We have lots of news about VAT rates this week. We have of course the proposed increase in Bahrain (from 5% to 10%) and Indonesia (from 10% to 11% and later to 12%), but also in other countries changes are foreseen or proposed. We made an overview of all these changes, and while we did that, we also updated and added specific country posts (e.g. on Lebanon, Zimbabwe and Algeria. Go check them out!
We also spent a lot of time on updating and posting case-law from the European Court of Justice. We regularly post road trips of ECJ cases, putting them into perspective against the recent views and developments. And of course, we have the flashbacks, where we highlight ECJ cases and bring them back to life.
Other highlights this week:
- VATupdate.com overview of Global VAT Rate Changes
- Working from home is no reason to cancel VAT registration
- Plastic Tax no good tool to raise revenue
- Overview of the VAT/GST/SUT rules in North and South America
- Guide to dealing with EU customers and their VAT rules
- Riding go-karts has a lower VAT rate as long as there’s no casino
Have a great week!
WORLD
- Job opportunities in the Netherlands and United Kingdom
- Job opportunities in India, Slovakia and United Kingdom
- Job opportunities in Belgium, India, Mexico and Romania
- Job opportunities in Brazil, Poland and United Kingdom
- Sovos Webinar: Get ready for France’s E-invoicing mandate (Oct 7, 2021)
- Sovos webinar: Black Friday Countdown: Are You VAT Ready with OSS? (Oct 14, 2021)
- Sovos Webinar: A Practical Guide to VAT Compliance with JD Sports Webinar (Nov 3, 2021)
- Global VAT rate changes as of Oct 1, 2021
- VAT/GST definitions and tags
- WTO launches new online tool to help users navigate changes in product nomenclatures
- Customs and Global Trade Newsletter Week 40
- Global Supply Chains and VAT: a Crimp in Cash Flow
- 4 ways to use indirect tax data for better tax performance and reporting
- How to navigate uncertainties (Adjusting transfer prices) in tax and customs compliance in the pandemic
- Amazon VAT manual for sales partners
- Digital transformation and VAT returns
AFRICA
- Kenya Revenue Authority published VAT flyer
- Public Notice on Implementation of VAT (Electronic Tax Invoice) Regulations
- Nigeria Tax Issues: Examining The N25 Million Threshold For VAT Exemption
- South South governors declare to Join VAT Supreme Court suit
- Five Northern states join FIRS in VAT dispute against Rivers, Lagos
- VAT rates in Nigeria
AMERICAS
- Brazil’s tax reform bill: dual VAT
- Supreme Court confirms state VAT is excluded from calculation of the PIS/COFINS tax base
- Election Concerning the (TOGC) Acquisition of a Business or Part of a Business
- A Canadian Tax Lawyer’s Perspective On GST/HST And Constructive Importers
- Manitoba introduces a 7% tax rate on streaming services, online marketplace, and accommodation services
- Canadian businesses to provide GST/HST registration numbers
- Upcoming Federal Luxury Tax
- Manitoba: The last Canadian jurisdiction to tax digital
- What You Must Know About EU VAT If You Have European Customers
- ‘Best we can do’: Imbert defends removal of VAT on certain food items
- Imbert promises removal of VAT on oil, cereal, and more from Nov 1
- S. product exclusion extensions, medical-care products imported from China (COVID-19)
- USTR previews US China trade relationship
- California: New Law Requires Marketplace Facilitators to Register, Collect and Remit Specified Fees
- State revenues – Where’s the money coming from?
- California Governor Vetoes Sales Tax Bill Requiring Large Online Retailers to Detail Sales by Destination
- Revised R&D rules for sales tax exemption or franchise tax credit purposes (Texas)
- US Senate proposes an excise tax on virgin plastics rated at 0.20 USD per pound fee
- Recipe For Sales Tax On Food In Minnesota – Too Complex!
