on the outside, which makes the mechanics break and get stuck.
Take the topic of Fixed Establishments. The basics are simple: you either are established in a country, or not. Seem pretty black or white (or red and green) from the outside. Until you start turning the sides and corners, and come up with caselaw from the European Court of Justice. The Fixed Establishment definition may be clear, but how to use it in a specific situation may be different in each case, it seems.
In the Titanium-case from this week, the ECJ’s decision is very clear: without staff, there is no fixed establishment. But we all know: this can be different in the next case…
How can you fix a broken Rubik’s Cube? You can find several videos on YouTube to help you fix the Cube. The same applies to VAT. Not just on YouTube, but on LinkedIn, Twitter and probably TikTok (I haven’t checked that one) you can find guides, explanations, webinars, success stories and sales pitches on VAT. But despite all the good preparations, clear examples and solutions, there are always parts that seem to miss. Not only advisers are looking for solutions for this. Tax authorities and Governments are also trying to make the rules easier, more transparent, and better accessible.
In the Netherlands, the former State Secretary of Finance has advised the government to create a new Minister post for ‘Fiscal Affairs’. That person should make a clean slate within the tax authorities, and build a convincing, trustworthy and flexible tax authority, that not just ‘makes things easier’, but actually starts making tax (and VAT specifically) ‘more exiting’.
For us, it already is. As a former colleague once said in her interview: ‘I just love tax!’. Don’t we all?
- Job opportunities in Germany, Hungary, India, Netherlands and United Kingdom
- Job opportunities in Germany, Netherlands, Poland, Switzerland and United States
- VATupdate.com – Did you discover our Search function yet? Ability to select on keyword, country, subject/topic, period and/or a combination
- Vertex Exchange Episodes – Episode 4: Tax Transformation from Global Template to Go Live on June 17, 2021
- Sovos Webinar: Why Finance Directors need to be prioritising VAT (June 2)
- Digitalisation could lead to increased tax controversy after COVID-19
- Do you remember these articles on VAT and Transfer Pricing?
- What is the ”value” (taxable amount) of ”data”? Does the 2013 OECD Report ”Exploring the Economics of Personal Data” an answer?
- Sovos Webinar: Why Finance Directors need to be prioritising VAT
EUROPE
- Flashback on ECJ Cases C-219/12 (Finanzamt Freistadt Rohrbach Urfahr) – The operation of solar panels falls under the concept of…
- ECJ C-182/20 (Administraţia Judeţeană a Finanţelor Publice Suceava and Others) – Judgment – Input VAT deduction prior to insolvency proceedings
- ECJ C-931/19 (Titanium) – Judgment – Concept of ‘fixed establishment’ – staff required
- ECJ/CJEU: appointment of three judges of the Court of Justice and a judge of the General Court
- Upcoming E-invoicing & Real Time Reporting Developments in Europe
- Central Electronic System of Payment information (CESOP): Transmission and exchange of payment data to fight VAT fraud
- Article IBFD – VAT and the Sharing Economy
- European Commission establishes ‘observatory’ against tax abuse
- EU comes with plans for digital wallet
- EU 2021 VAT changes – selling goods using EU warehouses
- Week of May 24, 2021 – What did we learn from the ECJ (VAT)?
- What is the VIES system and what should you keep in mind?
- Assessing marketplace liability for EU VAT on B2C sales they facilitate
- Global VAT Compliance is hosting free webinars on Friday 11 June 2021 about One-Stop Shop (OSS)
- New VAT e-commerce rules – summary for Accountants & SMEs
- Further VAT changes on the horizon for online retailers
- Providing services? Be aware of potential effective use and enjoyment rules
- Arm’s Length Principle and Taxable Amount in the VAT Directive
- Simplified VAT declaration for services to consumers in other EU countries
- How to treat grants from a VAT perspective ?
- New VAT rules for e-commerce: 1,2,3…VAT returns?
