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VAT: Be gone with it!
That’s a slogan of a retail company of electronic products, here in the Netherlands (BTW: Weg ermee!). And I’m annoyed every time I hear it.
First of all, it’s misleading. Consumers think that they get a discount of 21%. That’s the standard VAT rate in the Netherlands. So it’s logical that consumers think that the price goes down with that percentage. Wrong! The discount given is the VAT amount that is included in the original sales price.
For example: the normal price of a TV is EUR 1,000. The consumer thinks that he will only have to pay EUR 790 (1,000 -/- 21%). But when he comes to the shop, the discounted price is EUR 826. A nice discount, but only 17.3%. And that is of course, because the VAT amount that is included in the original sales price is not 21%, but 21/121 ≈ 17,3%.
Secondly, it’s confusing. The retail shop is still charging VAT, as it can of course not decide to not charge VAT on its sales. Every supply is subject to VAT. The shop just charges VAT on a lower net price. But by using the slogan, the shop implies that the sales are without VAT.
And thirdly, and this is probably the most important reason for my annoyance: the slogan implies that VAT is bad. How can you say that about something that gives us so much fun? Probably, we, the editors of VATupdate, are strange persons to have VAT as a hobby and passion. But together with you, our readers and friends, we have the best jobs in the world. VAT enables us to investigate, understand and streamline business processes and transaction flows. And some of the cases before the courts make us giggle.
We would never stop you from buying a new TV, a pair of glasses or a bed. And if you do, make sure you compare brands, options and prices and profit of discounts. But please ignore the big signs denying VAT. You know VAT exists. Really, it does!
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
- Job opportunities in Hungary, Ireland and the Netherlands
- Job opportunities in Poland, Portugal and United States
- 12 Good Reasons to Move to SAP GTS, edition for SAP HANA
- A tale of two tax professionals
- Customa & Global trade – Week 13/2023
- Data Management in the Evolving Tax Function
- E-Invoice Technical Implementation: What Should You Know?
- Event: E-Invoicing Exchange Summit Americas in Miami (April 24 until 26, 2023)
- Global Excise Tax Application and Trends
- Global VAT rate changes/news – March 2023
- KNAS SAP Table – Customer master (VAT registration numbers general section)
- March TaxTech Updates
- OECD report released on communication and engagement between tax authorities and SMEs
- Summary Invoice: What is it?
- Tariff Classification General Rules of Interpretation (GIR)
- The added value of VAT technology
- The WCO Symposium on E-Commerce and Customs Valuation Highlights Key Challenges
- These are the recent global developments on VAT and ”Bad debts”
- This Month in Indirect Tax: 50 Years of UK VAT; E-Invoicing in Saudi Arabia; and NFTs
- Tips for identifying potential VAT reclaim opportunities
- Updated ESG Tax Tracker – Global developments in ESG-related taxes, incentives and grants
- What Is E-Invoicing?
- What Is GST, And Which Countries Have It?
- Who provided input into the public consultation of the European Commission on ViDA?
- Why and How a Business Should Build a Tax ID Validation Solution
- Worldwide updates on E-Invoicing/Real Time Reporting/SAF-T in March 2023
WEBINARS / EVENTS
- Pagero webinar: ViDA – current state and what to expect next (April 27, 2023)
- Vertex Exchange Europe 2023: Think forward, think tax – Pierluigi Collina will join us as a guest keynote speaker (May 9, Barcelona)
- Webinar recorded session – E-invoicing in Spain – A Breakdown
AFRICA
- Kenya High Court upholds that interchange fees are financial services exempt from VAT
- Kenya seeks Rwanda’s VAT collection model to boost revenues
- KRA launches new eTIMS functionalities for transmission of invoices via digital devices
- President William Ruto: VAT on exported services to be removed
- Experts Support Nigeria’s Proposal To Raise VAT
- FIRS rakes N10.5trilion in 2022 tax year
- Nigerian VAT rise to 10% – pressure grows
- What Are the E-invoice Requirements in Nigeria?
