Construction
Welcome back to another edition of our VAT newsletter, where we’re about to embark on a journey through the intricate world where VAT and building intersect. So, grab your hard hats and let’s dive right in!
When we think of building, towering skyscrapers and sturdy bridges often come to mind. But did you know that VAT plays a crucial role in the construction industry, acting as the scaffolding that supports every project from inception to completion?
Let’s start with the foundation: VAT on construction services. Whether it’s building a new office complex or renovating a historic landmark, contractors and subcontractors must navigate the labyrinth of VAT regulations. For example, in many jurisdictions, the supply of construction services is subject to VAT at the standard rate. However, certain types of construction work may qualify for reduced VAT rates or even exemptions, depending on local laws and regulations. And don’t forget the local reverse charge mechanism that may apply to subcontractors.
But wait, there’s more! VAT also influences the supply of building materials and equipment. From concrete and steel to power tools and safety gear, every brick and beam that goes into a construction project may be subject to VAT. And let’s not forget about the complexities of cross-border transactions, where VAT rules can vary significantly between countries, adding an extra layer of complexity to international construction projects.
As a VAT specialist, you’re also a kind of a builder. You’re juggling the VAT rules and have to find a way to construct your advice, opinion, or feedback to your client, colleague, or a judge, convincing them of your logic and ensuring the mortar keeps the building blocks together.
Stay tuned for more insights and updates on the intersection of VAT and various industries in our upcoming newsletters. And remember, when it comes to VAT knowledge, we’ve got you covered like the strongest steel beam on the construction site. Until next time, happy building!
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
- Enhancing eInvoicing Interoperability between the European Union and the United States
- Turkey halts trade with Israel over Gaza war
- PE Watch | Latest developments and trends, May 2024
- SAP DRC v third-party solutions vs in-house development: What should your business use for e-invoicing?
- Latest global tax headlines: May updates and announcements
- Automating SAP data archiving with the Archiving Sessions Cockpit
- What is a partial VAT exemption? (Or is it partial VAT recovery?)
- Global Tax Policy and Controversy Watch | May 2024 edition
- The Evolution of E-Invoicing and Digital Trade: Preliminary Insights from the Billentis Report 2024
- EY Webcast: EU Carbon Border Adjustment Mechanism: Implications for MENA
- Webinar ecosio – E-invoicing in Malaysia (May 23)
- Webinar ecosio – E-invoicing in Romania (May 16)
- Taxera webinar – Greece Success Story Webinar
- Sovos Webinar – VAT Snapshot: Navigating the Latest Global E-invoicing Requirements (May 2)
MIDDLE EAST
- Bahrain: New tourist levy on hotel accommodations
- NBR Workshop Raises Awareness on VAT Invoice Compliance for Businesses
AFRICA
- Angola Tax Agency Sets May 31 Deadline for 2023 Industrial Tax Payment Under General Regime
- Angola VAT Code Amendments: Expanded exemptions, deferred payments, and extended input claim period
- E-VAT Rollout Progressing as Planned, Expected to Boost Revenue Collection
- Implementation of E-VAT System by Ghana Revenue Authority
- Non-compliance with e-VAT system drains Ghana’s economy
- Treasury Under Fire for MDAs’ Failure to Adopt eTIMS for Invoicing
- Kenya gazettes Tax Procedures (Electronic Tax Invoice) Regulations, 2024
- Kenya Issues 2024 Regulations for Electronic Tax Invoices
- Kenya Gazette: Tax Changes in Statute Law (Miscellaneous Amendments) Act, 2024
- FG Denies Proposal to Increase VAT Rate: Committee Clarifies Reform Recommendations
- Proposal to Increase VAT Rate and Adjust Revenue Sharing Formula for Economic Growth
- Tax Committee Recommends VAT Hike: More Burden for Nigerians as Revenue-Sharing Formula…
- Presidential Committee Proposes VAT Increase Amid Economic Struggles
- Experts caution against VAT hike in Nigeria to avoid economic strain on businesses and consumers
- Uganda Parliament Introduces Bill Amending VAT Act with Significant Changes Effective July 1
- Tax Amendment Bills 2024: Key Changes in VAT Exemptions and Refunds
- President Museveni Maintains EFRIS for VAT Collections, Urges Dialogue with Traders
- Government Suppliers Exempt from VAT Payment Until Receiving Payment: URA Commissioner
- Government Passes VAT Amendment Bill 2024, Opposition concerned about lowering VAT rate, VAT on donations by employers
AMERICAS
- Bolivia Streamlines Export Tax Refund Process with Surety Insurance Policy Requirement
- Bolivia’s National Tax Service to Expand E-Invoicing Obligations for More Taxpayers by 2025
- Ministry of Finance submits draft legislation on VAT reform to Chamber of Deputies
- Brazil Introduces New VAT Regulations: CBS, IBS, and Tax Relief Schemes for Consumers
