This is almost the last newsletter for 2021. Next week we will of course send you our newsletter with an overview of all the news that will be posted in the coming week, so that will be the real last one, but you will receive this in the New Year.
In 2021, we have given you a lot of VAT news. And we made more overviews, comparisons and indications of trends. We had our series on VAT rates, the Flashbacks on European Court of Justice cases, the ECJ Road trips, summaries and overviews of trends and developments, and of course and the ‘2021 In Review’ series this month.
We recently started adding country overviews (‘5 Major Developments in…’), the most recent one you can find HERE (on Romania, with links to the other posts at the bottom). We won’t be able to finish that series before the end of the year, but we will continue updating our website as usual.
Of course, if you wish to ‘adopt’ a country, and make an overview of the VAT developments and expectations, please contact us. We will mention your name and link to your website below the post so that everyone can see that you contributed to our website.
On the trends and developments in 2021, we believe that there are 3 key topics that summarise the VAT world:
- E-commerce;
- Controls; and
- Technology.
We see a large shift towards a digital economy and governments and tax authorities focusing on that. Many countries now have (or will have) special VAT rules for webshops, B2C sales and digital services. As the saying goes in the Netherlands: We cannot make it easier, but we can make it more fun…
With new rules also come more controls. Tax authorities digitize their audits and require taxpayers to use special tools and software to create, print, and share invoices, implement SAF-T reporting requirements and use pre-filled VAT Returns.
The backbone for this is technology. Governments and tax authorities have caught-up (and in some cases overtaken) businesses when it comes to technology, and are requesting information from businesses that they believe should be available. Businesses, meanwhile, have been using their ERP systems for some time, but these ERP systems are not made to deal with VAT. Thus, implementing new reporting requirements, new VAT rules and new lay-outs is a challenging task.
It may be good to know that the VATupdate Team will always be there for you, providing you the latest news and updates. And if you have any questions, or just want to share your thoughts and experiences with us, you can always contact us.
Enjoy this overview of all our posts from last 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.
To go to the specific region of your interest, follow the link below.
We’re looking forward seeing you again next week.
WORLD
- Looking back @2021 #20: ECJ cases decided in 2021 on ”Right to deduct VAT/Refund of VAT”
- Looking back @2021 #21: Global VAT rate changes, continuous monitoring needed
- Looking back @2021 #22: Global overview of future e-invoicing, e-filing, real time reporting, SAF-T – Will the Big Bang in Europe start as of 2022?
- Looking back @2021 #23: What happened in the Middle East?
- Looking back @2021 #24: Temporary reduction of VAT on Electricity and VAT incentives for Electric Cars
- Looking back @2021 #25: ECJ cases decided in 2021 on ”Taxable Persons & Related Cases”
- Baker McKenzie Global Private M&A Guide (including VAT guidance)
- Challenges of Indirect Tax Compliance Management
- How to Manage VAT Changes
- How to Prepare for a VAT Audit
- HS Codes, HTS Codes and Schedule B Codes: What’s the Difference?