AMERICAS
- Aruba Revenue Tax on non-resident digital services 2023
- Minister of Finance Proposes Indirect Tax Levy at Border
- Bolivia 3rd Group Of Taxpayers
- Bolivia has given a grace period to the fourth group of taxpayers
- Modernization of Registration Procedures and Modification to National Digital Biometric Taxpayer Register
- Canada Federal budget 2023/24: GST impact
- CARM: Canada´s New Importing Project
- Federal Federal budget: Changes to the definition of “financial service” under the Excise Tax Act
- Tax Court of Canada judgement about nursing & home care services
- Tax Insights: 2023 Federal budget ─ GST/HST and financial institutions
- CFDI e-invoicing – 4.0 delayed again to July 2023
- Mandatory RFC Validation Method in Mexico
- Payroll electronic invoice 4.0 (CFDI 4.0) mandatory beginning 1 July 2023 (three-month extension)
- 5 Major Developments in the United States
- Columbia, Boone County propose sales taxes on recreational marijuana
- Government Accountability Office Raises Three Concerns about U.S. Sales Tax System
- Missouri Senate exempts firearms, ammo, diapers and feminine hygiene products from sales tax
- Ohio: Documentation Service Charges Excluded from Sales Price
- Record number of cities and counties seeking local sales taxes
- Rise of the Tax Machines: IRS algorithms are coming for you
- Sales tax treatment of computer software (Mississippi)
- Sales Tax, Software, SaaS & Consulting- How They Work Together
- Six tips to respond to a sales tax audit
- The American Exception: Why the US Has No VAT System?
- Various changes including revision of definition of “telemarketing services” (Kentucky)
ASIA-PACIFIC
- ATO update on GST for supply of digital products
- Australia Tax Agency Issues Guidance on GST Considerations for Buy-Now, Pay-Later Providers
- Draft Ruling update on treatment of ATM service fees, credit card surcharges and debit card surcharges
- Supply of gold bullion case remitted to AAT
- Updated Ruling dealing with financial supplies
- China Customs’ new practice further challenges the implementation of post-importation TP adjustments
- China special e-fapiao mandatory VAT invoice update
- AAR and AAAR Weekly Round-Up
- Analysis of 8 GST Notifications issued on 31st March, 2023
- Analysis of All GST Notifications Issued on 31st March 2023
- Both Sales Tax and Service Tax cannot be made applicable on the same transaction: CESTAT
- Both Sales Tax and Service Tax cannot be made applicable on the same transaction: CESTAT
- Carrying of physical copy of Invoice is mandatory – Soft copy is not valid: HC
- CESTAT Weekly Round-Up
- Companies not to pay GST on employees’ share of canteen charge, rule AARs
- Company Director forcibly taken to GST office to Deposit GST Demand: P&H HC Orders to Refund Sum with Interest
- Customs Dept allows Manual OOC for Clearance of import consignments where duty not being reflected in ICES after payment
- Disability aids, appliances should not attract 5% GST: Parliamentary panel
- Discrepancy in Amount Mentioned in E-Way Bill and Tax Invoice: Orissa HC directs Fresh Adjudication
- Finance Ministry to constitute 16th Finance Commission this year
- Finance Ministry to review GST systems on April 4: Sources
- Group of ministers likely to propose 18% GST for games of skill, 28% for chance
- Group of ministers likely to propose 18% GST for games of skill, 28% for chance
- GST Amnesty scheme now available for non-filers of GSTR-9
- GST Not Applicable on Notice Pay Recovery from Outgoing Employee: AAR
- GST Portal Update: Reduced Late Fees for Pending GST Annual and Final Returns GSTR-9, GSTR-9C…
- GST Rate Applicable on Lease of Pre-owned Motor Vehicles as per Central Tax Rate Notification: AAR
- GSTR-9 Non-Filing Amnesty Scheme: All You Need to Know
- Lower 12% GST for services linked to flat construction
- Madhya Pradesh HC directs department to Refund pre-Deposit with 6% Interest
- New GST Amnesty Scheme w.e.f. 01/04/2023
- No GST on biz vertical sold as ‘going concern’
- No Service Tax on Corporate Guarantee in Absence of Consideration
- No service tax on corporate guarantees by parent companies to its subsidiaries: Supreme Court
- One-time Amnesty Scheme for regularisation of default of EO under Advance Authorisation and Export Promotion Capital Goods Scheme
- Other Charges like Water Supply Connection Charges, Electricity Meter and Security Deposit…
- Supply of Spraying Services are Non- Taxable under GST: AAR
- Supreme Court and High Court Weekly Round-Up
- What are GSTR-2B and GSTR-2A statements?
