BUILDING
Buildings and land are always a tricky subject for VAT people. Usually, it concerns a lot of money, and there’s often the question if VAT is due or not and whether or not VAT is deductible. But before you can start using a building, there’s always the inspection that must be done to check if everything has been made as agreed and expected.
As the following example shows, there’s a lot of things that can go wrong.
As a building is all completed and awaiting hand over, Alex, the owner, wants some poor and incomplete work finished by the main contractor. A meeting is arranged between Alex, the main contractor and a sub-contractor, the site agent, planning supervisor and the site safety manager. A tour is planned of the building to look at relevant defects starting on ground floor.
Alex points out badly fitting window frames, the site agent makes some notes, and the sub-contractor goes to the window and shouts, ‘Green side up.’
They move to the first floor and Alex points out badly fitted and missing lights, the site agent makes some notes, and the sub-contractor goes to the window and shouts, ‘Green side up.’
On the 2nd floor more problems are highlighted, radiator leaking, exposed cables, waste and broken window frame, the site agent makes some notes, and the sub-contractor goes to the window and shouts, ‘Green side up.’
This is too much. The safety manager has to ask. He says, ‘Every time you are told a defect, you write it down, but then the subbie yells out the window ‘Green side up.’ What on earth does that mean?’
The sub-contractor shakes his head ruefully and says, ‘I have four blokes finishing the garden and they are laying down the grass around the building right now.’
We wish you a great week!
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
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WEBINARS / EVENTS
- Webinar Zampa Debattista – Harnessing the potential of Digitalisation
- Vertex Exchange 2023 – Orlando (October 22-25, 2023)
- IBFD Training: Advanced Professional Certificate in International VAT/GST
- Event: E-Invoicing Exchange Summit Dublin – October 2-4, 2023
- SNI Webinar – Recorded version & Slide deck – e-Invoice Guide for Businesses in the APAC Region |…
AFRICA
- Ghanaian MOF presents VAT rate increase (from 12.5 to 15%) to Parliament
- COLIBRI project reaches new milestones in Ghana
- Increase in VAT on petroleum products (excluding liquefied petroleum gas gas) from 8% to 16%
- Government Doubles VAT on Liquefied Petroleum Products from 8% to 16%
- Bolt Operations OU case: Simplified Compliance Regime for VAT
- Sinopec International Petroleum and Production Nigeria Limited case: Satellite network bandwidth…
- Guidelines VAT refunds Diplomats, Diplomatic Missions and International Organisations on Goods and Services Purchased
- Clarification FIRS Guideline on the Withholding and Self-account of Value-Added Tax
- Redefinition of a building under the VAT Act to exclude fixtures and structures
AMERICAS
- Argentina Allows Exclusion from VAT Withholding, Collection, and/or Payment on Account Regimes for Qualifying Microenterprises
- Tax on foreign currency purchase extended to payments for imported goods and services
- AFIP issues regulations on extended application of tax on foreign currency purchase
- Extended deadline for certain taxpayers to register in VAT sales and purchases registry for July 2023
- The SIN of Bolivia extends the term to implement the Online Billing Modality for the Fourth and Fifth groups of taxpayers assigned as of 10/01/2023
- Canada publishes trade compliance verification list update, July 2023
- New Grocery Rebate
- Foreign GST/HST reclaim opportunity in Canada
- Canada imposes additional sanctions against Russia
- Telecommunications Tax Exemptions
- Michigan Clarifies Sales and Use Taxability of Software, Digital Goods
- Understanding Exemptions in US Sales Tax
- Sales and Use Tax Guide for Businesses with Customers in the US
- Kansas No Longer Taxes Delivery Charges as of July 1, 2023
- Ohio Adds Exemptions for Child and Baby Products Effective October 1, 2023
- Texas: Senate Bill 3 increases the franchise (margin) tax exemption from $1.0 million to $2.47 million
- Oklahoma: Reminder – 2023 tax year is the last year that franchise tax returns will need to be filed
- California Office of Tax Appeals: differing audit methods to determine unreported sales was not rational or…