- West Virginia: Streaming Services Subject to Sales and Use Tax
- Mississippi: Proposed to expand sales and use tax to software-as-a-service, platform-as-a-service, infrastructure-as-a-service, and other cloud computing models
- Massachusetts : Act establishing a tax for online advertising
- Federal Plastics Tax Is Not a Good Revenue Raiser
- Utah Administrative Ruling Holds that Online Access to Training Platform is Taxable
ASIA-PACIFIC
- Tax disputes: When to settle and when to litigate a tax matter (Part 1)
- Tax disputes: Comments on settling a tax matter (Part 2)
- ATO Provides Guidance on Government Grants, Payments, and Stimulus During COVID-19 – GST impact
- Cambodia Issues Implementing Rules for VAT Registration Requirements for Non-Resident E-Commerce Providers
- Implementing Rules for VAT Registration Requirements for Non-Resident E-Commerce Providers
- S. product exclusion extensions, medical-care products imported from China (COVID-19)
- USTR previews US China trade relationship
- GST payable on Complete Billing amount including Employer portion of EPF & ESl Amount
- All you Need to Know about Generating scripts for RoDTEP Scheme on ICEGATE
- GST council recommendations include changes to GST rates on some goods and services
- Industrialist wants GST on solar devices restored to 5%
- Inter-co managerial/leadership services to attract 18% GST
- GST on Sell of Ice Cream
- 18% GST payable on Aluminium Composite Panel or Sheet
- GSTN to soon make enhanced facilities of GST Return, Refund, Registration available on GST portal
- CBIC clarifies admission to indoor amusement parks having rides etc.
- CBIC clarifies services by cloud kitchens/central kitchens
- CBIC clarifies on GST rates & classification for 12 Category of goods
- Contrary to advance rulings issued under GST law
- Basic Overview of CGST, SGST, IGST and UTGST
- Refund interest paid on ineligible input tax credit, says industry
- CBIC clarifies on GST rates & exemptions for 9 services
- CBIC issues Clarifications on applicable GST Rates & Exemptions on certain Services
- GST – Export related clarification
- Work from Home is No Reason to cancel the GST Registration: Calcutta High Court
- Tax Collection at source in GST (E-Commerce)
- Bar on input tax credit for immovable property: Extent & exceptions
- GSRDC exempted from GST as it is a Govt Entity for Construction of Roads, Sideways, Paths falling under jurisdiction of Municipality, Panchayat: AAR
- Orissa HC directs GST Dept to Refund Service Tax recovered in excess of Amount approved by Resolution Plan
- Tamil Nadu Govt. widens Powers of GST Officials
- GSTR September – Last chance for Year 20-21 Adjustments
- GST Impact of Recent Decision on Hospitality Sector
- GST applicability on leadership/ Management services between distinct persons
- GST Compliance Calendar Oct 21 & important legal developments
- GST exempt on services relating to conduct of examination for Educational Boards
- Supply of cooking gas via pipeline with Maintenance Service is Composite Supply
- Applicability of Change in GST Rates of Various Services & Transitional measures
- GSTN displays Error for Preparation of E-Way Bill if IRN is generated 2 days prior in absence of Specific Provision
- Authorities’ guide, manual and FAQ’s on GST
- GST officials raid jewellers
- Verzenden Save Document Print Constitution of Group of Ministers for Rate Rationalization and GST System Reforms: Office Memorandum
- All you need to know about GST Forms to be Filed by 31 Oct 2021 using EVC
- 5% GST on Ammonium Sulphate supplied for direct use as Fertilizers or used in Manufacturing of Complex Fertilizers for Agricultural use:…
- Due Date Compliance Calendar October 2021
- Three-tier GST rate structure likely by next fiscal
- A2ZTaxCorp’s Weekly GST Communique dated October 04, 2021
- Indonesia approves bill to increase VAT rate
- Input VAT rules relaxed
- Parliament approved VAT rise to 11% in April 2021, introduction Carbon Tax
- VAT incentive for retail merchant tenants
- VAT incentive for retail merchant tenants
- Study of the Special Voluntary Disclosure Program for Indirect Tax
- Guide on Tourism Tax for Digital Platform Service Provider (“DPSP”) and Accommodation Premise Operators
- Amendment to Service Tax Policy 2/2021: Service Tax exemption on the provision of accommodation services
- Amendment to the Sales Tax Exemption Order and Updated Service Tax Guides
- House approves 12% VAT on digital transactions
- BSP: exempt smaller digital transactions of 12% VAT to stimulate digital purchases
- Bangko Sentral ng Pilipinas backs 12% tax on digital transactions
- E-Tax Guides clarify GST treatment of imported LVG, remote services via OVR regime
- Updated GST guidance: Expenses incurred in terminating and winding-up a business
- Summary of Responses to Public Consultation on the Draft Goods and Services Tax (Amendment) Bill 2021
- Singapore Post GST/ Dutiable/ Control Authority Items FAQ
- New Bill to introduce GST on low value imported goods by air or post
- Foreign providers of digital services covered by VAT and 7% VAT rate extended
- Overseas E-Commerce or Online Platforms Must Now Pay VAT on Services Supplied to Consumers in Thailand
EUROPE
EUROPEAN COURT OF JUSTICE
- ECJ VAT Cases – This is what was published on www.vatupdate.com since Sept 1, 2021
- Five new VAT cases for the ECJ to decide upon
- ECJ allows for different VAT treatment of amusement parks and fun fairs
- Analysis of the ECJ Case C-695/20 (Fenix International)
- ECJ C-489/20 (Kauno teritorinė muitinė) – Opinion -VAT still due if smuggled goods are seized and subsequently confiscated?