- Introduction to Incoterms and their impact on indirect tax
- OECD report on tax impact of COVID-19 – No average change was seen in VAT as a share of GDP
- Job opportunities in Belgium, Denmark, Finland, Ireland, Saudi Arabia and Sweden
- Job opportunities in Belgium, India, Netherlands, Poland and United Kingdom
- Job opportunities in France, Hungary, Netherlands, UAE and UK
WEBINARS / EVENTS
AFRICA
AMERICAS
AMERICAS
- CRA revised policy on GST-exemption of insurance intermediation by “incidental sellers”
- Government is moving ahead with Digital Services Tax (DST) legislation
- Advance remittances of sales tax (Massachusetts)
- How Sales Tax Applies to Discounts, Coupons & Promotions
- Massachusetts ATB rejects ‘cookie nexus’ for pre-Wayfair periods
- New York sales tax guide
- Sales and use tax, further processing exclusion (Louisiana)
- South Dakota v. Wayfair – Economic Nexus and Manufacturers’ Sales Tax Obligations
ASIA-PACIFIC
- Armenian National Assembly ratifies Law introducing concept of electronic services in the Tax Code
- Extension VAT exemption for electric vehicles until Jan 1, 2024
- International oil companies get VAT waiver on import of services
- NBR invites application from local vendors for EFD mgmt
- NBR ponders handing over EFD services to private sector
- A2ZTaxCorp’s Weekly GST Communique dated December 20, 2021
- Brief History of GST
- Common Errors While Reporting E-Invoice
- Comparison and Reconciliation of GSTR 3B and GSTR 2A
- Despite concerns expressed by the industry, the government is unlikely to defer implementation of higher Goods and Services Tax (GST) on certain textile products,…
- DoT backs refund of input tax credits for telecom sector
- Enable GST API Access on GST Portal for Invoice Upload
- GST leviable on reimbursement of electricity and water charges and to be included in the value of supply
- GST leviable on services provided by Club or Association to its members retrospectively w.e.f. July 01, 2017
- GST Updates – Dec 20, 2021
- GST Updates – Dec 21, 2021
- GST Updates – Dec 22, 2021
- GST Updates – Dec 23, 2021
- GST Updates – Dec 24, 2021
- GST Updates – Dec 25, 2021
- How To Register For E-Invoicing?
- Impact Of E-Invoicing On SEZ, Exports And Deemed Exports
- ITC ineligible on CSR activities being excluded from normal course of business
- JSON Errors While Filing GSTR-9C
- Karnataka government reduces VAT on aviation turbine fuel to 18%
- Know Top 10 changes in GST Law effective from January 1st, 2022
- New GST rates on textile likely from January 1, 2022
- New provision from Jan 1: GST officials to make surprise recovery visits
- No GST on transport cost partially borne by staff
- No GST payable on accommodation service provided below INR 1000/-
- Punjab scraps 40,000 VAT cases
- Notification amending sales tax rates for specific petroleum products
- Sales tax portal to launch this week
- Sales tax slashed on local electric vehicles
- Singapore Publishes Updated E-Tax Guide on GST for the Advertising Industry Including Clarifications on New Rules for Media Sales
- Singapore Tax Agency updates GST e-Tax guide for advertising industry
- Deadline of VAT filing and payment for non-resident Digital Service Providers has been extended
- Thailand delays foreign digital services VAT returns and payments
- Government urged to reduce VAT to stimulate economy
- Vietnam moving ahead with roadmap to mandatory e-invoicing in 2022
EUROPE
- 2022 e-invoicing and VAT deadlines across Europe
- Fiscalization perspective of a difference between HoReCa and Retail?
- Agenda of the ECJ VAT cases – 4 cases already announced for January 2022, 3 decisions, 1 AG Opinion
- ECJ C-334/20: VAT on expensive advertising services as input tax deductible
- ECJ C-570/20 (Direction départementale des finances publiques de la Haute-Savoie) – AG Opinion – Duplication of proceedings and penalties of a…
- ECJ C-612/21 Gmina O. (Municipality of O.) – Questions – Is a municipality a taxable person due to a project to increase the proportion of renewable energy…
- ECJ C-616/21 Gmina L. (Municipality of L.) – Questions – Is a municipality a taxable person due to implementing a programme for the removal of asbestos?