- Brazil’s Proposal for Dual VAT System Implementation: Tax Reform Bill Overview and Timeline
- Draft regulations to introduce new dual VAT regime
- British Columbia Sales Tax Changes: Impact on Digital Products and Services Retroactively from 2013
- Tax Court of Canada: Laneway House Atop Unsevered Garage Qualifies as New Residential Complex
- Tax Court of Canada: Aeroplan Miles Not Gift Certificates for GST/HST Purposes
- Ecuador Updates VAT Credit Refund Procedures in Relation to Withholding at Source
- Ecuador Revises VAT Credit Refund Procedures in Relation to VAT Withholding at Source
- Texas: Letter Ruling Addresses Taxability of Various Website Design, Development, and Ad Services
- California’s next bad idea: Another digital ad tax proposal
- South Dakota: Taxpayer Asks US Supreme Court if Use Tax Imposition on Equipment’s One-Day…
- Michigan Senate Passes Bill to Extend Tax Breaks for Data Centres
- Nevada: Proposed Rule Changes Help Clarify Remote Seller, Marketplace Seller, and Marketplace Facilitator Responsibilities
- Massachusetts DOR Explains Position on 2023 Decision Invalidating Directive on Bundled Cell Phone Transactions
- Louisiana: Local Taxation of Music Streaming over Internet Deemed Invalid under ITFA Relative to Comparable Non-taxable Satellite Streaming
- Kansas: New Law Includes Internet/Telecom Service M&E Exemption, Manufacturer Coupon Exclusion, and Trade-In Deduction
- Colorado: New Law Creates Dispute Resolution Process to Streamline State and Local Sales and Use Tax Compliance
- Electronic Invoicing in the United States: Interoperable Exchange Network
- Alabama DOR Proposes Rule Changes on Taxability of TPP Withdrawals from Inventory
- Louisiana City Prohibited from Imposing Sales Tax on Streaming Music Subscriptions
- Navigating Sales Tax Nexus: Understanding the Impact of Physical Presence on Compliance
- Recent Updates in Sales Tax Laws and Compliance: April 2024 Review
- Wisconsin Department of Revenue revises sales and use tax guidance for disregarded entities
- Enacted Colorado bills clarify tax reporting in local jurisdictions
- Colorado district court rules that streaming service is not tangible personal property
- Update on digital advertising tax bills in California
- Arizona appellate court finds that in-state distributors constituted physical presence
- Florida State Sales Tax on Commercial Leases Decreases to 2% Effective June 1, 2024
- Tennessee Amends Definition of “Qualified Data Center” for Sales and Use Tax Purposes
- Colorado Revises Local Sales & Use Tax Admin into Uniform Statute
- Kansas House Bill 2098: Sales Tax Revisions and Exemptions
- Understanding Sales Tax for Construction Contractors: Free Webinar by CDTFA
- Vermont Sales and Use Tax: Exempt and Taxable Tangible Personal Properties Revised (May 6, 2024)
ASIA-PACIFIC
- VAT Refund Project Boosts Cashless Payments in Retail and Healthcare Sector
- State Tax Service social project: Get Real Estate without Cash, Get 30% VAT Refund!
- Supreme Court: GST Officers Need Verifiable Material, Not Just Suspicion, for Arrests
- After 7-year wait, GST Appellate Tribunal may finally be operational soon
- Industry Awaits GST Rate Rationalization in Budget FY 2025
- Long-awaited GST Appellate Tribunal set to be operational with appointment of first president
- Pharma Sector Likely to Receive GST Relief: Major Update Expected from GST Council
- Govt to consider some relief for money gaming industry from retrospective GST claims
- Enabling provisions for import of inputs that are subjected to mandatory QCOs by Advance…
- All benches of GST Appellate Tribunal (GSTAT) may start functioning by January 2025
- Delhi High Court: GST Registration Cancellation Cannot Be Retrospective Without Objective Criteria
- Unravelling the Mystery of Risky Exporters in GST
- GST has helped states earn 24% more than the old regime
- Lowering GST to 12% on health insurance premiums up to Rs 30,000 for affordability
- LHDN Launches New E-Invoice SDK for Malaysia’s E-Invoicing Mandate
- Malaysia CTC e-invoice Reporting
- Academicians and Think-Tank Advocate for Reintroduction of GST
- Malaysian Sandbox Test Environment is Accessible for Taxpayers and Service Providers
- Singapore and New Zealand Prime Ministers Sign eInvoicing Agreement for Business Collaboration
- Clarification on GST for Property Sales: Transitional Rule and Examples
- Changes to Residential Property Taxation Explained: Impact on Interest Deductibility and Future Reforms
- Aurangzeb Urges FBR to Crack Down on Sales Tax Fraud
- FBR Simplifies Sales Tax Rules, Eases Balance Sheet Requirement for Businesses
- FBR Implements Stricter Oversight for Sales Tax Collection via Bank Accounts
- Pakistan implements amendments to tax appeals system
- FBR Forms Key Team for Digitalizing Tax System
- FBR Launches Comprehensive HR Audit to Transform Pakistan Customs Operations
- Philippine Senate Considers Bill for Implementing CREATE Act with Tax Incentives for Enterprises
- Senate bill proposes DoF to process VAT refund claims, amend tax incentives for businesses.
