As long as taxation exists, people have been trying to pay as less tax as possible, preferably nothing at all. It’s in our human DNA. However, most people also believe that the tax they pay is spent on general things that everyone benefits from, such as roads, a safe environment with police catching thieves, and firefighters and an army helping you when you need it, and access to healthcare and education.
More recently, companies that have been trying to minimize their tax payments have been scrutinized by the public opinion and politicians. And governments and international organizations are taking more and more measure to combat fraud. With a strong focus on VAT.
The new EU VAT e-commerce rules are supposed to create a level playing field for all e-commerce sales to EU consumers. Simply said: sellers must charge local VAT on their distance sales, irrespective of where they are based or where the goods are coming from. If the goods come from a non-EU country, they can use the iOSS scheme for reporting the VAT on their sales and to claim an exemption from VAT on the importation of goods.
And that last part is an opportunity for fraudsters, as they can abuse the iOSS number of sellers to get goods VAT free into Europe. It is therefore strange that tax authorities are communicating the iOSS numbers ‘openly’, where VAT intermediaries try to treat the numbers as confidential as possible.
What else is there this week?
- The top 10 of the highest VAT rates in Europe. And the winner is… Let’s say that it’s not Portugal or Poland, two countries where you must pay close attention to the (new) SAF-T rules and reporting and invoicing requirements.
- Watching a concert or a football match online is not the same as attending the event in person. With all the Covid-19 measures and solutions that governments and businesses develop, it is not possible to change the VAT rule in this regard. Online is standard rated, attending in person can be reduced rated.
- In many EU countries books and magazines can be subject to a reduced VAT rate. And perhaps in future even a zero-rate. The new EU council chair (Slovenia) is considering this.
- In some countries VAT is automatically withheld on payments if the service provider is established abroad. These withholding mechanisms are not always known or clear to foreign service providers, who are surprised if their invoices are not fully paid.
- In a recent case the judge ruled that an online fantasy sports game should be considered a ‘game of skill’ and is not to be regarded ‘gambling’. Not really a VAT case, but still interesting to know.
Did you know that we have about 300 posts in our weekly newsletters? Because we want you to also see the regions and countries that are normally a bit more down in the Newsletter, we rearranged the order somewhat this week. If you have to look for your country, you may also come across interesting stuff in other countries.
See you next week!
MIDDLE EAST
- Saudi Arabia Publishes VAT Guideline for Government Bodies
- Guidelines for Government Entities
- Tax Authority Publishes VAT Guidelines for Government Entities
- E-Invoicing – Detailed Guidelines
- Simplified Guide: E-Invoicing (FATOORAH) Phase One Requirements
- VAT audits, disputes and litigation in Saudi Arabia
- VAT on Financial Services in UAE
- Customs guidance on imports of goods via e-commerce (Dubai)
- Everything Financial Service Businesses must know about VAT on Options & Option Premiums
- Refund of VAT Paid on Goods and Services Connected with Expo 2020
- How does the FTA Define VAT Treatment of Disbursement and Reimbursements?
WORLD
- Job opportunities in Belgium. Finland, Germany, Malaysia, Netherlands and United Kingdom
- Job opportunities in Canada, Italy, Switzerland and United Kingdom
- IFRS 16 – Accounting for VAT on lease payments by lessees
- Real-Time Reporting Puts Corporate Tax Departments To The Test
- Splitting Hairs: Receipt Image Segmentation
- Highest standard VAT Rates globally … Europe wins
- PE Watch – Latest developments and trends, August 2021
- Introduction to the rules for receipt issuing systems at point of sale (fiscalization)
- Audits: Don’t let one ruin your year
- Pre-prepared Tax Statements: An Instrument of Facilitation and Control
- Two big lessons from summitto’s VAT Talks regarding confidentiality
- Redefining Tax Teams as Partners to the Business
AFRICA
- For the classification of the sale of a meal as a delivery or service, the customer’s decision is important
- What is withholding VAT?