- Grocery sales tax holiday starts August 1
- Sales Tax Best Practices for “E-Commerce” Businesses
ASIA PACIFIC
- Australia Foreign Registration and GST: Overseas Business Claimants
- Advice under development: Dominant purpose and principal effect tests
- Cambodia Imposes VAT on Cigarettes
- VAT implementation on cigarettes in Cambodia could save thousands of lives
- Cambodia to Implement Tobacco VAT
- New Tobacco Taxes Predicted to Generate $53M for Kingdom
- China extends 3% VAT rate withdrawal for small businesses till 31 Dec 2027
- VAT reduction and exemption policy for small-scale taxpayers continued until the end of 2027
- Digital Invoicing: Say goodbye to traditional invoices and fully enter the digital era
- VAT cut for small taxpayers
- VAT Exemption on Prescribed Medicines Clarified
- Inspection efforts intensify ahead of VAT implementation
- 15 percent VAT effective tomorrow
- 51st GST Council Meeting: Key Highlights
- CESTAT Weekly Round-Up
- DGGI finds 8,000 fraud Input Tax Credit claim cases
- CBIC notified Rule 88D to prescribe the manner of dealing with difference in Input Tax Credit available in GSTR-2B and availed in GSTR-3B
- CBIC notified various changes in GST Forms
- Hostels and PG accommodation services attract @ 12% GST
- Online gaming industry relieved as GST Council clears air on repeat taxation
- Indirect Tax Weekly Digest – August 1, 2023
- 2 GST tribunals to be functional from October; West Bengal government
- Holding shares of subsidiary not a GST service
- Loan facility to credit card holder not a credit card service, exempt from GST
- India levies 28% GST Online Gaming and Casinos Oct 2023
- Changes to GST online information database access and retrieval (OIDAR) rules
- GSTN issued Important Advisory on E-Invoice – Services Offered by the Four New IRPs
- Here’s what the 51st GST Council has decided on online gaming
- GST Council to also tax online gaming transactions in virtual digital assets at 28%
- GST on services rendered by Director
- ITC cannot be denied to recipient without due investigation of supplier: Calcutta HC
- ITC cannot be claimed without payment of GST to Government: Madras HC
- Recommendations of 51st GST Council Meeting
- Recommendations of the 50th Meeting of India’s GST Council Include a 28% GST Rate on Online Gaming, Casinos, and Horse Racing
- GST on second-hand goods
- India Clarifies Responsibility to Collect, Remit GST Where Multiple Parties are Involved in a…
- Refund application cannot be rejected without giving proper reason
- Interest is not leviable on CVD/SAD – Supreme Court dismissed Government’s SLP
- Over 4 lakh businesses to issue e-invoices as threshold lowers to ₹5 crore from August 1, 2023
- Supply of question paper along with printing services to educational institution is exempted from GST
- Over 4 lakh businesses to issue e-invoices as threshold lowers to ₹5 crore from August 1, 2023
- Indian units of foreign companies face GST queries on ESOPs
- Advisory for Customs (Waiver of Interest) Order 2023 and Regularisation of Electronic Bills of Entry
- Weekly GST Communique dated July 31, 2023
- GST compliance calendar for August 2023
- GST notices from different states make life difficult for many companies
- GSTN introduces New Tabs in ‘State Specific Information’ to Collect ‘CA Number/Electricity Consumer Number’
- Updates from the 50th GST Council Meeting Regarding the Online Gaming Industry
- Jomo: Malaysia may need to consider a “modified VAT”
- Guidelines for Malaysia’s New E-Invoicing Requirements
- Supreme Court Issues Short-Term Interim Order Not to Levy VAT on Air Tickets
- Private sector on warpath against govt over implementation of VAT on air tickets
- Free trade agreement between the EU and New Zealand was signed
- Robertson remains coy on leaked plan to ditch GST on certain products
- Foreign Registration in New Zealand and GST
- Foreigners may claim a VAT refund related to exhibitions or temporary business activities
- Same Number Electronic Invoice Jackpot – Business Owners Are Liable for Overpaid Prize Money
- Implementation of Tax Incentives for Small-Scale Businesses Adopting Mobile Payments
- VAT Guide for Businesses with Customers in Taiwan
- Typhoon Du-Su caused disastrous losses; tax authorities actively assist in declaring various tax reductions and exemptions
- When do sellers need to apply for tax registration when selling goods or services online?