- Singapore 2025 E-Invoicing Mandate Timeline: IRAS Implements InvoiceNow for GST-Registered Businesses
- IRAS Provides Guidance on Audits and Investigations on Missing Trader Fraud Arrangements
- Tax Registration and Business Tax Clarification for Postpartum Care Homes and…
- Important Notice: Changing Responsible Person for Sole Proprietorship and Tax Declaration Deadlines
- Taxation on Sales of Non-Self-Produced Tea Leaves by Tea Farmers
- Tax-exempt Invoice Issuance Guidelines for Foreign Diplomatic Missions and Personnel in Taiwan
- Thailand to Impose 7% VAT on Imported Goods Valued Below THB 1500
- Thailand to Implement VAT on Cheap Online Imports to Support Local Producers
- Government Seeks Extension of VAT Reduction to Spur Economic Recovery
- Vietnam Seeks Extension of VAT Rate Reduction for Q3, Q4 Beyond June 30 Deadline
EUROPE
- Import VAT Recovery: Importance of Ownership in Customs Talks and Compliance
- Digital Services Taxes in Europe, 2024
- Official Recognition of VAT Refunds with the United Kingdom: Agreement with Italy Acknowledged
- EU Court to Decide on VAT Exemption for Online Gambling: Kokott’s Opinion on Differentiation
- Agenda of the ECJ VAT cases – 2 Judgments, 5 AG Opinions announced till June 6, 2024
- Comments on ECJ C-532/23: CJEU does not approve Hungarian settlement of default interest in VAT case
- VAT implications of free heat supply from biogas – C-207/23 decision
- ECJ Upholds VAT Credit for “Shell Companies”
- EU Court rules share issuance value as VAT base for in-kind contributions
- ECJ C-241/23 (P. sp. z o.o.) – Judgment – Taxable amount for contribution in kind of immovable property…
- ECJ Rules Against Romanian Taxation of Energy Products: Case C-657/22 Analysis
- VAT and SIF Management Post-Brexit: Implications of CJEU Ruling and UK Legislation Review
- EORI-Economic Operators Registration and Identification number
- Ultimate Guide to EU VAT Compliance for Amazon FBA Sellers
- Mastering EU VAT Pricing: Expert Tips for eCommerce
- New draft of EU VAT reform (VAT in the Digital Age (ViDA))
- European Commission publishes Management plan 2024 – Taxation and Customs Union
- Demystifying EU VAT for E-commerce
- Qualification of VAT sales vouchers for potential abuses
- EU Law on Accounting Errors and VAT Refunds: Payment of Interest Clarified by ECJ
- VAT Treatment of Vouchers in a Supply Chain under Current Law (ECJ)
- VAT Dos and Don’ts for Businesses in the EU
- Greasy Hands: EPPO Targets €15 Million Fraud Involving Engine Oil Criminal Network
- EU VAT Paid Status: Time Restrictions and Re-Importation Consequences for Yachts
- ViDA – Changes to the EU VAT Directive 2006/112 – Old vs. New articles
- VAT in the Digital Age (ViDA) draft texts – Principles for Single EU VAT Registration
- VAT in the Digital Age (ViDA) draft texts – Principles for the Platform Economy
- VAT in the Digital Age (ViDA) draft texts – Principles for Digital Reporting Requirements
- FASTER and ViDA on the agenda of the Ecofin Council on May 14, 2024
- EU ViDA delayed July 2027- 35 timetable & compromises
- Poll – We are one week before the EU Council may approve the proposal on VAT in the Digital Age on May…
- Simplifying VAT Compliance For Small Businesses: The New SME Scheme
- Draft Tax Amendment Act: Small business, increase VAT registration threshold, simplified invoicing, donations
- Austria’s Tax Evasion Crackdown: €48.5 Million Recovered in 2023 Victory
- Guidance on VAT exemption for board renumeration; other recent direct and indirect tax developments
- Belgium MOF Proposes VAT Reduction for Demolition and Reconstruction of Buildings
- Belgian Government Tweaks VAT Reform Plans for Housing Projects to Boost Industry Amid…
- Changes in VAT rate for demolition and reconstruction of buildings across Belgium
- Calculation of VAT refund for foreign insurance company with fixed establishment – Supreme Court ruling