- Indonesia lowers VAT on electric vehicles to 1%
- VAT Incentive for Electric Cars Available until December: Official
- VAT incentive for electric cars available until December: official
- European Union & Indonesia: EU increases actions against Indonesian imports
- Luxury goods tax not alternative to GST, says MOF
- Overview of customs duties order regarding goods covered under CPTPP
- Timeline proposed for rollout of e-invoicing
- 5 Major Developments in New Zealand
- Complicated, confusing and misunderstood… GST apportionment rules are changing
- Holiday accommodation – what do you need to think about now?
- New Zealand hits gig & sharing economies platforms with 15% GST April 2024
- GST: Clarification on “Directly in Connection With” and “Directly Benefit”
- Guidance: GST treatment of travel products
- IRAS e-Tax Guide on ASK
- Singapore plans to make Peppol default e-invoicing method for the public sector
EUROPE
- Changes have been made to the VAT exemption rules for imports from the EAEU
- VAT cuts as Europe food inflation hits 15.4% March 2023
- Comments on C-42/22 (Global Companhia de Seguros): Resale of wrecks by an insurance company and…
- Comments on ECJ C-612/21 & C-616/21: whether municipalities acting as a taxable person – no – taxpayer win
- Comments on ECJ C-612/21: A municipality is not a taxable person due to a project to increase the proportion of renewable energy sources
- Comments on ECJ C-612/21: Polish municipality not subject to VAT for installation systems…
- Comments on ECJ C-616/21: A municipality is not a taxable person for contracting out removal of asbestos
- Comments on ECJ C-616/21: Polish municipality not subject to VAT for removing asbestos-containing products from homes
- Comments on ECJ C-664/21: Presentation of Proof of Export in an Intra-Community Supply of Goods
- Comments on ECJ C-695/20: ECJ Judgment in the Fenix Case
- ECJ Case: Clarifications on Hungarian VAT base reduction rules for insurance companies
- Flashback on ECJ Cases – C-408/06 (Götz) – The activity of transferring delivery reference quantities…
- Flashback on ECJ cases C-172/03 (Heiser) – Switch from taxation regime to exemption, without requiring an…
- Flashback on ECJ cases C-498/03 (Kingscrest Associates and Montecello) – The word ‘charitable’ which must be interpreted in an uniform way in all the language versions of the Directive
- Municipality Installing Renewable Energy Systems and Removing Asbestos not Subject to VAT (ECJ Judgment)
- New ECJ VAT case: Finanzamt X – C-207/23
- Agenda of the ECJ VAT cases – 6 Judgments, 1 Pleading till May 12, 2023
- ‘Fit for 55’: Council adopts decision on market stability reserve
- Amazon deliveries from countries without VAT registration: what does this mean for the OSS report?
- Does Europe want to abolish VAT returns?
- Electronic invoices for VAT on the rise from 2024
- ETAF feedback on the ViDA package
- EU releases draft act to introduce binding valuation decisions
- EU Value-Added Tax Changes and Proposed Obligations for Platforms
- EU VAT Committee publishes working paper on non-fungible tokens
- EU VAT in the Digital Age ViDA update
- EU VAT Overhaul Unrealistic, Companies and Business Groups Say
- EU: Providing evidence in case of a VAT audit
- EURACTIV’s Position on the European Commission’s proposal for VAT in the digital age
- European Union & Indonesia: EU increases actions against Indonesian imports
- Import Control System 2 – Release 2
- Major EU developments in e-invoicing and digital VAT reporting
- Mandatory e-invoicing in Europe. Where are we today?
- Oracle: Validating a New VAT ID at the Time of Data Entry
- The Commission announces the launch of a call for evidence to evaluate the eInvoicing directive
- How bringing ViDA can help restore a level playing-field in the hospitality sector
- VAT in the digital age (VIDA): A look into the proposal (part 2)
- Input into the public consultation of the European Commission on ViDA: Business Europe
- Input into the public consultation of the European Commission on ViDA: DIGITALEUROPE
- Input into the public consultation of the European Commission on ViDA: EFAMA
- Input into the public consultation of the European Commission on ViDA: EU Travel tech
- Input into the public consultation of the European Commission on ViDA: Finnish Commerce Federation
- Input into the public consultation of the European Commission on ViDA: INDEPENDENT RETAIL EUROPE
- Input into the public consultation of the European Commission on ViDA: International VAT Association
- Input into the public consultation of the European Commission on ViDA: Johan Briantais
- Input into the public consultation of the European Commission on ViDA: MDDP
- Input into the public consultation of the European Commission on ViDA: PwC
- Input into the public consultation of the European Commission on ViDA: TEI
- ViDA Feedback from: Confederation of Finnish Industries
- ViDA Feedback from: European Automotive Service and Repair Association (EASRA)
- ViDA Feedback from: Federation of Swedish Business Owners
- ViDA Feedback from: International Chamber of Commerce
- ViDA Feedback from: Mouvement des Entreprises de France (MEDEF)
- ViDA: Feedback from: CFE Tax Advisers Europe
- Draft proposal for Belgian tax reform intends to harmonize the current VAT rates and introduces an obligation for B2B e-invoicing
- Late payment interest is not automatic!