- Tax authority confirms 1 August roll-out of e-invoicing
- VAT judgment: 30 states may suffer revenue drop, say experts
- Rivers moves swiftly with new law for VAT collection as FIRS appeals ruling
- Nigeria Needs to Improve Tax Revenue to GDP – Boniface Chizea
- VAT and fiscal federalism
- VAT Custody: FIRS Goes To Appeal Court
AMERICAS
- New Canadian Sales Tax Regime Cast On Digital Goods And Services Catches Non-resident Businesses, Both Big And Small
- Quebec Offers States Way to Recoup Billions in Unpaid Sales Tax
- There are no taxes on Netflix in Canada – RCI
- Requirement to provide GST/HST registration numbers to non-resident suppliers, platform operators
- Erroneous sales tax collection (Pennsylvania)
- What Is the ‘New Normal’ in Sales Tax Compliance? Part 2
- Sales Tax Laws You Need to Know Now
- Hawaii Clarifies Sales Tax Position on Downloadable Software
- Uruguay extends COVID-19 VAT cuts
- Tax Authority Extends Deadline for Reporting Software Solutions Used to Issue Electronic Invoices
ASIA-PACIFIC
- 50 Practical FAQ’s Exporters need to know about RoDTEP Scheme
- Is Generation, Supply and Distribution of Electricity Liable To Tax Under GST
- Branded bowl of fresh fruits to face 5% GST
- Payments to Facebook, AWS for Advertising, Marketing not Taxable as Royalty: ITAT
- TDS not applicable on Purchase of Spare Parts: ITAT
- Problems being faced by taxpayers on new portal E-filing 2.0
- 7 Consequences of not filling GSTR 3B
- A complete Guide to become GST Practitioner
- Recent Updates In GST till 16th August 2021
- Is Purified Drinking water supplied at affordable price taxable @ 18%
- No Service Tax applicable on Transporter of Firewood as Carting Challan is not a Consignment Note: CESTAT
- 10 Suggestion for improvement in GST to GST Council
- Various functionalities made available for Taxpayers on GST Portal in July, 2021
- A2ZTaxCorp’s Weekly GST Communique dated August 16, 2021
- Annual Aggregate Turnover Computation Methodology under GST
- GST payable on transfer of leasehold rights
- 9 New Functionalities on GST Portal for the month of July 2021
- GSTN release Module wise new functionalities deployed on GST Portal for Taxpayers
- Importer can’t be blamed for Non-Generation of Bills of Entry Numbers via ICEGATE Portal: CESTAT directs Dept to reconsider Assessment [Read…
- GSTR-3B Auto fill Facility
- What they plan to fix in the next GST Council meeting
- Auto sector fears higher GST rate on certain parts after Supreme Court ruling
- GST – Supply – Services – Right to Broadcast & Show Films
- GSTR-9 and GSTR-9C for FY 2020-21
- Karnataka HC stays verdict on GST relief for race clubs
- GST Year End Activities to be addressed by 30th September
- Supreme Court Upholds Dream11 Online Fantasy Sports Format As ‘Game Of Skill’
- Reduce VAT on natural gas from 12.5% to 3%, says Goa Chamber of Commerce and Industry
- VAT Rates in Indonesia
- 2022 Budget: Increasing the standard VAT rate from 10% to 12%, along with the introduction of varied rates of 5% to 25% for certain goods…
- Indonesia MOF Announces Extension of VAT Incentive for New Residential Houses, Apartments Due to Coronavirus
- Frankly Speaking: GST not unpopular if done right
- GST reimplementation in Malaysia
- OECD recommends that Malaysia reintroduce the GST
- New Zealand aims to enhance electronic transaction data collection
- Government moves to collect more bulk data from payment service providers
- VAT (GST) Rates in New Zealand
- GST assessment not allowed without audit: ATIR
- COVID-19 Pandemic: Pakistan Extends Sales Tax Exemption for Diagnostic Support and Personal Protective Equipment
- Pakistan Sales Tax Exemption on Certain Medical and Testing Equipment for COVID-19
- FBR to set up tax office in Malakand
- Pakistan Sets Effective Date for Online Marketplace Withholding
- Philippines Tax Agency Issues Regulation to Suspend Increased VAT Rates on Specific Supplies Due to Coronavirus
- VAT Rates in Philippines
- BIR collects P1B in back taxes
- Covid-19: Extension Tax audit documentation Deadlines and filing of VAT refund requests
- Updated GST guidance, treatment of termination expenses (COVID-19)
- Updated GST guidance, treatment of termination expenses (COVID-19)
EUROPE
- SAF-T (or equivalent) regulations in Europe: 14 countries implemented (or will implement), all in a different way
- Customs Aspects of the Carbon Border Adjustment Mechanism
- Four new VAT ECJ cases added
- Invoice requirements for triangular transactions could be clarified by CJEU ruling
- VAT For Events: Digital Or In-person
- Chain Transactions: How to treat them from a VAT Perspective
- Cut-off dates for claiming 2020 expenses – Watch out for the Sept 1 deadline!!!!