- ECJ C-717/19 (Boehringer Ingelheim) – Judgment – Reduction of the taxable amount even if not established on a commercial policy
- Agenda of the ECJ VAT cases – 7 judgments in October 2021
- Roadtrip through ECJ VAT Cases – Focus on Taxable Amount – Inclusion of Taxes and Incidental expenses (Art.78)
- Flashback on ECJ Cases – C-433/09 (Commission v Austria) – Tax on normal consumption excluded from the taxable amount
- Flashback on ECJ Cases – C-45/01 (Dornier) – Medical services not provided by doctors may be VAT exempted
- ECJ – Approximation of laws – C-544/19 (ECOTEX BULGARIA) – Judgment – Ban on cash payments when combating fraud according to AG CJEU not in violation of EU…
- Flashback on ECJ Cases C-98/05 (De Danske Bilimportører) – Taxable amount excludes Registration duty on new motor vehicles
- Flashback on ECJ Cases – C-114/05 (Gillan Beach) – An inclusive service provided by an organiser to exhibitors at a fair is taxable where those events…
- Flashback on ECJ Cases – Joined Cases C-454/12 (Pro Med Logistik) & C-455/12 (Pongratz) – Different VAT rates for two types of passenger transport in principle…
- Flashback on ECJ Cases – C-251/16 (Cussens and Others) – VAT abuse of rights principle does not require a national measure transposing it
- ECJ – Provisions governing the institutions – C-561/19 (Consorzio Italian Management e Catania Multiservizi) – Judgment – Criteria for National courts to bring cases…
- Flashback on ECJ Cases – C-154/16 (Latvijas dzelzceļš) – No VAT is payable on the part of goods which have been completely destroyed or irretrievably lost…
- Flashback on ECJ Cases – Joined cases C-536/08 (X) and C-539/08 (fiscale eenheid Facet-Facet Trading) – No deduction on Intra-EU acquisitions taxed at the MS…
- Flashback on ECJ Cases – Joined Cases C-443/04 & 444/04 – Body Stress Release treatments exempt from VAT
- Flashback on ECJ Cases – Joined Cases C-144/13, C-154/13, C-160/13 – No VAT exemption & deduction, if a VAT exemption under national law conflicts with…
- Polish questions to the ECJ about TOMS
- Flashback on ECJ Cases – C-106/10 (Lidl & Companhia) – Taxable amount includes Tax on motor vehicles
- Flashback on ECJ Cases – C-307/01 (d’Ambrumenil and Dispute Resolution Services) – Regular medical checks by employers and insurers are VAT…
- Poland starts pilot for X-border rulings – Who are the other Member States who joined this initiative?
