World of VATcraft?
Welcome to the wacky world of VATcraft, where navigating through the labyrinth of VAT regulations is like embarking on an epic quest in World of Warcraft—minus the armour and dragons, but with just as much confusion!
In our VAT adventures, we may encounter a scheme called “simplified triangulation” in the European Union. It’s supposed to be straightforward, but in practice, the scheme is not that simple to be applied. The conditions are strict, and exceptions are not accepted, such as more than three parties in the supply chain. Four is a crowd, and the simplification cannot be used. Or can it?
If you play the online game World of Warcraft, you may know that there is a quest in the middle of an endgame chain during phase two of WoW Classic’s Season of Discovery, that is called ‘Quadrangulation’. To complete this quest and move into the next phase of the quest chain that allows you to unlock the Gnomeregan teleporter, you’ll need to go to four corners of Azeroth and find four beacons for a goblin NPC named Scooty in Booty Bay, who is also associated with the chain of objectives that allows Horde players to teleport to Gnomeregan during phase two of SoD.
In short: you have to connect four beacons to complete the quest. And that is not as easy as it sounds…
In VAT terminology, quadrangulation is the ultimate puzzle to avoid additional VAT registrations, involving four parties and three or four EU countries. But here’s the kicker: the simplified triangulation scheme only accepts three players in the supply chain. Talk about keeping it exclusive!
What may happen in practice, is that a 4-party supply chain is ‘split’, so that a situation is created that meets all the conditions for the simplified triangulation scheme. At least, that’s what we have learned and applied since we started doing VAT more than 25 years ago.
And now there are opinions out there that seem to imply that quadrangulation is allowed. Hmmm, it seems that we are never too old to learn new things. Although the grumpy old man in us, still thinks that it’s impossible.
What do you think about this? Is quadrangulation possible? Let us know in the comments on LinkedIn or send us an email with your remarks.
Just remember: when it comes to VAT, expect the unexpected!
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.
To go directly to the region, click below:
WORLD
- Impact of EU’s CBAM on Vietnam’s Industry: Challenges and Strategies
- E-Invoicing & E-Reporting developments in the news in week 11/2024
- PE Watch | Latest developments and trends, March 2024
- March 2024: 15 headlines from the world of indirect tax
- Too big, too fast, too dangerous: dynamics of digital platform firm internationalization and government policy development
- What is an API?
- Tax master data: What is it and why does it matter?
- Which countries have introduced OECD’s SAF-T
- Worldwide VAT, GST and Sales Tax Guide 2024
- SAP DRC: Everything you need to know | Consulting and Implementation Services
- The World of Electronic Invoices: Formats, Regulations, and Global Impact
- RTCsuite Webinar Recap: Accelerating Romania: The Future of e-Transport Unveiled
- Event: E-Invoicing Exchange Summit in Miami – April 22-24, 2024
AFRICA
- Burkina Faso Launches eCustoms: Modern Payment Platform for Tariffs
- Burkina Faso: Parliament Adopts Finance Law 2024 with Significant Tax Amendments
- Cabo Verde Introduces VAT Self-Invoicing Ordinance: Guidelines Released for Taxpayers
- 2024 Budget Introduces Major Tax Changes for Sustainable Development
- Ghana suspends VAT on residential electricity consumption above specified maximum level
- Significant Tax Acts Amendments Effective from Presidential Assent on 29 December 2023
- Kenya Considers Imposing VAT on Bread and Milk to Boost Revenue Collection
- Kenya’s e-Invoicing Evolution: The Transition to eTIMS
- Treasury mulls VAT on milk, bread, in fresh revenue push
- Kenya Extends E-Invoicing Grace Period for Non-VAT Registered Taxpayers Until March 31, 2024
- Namibia’s 2024 Budget Speech: New Tax Measures and Revenue Collection Improvements
- Budget Statement Paves the Way for e-Invoicing Implementation
- Namibian Ministry of Finance unveils 2024-25 Budget with tax incentives and VAT changes.
