Perspective
I recently heard someone say: “only 77 years to go and we’re in the year 3,000”. To be honest, I don’t think that any of us will make it to the year 3,000. But these types of misconception exist in many different places.
Are Shakespeare’s stories funny? Find out HERE.
When you were a kid, you probably believed many stories your parents or friends told you. “If you eat watermelon seeds, a watermelon will grow in your stomach”, or “if you play with your bellybutton, your bottom falls off”. All these misconceptions may originate from personal experience, imprecise language, lack of examples and non-examples in concept formation, media representation of phenomena, errors in logic, and textbooks.
In other words: when you hear or see things for the first time, you rely on what other people tell you. And either they don’t know the answer themselves, or the communication is not complete or correct, causing you to misinterpret the situation. In some cases, this misinterpretation may remain in place a long time, until you have a new experience with the phenomenon, where the result is different from what you always believed to be the ‘truth’.
There’s a quote from Cardinal Wolsey, that describes this: “Be very careful what you put into your head, because you will never, ever get it out”. Or, put it differently, “if you learn something the wrong way, it’s difficult to learn it the right way again”.
This Cardinal was also involved in taxation. He introduced a system, where people would not pay a fixed amount of tax, but the tax would depend on the income of that person (one shilling per pound of income). The result was that poorer people pad less tax, but overall, the tax income went up significantly.
Which brings us, of course, to VAT. There are many misconceptions about our favourite type of taxation. For example, when we say, ‘our favourite’, we don’t mean to say that we like taxation. What we mean is that there is such a thing as taxation, and of all taxes, the VAT enables us to really look at all different parts of a business. VAT is so integrated in the different business processes, from ERP-system to reporting, from commerce to logistics, that it brings us, the VAT experts, in contact with many different people, businesses, processes and systems. And that is what makes VAT fun!
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.
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WORLD
- VATupdate website updated
- Technology … An Indirect Tax Expert best friend – Recent articles (2)
- Avalara Launches Sales Tax Calculator Plugin for ChatGPT
- TradeFlash – June 2023
- Tax Number Formats Around the World
- Live VAT / GST Digital Reporting & E-Invoicing Global Tracker
- A Tax Function Lost in a Digital World (Part I & Part II)
- Global Tax Policy and Controversy Watch – June 2023 edition
- IBFD Article: Intra-Group Transactions from VAT Point of View – The Pricing
- 3 reasons why you should start (re)evaluating your e-invoicing strategy
- What are Common Causes for a Sales Tax Notice?
- VAT compliance cannot wait for SAP S/4HANA migration
- Transfer Pricing & Customs Valuation – Some interesting developments around the world
- The Advantages of Electronic Invoicing, Both in Sending and Receiving
- Ready to become a master of Tax Technology?
- Evaluating your businesses VAT reclaim readiness
- VAT compliance: How you can utilise technology to be ready for the future of tax?