- Revising the Tobacco Excise Directive: why harmonized tax rates in the EU are not realistic (part 6)
- VAT refunds in the EU and GCC
- Flashback on ECJ Cases C-24/15 (Josef Plöckl) – VAT exemption on intra-EU transfer even if the taxable person has not communicated a VAT…
- Flashback on ECJ Cases – C-154/80 (Coöperatieve Aardappelenbewaarplaats) – Clarification term “supply for consideration”: a “direct link”…
- Flashback on ECJ Cases C-16/93 (R. J. Tolsma) – A service is only provided “for consideration” if there is a legal relationship between the provider and the…
- ECJ C-248/20 Skellefteå Industrihus vs. SE (Order): Sweden may not require that all input VAT is repaid immediately if a planned real estate project…
- Flashback on ECJ Cases C-230/87 (Naturally Yours Cosmetics) – The taxable amount is a subjective value which must be capable of…
- Belgian Supreme Court rules in the case Vos Aannemingen dealing with the VAT recovery of real estate agent fees in case of split sales
- Asian webshops fraud with VAT and customs via Zaventem airport
- What were the VAT developments in Belgium in May 2021?
- Belgium restricts the scope of the cost-sharing VAT exemption to the social sector
- Coronavirus raises various tax questions in Belgium
- Advertising service for consideration in connection with receipt of a donation
- Compliance footprint: Requirements for foreign businesses registered for VAT in Denmark
- No deemed output for supply of taxable services in return for bonuses accruing
- Law changes to implement new EU VAT rules for e-commerce as from 1 July 2021 enacted
- Designated public service will act as competent Authority for VAT One Stop Shops
- French 13th Directive refund claims to be submitted electronically
- The 50% fine in the event of failure to issue an invoice is contrary to the Constitution
- Threshold of low value gifts is raised from € 69 to € 73
- The fine of 50% for failure to invoice finally censored!
- What is a Wirtschafts-ID Nummer in Germany?
- Federal Fiscal Court: indirect link sufficient for input VAT deduction (implementation of Mitteldeutsche Hartstein-Industrie AG C-528/19)
- Germany to miss postal operators IOSS July 2021 launch
- Hungarian tax administration will prepare draft VAT returns for Hungarian taxpayers from 1 July 2021
- Reciprocity Required For 13th Directive VAT Refunds
- Key VAT proposals in summer 2021 tax package
- Reduced VAT for food supplements
- Navigation on the high seas of newly built ships and Covid 19: clarifications on the VAT regime
- Italy postpones E-Document Legislation till Jan 1, 2022
- Law Decree “Sostegni bis” – Immediate recovery of VAT on outstanding receivables from customers subject to insolvency proceedings
- Exchange of letters between Italy and San Marino on electronic invoicing
- Circular 791-2 : A newly created tax office Luxembourg 6 is competent for e-commerce and OSS
- Consolidated version of the VAT Law on E-Commerce applicable starting 1st July 2021
- Malta VAT Department Announces Monthly Deadline for VAT Returns
- New Guidelines: Rectification of VAT Registration Type from Article 10 to Article 11
- Explanatory note on the Increase of Threshold for Small Traders as of July 1, 2021
- 6% Reduced VAT Rate for Accommodation and Restaurant Services
- COVID-19 Pandemic: Moldova Reduces VAT Rate for Hotel and Restaurant Services
- Invoice addressed to the company insufficient for VAT deduction if privately used
- New e-commerce one-stop shop not suitable for VAT fiscal unity
- Application of globalization scheme and car dismantling scheme to car trade and car dismantling activities
- No VAT exemption for intermediary instead of maternity care
- No VAT deduction for a house, only for the solar panels
- Entrepreneur for outsourcing staff to a home care institution, not a VAT fiscal unity
- Municipality does not receive VAT compensation when operating cemetery
- Accountancy firm wrongly deducted VAT on construction and furnishing of private homes
- COVID-19: VAT measures corona extended until October 1, 2021
- Advice: appoint Minister of Fiscal Affairs
- The tax office tracks VAT carousels, but breaks the law
- The VAT group will submit one joint declaration
- A new model of e-invoices and the National System of e-Invoices – KSeF
- Ministry of Finance issues a pre-consultation on VAT groups
- The Ministry of Finance is preparing further changes in sending SAF-T
- KAS and CBŚP – joint actions against VAT fraudsters
- Pending legislation concerning VAT on e-commerce; withholding tax rules further delayed
- Pending legislation concerning VAT on e-commerce; withholding tax rules further delayed
- Having a PE in Portugal: New rules, new challenges ahead
- Mandatory QR codes on invoices
- Reverse charge rules on domestic supplies in Portugal
- Deadline for VAT registered UK entities to appoint tax representative extended
- Tax authorities clarify when VAT reverse charge mechanism applies
- VAT exemption regarding the intracommunity acquisition and sale of goods necessary to fight the pandemic has been extended until 31.12.2021.