- Namibia e-invoicing 2024
- EU Criticizes Nigeria’s Low VAT Rate, Calls for Tax Reform and Transparency in Administration
- EU-ECOWAS Delegation Criticizes Nigeria’s Ineffective VAT System and Calls for Reform
- FIRS Postpones Implementation of VAT Guidelines for Non-Resident Suppliers to Nigeria
- Low VAT Compliance in Nigeria: EU/ECOWAS Delegation Calls for Reform and Cooperation
- Zambia Considers Tax Changes for Miners Amid VAT Dispute: Government Source
- Zambia Enacts Tax Law Amendments: Electronic Invoicing and Mobile Money Transfer Levy…
AMERICAS
- Michigan Department of Treasury rules SaaS and downloaded applications are non-taxable
- State-by-State Sales Tax Compliance Guide for Multistate Businesses: Factors, Rules, and Best Practices
- Virginia Lawmakers Approve Budget Expanding Sales Tax to Digital Goods Including Streaming Services
- Simplifying Sales Tax Compliance for Online Sellers: State Efforts and Trends
- Colorado Department of Revenue rules online marketplace membership fees are not taxable
- Changes in Sales Tax Exemptions for Business Technology: Iowa and Michigan
- Washington exempts telecom carriers from sales tax on Lifeline reimbursements from USAC.
- Wyoming Sales Tax Amendments for Remote Sellers: Thresholds, Discounts, and Administration Updates
- States Eliminating 200 Transaction Threshold for Economic Nexus Compliance
- California Manufacturing Exemption: Tax Breaks for Manufacturing and R&D Equipment Purchases
- South Beloit Considers 1% Sales Tax Increase to Improve Road Infrastructure
ASIA-PACIFIC
- NSW and Vic Clash Over GST Distribution: Friendly Fire or Civil War?
- Taxpayer Victory: Hannover Life Prevails in Landmark GST Case against ATO
- ATO Draft Ruling: Four-Year Limit on GST and Fuel Tax Credit Claims
- eInvoicing Process in Australia
- Tariff removals to streamline compliance and reduce costs for business
- ICAI Releases Handbook on Compliances of GST in Banking Sector
- ICAI Handbook: GST Compliances for Banks – February 2024 Edition
- GSTN: Now GST payments through UPI & Debit/Credit Cards are available in 15 states/UTs
- Weekly GST Communique dated March 11, 2024
- GSTN issued Important Advisory on GSTR-1/IFF: Introduction of New 14A and 15A tables
- Plan afoot to reclassify items for GST clarity in FMCG sector
- Payment routed through Intermediary as per FEMA, a ‘receipt in foreign currency,’ Allows IGST-refund –…
- ITC allowed despite discrepancies in GSTR-3B – HC
- Food Industry Dispute: 18% GST on Snacks Sparks Controversy with Top Companies
- India Launches Enhanced e-Invoice Portal with New Features and Improved Functionality
- Rajasthan petrol pumps shut down for two days over VAT reduction demand
- Experts warn against VAT hike as it could backfire on state revenue and economy
- Indonesia VAT from 11% to 12% 2025 update
- Indonesia to Implement 12% VAT in 2025 to Increase State Revenues
- Indonesia to Increase VAT to 12% in 2025: Senior Official’s Announcement
- Laos Introduces New VAT Rules for Digital Services Effective May 2024
- Laos VAT on digital services update
- Malaysia MOF Proposes Expanded Service Tax Exemptions for Logistics Providers
- Malaysian PINT BIS Billing Process Document and its Specifications
- Quick update: E-invoicing in Malaysia, release of PINT BIS specifications
- Enhancing Business Efficiency Through E-Invoicing Solutions in Malaysia (Explained!)