- EU study highlights complex time-consuming VAT reclaim process
- EU VAT rules by topic
- Overview of the European Union VAT Directives, Implementing regulation, Council decisions
- Paper: On the Evolving VAT Concept of Fixed Establishment by Rita de le Feria
- Launch of the ”Wise Persons Group on Challenges Facing the Customs Union”
- Contractual discount to health insurer leads to lower VAT
- B2C distant sales of goods in the EU from a 3rd country: The new level playing field scenario
- Position paper – Single VAT ID Registration: Towards a Unified VAT Solution
- EU E-Commerce VAT Package FAQs: Understanding IOSS and Imports
- Ecommerce Europe discussed IOSS success story during the VAT Roundtable
- EU report reveals high cost of VAT compliance
- Draft Report on the implementation of the 6th VAT Directive 77/388/EEC of 17 May 1977
- European Parliament: Study on ways to reduce the VAT Gap
- European Parliament adopts resolution on exchange of tax information, Commissioner says DAC 8 in 2022
- European Commission explains EU Tax Observatory’s mandate and work scope
- European Commission says VAT rates reform negotiations progressing “well”
- Proposal European Commission to extend authorization of Latvia to restrict Right to Deduct VAT on Passenger Cars
- Top court rejects the principle of the primacy of EU law over national legislation – Quid VAT and ECJ VAT Cases?
- Pre-filled VAT returns, the new way forward? These countries (will) implement(ed) it ….
- French Government clarifies new requirement for transmission of electronic invoicing and payment data as from 1 July 2024
- Where does France stand after the publication of last week’s CTC specifications?
- Medical service of the health insurance: Expert activity is not VAT-exempt
- Federal Ministry of Finance: Warning notices will be subject to VAT from 01.11.2021 onwards
- Comment on the BMF draft of an introductory letter on the consignment warehouse regulation (§ 6b UStG)
- Invoice details: relevant for input VAT deduction
- Changes in VAT exemption for transport related to export
- New customs approval codes for goods export
- Average rate to services provided in the context of an agricultural and forestry business
- Reduced sales tax rate on entrance fees for a village festival (Judgment BFH 2012)
- Greece Gazettes Law Extending Reduced VAT Rate for Tourism, Hospitality Industries Due to Coronavirus
- myDATA: How do companies transmit data under article 45 of the VAT Code? (profit margin)
- Payment of VAT to the State by the recipient of goods and services – Abolition of banks’ obligations to authorise foreign exchange
- Reduced VAT rate relevant to dining, tourism etc. is extended until 30/06/2022
- Real Time Invoice Reporting – Important rollout dates
- All you want to know about Real Time Reporting in Hungary
- Italy’s Council of Ministers Approves Draft Tax Reform
- New e-document storage rules are taking effect in Italy early 2022
- VAT Rate natural gas reduced to 5% till end of Dec 2021
- Financial assets abroad held by a non-commercial entity – compliance with VAT-EFTA
- Revolution for VAT rates to come?
- VAT refund – contribution of company shares – relevance for the purposes of the tax assessment
- Electronic invoices will not be available for those who have not joined the consultation service per Oct 1, 2021
- The transfer of inventory existing in Italy as part of a TOGC carried out abroad is an autonomous supply of goods
- Resolution on penalties imposed for wrongly charged input tax
- Tax authorities clarify VAT treatment of price adjustments
- Proposal European Commission to extend authorization of Latvia to restrict Right to Deduct VAT on Passenger Cars
- Proposal to allow Latvia to continue to limit input VAT deduction on privately used passenger cars to 50%
- Due to direct economic interest in services, VAT is partly rightly levied
- Bad news … Increase of the excise duties on Local Beers
- Tax authorities’ systems would not be able to handle a VAT rate change, if desired, before 1 October 2022
- Decree on the right to deduct VAT if catering service does not purchase food and beverages as an end user
- Computer glitch behind Netherlands VAT fine errors
- Place of supply rules for intermediary services apply even when underlying supply is not subject to VAT
- A comparison between mountain biking and VAT
- Building plots with 75% nature and 25% construction destination are building sites
- Tax authorities cannot handle growth in VAT returns
- Rightly no VAT refunds, appeal to the principle of trust does not succeed
- 37,700 entrepreneurs incorrectly received OB additional assessment with fines for July 2021
- DIrector is liable for additional VAT
- Norway’s Planned Luxury EV Tax Could Slow Sales Of High-End Models
- Low rate of 6% will be adjusted upwards to 12% from October 1, 2021
- Top court rejects the principle of the primacy of EU law over national legislation – Quid VAT and ECJ VAT Cases?