- Tax authorities warn: reclaim VAT from other EU countries in time to be sure of a refund
- Flashback on ECJ Cases – C-220/11 (Star Coaches) – Order – A transport company offering only passenger transport by coach to travel agencies does…
- ECJ C-397/21 HUMDA vs. HU (Questions): Refund of wrongly charged VAT when the issuer of the invoice has gone into liquidation
- European Court: extra guarantee not a financial service for VAT
- Flashback on ECJ Cases C-242/08 (Swiss Re Germany Holding) – An assignment for consideration of a portfolio of life reinsurance contracts is…
- Flashback on ECJ Cases – C-200/04 (iSt) – Organization of language trips and study stays abroad in scope of TOMS
- Flashback on ECJ Cases C-454/98 (Schmeink & Cofreth and Strobel) – Member States’ obligation to allow revision of incorrectly invoiced VAT –…
- Flashback on ECJ cases – C-35/05 (Reemtsma Cigarettenfabriken) – No refund of VAT via 8th VAT Directive if not legally due
- Flashback on ECJ Cases C-257/11 (Gran Via Moineşti) – No VAT revision when demolishing buildings
- Flashback on ECJ Cases C-169/04 (Abbey National) – Management activities for investment funds completely exempt from VAT
- VAT Fraud & Import One Stop Shop (IOSS)
- Portal for the One Stop Shop is now under construction
- Challenges to EU OSS and IOSS regime
- Belarus Publishes Decree Reducing VAT Rate for Certain Foodstuffs and Other Changes
- Belarus Decreases VAT Rate on Certain Foodstuff from 20% to 10%
- Corporate directors liability in cases of VAT debts
- Mandatory B2G e-invoicing is anticipated in Cyprus in 2022
- The electronic signature, the key to the digital transformation of companies
- France Launches Public Consultation on VAT E-Commerce Package
- Public consultation – VAT package on electronic commerce – Reform of the VAT rules applicable to electronic commerce operations
- Novelties regarding e-invoices in France
- VAT extensions in Germany following severe flooding
- Online piano courses are not subject to the reduced VAT rate
- Bavaria: Instructions for companies affected by the flood disaster to reduce the special advance VAT payment
- Change in taxation of events
- Tax treatment of warranties clarified by recent German guidance and CJEU decision
- BFH could clarify VAT treatment of discounts in healthcare sector in pending case
- Place of taxation of events
- Six-month report card on Brexit; VAT and customs implications
- Ireland’s Debt Warehousing Scheme gets an extension
- VAT rate of 5%, even though there is a audio guide in the transport price for waterways
- Answer n. 548 – Vaccines against Covid-19 – Strictly connected services – Exemption with right to deduct
- Ruling #523: Voucher – VAT regulation
- Tax authorities question issue guidance about VAT rate of bakery products
- Tax authorities question issue guidance about VAT rate for medical devices
- Check Italian (local) VAT numbers
- Italian Tax Authority Rules on Whether Advisory Service in Connection with a VAT Exempt Supply May Qualify as an Exempt Ancillary Supply
- Italian Revenue Agency Issues Release on Tax Payment Deadline Extension to 15 September
- Company pension fund No VAT exempt UCITS
- Services Eurithity therapist NOT VAT exempt
- No legal action to request for refund of VAT
- Tax authorities question Brabant entrepreneur about VAT refund of 18 million
- No reduced VAT rate for parking at the festival
- Provision of football fields by the municipality constitutes rental of immovable property
- VAT liability of boards of directors, supervisory officers
- Municipality no VAT deduction for making sports fields available
- Solar panels and construction costs building
- Increased monitoring of import declarations by Dutch Customs
- Data in the National System of e-Invoices will be safe
- European Commission does not agree with Poland introducing a zero VAT rate on books
- Services provided from a Polish branch to the main establishment which is part of a VAT group in another Member State qualifies as taxable…
- Issuance of tax free documents documents in electronic forms is required for supplies to non-EU travelers who are entitled to refund the VAT