- Pakistan Government Commits to Expedite Sales Tax Refunds within 30 Days
- FBR looking for expertise in integration for electronic invoicing and licensing
- Philippines Moves Closer to Taxing Foreign Digital Services with Proposed VAT Law
- Philippine Department of Finance Announces Stakeholder Briefings on Tax Reform and VAT for DSPs
- Philippines: Delving into Tax Reform Discussions
- Philippines VAT on digital services update
- Taxation Regulations for Cross-Border E-Commerce Purchases: Understanding Your Responsibilities
- MOF Ruling: Late Payment Interest Not Sales Amount for VAT Purposes
- Amendments to VAT Law Approved by Executive Yuan Meeting
EUROPE
- Comments on ECJ C-87/23: Non-profit association – supply, economic activity and taxable amount –…
- Agenda of the ECJ VAT cases – 2 Judgments, 3 AG Opinions, 3 Hearings announced till April 11, 2024
- EU Decision: Duty and VAT exemption for aid to Ukrainian refugees and those in need
- Advocate General’s Opinion on DAC6’s Professional Privilege Waiver: Implications for Non-Lawyers
- ECJ C-101/24 (Xyrality) – Implications for VAT Obligations of Digital Platforms Prior to 2015
- CJEU Referral: Pre-2015 VAT Obligations for Digital Platforms in the EU
- Comments on ECJ C-341/22: Italian Input VAT Deduction Rules Challenged by Wine Company
- Remarkable Conclusion of Advocate General in VAT Pension Fund Cases
- ECJ C-639/22 & others – AG Opinion – An investment fund comparable to a UCITS is considered a ‘special investment fund’
- EU Customs Reform: Streamlining Procedures for E-commerce and Enhancing Controls
- EU Regulation 2020/1056: Advancing Digitalization in Freight Transport and Logistics
- The planned reform of the Union Customs Code is getting closer
- EU assesses Missing Trader VAT fraud
- European Commission Consulting on Tax Dispute Resolution in the EU
- Electronic Movement Certificates: New Rules of Origin Effective January 1, 2025
- European Commission Extends Deadline for First CBAM Report Submission Until March 31, 2024
- EuroCommerce & others: Joint Statement on VAT relief for donations
- Introduction to New EU Reporting Requirements for Digital Platforms under DAC7
- EU Customs Reform: European Parliament Endorses Revised Union Customs Code Proposal
- Cross-border rulings pilot project – EU Commission requests feedback on your experience with it
- New VAT place of supply rules on virtual events for non-taxable persons
- European Commission proposes VAT waiver for EU defence investments to strengthen industrial…
- Commissioning of AES/EMCS Interface for Export: Special Considerations for Bulk Goods and Packing Items
- VAT compliance gap in the Netherlands and the EU has fallen sharply again in 2021
- Implications of VAT Rate Changes in Italy and Spain for Businesses
- Adjusting Input Tax on Down Payments when Services are not Rendered: Recent VAT Guidelines Update
- Understanding VAT: Can a Contract be Considered an Invoice? Recent Updates on Invoicing Guidelines
- Clarity on VAT Refund Rules
- Austria MOF Clarifies Input Tax Refund Rules for Intra-Community Goods Deliveries
- Belarus Introduces VAT Exemption for Imported Technical Equipment and Spare Parts
- Belarus Provides VAT Exemption for Imported Technical Equipment, Components, and…
- Parliament approves law – VAT Scheme for Small Businesses
- New VAT Reporting Requirements for Mixed Taxpayers in Belgium: Key Changes and Obligations for 2024
- Deadline Approaching: Mixed Taxable Persons Must Notify Tax Authorities of Input VAT Deduction Method by July 1, 2024
- Bulgarian SAF-T Implementation Timeline and Regulations
- Bulgaria Advances Towards SAF-T Adoption
- SAF-T Bulgaria implementation on the papers; National Revenue Agency progresses!
- Bulgaria’s SAF-T Implementation: Obligations, Timeline, and Framework
- Implementing SAF-T in Bulgaria: Latest Updates and Implementation Phases
- Ministry of Finance Proposes Green Tax Reforms
- Cyprus Ministry of Finance Seeks Feedback on Green Tax Overhaul Bills: VAT to be applied on energy products subject to carbon tax
- Denmark Tax Agency Ruling on VAT Liability, Deductions, and Reverse Payment Obligations
- Landsskatteretten Decision: Reverse charge on the purchase and sale of metal scrap
- Danish Parliament Considers Tax Amendments: VAT Exemptions, Nicotine Product Taxes, and More
- Increase in company’s VAT liability – VAT on individual member payments for participation in golf…
- Denmark’s Move Towards a Cashless Society: Lowering Cash Payment Limits for Digitalization
- Tax deduction for costs of using the railway network – Skatterådet decision
- VAT Recovery for Olympics Operators: Navigating Tax Issues in France
- Understanding French VAT Calculation: Roundings, Ancillary Costs, and Specific Rates Explained by…
- VAT vs Payroll Tax – French Government Clarifies Criteria for Application
- French VAT Grouping: Updates and Simplification Changes in 2024
- Application of Total Turnover Key for Input Tax Allocation
- Violation of EU law by § 14c UStG: No tax liability without tax risk, no liability in good faith
- Business Case: Triangular transaction with 4 entrepreneurs
- VAT Adjustment for Subsidiary after Successful Insolvency Challenge
- Tax Deduction for Heating System in Rental Property: BFH Decision
- One Step Closer to E-invoicing in Germany
- Germany: Current Status of B2B E-Invoicing
- Temporary reduction of VAT on gas and electricity will end on March 31, 2024
- Looking at the future – Blockchain in E-Invoicing
- Iceland accommodation tax reinstated
- Draft Amendment for Aligning VAT on B2B Services with EU VAT Directive Open for Public Consultation
- CESOP Guidelines for Non-Resident PSP Registration and Filing in Ireland
- Irish Revenue Provides New Guidance on VAT Treatment of Construction Services
- Ireland Provides Guidance on VAT Exemption for Negotiation Services in Respect of Financial Services
- National and EU VAT regulations to be coordinated: Draft of Unified VAT Law available for consultation.