- ECJ C-641/21 (Climate Corporation Emissions Trading GmbH) – Questions – Place of supply rules in case of VAT evasion
- ECJ: VAT is refundable if an invoice is issued late
- Flashback on ECJ Cases – C-142/12 (Marinov) – Cessation of the taxable economic activity
- Flashback on ECJ Cases – C-16/14 (Property Development Company) – Intercalary interest plays no role in determining the taxable amount
- Flashback on ECJ Cases – C-262/16 (Shields & Sons Partnership) – The principle of neutrality cannot justify exclusion from the flat-rate scheme
- Flashback on ECJ Cases – C-38/16 (Compass Contract Services) – Adjustment of output and input VAT: Different limitation periods do not breach EU law
- Flashback on ECJ Cases – C-412/15 (TMD) – Supplies of plasma obtained from human blood solely for the manufacture of medicinal products are not…
- Flashback on ECJ Cases – C-446/13 (Fonderie 2A) – Shipment of goods to customer does not start until goods are ready
- Flashback on ECJ Cases – C-55/16 (Evo Bus) – 8th VAT Directive Refund does not require proof of payment
- “VAT in the Digital Age” – latest from the European Commission
- Amazon and One Stop Shop: Changes for sellers, FBA dealers, and more
- Combined Nomenclature for 2022
- COVID-19: Commission decides to extend customs and VAT waiver
- EU “VAT Gap” Report released
- EU overhaul of tourism operators VAT scheme 2023 – TOMS
- EU reconsiders Financial Services VAT exemption – 2023 proposals
- EU VAT Digital Reporting Requirements (DRR) invoice reporting reforms 2024
- European Commission proposes the next generation of EU own resources: Emissions trading, Carbon Border Adjustment, Allocating residual profits
- European Commission: EC: The reduction of VAT on food will be possible soon
- Fair Taxation: EU Commission on minimum taxation of multinationals
- German provision on deduction of input VAT according to AG ECJ (C-9/20) in violation of EU law
- Group on the Future of VAT (GFV)- Minutes 36th meeting Dec 6, 2021 – Discussions on ”VAT in the Digital Age”
- How E-Invoicing Is Changing The VAT Gap Game
- Public consultation on EU rules governing e-commerce transactions from third countries
- The “New Born” VAT rules made their dwelling among us!
- The future of EU VAT: analysis of the latest Group of the Future of VAT meeting
- VAT treatment of situations involving receipt of grants clarified by CJEU ruling
- Your 2022 New Year’s Guide to EU-UK Customs Changes
- Circular 2021/C/113 on the installation of charging stations for electric vehicles and supplies and services related to those charging stations
- Circular 2021/C/114 on the exemption from the tax on medical care provided by certain persons and on hospital care
- Extension of the 6% reduced VAT rate for mouth masks and hydroalcoholic gels till March 31, 2022
- Guidance clarifying VAT exemption for medical and hospital care
- Hospitals cannot escape broader VAT obligation
- New developments in VAT legislation
- New VAT Circular concerning charging facilities and charging of electric vehicles
- National Assembly votes to extend the reduced VAT rate
- Software fiscalization and e-invoicing in Bulgaria
- Amended VAT treatment of travel agent services in CZ from 2022
- Information from the Ministry of Finance about VAT on protective equipment
- SAC: Right to deduct input VAT always to be proved by the taxpayer
- Change of practice – VAT liability – expropriation
- Change of practice for transport services C-288/16 – postponement of the effective date to 1 July 2022
- SKAT publishes VAT rulings on services provided to customers outside the EU
- VAT on sales of skins
- Changes to the thresholds for Intrastat per Jan 1, 2022
- Finland Parliament Considers Bill to Exempt VAT for In Vitro Diagnostic Devices Due to Coronavirus
- Guidelines updated on taxability of transport services supplied by subcontractors
- The government is proposing the abolition of 24 percent VAT on corona home tests
- Changes to import VAT in France – effective January 1st, 2022
- Tax Authorities Publish Updated Guidelines on VAT E-Commerce Package
- Upcoming import VAT reverse-charge: a cash-flow advantage
- All you need to know about the e-balance sheet (”E-bilanz”) in Germany