- Denmark Modernizes Its Bookkeeping Act to Promote the Digitalization of Accounting
- Denial of VAT deduction for expenses related to sale of subsidiary shares upheld by court
- Taxation on Remote Sales: indirect involvement in transportation when customer chooses…
- Taxation of deliveries in bankruptcy – Timing of VAT liability before and after decree
- Tax Agency Extends Deadline for Correcting Annual Statements
- Proposed Changes to Finnish VAT rates
- VAT taxation of second-hand goods
- Finland’s VAT increase could make VAT rate the second highest in the EU
- Ministry of Finance proposes raising VAT to 25.5 per cent on 1 September
- Finland Seeks Feedback on Proposed VAT Increase from International Stakeholders by May 17, 2024
- B2B Electronic Invoicing in France
- Updated list of companies candidate to act as PDP
- Understanding the Distinction Between Disclosed and Undisclosed Agents for VAT Purposes in France
- Current tax administration views on input tax deduction and incorrect tax disclosure under § 14c UStG
- Germany Introduces Countrywide eInvoicing Mandate Starting in 2025
- Tax implications of sales mark-ups on group insurance policies: IPT, VAT or VAT exempt?
- Application of Margin Tax to Coffee Trips: FG Niedersachsen Judgment
- Appeal against Conviction for Tax Evasion in Dresden Regional Court
- Differential taxation for art objects; calculation of margin; no deduction of VAT on intra-Community…
- Application of Differential Taxation in the Sale of Vintage Cars
- Use of a valid VAT identification number by the recipient is not decisive for the shift of the tax liability – BFH Judgment
- Fiscal Court: limits for customs administration when exempting electricity generated from renewable energy sources from electricity tax
- B2B e-Invoicing in Germany: e-Invoicing system and implementation process
- Updated ViDA Proposal by EU
- Tax Treatment of Emissions Trading Rights
- Instructions for Filing VAT Declaration Form 050 (2024 Edition)
- VAT Declaration – Clarifications and instructions for completing the new form
- Instructions for completing VAT declaration form 050 VAT edition 2024
- Changes in the new VAT declaration form effective from 1st July 2024
- Greece VAT Compliance: An Overview for Businesses
- Proposal: Plastic Tax would be postponed from 1st July 2024 to 1st July 2026
- Determining VAT taxable base for property transfer in exchange for shares: ECJ clarification
- Recoverable VAT refund on building constructed by superficiary: implications for…
- Repeated incorrect attribution of invoices is not mere fault, but considered a crime
- Opportunity for Integrative VAT Declaration in 2023
- VAT Refund for Cessation of Activity: Not Always Guaranteed, Interpretative Doubts…
- 10% VAT on Syrup Form Supplements: Reminder from Revenue Agency
- Tax treatment of healthcare services from non-conventional facilities: VAT exemption or taxable?
- Arnhem-Leeuwarden Court: Majority of parcels constitute building plot and is not VAT exempt
- AG Wattel advises Supreme Court about refusal of VAT zero rate and penalties for involvement in VAT…
- Tax Court of Amsterdam: Are Hammam and Rassoul Rituals Considered Bathing Facilities?
- Preparation for New VAT Authorities ICT System Must Improve
- State Secretary Van Rij’s Response to Final BIT Advice on VAT Modernization Program
- North Holland Court rules seller of real estate acted as an entrepreneur for VAT
- Ruling: No right to reclaim VAT on renovation invoices with EU funding
- Ruling: Transfer of Real Estate to Company Partners
- Individuals can benefit from the protective function of VAT rulings
- Ruling: VAT Settlement by Municipality for Home Sewage Treatment Plants
- Ruling: Sale of Car under VAT Margin Procedure
- Ruling: VAT on Execution Sale of Real Estate
- Sejm adopts amendment to KSeF regulations – What will change?