- Indirect Tax Experts need to continuously build their knowledge: Here is the Calendar on Indirect Tax Webinar/Events
- Customs & Global Trade Update 23/2023
- E-Invoicing & E-Reporting developments in the news in week 22 & 23/2023
WEBINARS / EVENTS
- SNI – Recorded webinar – Top Tips of e-Invoicing in EU – Regulation Guideline
- Pagero Webinar (in French) – Essential updates relating to electronic invoicing obligations in France – June 2023 (June 22)
- SNI – Recorded Webinar – Top Tips of e-Invoicing in EU – Regulation Guideline
- IVA Conference – 2023 Autumn Conference Copenhagen, Denmark (Oct 19-20, 2023)
- Webinar Pagero/Deloitte – Recorded session & slide deck – E-invoicing & e-reporting updates
AFRICA
- Exempt Exploration Firms from VAT on Drilling and Laboratories
- 2nd phase of the E-VAT System implementation in Ghana is in place
- Atwoli calls on state to reconsider proposed increase of VAT
- Gov’t to remove VAT on helicopters, aircraft spare parts
- Fuel VAT still a thorn in the flesh of Kenyans
- Kenya e-invoicing TIMS full implementation Jun 2023
- Kenya Enforcing Electronic Tax Invoice Requirements for VAT Input Tax and Refund Claims from June 2023
- Finance Bill 2023: Kenyans Staring at Higher Pump Prices as MPs Endorse 16% VAT Hike
- Finance Bill 2023: Government Proposes to Increase VAT on Liquefied Petroleum Products from 8% to 16%
- Federal Inland Revenue Service empowered to appoint non-resident suppliers as agents of VAT collection
- Nigeria’s Revenue from VAT, CIT Falls by 18 per cent to N1.18trn in Q1 2023
- Customs, Excise, and VAT Highlights of Finance Act 2023
AMERICAS
- Federal budget (Bill C-47) enacted, covering GST/HST treatment of payment card clearing services, pension…
- Proposed changes to Canadian customs valuation rules: Implications for importers
- C. PST — Notice 2023-004 — Online Market Place Framework
- Canada Proposes “last sale” rule in relation to Customs Valuation
- Mexican VAT Refunds are subject to a Drastic Change affecting Business Models in Mexico
- Mexico offers tax incentives to taxpayers who perform productive economic activities in the States of Oaxaca and Veracruz
- VAT benefits for economic activities in Isthmus of Tehuantepec
- Sales Tax Sourcing Rules Explained
- Sales tax on deliveries: More states to follow Colorado
- CBD Sales Tax State-by-State Guide: Which States Require Sales Tax on Cannabidiol (CBD)?
- Clean Room Equipment Qualifies for Indiana Manufacturing Exemption
- Large Hotels in Oklahoma Are No Longer Taxed as Marketplace Facilitators
- Tennessee Rules Membership Fees from Online Exercise Classes Are Taxable
- Texas Excludes Furnishing of Academic Transcript from Definition of Information Services
- Maryland: Tax Treatment of Cannabis Discussed
- South Dakota Eliminates 200-Transaction Threshold from Economic Nexus Requirement
- Indiana Updates Application of Sales Tax to Nonprofit Organizations
- What are Common Causes for a Sales Tax Notice?
- Massachusetts sales tax holiday planned for mid-August
- If Milwaukee gets its own sales tax, it will get funding that cities across the nation have
- Texas: Information on 2024 Water-Efficient Products Sales Tax Holiday Issued
- Arizona: Threat to stop sales tax in Maricopa County
- Louisiana: House Bill 171 eliminated the 200 transactions sales and use tax economic nexus threshold
- Mississippi: Court of Appeals affirmed taxpayer liable for uncollected sales tax on supplies to oilfield service companies with retail sales tax permits
- United Kingdom: HMRC Closes Old VAT Filing Portal
- US Indirect Tax Digest – June 2023
- Unhappy Holidays? Sales Tax Holidays Challenge Exemption Certificate Management Activities
- South Dakota (US) Reduces State Sales Tax Rate and Amends Economic Nexus Threshold
- Arizona: Legislative leaders reject brokered sales tax extension
ASIA PACIFIC
- Indirect Tax Measures in 2023 Budget (South Australia)
- Requirements of recipient created tax invoice for GST purposes