- Italy Tightens Rules on VAT Representatives for Non-resident Taxpayers
- Italy’s ratification of the e-CMR Protocol has been definitively approved
- Tax Treatment of Blue Crab Fishing – Entrepreneurial Inquiry on Direct and VAT Taxes
- Ruling: Conditions for accessing VAT refund under Article 30-ter of Presidential Decree 633/1972
- Amendment of Information for Quarterly VAT Settlement Communication
- Ruling: Reduction of Assessment Time Limits – Applicability to VAT Group
- Ruling: Housing Cooperative – VAT Treatment
- VAT exemption for services in ports and airports: criteria and implications
- Assignments made by cooperatives to divided property subject to VAT: implications for members
- Deadline for Payment of 2023 VAT Balance Approaching – Important Information for Taxpayers
- San Marino Purchases: Optimal VAT Solution for Importing Goods
- Italian Court Ruling: No Permanent Loss of VAT Credit for Shell Companies
- VAT deduction on class A or B units in 2024 tax returns
- Changes to VAT filing process after July 1, 2024: Important updates for businesses
- $8 Million VAT Fraud Fine for Fake Call Minutes Scheme
- Court rules against zero-rate VAT on lending personnel for development work
- Dutch Government Response to VAT Gap Report 2023: E-commerce and Policy Implications
- Reverse charge VAT rightly paid by place of business in the Netherlands
- Simplified Triangulation for VAT Also Applies with Fourth Party in Same Country as Third Party
- No VAT exemption for intermediary in the issuance of bonds
- District Court Rules X Liable for Reverse Charge VAT: Clarifying VAT Identification and Liability
- Hague District Court Upholds Tax Assessment with Penalty
- Court of North Holland: Place of establishment, no mediation regarding bonds, reverse charge VAT
- Answering the question on VAT for thrift stores: Circular Economy Committee Debate
- No VAT on association fees for off-road vehicle enthusiasts – Court ruling explained
- Analysis of VAT Gap Report 2023: Netherlands’ Compliance and Future Trends
- Partial VAT deduction for educational institution: Pro-rata method for mixed costs disputed in court
- Draft Bill Consultation for Immovable Property Services: VAT adjustment period of approximately five years for services exceeding €30,000
- VAT adjustments for entrepreneur with exempt services
- Decree on VAT refund for advance payments of solar panels withdrawn
- VAT on Sanitary Products in Norway: A Necessity or Luxury?
- Understanding the Importance of POS ID in Norwegian Fiscalization: Key Requirements and Functions
- Changes in VAT rates for beauty services effective from April 1, 2024: 8% instead of 23%
- Changes in VAT Rates for Food and Cosmetic Services in Poland from April 2024
- Deducting 23% VAT from rental of apartments for employees
- Poland’s E-Invoicing Updates: Draft Legislation, Training Programs, and Launch Timeline for Compliance
- 5% VAT Rate on Basic Food Products from April 1, 2024
- Poland Extends VAT Exemption for Imports to Aid Ukraine War Victims
- Poland Reinstates 5% VAT on Basic Foods Due to Decreasing Inflation
- Poland Not Extending VAT Zero Rate for Basic Food Products
- KSeF Consultations: Stakeholder Insights
- Lower VAT for the beauty industry may cause numerous disputes
- Poland ends reduced food inflation VAT rate 31 Mar 2024
- Recent Update from Poland: Understanding Poland’s KSeF Transition
- MF: From April 1, 5% returns. VAT on food
- What do we know about KSeF after consultations at the Ministry of Finance?