- The Ministry of Finance starts testing the National System of e-Invoices
- A delay in declaring a transaction does not longer result in reporting output and input VAT in different months
- Polish Deal may bring about changes in perpetual usufruct
- The National System of e-Invoices (KSeF) and new structured invoice soon in Poland
- Pilot EU VAT Cross-Border Rulings
- A new template of the VAT-26 form (vehicles used for business purposes) will be adapted to Slim VAT2 (Oct 1, 2021)
- How to register for VAT in Poland
- Technical problems with the list of VAT taxpayers
- Electronic excise records will have to be kept in electronic form as of January 1, 2023
- Hearing aid batteries with 8% VAT
- Tax office allows for retroactive VAT registration and VAT deduction
- Qualified signature: obligation to change the SHA-1 algorithm to SHA-256 from January 1, 2022
- SAC: A structure may constitute a building for real estate tax purposes, excluding technical devices and installations
- Bill to implement VAT grouping approved by the Lower House
- Serbia expects to have a much faster VAT refund due to the new e-invoicing system
- User guide (instructions) for the electronic invoicing system in Serbia
- Electronic Invoicing Will be Mandatory for Spanish Companies
- New Plastic Tax expected as of January, 1 2021
- Turkey Provides Reduced VAT Rate for Used Mobile Phones
- VAT Rate in Second-hand Mobile Phones Has Been Set As 1%
- Supply of second-hand goods: how is the VAT tax base determined?
- Write-off of goods and materials: is it necessary to charge VAT?
- Are tax liabilities accrued on receivables for paid but not received goods / services, non-current assets at the time of cancellation of registration of a…
- Are the funds received as a result of rounding included in the VAT tax base?
- Write-off of goods and materials: is it necessary to charge VAT?
- Tax authorities of Chernihiv region exposed the scheme of VAT evasion in the amount of more than 17 million hryvnias
- Clarification: Temporary reduced rate for hospitality, holiday accommodation and attractions
- Upper Tribunal: making claims for compensation in respect of mis-sold payment protection insurance not exempted
- UK HMRC Updates VAT Guidance for Changes in Temporary Reduced VAT Rate for Tourism and Hospitality
- UK HMRC Updates VAT Guidance for Changes in Temporary Reduced VAT Rate for Tourism and Hospitality
- HMRC OSS updates
- Policy paper: Revenue and Customs Brief 13 (2021): Change in the VAT treatment of the construction self-supply charge
- UK updates guidance on invoicing for upcoming Plastic Packaging Tax
- HMRC Guidance: Get your business ready for the Plastic Packaging Tax
- HMRC Guidance: Fuel used in private pleasure craft and for private pleasure flying (Excise Notice 554)
- HMRC Guidance: Fuels for use in vehicles (Excise Notice 75)
- HMRC Guidance: Trading and moving goods in and out of Northern Ireland
- HMRC Guidance: Pay less Customs Duty on goods from a country with a UK trade agreement
- HMRC Guidance: Sending goods to an overseas customer using rules of origin
- HMRC Making Tax Digital – Update for Agents
- HMRC Guidance: Get your business ready for the Plastic Packaging Tax – Invoice requirements delayed
- Do HMRC’s VAT rules on listed building works stand up to scrutiny?
- HMRC Guidance: Catering, takeaway food (VAT Notice 709/1)
- HMRC Guidance: Caravans and houseboats (VAT Notice 701/20)
- VAT liability on Hotels and holiday accommodation (VAT Notice 709/3)
- Brexit- VAT And Customs- Where Is My UK Import VAT?
- Brexit Update: major changes for imports of food products from EU to UK
- Are freemasons’ aims philosophical, philanthropic, or civic? The United Grand Lodge case
MIDDLE EAST
- NBR updates VAT Obsolete Stock Procedures
- Anti-avoidance measures ‘likely ahead of VAT rise’
- Proposal to increase VAT rate to 10%
- Real Estate Sector guide issued by Oman Tax Authority
- Taxpayers cautioned about business transactions with unregistered companies, establishments
- Public consultation on the implementing regulations on the e-invoicing regulation
- ZATCA amends VAT entitlement mechanism for government contractors
- Saudi’s ZATCA amends VAT entitlement mechanism for government contractors
- Draft VAT legislation proposes changes for e-invoicing
- ZATCA proposes amendments to the VAT Implementing Regulations on E-Invoicing
- Suggested amendments to the VAT Implementing Regulations
- VAT income to make up to 43% of Saudi non-oil revenues in 2021: Jadwa