- New determination governing issuance of all recipient-created tax invoices
- Australia’s Progressive e-Invoicing Implementation
- Azerbaijan Exempts Import of Passport Forms from VAT
- Azerbaijan President Approves Decree Amending List of Materials Exempt from Import VAT for 2023
- 7 Recent updates on the GST portal – June 2023
- GST council to hold meeting on 11 July – Here’s what will be on the agenda
- GST assesses with turnover between ₹5-10 crore must prepare for e-invoice system transition
- GSTN issued advisory on Enablement Status for Taxpayers for e-Invoicing’
- GSTN issued advisory on Enablement Status for Taxpayers for e-Invoicing
- Recipient’s ITC cannot be denied in case supplier becomes non-existent or his registration cancelled…
- GST Credit cannot be denied to purchaser if Supplier Registration is cancelled retrospectively
- Unveiling the Massive GST Fraud: Protecting Your KYC Documents in the Digital Age
- Groundbreaking Development in GST Jurisdiction! Indian GST Authorities Empowered to…
- GST evasion of ₹30,000 crore unearthed
- Important Update: 2 Factor Authentication will be made mandatory from July 15, 2023, for all taxpayers with AATO above 100cr
- GST council must distinguish between betting-related, skill-based online games: Former CBIC chair
- Weekly GST Communique dated June 12, 2023
- SEZ units are not exempt from search and seizure proceedings conducted by GST authorities
- GST Department Considering Pre-Filled Return Forms Like AIS by I-T
- Punjab hikes VAT on petrol, diesel; check latest fuel prices
- Rs 10,000 crore GST fraud: 3,000 shell cos created on fake details
- CBIC weighs I-T-like prefilled consolidated GST return forms
- Next GST Council meet likely to approve 50 appellate tribunal branches
- Proposal for Calculation and Collection of Consumption Tax via Online Platforms in Japan
- Japan ‘deemed reseller’ for digital platforms April 2024
- Japan introduces further sanctions against Russia
- Kyrgyzstan ETTN e-invoicing May 2023
- Kyrgyzstan Requiring E-Invoices for All Taxpayers from May 2023
- Kyrgyzstan Sets Zero VAT Rate for Import of Raw Vegetable Oil
- Implementation of electronic invoicing (e-invoicing), voluntary disclosure program, and effective date for sales tax on “low-value goods”
- Special Voluntary Disclosure Programme / Voluntary Disclosure Programme 2.0
- TDS 23/08: GST input tax deductions and output tax liability
- New Zealand Tax Agency Seeks Comments on GST for Director Services Provided Through Personal Services Company
- Pakistan Lower House 2023 draft Finance Bill amends sales tax schedules for specific goods
- Finance Bill 2023: Sales tax on information technology (IT) services
- Proposed VAT refund program expected to boost economic output
- VAT refund for alien tourists to yield P5.7 billion
EUROPE
- ECJ C-243/23 (Drebers) – Question – Qualification as ”new building” – extended revision period of 15…
- Comments on ECJ C-418/22 : VAT fines: judgment of the CJEU of 17 May 2023
- Flashback on ECJ Cases – C-124/07 (J.C.M. Beheer BV) – Activities of Insurance brokers who have only indirect relations are VAT exempt
- Comments on ECJ C-97/21: Two penalties cannot be imposed for the same offence
- Comments on ECJ C-243/22: Are the Adjustment rules in Belgium for immovable property due for Adjustment?
- Agenda of the ECJ VAT cases – 2 Judgments, 1 AG Opinion, 2 Hearings till July 13, 2022
- Comments on C-114/22 – Invalidity of transactions solely based on civil law cannot result in refusing input VAT deduction
- ECJ (Non-VAT) – C-322/22 (Dyrektor Izby Administracji Skarbowej we Wrocławiu) –…
- Comments on ECJ C-418/22: A penalty of 20% of the output VAT is permissible
- Comments on C-127/22: Input VAT adjustment for unused stocks
- ECJ judgment on the interest rate on overpayments may have a broader meaning
- Comments on ECJ C-516/21: Rental of a building and permanently fixed tools: operation exempt from VAT?