- Challenges with Obtaining IE 599 Document for VAT Exemption in Export – Legal Gazette
- VAT Deduction Rules for Catering and Accommodation Services: Recent Interpretations by Tax Authorities
- Romania Tax Agency Enacts Law to Combat VAT Fraud in Cross-Border Payment Services
- PwC Romania Tax Conference: Antifraud Controls Intensify, E-Transport and E-Invoice Face Sanctions
- OECD Recommends Reforms to Boost Romanian Tax Revenue Through Digitalization
- OECD Urges Tax Reforms to Boost Revenue Efficiency
- E-book: E-invoicing and E-transport in Romania – Current Legal State, Challenges and Forecast
- Romania Implements New Reporting Obligations for Payment Service Providers to Combat…
- Public Consultation: VAT Forms 360 and 361 Amendment Order for VAT Refund Requests.
- Hotel Reservation and Stay Invoicing: Correct Billing Procedure for Hotel Services.
- Industrial Machinery Repair Services for Construction Projects: Reverse Charge Mechanism Explanation
- Industrial Machinery Repair Services for Construction Projects: Reverse Charge Mechanism…
- Legal Action for Non-payment of Several Monthly Payments: Requirement for Tax Base Adjustment
- Tax on Waste Deposits in Landfills: Inclusion in VAT Base for Waste Management Services
- VAT Exemption for Services Provided for Incentive Certified Machinery and Equipment (Part Three)
- Alternative Way to Refund VAT in Export – Fatih KAYA, Tax Inspector
- Documents Required for VAT Registration Application in Ukraine
- Calculation of VAT payer’s operations under commission agreement
- Importing Equipment on Renewable Energy Sources: VAT Exemption Guidelines in Ukraine
- VAT Taxation on Return of Assets to Founders Previously Contributed to Statutory Capital
- Conditions for VAT liability when a natural person contributes property to the statutory capital of a legal entity
- VAT Taxation of Imported and Supplied Medicines at 7% Rate in Ukraine
- Voluntary VAT registration for newly created legal entities and individual entrepreneurs
- Filing VAT Declaration After Cancellation on Different Day: Last Month Reporting Deadline
- Debunking Myths: Opting to Tax on Commercial Property in the UK
- VAT Recovery and Business Activities in Further Education: Colchester Institute Corporation Case Study
- UK HMRC Allows VAT Recovery for Cladding Remediation: Housebuilders Welcome Change
- VAT Implications for Influencers: HMRC Warning and Considerations for Business Gifts
- No win for partially exempt casino in VAT case
- HMRC Guidance: HMRC email updates, videos and webinars for VAT
- WM Morrison Supermarkets Plc – FTT – Liability of Organix and Nakd bars – taxpayer loss
- Northumbria Healthcare NHS Foundation Trust – CoA – Hospital car parking – whether trust a taxable person – no – taxpayer win
- Essential Tips for Small Businesses and Start-ups to Navigate Taxation Successfully
- Classification of Nakd and Organix bars as confectionery upheld by FTT in Morrison case.
- Colchester Institute Corporation v Revenue and Customs: VAT Funding for Education Services
- HMRC Policy paper: Increasing the registration and deregistration thresholds
- Court of Appeal rules in favour of NHS Northumbria: VAT exemption for hospital car parking
- UK VAT-Registered Businesses Selling Online: Verification of UK Establishment by Tax Authority
- Unveiling the Complexity of Indirect Taxes: Lessons from Poppadoms and VAT Compliance
- Northern Ireland IOSS Registration: Simplified VAT Accounting for Low Value Goods in EU and NI
MIDDLE EAST
- Israeli Parliament Approves 1% VAT Increase Effective 2025
- Update: E-invoicing in Israel has been delayed by a month!
- Israel delays the implementation of the allocation number requirements for invoicing
- Israel VAT rise to 18% 2025 proposal
- Postponement of “Israel Invoices” VAT Reform to May 5, 2024
- Israeli Parliament Approves VAT Rate Increase on Bank Profits Until 2025
- Revised Guidelines for Tourist Tax Refunds: Changes in Purchase Procedures and Fees
- Key Amendments to VAT Refund Process for Tourists
- Streamlining VAT Recovery: Using SWIFT Messages for Financial Institutions in UAE