- Modernization of the Belgian “VAT chain”: what is coming in 2024?
- Ministry seeks compromise on VAT home discount
- VAT filing deadline extensions for transition to the new electronic system
- Draft legislation proposing additional reporting for VAT-exempt taxpayers
- Uber driving – VAT on intermediary services received with reverse payment obligation
- VAT – repair – combined service – transfer
- 5 Major Developments in Finland
- Case: Joint procurement — Safety net regulation — Right of deduction and refund
- Reporting laws for payment providers on cross-border transactions
- From 1st September 2023 the French VAT Authorities will no longer correspond via email
- Mandatory information on an invoice: all you need to know!
- Monaco: Expansion Of Reduced Vat Rate To Certain Operations
- 5 Major Developments in Germany
- Event: E-Invoicing summit in Berlin on June 12th and 13th, 2023
- GoB: Principles of proper accounting and GoDB
- Ministry of Finance plans to publish mandatory B2B e-invoicing discussion draft
- Recently introduced VAT rate of 0% for solar panel systems – New federal instructions
- Supreme Tax Court: Two follow-up decisions on VAT group requirements
- VAT rate on deliveries of wood chips
- Government Approves Zero VAT Rate for the Supply and Installation of Solar Panels
- Ireland Introducing Zero Rate of VAT for the Supply and Installation of Solar Panels
- Ireland to slash VAT on residential PV to 0%
- Zero VAT on Solar Panels will Save Families €1,000 – Daly
- 5 Major Developments in Italy
- Circular: No VAT on supplies to armed forces
- It’s time for a VAT return: what’s new in the 2023 Model
- Non-taxable VAT goods and services for the armed forces
- Publishes Legislative Decree for Implementation of DAC7
- Ruling 275: Health care services for diagnosis, treatment and rehabilitation of the person – Obligation of documentation by invoice – Article 22
- Ruling 279: VAT exemption educational services- art. 10, first paragraph, no. 20
- Ruling 282: 4% rate for supplies of technical and computer aids to favor of handicapped persons
- Ruling 283: VAT -Triangular export supplies – art. 8, paragraph 1, lett. a)
- Ruling 287: VAT rate of 4% for cardiovascular prostheses
- Supreme Court: 10% VAT for the sale of the building intended for a health clinic
- Tax truce, penal shield and the new timing
- 5 Major Developments in Netherlands
- Annual report High Council 2022: growing influence of European and international law
- Answers to parliamentary questions about VAT on human germ cells
- Burden of proof VAT fraud bottleneck Tax Authorities
- Court: Standard VAT rate for long-term parking package hotel
- Decree travel agency regulation updated
- Delivery drivers Deliveroo work on the basis of an employment contract
- Entrepreneurs beware: Expansion of fixed solar panels
- High VAT rate on human germ cells
- Knowledge Groups Positions of the Dutch Tax Authorities on RETT/VAT matters
- More clarity about VAT zero rate solar panels: wholesalers can deliver freely
- Paying too little VAT is not proof of intent
- Project developer’s activities not a partage, but a VAT-taxed service
- Tax Administration publishes knowledge group views
- Tax and Customs Administration clarifies application zero rate of solar panels
- The Netherlands introduce e-orders via Peppol
- Updated Decree on travel agency VAT scheme (TOMS) published
- VAT entrepreneurship applies to the purchase and sale of plots
- VAT treatment of cancellations and no shows
- Why does a higher VAT rate apply to the supply of human germ cells used to fulfill a couple’s wish to have children…
- Zero rate incorrectly applied to watch trading
- 11 VAT groups registered in 3 months
- 2023 Tax Calendar
- 5 Major Developments in Poland
- Conditions for the Application of the 0% VAT Rate to the Transport of Imported Goods
- Implementation of the VAT warehouse institution
- New draft amendment introducing changes in the KSeF obligation
- New draft law regarding the obligation to use e-invoices