- Comments on ECJ C-620/21: A company supplies social care services abroad. What are the conditions for…
- VAT Consult newsletter – May 2023
- EU considers boost to circular economy with reduced VAT rates
- How artificial intelligence contributes to tax deficit and fight tax evasion
- EU Customs Union 2028 Reforms: New Deemed Importer Role
- VAT on margin and sale of vehicles for parts: the IT judgment of the CJEU
- Council of the European Union Proposes to Introduce Reduced VAT Rate for Recycled Products
- Ministers Broadly Back EU VAT Reform but Call for Some Changes
- The European Commission Will Implement Mandatory Real-time E-reporting
- Shaping Europe’s digital future – Digital Partnerships
- Five suspects responsible for EUR 38 million VAT fraud scheme arrested
- Request the VAT from other EU member states on time
- Tomorrow: The Council will discuss the Commission’s ViDA proposal
- Investigation Huracán: VAT fraud involving 10 000 cars uncovered
- Arrests and 450 searches in Europe for millions in VAT fraud
- EU VAT Reforms Tracker
- European Commission new rules for e-commerce/IOSS – EP Think Tank Briefing
- Electronic evidence: new rules to speed up cross-border criminal investigations
- The importance of the invoice for VAT purpose
- European Commission published a draft version of the CBAM Implementing Regulation
- Have your say – Reporting obligations during the transitional period of the CBAM
- Europe is talking about modernization VAT (ViDA)
- Some countries aren’t being panicked into pre-clearance VAT e-invoicing
- Top 10 Signs That Your SAP System Can’t Manage EU VAT Complexity
- Are you organizing an event within the EU – Be aware of the TOMS
- EU AI act: first regulation on artificial intelligence
- Payment of interest on tax levied in breach of EU law
- VAT rules for the digital age
- Getting a head start on Digital Reporting Requirements
- The e-invoicing revolution is coming
- European Union: A New VAT And Customs Regime for E-Commerce Platforms
- Changes in EU customs law and trade control regulations
- Warning Regarding the Submission of Export Declarations in SIAES2 – Data for Security and Protection
- VAT in the digital age: ViDA receives a boost plus more work to be done
- EU finance ministers generally agree with VIDA proposals in Ecofin
- ECOFIN ViDA – Recording of the discussion
- EU VAT in the Digital Age – states call for more time and flexibility
- Watch ECOFIN ViDA live now!
- VIDA deadline may be extended
- EU VAT in the Digital Age ViDA June 2023 compromise texts
- POLL results – ViDA: 88% expects the EU Council to propose a consistent framework of reporting based on e-invoicing for intra-EU and domestic transactions
- Extended VAT Filing Deadlines for Summer 2023
- Circular 2023/C/58 on the introduction of a ten-year retention period, an extended four-year limitation…
- Update on VAT Chain Reform
- The clock is ticking: the deadline for mixed taxpayers in Belgium is approaching!
- Summer 2023: Extended reporting deadlines
- Triangular operation – VAT: new administrative circular
- VAT exemption for medical care services: judgment of the Constitutional Court
- Temporary VAT reduction on essentials estimated at €14.5 million
- Cyprus To Introduce New Three Percent VAT Rate
- Our View: VAT cuts are not so temporary
- VAT amendment laws were unconstitutional
- 5% VAT on the Purchase or Construction of a new residence – New Legislation enactment
- Ministry of Finance backs reduced VAT law
- VAT Treatment of Electricity Supplies from Charging Stations (CJEU Judgment)
- Czech Republic: Changes to application of VAT to real property
- Czech Republic: Change in VAT Rates In 2024
- Denmark Tax Agency Clarifies VAT-Exempt Business’ Entitlement to Additional VAT Reimbursement on…
- Corrections to past VAT returns will incur interest from 1 July 2023
- Denmark proposes cultural levy on providers of on-demand streaming services
- Amendment of the DAC7 executive order
- Tax on one-off services according to Section 2 c of the Packaging Tax Act
- E-Commerce in Estonia: What Sellers Need to Know
- VAT Rises for Press, Hotels and Banks was a Compromise
- How is the POS environment regulated in Estonia?
- Estonia raises VAT to 22% 1 January 2024
- Lycamobile accused of money laundering & VAT fraud in France
- Major VAT Decrease for French Breeding
- All you need to know about E-Invoicing & E-Reporting in France
- Mandatory E-Invoicing: Lifecycle Management and Invoice Statuses Transmission
- Federal Ministry of Finance guidance: Definition of investment gold
- New Federal Ministry of Finance Circular regarding supply chains
- E-invoicing obligation from 2025 in the B2B sector?