- VAT on Non-Monetary Contributions: ECJ Ruling on Tax Base Calculation for VAT Aportation Transactions
- Ruling: Sale of Undeveloped Land Share – VAT Taxation Without Exemption
- Local governments can adjust VAT on pro-ecological projects
- Poland E-Invoice Implementation Update: Mandatory KSeF Launch in Early 2026 with New…
- Correcting buyer data on invoice: corrective invoice, note, deadlines, recording, and JPK VAT
- Mandatory KSeF Implementation for VAT Taxpayers: Ministry of Finance Plans Revealed
- JPK_CIT: New reporting obligations in 2025
- New VAT Rates Directive Will Impact Millions of Polish Spending – Government Decision…
- Checking the contractor on the VAT white list is not always obvious
- Ruling: VAT for Real Estate Sales by Individuals
- Ruling: VAT Settlement for Investment Contribution by Municipality
- Ruling: VAT Settlement in Chain (export) Transactions
- Ruling: No VAT Deduction Right for University Project Expenses
- Polish Ministry of Finance begins establishing a new e-invoicing mandate introduction date
- Acceptance protocol and the moment when the VAT obligation arises for the provision of the service
- Increasing VAT control leads to higher risk of sanctions
- What’s new in VAT? – summary of April 2024
- Annual UBO Obligation for Portuguese VAT-Registered Taxpayers: Compliance and Reporting Requirements
- Annual VAT returns in Portugal: What Do You Need to Know?
- Taxi Electric Recharges at Home: Tax Deduction Guidelines for Business Use
- Boat Excursions with Diving and Water Sports
- Taxation of Dental Aligner Deliveries from Another EU Member State to Dentist
- Taxation of self-consumption of goods acquired from a private individual without VAT taxation
- VAT Treatment of Token Sales Backed by Gold or Silver: Special Investment Gold Regime
- Excess VAT Deduction Compensation vs Refund Option: TEAC Resolution
- Expiration of the right to deduct VAT: Criteria and Time Limits according to Spanish Law
- Understanding Veri*factu, Crea y Crece and other Spanish requirements
- Sweden’s Plan to Combat VAT Fraud
- Sweden Tax Agency Updates Guidance on VAT Treatment of Mortgage Sales Following ECJ Ruling
- Report on Preventing VAT Fraud Presented to Government
- Potential changes ahead for the Swedish VAT treatment of second-hand goods and donations
- Analysis of VAT Rate Confusion in Food and Beverage Services
- VAT Implications of Real Estate Leasing
- Turkey Clarifies 1% VAT Rate for Food Products Not Applicable for Food and Beverage Service Providers
- Webinar on Negative VAT Transfer in Tax Declaration for Kyiv Taxpayers on May 14, 2024.
- Ukraine’s Tax Crackdown: PornHub’s VAT Liability and Digital Platform Regulation
- Challenging decisions on VAT data tables: clarification from the tax authorities
- Tax implications of VAT refund for individual entrepreneurs not registered as VAT payers.
- Tax Consultation on VAT Exemption Regime under Transitional Provisions
- VAT Obligations for Individual Entrepreneurs in Ukraine: Payment System Commission Taxation Clarification
- Rules for Budget VAT Refund for UAV Producers under Defense Contracts Explained by Tax Authorities
- VAT Payment Obligations for Individual Entrepreneurs on Foreign Marketplace Commissions: Odessa Tax Office Clarifies
- Criteria for assessing VAT payer’s compliance with risk criteria based on tax information directory
- Changes in VAT payment deferral for imported equipment and machinery: updated subcategory codes and authorities.
- Ukraine VAT law
- HMRC Policy paper: Revenue and Customs Brief — VAT treatment of voluntary carbon credits
- Top 10 Tips for Claiming VAT on DIY Housebuilders’ Scheme
- VAT Treatment of Voluntary Carbon Credits: Revenue and Customs Brief 7
- HMRC’s Comprehensive Guide to VAT Tertiary Legislation
- Combatting VAT Refund Fraud: Protecting Businesses from Exploitation by Fraudsters
- UK to Implement VAT on Carbon Offset Sales from September
- VAT Exemption for Cosmetic Skin Treatments: The Skin Science Case Analysis
- HMRC Business Brief: TOMS B2B Wholesale Supplies VAT Accounting and Policy Update
- New HMRC Website: Manage Imports, VAT, and Guidance for Businesses
- HMRC Road Fuel Scale Charges for 1 May 2024 – 30 April 2025
- VAT Groups and Tax Points: The Prudential Assurance CoA Case – Recent Court Developments
- Updated Guidance for Non-Established Taxable Persons: VAT Registration and Compliance Requirements
- New HMRC policy on the Tour Operators’ Margin Scheme for B2B wholesale supplies