- Need for comprehensive coordination to effectively support VAT policies
- Banking organisations seek VAT reduction addition
- VAT Guide for Businesses with Customers in Vietnam
- Vietnam’s Government Delays Decision to Tax Online Gaming
EUROPE
- Comments on ECJ C-108/22: VAT Treatment of Travel Agents Supplies of Hotel Accommodation
- This is what happened in the ECJ (VAT) in July 2023
- Comments on C-108/22: ECJ judgement on the VAT treatment of travel agents supplies of hotel…
- Comments to ECJ C-180/22: ECJ sets out the rules for applying VAT to trade in works of art
- Flashback on ECJ Cases – C-156/08 (Vollkommer) – Interpretation of VAT Law Allows Addition of Real Estate Transfer Tax
- Can a Group Company Constitute Fixed Establishment? – Decoding the ECJ Ruling
- VAT Status of Independent Directors
- Flashback on ECJ cases C-23/98 (Heerma) – Letting of tangible property is an independent activity
- Flashback on ECJ cases C-3/97 (Goodwin and Unstead) – A supply of counterfeit perfumes…
- Flashback on ECJ cases C-4/94 (BLP Group) – No input VAT deduction on exempt transaction, even if ultimately a taxable transaction is carried out
- Editorial: E-Invoicing implementation in the EU … Why can’t we live together?
- E-invoicing in Germany and the EU – an Update
- EESPA statement on Borderless E-Invoicing and EU Sovereign Clouds
- EU Authorities Indict Eight in Multimillion VAT Fraud
- More Time to Implement ViDA Regulations?
- EMCS report of receipt as proof for zero-rating of intra-Community supplies
- Carbon Border Adjustment Mechanism (CBAM) – Press release
- The possibility of sending opinions on the draft reform of the customs law is still available
- Everything you need to know about DAC7 [FAQs]
- CESOP FAQs Version 2: Five key takeaways
- European Parliament proposes changes to the Commissions’ ViDA reforms
- Sustainable Finance: Commission adopts the European Sustainability Reporting Standards
- European Commission is looking for contractors to assess tax legislation compliance
- Intrastat: What is it exactly and why is it important to comply to it?
- Free trade agreement between the EU and New Zealand was signed
- What Advantages Will the New French E-invoicing System Have, and How Can You…
- NEW From IBFD: VAT in the Digital Age (ViDA) Tax Dossier
- UPDATE: VAT in the Digital Age: European Parliament Proposes Changes to the Commissions’ Reforms
- EU E-Commerce Package – EU Revenue Figures Point to a Successful Implementation
- EU Parliament committee to call for one-year delay to ViDA reforms
- Update of the e-commerce documentation folder in FISCONETplus
- The complexity of the different VAT rates for restaurant services and the sale of food and drink
- Political agreement on proposed e-invoicing and e-reporting tax reform failed
- VAT in Belgium
- Supreme court: No extension of limitation period for irregular VAT declaration
- Sale of illegal goods and theft: is VAT due?
- Cyprus Amends Scope of Supplies Subject to 3% and 0% VAT Rates
- Introduction of a super-reduced VAT rate of 3%
- Cyprus new reduced VAT rate at 3%
- Requirements for digital standard bookkeeping systems – No mandate for sending/receiving E-Invoices
- Case: Construction for another’s account – time of agreement – time of construction
- How Can PDPs Facilitate Your Operations in the New E-invoicing Regime in France?