- Munich court rules that a year-end TP adjustment does not justify additional import duties
- MYDATA Summary Guide” highlighting recent changes & developments [New 12-6-2023]
- Greek tax authority enhances efforts against tax evasion with new digital app
- Ruling 347: Negative Net Equity and VAT Refunds above 30k
- Ruling 345: Only medical devices falling under a specific category are eligible for the reduced VAT rate
- Legal Principle No. 11/2023: Transactions between “Italian” fixed establishments of companies belonging to a foreign VAT group
- Guidance about 2022 VAT corrections/checks
- Rental of a boat for saving in the sea not taxable for VAT purposes
- IBFD Article: Digital Zero-Price Market – VAT Consequences
- UK VAT Group: VAT treatment of transactions between Italian and UK permanent establishments
- Application of Split Payment VAT for Gifts and Free Services: Italian Regulation Explained
- The repair and replacement of assets under warranty excludes VAT
- Further guidance needed on transfer pricing adjustments and customs valuations in Italy
- Update of VAT Law with Revised Tax Rates and Reporting Obligations
- Liechtenstein Increasing VAT Rates from 2024
- Liechtenstein: Update of VAT Law with revised tax rates and reporting obligations
- Details Registration and Declaration Requirements for DAC7
- Automatic and mandatory exchange of information declared by Platform Operators – law of 16 May 2023
- Conditional imprisonment of eight months for VAT fraud
- Increase tax interest from 4% to 6%
- Eight months suspended prison sentence for VAT fraud
- VAT due on sales of cars after company strike based on partly estimated turnover
- No right to deduct input tax for company pension fund
- Application for refund inadmissible due to exceeding the six-week period
- Position on VAT rate lending crew sea ship
- Navigating Dutch tax and financial regulatory laws on NFTs
- Interest calculation for mirror corrections for turnover tax and VAT compensation fund
- VAT and solar panels
- Judge clear again: incorrect VAT return not the fault of the accountant
- Digital litigation of local taxes possible at all courts from 26 June
- Renovation and sale of a boat does not lead to VAT entrepreneurship
- Increased interest on tax due for VAT and other taxes
- External party is building new VAT system for tax authorities
- Cooperating partner cannot deduct VAT on the purchase of Porsche
- Parliamentary Letter permission for participation Round table discussion on the abolition of VAT on fruit and vegetables
- Judge clear again: incorrect VAT return not the fault of the accountant
- New VAT system costs 190 million euros, excluding VAT
- Netherlands ends Intrastat reporting threshold 2023
- Car trader incorrectly applies margin scheme
- E-Commerce in Norway
- Various amendments to the Value Added Tax Act
- VAT Compensation on goods and services
- When Does a Company Act like a Private Investor?
- Revenue from Business in Special Economic Zone; Deduction of VAT in Cross-Border Transactions and Residential Leases
- Supreme Administrative Court: Deduction of VAT in cross-border transactions and residential leases
- Amendments to simplify and accelerate VAT settlements, including “Slim 3 VAT package”
- Foreign companies are also to report transport to the SENT system
- Changes from July 1 after the cancellation of the state of epidemic threat
- Currency exchange rate with correction – changes after Slim VAT 3
- Poland MOF Seeks Comments to Further Extend Reduced VAT Rates on Specific Products Due to War
- Service work on the test and pre-production environment of the National E-invoice system
- VAT – companies helping Ukraine have a problem
- Fictitious VAT invoices for PLN 180 million. KAS and CBŚP detained 4 people
- ICS and export of goods – similarities and differences
- Plastic tax has become a reality
- Part of the changes in Slim VAT 3 is already in force, some will come into force will come in any moment
- SLIM VAT 3 – what changes await taxpayers from 1 July 2023?
- Almost half of the complaints in the Supreme Administrative Court resolved within a year
- The problem with CIT or VAT – companies helping Ukraine face one or the other
- A new 9% reduced VAT rate in certain non-alcoholic beverages could be applied from 2024
- Legislative proposal with financial impact for pharma companies: VAT adjustment for certain contributions
- VAT-rule for the sale of used cars will change
- Russia Proposes to Amend VAT on Sale of Used Vehicles
- Updated declaration for indirect taxes
- Zero VAT for the tourism industry: the list of has been re-approved
- Bizkaia SII: Technical documentation updated
- Temporary 5% VAT rate will apply to certain electricity and certain fuel supplies until 31 December 2023
- Audit procedure for new fiscalization in Spain (mainland territory)
- Extending VAT Rate Reduction for Basic Food Products
- Spain won’t reinstate VAT on basic foods until price rises ease – minister
- VAT treatment of transfers of real estate assets provided as security clarified by the Spanish General Directorate of Taxes.