- ECJ to review Polish TOGC rules
- SAC’s ruling on applying the 5% VAT rate to supplies of takeaway meals
- Proposal authorising Poland to to continue a VAT exemption to taxable persons with annual turnover of max EUR 40 000 until 31 December 2024
- VAT Groups Within The “Polish Deal” Programme
- Modzelewski: VAT groups will help to escape taxation
- Poland starts with the public consultations on the draft act introducing the e-invoice
- KAS and the Police discovered companies involved in VAT fraud
- Accounting for educational services still raises doubts from the VAT perspective
- SLIM VAT 2 package to be introduced on 1 October 2021
- All you need to know about SAF-T in Poland
- Discount for the purchase of virtual cash registers – tax explanations
- All you need to know about SAF-T in Portugal
- More than 6 million registered invoices in June 2021 in the accommodation, culture, and restaurant sectors in Portugal
- Romania SAF-T: Updated Guidance Released
- Standard Fiscal Control File (SAF-T) and Voluntary Testing for Uploading the D406T Return
- Plans to introduce obligatory SAF-T reporting from 1 January 2022
- Obligation of taxpayers to notify their bank account numbers used for their business to Tax Administrator and its consequences
- In the event of a failure of the e-cash register, it is necessary to record sales in an alternative way
- VAT refund for bad debts
- Financial Administration of the Republic of Slovenia is strengthening cooperation with tax administrations in Bosnia and Herzegovina
- Entrance fee for a concert performed via the Internet qualifies as consideration for an electronic service
- Navarra, Guipúzcoa and Vizcaya adapt their regulations to the VAT of electronic commerce
- Spain’s €450/tonne plastic tax faces further delays, until early 2022
- What is TicketBAI and who is affected?
- Goods are placed under the customs regime: are such transactions subject to VAT?
- New customs authorisation – Status of AEO may offer material advantages and simplify customs clearance
- In which cases is it necessary to recognize the conditional supply of goods and non-current assets when canceling the registration of a VAT payer?
- Sale of a brand, subject to VAT?
- Ukraine President Signs Law Providing Exemptions for Electric Vehicles
- Should the received royalties be reflected in the VAT return?
- Is it necessary to tax VAT on the supply of scrap as a result of disassembly and write-off
- Scheme of VAT evasion of 47 million hryvnias was exposed
- VAT on transactions for the supply of scrap and waste precious metals formed during the dismantling and write-off of fixed assets
- Construction of a dwelling – zero-rated? The CMJ (Aberdeen) case
- Scrap the VAT: Why the public is suddenly taking an interest in consumption taxes
- Glasgow business owner avoids jail over £18k VAT scam – and he tried to blame accountant
- Parent spends £200 a child on school uniform amid calls to cut VAT
- Infinity Business Systems: invalid review request was no excuse for a late appeal – FTT
- Award Drinks: burden of proof in inward diversion fraud VAT appeal – CA
- KSM Henryk Zeman: legitimate expectation arguments in the First-tier Tribunal – UT
- EUR 940 million VAT credit to support UK financial sector doing business with EU
- All you need to know about ”Making Tax Digital for VAT” in the United Kingdom
- Save VAT by booking in advance
- VAT accounting for cathedrals and churches
- Compliance challenges of the new VAT distance selling regime
- VAT complications and rate changes
- ’No-Win No-Fee’ U.K. Company Can’t Use Insurance VAT Exemption
- HMRC Guidance: Apply for a Partial Exemption Special Method
- HMRC Guidance: Partial exemption (VAT Notice 706)
- HMRC announces single customs platform launch from 2023
- Brexit Effect on Call-Off Stock and Return of Goods
- UK issues updated Plastic Packaging Tax guidance for business
- HMRC Guidance: Check when you can account for import VAT on your VAT Return
- Making Tax Digital – Where Are We Now?
- New VAT rate for hospitality
- UK Gets Single Customs Platform CDS
