Africa
- Egypt: The tax authority published guidance clarifying the value added tax (VAT) on digital services regime. Nonresident vendors of remote services to customers in Egypt are required to register under a new “simplified vendor registration mechanism” and charge VAT effective from 1 June 2023.
- Nigeria: The Federal Inland Revenue Service (FIRS) issued guidelines on the administrative and compliance obligations of companies charged with the responsibility to withhold VAT at source and/or self-account for VAT on taxable supplies.
Asia Pacific
- Bahrain: Starting from 19 March 2023, importation of waterpipe tobacco products without a digital stamp will be prohibited through the customs points of entry in Bahrain.
- India: The Supreme Court held that a taxpayer claiming input tax credit for purposes of Karnataka value added tax (VAT) must provide proof of the relevant transaction.
- Israel: A new proposal would, if approved, require non-resident vendors of digital services and low-value goods to register for, collect, and remit VAT.
- UAE: The tax authority published an updated VAT guide on input tax apportionment. The guide is not legally binding, but is intended to provide assistance in understanding and applying the VAT legislation with regards to input tax apportionment and special methods for input tax apportionment.
Europe
- Belgium: The Chamber of Representatives passed draft legislation that would modernize the existing VAT compliance and VAT refund processes, as well as the VAT procedural rules (referred to as the so-called “VAT chain” reform).
- EU: The European Commission published a working paper regarding VAT on non-fungible tokens (NFTs).
- Malta: The Commissioner for Revenue published clarifications in relation to the notification requirements for intermediaries, who are subject to legal professional privilege, to notify other intermediaries of their reporting obligation under DAC6.
Trade & Customs
- The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) released a final rule amending and reissuing the Belarus Sanctions Regulations.
- The Bureau of Industry and Security (BIS) of the U.S. Commerce Department released a final rule amending the Export Administration Regulations (EAR) by adding 32 persons to the unverified list (UVL).
Source: KPMG