- VAT on hired staff for care and social care
- Clarification: an electronic invoice can be approved by a formal, informal or an implied action
- Correction: Distance sales that must be included in the calculation of the turnover threshold
- Cross-border e-commerce: Tax-efficient and customer-friendly delivery process to Switzerland
- Don’t forget to reclaim your Swiss VAT – deadline is June 30, 2021
- Turkey Extends Temporary VAT Rate Reduction for Overnight Accommodation Services till July 31, 2021
- Event by SNI: e-Accounting Receipt & GEKAP: Current regulations and SAP Implementations (June 9)
- Turkey Defines Consignment Deliveries Under Special Consumption Tax
- How is the correction of the error made in the tax reporting for the periods up to 01.04.2021 reflected in the VAT reporting?
- Mortgaged property becomes the property of the bank: what is the procedure for VAT taxation?
- How is the cost of returnable packaging reflected in VAT accounting?
- Do you return low-quality goods to a non-resident: what about VAT?
- You give the right to use a computer program: what about VAT?
- HMRC Guidance: UK trade agreement with Mexico in effect
- HMRC Collection: Road fuel scale charge tables for VAT
- Are you looking for VAT relief on your supply of staff?
- VAT due on the charging of electric vehicles
- Debt factoring and VAT
- HMRC Guidance: Trading and moving goods in and out of Northern Ireland (Update)
- Export/import of goods with a focus on the United Kingdom
- HMRC Notice: Who should register for VAT (VAT Notice 700/1)
- Customs duties relief simplification for returned goods from the EU to the UK
- HMRC internal manual: Place of Supply of Goods
- Statutory guidance Notices under The Customs Transit Procedures (EU Exit) Regulations 2018 (Updated)
- HMRC Guidance: Apply for a grant to help small and medium-sized businesses new to importing or exporting
- New UK VAT reverse charge rules for construction services
- HMRC confirms 20% VAT rate for public EV charging
- How Do I Protect My Business Against Non-Deductible Import VAT?
- VAT treatment of public funds received by further education institutions
MIDDLE EAST
- VAT refunds in the EU and GCC
- Tax News from the GCC – June 2021
- GCC Indirect Tax Digest – 1 June 2021
- Update NBR website & Excise tax imposed on carbonated drinks, energy drinks, and tobacco products
- Economic substance returns, deadline extended to 31 July 2021
- The controls, requirements, technical specifications and procedural rules necessary to implement the provisions of the e-invoicing regulations
- Saudi Arabia obliges electronic invoicing
- Saudi Arabia Publishes Resolution for New E-Invoicing Requirements
- How to prepare for Saudi Arabia’s e-invoicing requirements
- “Zakat, Tax and Customs” publishes a decision regarding controls and requirements for electronic invoicing
- Tax and customs authorities merge into single authority
- The UAE is a Tax Free State – True or Not?
- UAE Updates VAT Refund Guidance for Business Visitors: What’s in it for You?