- What is considered by TicketBAI guarantor software in the Basque Country?
- The position “Accounting period regarding retroactive deduction for input tax” shall no longer apply
- The position “Deduction right for VAT on brokerage fees When acquiring property” shall no longer be applied
- Deliveries of goods in several stages with only one transport of the item out of the EU, VAT
- The position “Sales in export stores, VAT” should no longer be applied
- The position “Taxation of goods for goods transport, VAT” shall no longer be applied
- The position “Rental Guarantee – Tax liability for VAT” shall no longer be applied
- The position “Questions regarding the application of the Court of Justice in Case C-152/02 Terra…
- The position “VAT on the lease of parking space for housing as an agreement has not been concluded between the same parties as agreed on the housing lease”…
- The position “Repayment of incorrectly paid VAT, a comment on the Government Court Judgment 2005-12-27, Case No. 4010-03” shall no longer be applied
- Sweden Tax Agency Clarifies VAT Exemption for Ships Sailing on High Seas
- VAT on taxed financing grants in the construction of garage of the community association
- VAT registrations and VAT returns must be submitted electronically as of Jan 1, 2024
- Guidance about reporting impact of VAT rates increase per January 1, 2024
- The Swiss Parliament has approved new VAT provisions
- In what cases a person (except a non-resident person who provides electronic services to an individual in the customs territory of Ukraine) is subject to mandatory…
- Is the VAT taxation of non -profit supplies?
- The payer must provide access to e-carriers with PN during DPS checks
- Nuances of VAT accrual on the rent of the utility
- The government has changed the risk criteria for VAT payers
- Are VAT tax exempt transactions for the supply of goods (works, services) to non -profit organizations, budgetary institutions, individuals who are…
- Current issues regarding documentary checks on budgetary VAT refunds
- Nuances of submitting supporting documents f. No. 1-VAT
- Free receipt of goods from a VAT payer: will there be tax consequences?
- Is VAT taxation subject to free receipt of goods from a resident of a VAT payer or a non -payer/non -resident…
- On the peculiarities of the inclusion of the amount of negative value of VAT, formed based on the results of the reporting period, in the…
- How is VAT taxed by a resident of a resident – VAT payer, which is located in the customs territory of Ukraine…
- Do you pay VAT in the event of MNMA write -off?
- The Essential Guide to UK VAT Compliance
- MPs press for removal of VAT on audiobooks
- A ‘Fairly Interesting’ VAT development
- UK HMRC Confirms VAT Liability of Digital Publications Prior to May 2020
- VAT refunds guidance
- Heathrow joins calls to bring back VAT-free shopping for tourists
- GST could be back on the table as Guernsey politicians look at ways to plug budget deficit
- RCB 6 (2023): VAT liability of digital publications
- HMRC’s immediate priorities for VAT
- Updated Notice 700 – The VAT guide
- Voluntary standard for customs intermediaries – Consultation
- Lessons from the courts
- United Kingdom and Isle of Man – Change to interest rates applied to late VAT payments and overpayments
- HMRC Policy paper: VAT liability of digital publications — Supreme Court decision in News Corp and Ireland Ltd
MIDDLE EAST
- Saudi Arabia Tax Agency Announces Determination Criteria for Third Wave Integration of E-Invoicing Requirements
- Saudi Arabia Tax Agency Announces Determination Criteria for Fourth Wave Integration of E-Invoicing Requirements
- Saudi Arabia Tax Agency Announces Determination Criteria for Fifth Wave Integration of E-Invoicing Requirements
- Proposal to grant VAT exemptions to Special Economic Zone (SEZ) entities
- Proposed Amendments to Tax and Zakat Regulations for Public Consultation Purposes
- FTA Announces Final Deadline for Filing VAT Returns
- FTA Announces Final Deadline for Filing Excise Return
- FTA: Final Deadline for Filing Excise Return
