Train
This week let’s start with a little humour that also holds a lesson.
Three Dutchmen and three Belgians are taking a train trip. The Dutchmen each buy a ticket, while the Belgians buy just one. Confused, the Dutch ask, “How are you going to manage with just one ticket?” The Belgians reply, “You’ll see.”
As the train conductor starts checking tickets, the Belgians sneak into the same toilet. When the inspector knocks, they simply slide their one ticket under the door, and it works like a charm.
The next day, on the return trip, the Dutchmen try to outsmart the system, buying only one ticket as well. But this time, the Belgians don’t buy any tickets at all. The Dutch are baffled: “How are you going to manage without a ticket?” The Belgians smile and say, “You’ll see.”
Once again, the train conductor begins his rounds, and the Dutchmen cram into one toilet. But before they can relax, a Belgian knocks on the door of their toilet. The Dutchmen, thinking it’s the conductor, slide their ticket under the door… and of course, the Belgians take it!
What’s the lesson here for VAT? Well, much like the Dutch in this story, you can’t rely on tricks and shortcuts to manage VAT correctly. You might get away with it for a while, but sooner or later, it’ll catch up with you. Just like the train conductor always comes around, tax authorities are always checking compliance, and they’ll spot any gaps or mistakes you try to slide under the door.
The real solution? Don’t try to outsmart the system. Make sure your VAT processes are solid and transparent, so you can avoid any last-minute surprises. And as always, keep up with the latest VAT news and regulations at www.VATupdate.com to stay on the right track.
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
WORLD
- Canada imposes surtaxes on imports of Chinese EVs, steel and aluminium products, considers surtaxes on critical manufacturing goods
- USTR publishes final Notice of modification of actions on impacted Chinese origin products subject to increase in additional Section 301 tariffs and applicable…
- E-Invoicing & E-Reporting developments in the news in week 38/2024
- Navigating Global e-Invoicing Compliance: Regulations, Standards, and Best Practices
- Tax Tech Strategy: Integrate Technology for Compliance
- Leveraging VAT for ESG Goals: A Sustainable Approach for Governments and Businesses
- Navigating Digital Reporting Requirements: A Comprehensive Guide for Businesses
- Digital Reporting Requirements (DRR): A Comprehensive Guide
- Periodic Transaction Controls: Complete Guide & Tips
- Post-Audit vs. Clearance E-invoice Mandate Models Explained
- What is SAF-T (Standard Audit File for Tax)?
WEBINARS / EVENTS
- RTC Webinar – Is ViDA the Tip of the European E-Invoicing Iceberg? (Oct 9)
- Comarch Webinar – E-Invoicing in Germany: Achieve Legal, Technical, and Tax Compliance (feat….
- Sovos Webinar On Demand – Mastering Cross-Border Trade Compliance: Navigating EU Regulations and Tax Mandates
- ecosio Webinar – Peppol for Dummies – Understanding the Basics (Sept 26)
- IBFD Training: Advanced Professional Certificate in International VAT/GST – Starting October 1,…
AFRICA
DEMOCRATIC REPUBLIC OF CONGO
EGYPT
ETHIOPIA
GHANA
- Verifying E-VAT Receipts in Ghana: A Step-by-Step Guide for Customers
- Ghana proceeds with the second phase of the Electronic VAT Invoicing System
NIGERIA
- FIRS to Introduce e-Invoice for Real-Time Transaction Validation
- FIRS Launches e-Invoice System to Transform Nigeria’s Tax Administration: Chairman’s Vision
- Nigeria’s New E-Invoicing System: Boosting Tax Administration and Compliance
- Nigeria e-invoicing announced
SOUTH AFRICA
UGANDA
AMERICAS
AMERICAS
- US requests consultations on Canada’s Digital Services Tax under USMCA
- US challenges Canada’s Digital Services Tax under USMCA
ANGUILLA
ARGENTINA
BAHAMAS
BRAZIL
CANADA
- Canada CRA Guidance: New Reporting Rules for Digital Platforms Effective 2024
- Understanding Canada’s New Reporting Rules for Digital Platform Operators: A Guide for Compliance
- Canada GST Increase 2024: Eligibility, Payment Schedule, and How to Apply
- Tax Court of Canada Rules in Favor of 12329905 Canada Ltd. in GST Rental Rebate Appeal
- Understanding the New Reporting Rules for Digital Platform Operators in Canada
CHILE
- IRS Updates SII Requirements for Timber Sector: Resolution No. 75
- SII Calculator Simplifies IVA Payment for Non-Registered Individuals at Fiestas Patrias Events
COLOMBIA
COSTA RICA
EL SALVADOR
PERU
- VAT on Cross-border Sales of Digital Services from December 1, 2024
- Peru Delays New Rules for VAT Collection on B2C Digital Services Until Further Notice
- Peru Extends Deadline for 18% VAT on Digital Services to December 2024
- Peru Delays 18% VAT on Digital Services to December 2024
- Peru Delays New VAT Rules for Overseas E-Services Suppliers Until December 1, 2024
- Peru Delays Implementation of 18% VAT on Digital Services to December 1, 2024
- Peru postpones effective date to 1 December 2024 for applying 18% VAT on digital services
UNITED STATES
- Excise Taxes and Fees on Wireless Services Increased 8.8 Percent in 2024
- California Swap Meet and Flea Market Operator Guidelines: Compliance with State Law (Publication 111)
- Navigating Maine’s New Sales Tax Rules for Leases and Rentals: A Lessors’ Guide
- Choosing the Right Sales Tax Calculation Engine: 4 Key Questions to Consider
- Oregon Measure 118 Is an Aggressive Sales Tax—and Worse
- Manufacturing Exemption: Testing Equipment in Virginia Eligible for Sales Tax Refund
URUGUAY
- Extension of VAT reduction for tourism-related operations boosts sector
- Extension of VAT reduction in tourism sector boosts satisfaction among Uruguayan entrepreneurs.