- Poland introduces anti-VAT fraud energy domestic reverse charge
- Poland Postponing Mandatory E-Invoicing Until July 2024 and Introducing Other Amendments
- Temporary introduction of the reverse charge from April 1, 2023
- Temporary settlement in the reverse charge system for the purchase of gas, electricity and emission allowances
- Transactions concerning gas, energy and CO2 emission allowances from April with VAT reverse charge
- Update of the draft regulations on the mandatory use of the E-Invoicing – QR code obliged for invoices…
- VAT adjustment when changing the rules of the use of the car
- VAT warehouse – introduction of a new procedure into the Polish legal order
- 0% VAT Essential Foods Finally Confirmed
- 5 Major Developments in Portugal
- More Foods Added to 0% VAT List
- 5 Major Developments in Romania
- Implementation of RO e-Transport System in Romania (Oct 2022)
- Vat Guide – Romania
- 5 Major Developments in Russia
- Federal Tax Service announced two new codes for VAT-free transactions
- Not every overdue VAT return will be fined
- Services provided on ski slopes are subject to VAT at a rate of 20%
- VAT declaration form and the procedure for filling it out have been updated
- “Crea y Crece” law makes the use of the Electronic Invoice mandatory among companies, SMEs and…
- 5 Major Developments in Spain
- Bizkaia: What is the Batuz tax system?
- Customs Authorities issue new guidelines on provisional customs value
- What will the new fiscalization requirements change in Spain?
- Lex Netflix and VAT
- Reminder of 30 June 2023 deadline to claim VAT refunds
- Switzerland to tax electric vehicles from 2024 – Import tax of 4%
- VAT rate on feminine hygiene products reduces from 7.7% to 2.5%.
- How is VAT taxed on the write-off of goods?
- Reduction of VAT rates to 10% and not only: what changes does the authorities prepare for the dairy industry?
- ‘Temporary’ Digital Services Tax risks becoming permanent, says CIOT
- Anonymous VAT Penalty Notices Fox Agents
- Apportionment of output tax – updated guidance
- Britain’s digital tax risks becoming permanent, says tax body
- Customs Talks: Inward Processing in the UK – It’s all about accurate data!
- Digital services tax still existing is a ‘failure’
- DIY Housebuilders’ Scheme – deadline for claims extended
- Food for assistance dogs now zero rated
- HMRC Guidance – The Border Target Operating Model: Draft for Feedback
- HMRC Guidance: VAT on Goods Exported from the UK (VAT Notice 703)
- HMRC yearly average and spot rates
- Late payment interest rates increased
- New guidance on zero rating exports
- Tax point deeming provisions take priority over VAT grouping deeming provisions
- The Value Added Tax (Installation of Energy-Saving Materials) Order 2023
- The Value Added Tax Act 1994 (Schedule 9) (Exemptions: Health and Welfare) (Amendment) Order 2023
- UK concludes negotiations to join Comprehensive and Progressive Agreement for Trans-Pacific Partnership
- UK fears OECD Pillar 1 delays will encourage Digital Services Tax avoidance
- UK Increasing Late Payment and Repayment Interest Rates
- VAT Registration: Top tips for agent submissions
- VAT: The Windsor Framework
MIDDLE EAST
- Did you Know? VAT Treatment for Stock made Available to Customer
- National Bureau foRevenue (‘NBR’) Re-Enables 5% Field in VAT Return | Requests Taxpayers to Amend Jan & Feb 23 Return
- Penalties applied to unregistered businesses charging VAT on supplies
- Recent Case of Penalties Imposed by the National Bureau for Revenue (NBR)
- Reporting sales and corresponding adjustments at 5% in VAT return form re-enabled
- 5 Major Developments in Saudi Arabia
- Amendments to the e-invoicing implementation resolution
- E-invoicing Accounts Payable Matrix and Policy in KSA
- How Saudi Arabia’s VAT Landscape Has Evolved
- Saudi Arabia amends Implementing Regulations on excise tax
- Saudi Arabia Makes Electronic Invoicing Mandatory: FATOORAH Project
- Third wave of e-invoicing applicability