- UAE authorities’ commitment to tighten regulations in order to combat money laundering and the financing of terrorism
- Reduction of penalties leviable for VAT and Excise Non-Compliances
- Executive Regulation of Federal Law No. 7 of 2017 on Tax Procedures
- Guideline allows for facilitated movement of goods between GCC countries
- VAT Payment User Guide for Commercial Property Buyers
- Federal Tax: Any person has the right to request a reduction or exemption from violation of tax laws
AFRICA
- Notification issued to persons appointed as tax collection agents
- VAT obligations for B2C and B2B digital supplies from non-residents
- FIRS Issues Information Circular on the Chargeability of VAT on Services of Financial Institutions
AMERICAS
- Florida’s Disaster Preparedness Sales Tax Holiday: Under a week left
- Missouri To Require Mandatory Electronic Filing of Certain Sales Tax Returns
- Kansas: Adoption of marketplace facilitator provisions
- Missouri: remote sellers and marketplace facilitators to collect and remit sales tax
ASIA-PACIFIC
- How To Obtain VAT Registration Certificate In Bangladesh?
- Amazon and Google register for VAT with NBR
- GSTN enables Auto-population of HSN description based on HSN Code
- GST E-Way Bill: NIC releases Changes in Blocking of GSTIN & Bill generation Read
- Govt shall look to waive duties on imports of medicines for Black Fungus
- Ten point guide to understand GST by P. Chidambaram
- Know the Procedure to File, & TCS Credit Received on GST Portal
- Due date of filing GSTR-4 for financial year 2020-21 extended
- Central Goods and Services Tax (Fifth Amendment) Rules, 2021
- CBIC notifies revised Section 50 GST interest Provisions effective from June 2021 [Read Notification]
- GST Return filing by Companies using EVC instead of Digital Signature: Provision mandatory from August
- e-Way Bill- Changes related to Blocking of GSTIN & Bill generation
- CBIC: GST E-Invoice not required for Govt Departments and Local Authorities
- Input Tax credit – Backbone of GST
- Notifications implmenting 43rd GST Council Meeting decisions
- Late fee for GST Returns Reduced: CBIC issues Notification
- Taxability of Transport of Goods by Road under GST
- Exemption versus Zero rating: Demystifying non-taxable supplies under Goods and Services Tax
- GSTR-9C – Procedure or Checklist
- GST Amnesty & Relaxation – 10 Things to Know
- Decisions/Recommendations of the 43rd Meeting of India’s GST Council
- Genuine Mistakes in filling up correct details of credit in TRAN-1 not to preclude Taxpayers from claiming ITC, says Delhi High Court
- CBIC extends with 15 days GST Returns Due Date
- A2ZTaxCorp’s Weekly GST Communique dated May 31, 2021
- GST Amnesty Scheme and Benefits
- ‘Is the GST Council heartless?’: Here’s what FM Sitharaman has to say
- Government’s measures on GST exemptions will help common man: PHD Chamber
- Interplay of GST laws with other laws
- Amnesty Plan For Little Taxpayers, Black Fungi Drug Exempted From GST
- Covid-related equipment extended tax exemption at GST council meeting
- Procedure for revocation of cancellation of GST registration
- Delhi High Court issues notice to Govt., GST Council on Plea seeking GST Relief On COVID-19 Imports Purchased for Donations to States [Read…
- Highlights of 43rd GST Council meeting
- Interest on delayed payment of refund is applicable after three months of receipt of application as per the statutory provisions
- 43th GST Council Meeting : Relaxations in timelines for Compliance under GST Laws
- Key highlights fron the 43th meeting of the GST Council
- GST On Employees & Employee Benefits
- GST Saga on Health Care Services – Mixed supply
- Key discussion of 43rd GST Council Meeting held on 28th May, 2021
- Mandatory GST Registration
- ITC Mismatch in GSTR-3B vs GSTR-2A/2B – Rule 36 (4) & It’s Constitutional Validity
- Exports Under GST- Microscopic View
- GST Council likely to exempt govt depts, local authorities from e-invoicing
- Decoding Cryptocurrency From GST Point Of View
- Politics to influence GST Council’s rate cut moves
- Updated guidance on GST impact of Transfer Pricing Adjustments
- Singapore Publishes Updated E-Tax Guide on GST for the Marine Industry
- Summary of Responses – Public Consultation on the Draft e-Tax Guides on imported low-value goods and remote services
- GST Guide for the Marine Industry (Third Edition)
- COVID-19 Pandemic: Cabinet Approves Extension of VAT Exemption for Medical Goods
- VAT relief for donations of imported medicine and medical supplies (COVID-19)