- Guidance outlining consignment stock provision
- Guidance regarding VAT treatment of consignment stock
- How long the waiver of the VAT exemption can be revoked
- Launching the One-Stop Shop in Germany—a Journey Into the Unknown
- Proper description of supplies in invoices
- Taxation of travel services from companies resident in non-EU countries
- The official VAT handbook 2020/2021 is online
- VAT rate for provision of food and beverage services in a shopping center
- VAT treatment of supplies in connection with containing and combatting the COVID-19 pandemic
- Zero-rating for cross-border carriage of goods: Non-objection provision ends on 31 December 2021
- 5 Major VAT Developments in Italy
- Clarification 842/2021: VAT treatment of services provided in outsourcing for the realization of banking and financial operations
- Clarification 845/2021: Application of the reverse charge mechanism in relations between consortium members and consortium
- Clarification 850/2021: Online subscription databases – reduced VAT rate of 4 percent
- Clarification 858/2021: Recovery of VAT paid following a change in the tax rate
- Clarification 859/2021: VAT advance payment by VAT group
- Clarification 860/2021: VAT treatment of rent increase
- Clarification 861/2021: Refund of VAT in the event of multiple activities
- Clarification on the Deduction of VAT Paid on Imported Goods
- Decree effects VAT “quick fixes” for call-off stock arrangements, chain transactions
- Group VAT settlement – Requirement of control
- Italian annual VAT prepayment
- Italy Sets Legal (Statutory) Interest Rate for 2022
- Italy updates VAT electronic invoicing requirements
- Tax Authorities Clarify Deduction of VAT Paid on Imported Goods
- The “reverse charge” mechanism applicable to the sale of electronic products – recent clarifications from the Italian tax authorities
- VAT measures for 2022, converted into law
- Input VAT paid for services related to an acquisition of shares is deductible
- Latvia to cut domestic electricity VAT temporarily to 5% 2023
- On 1st January 2022 VAT on books, news websites, etc will be reduced from 12% to 5%, and on e-books from 21% to 5%
- B2G e-invoicing mandate will be implemented in phases starting on 18 May 2022
- Electronic B2G invoicing to become mandatory
- Clarification of the canteen scheme in the decision on turnover tax for fundraising and canteens
- Conditions under which taxpayers can derive confidence from an Inspector’s explicit statement in the audit report
- Criminal settlement and offense fine for the same set of facts
- Decision power turns property into a business asset for VAT
- Decision transitional law sports exemption as of 1 January 2019
- Deduction of input VAT rightly refused due to fictitious turnover and missing administration
- Do you want to file a VAT return for 2022? Transfer to the new portal in time!
- Instruction for looking up a VAT number at the Chamber of Commerce
- No VAT recovery, certain promotional gifts or staff benefits
- Offense fine for additional assessment for turnover tax not contrary to the una via principle
- Property belongs to company assets vof: VAT for private use is justified
- Year-end tips and corrections, important VAT changes as of Jan 1, 2022
- Seismological processing services to drilling and licensing companies
- VAT amendments for alternative treatment in the form of acupuncture, and osteopathy and naprapathy
- Consent of the European Commission for a zero VAT rate on food in Poland
- Local Governments: Intra-Community acquisition of goods and import of services
- Lower VAT on natural gas as well as electricity and heat
- New deadline for submitting INTRASTAT statistical declarations for December 2021
- Overview of CJEU’S Polish cases of importance in 2021
- Poland will likely cut VAT on food to zero amid inflation
- Polish questions to the ECJ about input VAT restriction
- Regulation on VAT reduction on natural gas, heat and electricity already in the Journal of Laws
- The new, reduced deadlines for the VAT refund – 15 days and 40 days
- The oldest profession in the world risks VAT taxation
- Zero VAT on basic groceries from February 1, 2022?