- Postponement of Mandatory E-invoicing and E-reporting in France
- The Power of Mandatory E-Invoicing in France and its Global Impact
- France Releases Updated E-invoicing Technical Specifications
- Updated External Specifications for e-invoicing and e-reporting published
- France postpones electronic invoicing initially scheduled for 1 July 2024
- Public consultation – Simplification of the regime of rates applicable to foodstuffs and inputs for food production and agricultural production
- French e-invoicing and e-reporting implementation delayed
- The Roll-Out of Electronic Invoicing Scheduled for July 2024 Has Been Postponed to A Later Date
- eInvoicing in France postponed
- E-Invoicing/E-Reporting: French tax authorities updated the B2B External Specifications
- France Postponing Implementation of E-Invoicing and E-Reporting Requirements
- E-invoicing implementation postponed
- France E-Invoicing/E-Reporting unraffled – Part 5: Methods to send and receive E-Invoices – PDP, OD, PPF
- The EU Authorizes Germany to Implement Mandatory E-invoicing for B2B Transactions
- B2B E-invoicing in Germany to Become Mandatory in 2026
- This is What the New E-invoicing Obligation for Germany Could Look Like
- Germany Proposes to Introduce Mandatory B2B E-Invoicing and Reporting from January 2026
- Export control procedures to become more efficient – BAFA’s overview of measures
- Complete input tax refusal when involved in VAT evasion
- No input VAT deduction for staff outing costs
- Draft law on E-Invoicing published
- Input VAT deduction for company events
- Germany delays mandatory B2B eInvoicing
- New Bill in Consultation – Mandatory automatic exchange of information on digital platforms and sanctions (DAC7)
- Implementation of EU Directive 2021/514 on automatic exchanges of information for digital platforms
- VAT exemption for exhibitions only if artist is of “clear fame”
- Ruling: VAT treatment of entrance fees to exhibitions of newly made art objects new realization
- Ruling: Online video games: ”avatar enhancement” and ”coaching” services – treatment for VAT purposes
- Ruling 413: Transfer of depreciable assets and their exclusion from the calculation of the prorated deduction
- Circular 24: Tax credits in the energy sector and VAT rates in the gas sector
- Ruling 412: Rate applicable to the supply of meals
- The European Commission approved the proposal to make the whole of Southern Italy a Special…
- Refund of input VAT for improvements on properties owned by third parties
- Ruling 405: Methods of determining the VAT taxable amount of the supply of a building within a leasing relationship
- Ruling 408: Facilitated resolution of tax disputes – VAT refund under Article 30te
- Supreme Court Ruling on VAT Reverse Charge Mechanism
- Sell perfume via platform delivery of a good and no intermediary
- No reduced VAT rate for management fees for holiday homeowners
- Management fees are not an additional service for vacation homeowners
- Documents on the establishment of a policy for a reduced VAT rate for catheters have been revealed
- Court of Gelderland: Undeveloped land and therefore a building site?
- Collecting and processing household packaging waste constitutes an economic activity
- VAT Guide for Businesses with Customers in the Netherlands
- Court of North Holland: Municipality does not act as business with household packaging…
- Simplified VAT import procedure. What conditions?
- Ruling: VAT on the supply of real estate
- Ruling: Determination of the tax base for re-invoicing costs related to consumed electricity
- Ruling: No input VAT deduction for municipality for investments in e-services and cyber security
- Ruling: Exclusion from VAT on the sale of an operating bakery
- Ruling: No input VAT deduction for municipality for investments relating to recreational and tourist attractions
- Ruling: Exemption from VAT for private self-defence teaching services
- Ruling: Fixed establishment (VAT)
- Ruling: Exemption from VAT of vocational education or vocational retraining services
- Ruling: VAT exemption for insurance and agency services
- July 1, 2024 – Deadline for Obligatory KSeF in Poland Stays the Same
- Exemption from VAT of a plot partially built up with a road
- Ruling: VAT payer on the sale of undeveloped plots
- Ruling: WIS TOWAR – non-alcoholic cocktail – CN 2202 – 23% VAT rate
- Ruling: Determining the right to deduct VAT from invoices issued to the city
- Ruling: WIS SERVICE – recreational “Zumba” classes for adults – 8% VAT rate
- Ruling: WIS TOWAR – ruler for measuring angles and shapes – CN 90 – 23% VAT rate
- Ruling: WIS GOODS – protractor – CN 90 – 23% VAT rate
- VAT margin and car trade
- Are examination services purchased from a training company exempt from VAT?
- The act introducing the mandatory KSEF from mid-2024 was adopted by the Sejm
- Ruling: No VAT on the sale of plots. Lack of VAT on expropriation of the plot by the voivode
- Ruling: WIS TOWAR – liquid food supplement – CN 2106 – 8% VAT rate
- Ruling: WIS GOODS – calcined magnesium oxide, feed material – 8% VAT
- Ruling: WIS TOWAR – dietary supplement in syrup – CN 2106 – 8% VAT rate
- Ruling: WIS TOWAR – dietary supplement in capsules – CN 2106 – 8% VAT rate
- What problems may arise when registering for VAT in Poland?
- Effects in VAT of discontinuation of the investment
- Poland’s lower house overrides earlier veto by Senate: Electronic invoicing mandatory from July 1, 2024
- KSeF API for test environment adapted to FA(1) and FA(2) structures
- You can now use the updated version of the KSeF API
- Poland: SLIM VAT Package
- Ruling: Exemption from VAT on the sale of real estate
- Ruling: Exemption from VAT of training services in the field of psychotherapy
- Ruling: WIS GOODS – honey with additives – CN 2106 – 8% VAT rate
- Ruling: WIS GOODS – food product – CN 19 – 0% VAT rate
- Ruling: WIS TOWAR – soft drink – CN 2202 – 0% VAT rate
- Ruling: WIS TOWAR – non-alcoholic beverage based on non-alcoholic beer – CN 2202 – 0% VAT rate
- Ruling: WIS SERVICE – use of the device – 8% VAT rate
- Ruling: WIS SERVICE – intermediation (comprehensive service) – PKWiU 2015 – 52 – 23% VAT rate
- KSeF API for test environment adapted to FA(1) and FA(2) structures
- Ruling: WIS TOWAR – spirit level made of aluminium and stainless steel – CN 90 – 23% VAT
- One year for the implementation of KSeF may not be enough
- Ruling: WIS TOWAR – soft drink – CN 2202 – 0% VAT rate
- Ruling: WIS GOODS – book – CN 4911 – 23% VAT rate
- Ruling: WIS GOODS – electronic device – CN – 23% VAT rate
- Ruling: WIS TOWAR – vegetable food product – CN 2106 – 8% VAT rate
- Ruling: WIS GOODS – ruler – CN 90 – 23% VAT rate
- Ruling: WIS TOWAR – corn cat litter – CN 23 – 23% VAT
- KSeF will enter into force as planned, but with some exceptions
- New Fiscal Code PDF – Law 227/2015 updated 2023
- Everything you need to know about the VAT adjustment procedure
- Romania gets the Green Light from the EU to Introduce Mandatory B2B E-Invoicing in 2024.
- Romania Moves to Mandatory E-invoicing for B2B Transactions with EU Authorization
- RO E-Factura: XML format and both parties need to be registered in RO e-Invoice Registry
- Draft fiscal measures: VAT rate increases
- Romania one step ahead towards B2B e-invoicing mandate
- VAT exemption for leasing medical devices are explained
- New VAT return code for sale of drugs imported into the territory of the Russian Federation and not…
- New rules for advertising goods
- Tour operators exempt from VAT
- List of goods for children subject to VAT at a rate of 10% has been expanded
- Update for receipt cancellation procedure in case of a specific error in data entry in Serbian fiscalization
- VAT Guide for Businesses with Customers in Serbia
- VAT Guide for Businesses with Customers in Slovakia
- Lower threshold for issuing simplified invoices
- Upcoming changes to the VAT Act in Slovakia
- VAT Refund to Non-resident Travelers in the European Union – new technical specifications
- VAT Guide for Businesses with Customers in Spain
- Note from the Tax Agency on the transfer of vehicles to employees and VAT treatment
- Kick start discussions on the VAT in the digital age package
- Switzerland to introduce new VAT compliance changes from 1 January 2025
- Are PDFs equally treated with paper invoices?