- Five key questions about QR Codes in Portugal
- Obligation To Include A QR Code On Invoices And Postponement Of The Compulsory ATCUD Code
- Portugal certified e-invoices update
- 5 Major VAT Developments in Romania
- New deadline for submission of SAF-T – First report due July 31, 2022
- Romania launches new e-invoicing system – “RO e-Factura”
- Romania to cut domestic energy VAT to 5%
- SAF-T Romania – An overview
- E-Invoicing and Real Time Reporting as of Jan 1, 2023
- Slovakia launches new e-invoicing system – “Informačný Systém Elektronickej Fakturácie (IS EFA)
- Customs clearance of express shipments under the SIAIS2 system
- Disrupted operation of the eDavki system and G2G services, 22 December 2021
- Extension of the reduced VAT rate of 10% for electricity till April 30, 2022
- Government approves the extension of the tax cuts for electricity and the super-reduced VAT rate of 4% for masks
- DACH region – Switzerland: the tension between transfer prices and customs values
- VAT lump sum method rate for company cars to increase to 0.9% as from 1 January 2022
- VAT practical information by the Swiss VAT authorities
- Turkey Clarifies VAT Exemption for Development of Social Content Mobile Apps
- Turkey Increases Special Consumption Tax Exemption Limit for Disabled Individuals
- Turkey Sets VAT Refund Limit for 2022 at TRY 25,700
- Innovations in fiscalization of settlement operations
- Nuances of taxation of operations on warranty replacement of imported goods
- Reflection of tax liabilities in VAT reporting in case of erroneous tax invoice
- Simplified VAT Return and Procedures for Non-Resident Suppliers of Electronic Services
- Ukraine Clarifies VAT Obligations for Non-Resident Suppliers of Electronic Services in 2022
- Consultations and calls for evidence on tax administration, policy areas published
- Cryptocurrency platforms potentially in scope of the UK DST
- FTT: Sale of shares, recovery of VAT on professional services (Hotel La Tour Ltd)
- HMRC Guidance: Apply for repayment or remission of import duties (C285)
- HMRC Guidance: Check if you need to register for Plastic Packaging Tax
- HMRC Guidance: Claim a credit or defer paying Plastic Packaging Tax
- HMRC Guidance: Complete your VAT Return to account for import VAT
- HMRC Guidance: Completing your Plastic Packaging Tax return
- HMRC Guidance: Corporate purchasing cards (VAT Notice 701/48) – Ability to deduct VAT based on credit card statement
- HMRC Guidance: Other products and circumstances affecting the second-hand vehicles VAT margin scheme
- HMRC Guidance: Record keeping and accounts for Plastic Packaging Tax
- HMRC Guidance: Register for Plastic Packaging Tax
- HMRC Guidance: When you must register for Plastic Packaging Tax
- HMRC Guidance: Work out which packaging is subject to Plastic Packaging Tax
- HMRC has published UK VAT statistics for 2020 to 2021
- HMRC internal manual: VAT Government and Public Bodies
- HMRC Policy paper – Revenue and Customs Brief 15 (2021): Repayment of VAT to overseas businesses not established in the EU and not registered in the UK
- HMRC Policy paper: Customs Information Paper 2
- HMRC urges businesses to prepare for January customs changes
- Plastic Tax – How to ensure compliance?
- Post-Brexit VAT relief for UK yacht owners
- Rishi Sunak considers lowering VAT and providing a cash boost to pubs and restaurants
- UK Intrastat ends Jan 2022 after Brexit
- UK issues updated guidance and regulations on Plastic Packaging Tax
- UK Revising Late Payment Interest Rates
- Warning! Making Tax Digital VAT: gremlins hit HMRC
- Your 2022 New Year’s Guide to EU-UK Customs Changes
MIDDLE EAST
- Bahrain VAT increase transitional rules
- Law on VAT rate increase published in Official Gazette
- Navigating the anticipated VAT rate increase in Bahrain
- VAT Rate change transitional provisions guide
- VAT rate increase to 10% effective 1 January 2022 with one year transition period
- Submit VAT declaration by Dec. 31, Saudi businessmen told
- ZATCA announces details on e-invoicing violations and penalties
- Amended customs procedures for E-commerce companies
- California Announces New Fee Collection Requirements for Marketplace Facilitators
- Requirements of tax invoice: Too simple to get ignored?
- UAE tax authority confirms systems’ readiness of VAT refund scheme for tourists