- Is a conditional sale included in the total volume of taxable transactions with VAT?
- What VAT benefits apply to charitable businesses?
- Are meals for children at summer school camps subject to VAT?
- New forms of PN and RK, DPS, will be effective from August 1
- Ukraine Ends Certain Tax Measures Implemented as Result of the War Russia
- Ukraine Imposes Consumption Tax on disposable vaping products
- Is the supply of marketing services subject to VAT?
- Rada exempts from VAT number of goods for defence needs
- Caerdav Ltd: customs duty on importation of aircraft – Upper Tribunal
- Overages – what are they and what is the VAT treatment?
- UK Brexit Agri-foods customs controls 5th delay
- Post-Brexit UK border food checks delayed again on inflation fears
- Uber wins UK VAT case, but challenges remain
- UT: Caerdav Ltd – importation of aircraft-whether within EU customs special procedure when…
- UT: Hotel La Tour Ltd – sale of shares – proceeds of sale used to fund taxable activities
- UT: British Telecommunications Plc – claim for relief for bad debts
- Uber Says it Paid UK Tax Authority £386 Million Over VAT Dispute
- Could new Brexit border controls spell the death of UK delis?
- B2B and B2C – The distinction and importance
- Scrapping VAT rebate for foreign shoppers ‘costing UK billions’
- Business or non-business? The 3D Crowd CIC case
- New portal for VAT payment plans
- New HMRC guidance on error reporting
- Apply to receive VAT data from HMRC
- How to characterise a taxable supply – The tests
- VAT fraudster told to cough up £1.2m or face more time in jail
- Brexit: New Obligations for Exporters to The UK From the End of October 2023
- Hotel La Tour: VAT recovery on fundraising share sale – Upper Tribunal decision
- UK High Court backs Uber push for 20% VAT obligations private taxi operators
- When Should You Use the VAT Domestic Reverse Charge?
MIDDLE EAST
- The 2 phases and 7 waves of implementation of E-Invoicing in Saudi Arabia
- Simplified guide: Cancellation of fines and exemption of financial penalties
- Additional Details to Be Included in Invoices for Supplies of Eligible Used Goods In KSA
- New Amendments to KSA VAT Legislation
- ZATCA Announces 7th E-Invoicing Wave
- ZATCA Extends Amnesty Period Until December 2023
- KSA Releases New VAT Amendments
- KPMG Fakhro GCC Tax News – 3 August 2023
- Saudi Arabia announces seventh wave of Phase 2 e-invoicing integration
- New taxpayer group in scope of Phase 2 of e-invoicing announced
- Seventh wave of e-invoicing applicability
- Saudi Arabia further extends tax amnesty initiative until 31 December 2023
- Saudi Arabia announces seventh wave of Phase 2 e-invoicing integration
- Announcement of 7th Wave for E-invoicing Phase 2 Implementation
- UAE’s VAT Reporting Requirement per Emirate For large E-Commerce Players
- UAE MoF Unveils 2025 E-Invoicing Plans
- Updated: Unravelling the Updated Voluntary Disclosure Rules
- MoF announced E-billing system to be introduced in the UAE
- Need for accurate emirate-specific VAT reporting in relation to e-Commerce
- UAE proposes the introduction of a mandatory ‘e-billing system’ from July 2025
- UAE tax authority stresses need for accurate emirate-specific VAT reporting
- FTA stresses the need for accurate emirate-specific VAT reporting in relation to e-Commerce