- Uruguay Extends VAT Reduction for Tourism Sector to Aid Industry Amid COVID-19 Challenges
VENEZUELA
ASIA-PACIFIC
ARMENIA
AUSTRALIA
AZERBAIJAN
CHINA
INDIA
- Understanding GST ITC 04 Form: Filing, Due Dates, and Important Components
- Understanding Valuation Rules Under GST: A Comprehensive Guide by Sakshi Jain, CA LLB
- Allahabad High Court: No Requirement to Disclose Transportation Route under GST Law
- ACB Arrests Two More in GST Fraud Case Linked to 500 Non-Existing Firms
- India’s Circulars on Place of Supply for Advertising and Data Hosting Services to Non-Residents
- Mastering GST Returns: A Complete Guide for Tax Compliance
- Recipient of Goods/Services Cannot File GST Refund Application: Madras High Court Decision
- Houseboat Owners Struggle with 18% GST Demand from 2017 Retrospectively
- PMO Advisor: ATF and Natural Gas to be Included in GST by Year-End
- GSTR 6: The GST Return to be filed by an ISD
- GST structure — the complications and the way ahead
- B2C E-invoice Pilot Recommendation
- Rising GST Evasion in India: Fiscal Year 2023-24 Sees ₹2.01 Lakh Crore Scam
- Introduction to Invoice Management System (IMS) Under GST: Features, Benefits, and Operational Insights
- Everything you need to know about GSTR-7
- GST Council Forms GoM to Review Health & Life Insurance Tax
- India considers e-invoicing for the B2C sector
- GST evasion doubles in FY24; Mumbai tops detection list
KAZAKHSTAN
KYRGYZSTAN
- Kyrgyzstan Ends VAT Exemption for Importing Specific Medicines
- VAT Exemption for Renewable Power Plant Equipment Imports by Cabinet of Ministers
- Price of medicines to increase in Kyrgyzstan due to introduction of VAT
MALAYSIA
NEW ZEALAND
PAKISTAN
PHILIPPINES
SRI LANKA
- Sri Lanka food prices sharply down after multiple VAT hikes: Analysis
- Sri Lanka presidential candidate confirms VAT removal for key sectors
TAIWAN
- International VAT Guide – Taiwan
- Taipei Customs Urges Importers: Avoid Cross-Border Meat Shopping for Mid-Autumn Festival
THAILAND
- Thailand Approves Extension of 7% VAT Rate to 2025
- Thai Cabinet Extends Reduced VAT Rate on Imports, Goods, and Services Until 2025
- Thailand shelves 2024 VAT rise to 10%
- Government Extends VAT Reduction to 7% until September 30
UZBEKISTAN
- Tax Refund Process in Uzbekistan: Simplified Procedures for VAT and Income Taxpayers
- Deadline for VAT payers to correct online cash register receipts is September 20
- Uzbekistan to Eliminate Tax Exemptions Starting January 2025: What You Need to Know
- Reporting Requirements for Taxpayers Transitioning to VAT and Profit Tax Payment
- Uzbekistan Announces Changes to Tax Benefits and Customs Regulations Starting 2025
VIETNAM
EUROPE
EUROPE
- Amazon Warehouses in Europe: Locations, Addresses, and Logistics Operations
- Evolution of VAT in Europe and the UK: From Concept to Implementation
- Italy and UK Agreement on Mutual Recognition of VAT Refunds: Official Confirmation by Revenue Agency
EUROPEAN COURT OF JUSTICE
- Comments on ECJ C-741/22: Belgium’s VAT Exemption and Online Games of Chance
- ECJ VAT C-513/24 (Oblastní nemocnice Kolín) – Questions – Hospital’s VAT…
- ECJ VAT C-501/24 (Klinka-Geo Trans) – Questions – VAT deduction in case of invoice irregularities
- Comments on ECJ Case C-83/23: Ruling Against Taxpayer for German VAT Refund on Sale-and-Leaseback Transactions
- Comments on ECJ C-248/23: Novo Nordisk AS VAT Treatment of Statutory Payments to State Health Insurer
- Comments on ECJ C-639/22 & other: VAT treatment of Dutch pension fund management
- Comments on ECJ C-709/22: Poland’s Split Payment Procedure and VAT Restrictions
- Comments on ECJ C-248/23: VAT Reduction Allowed for Pharmaceutical Companies
- Comments on ECJ C-248/23: Pharmaceutical company – payments to state health agency…
- Comments on ECJ C-644/22 & others: Pension funds – ECJ leaves actual decision to referring court
- Comments on ECJ C-248/23: Novo Nordisk Rebates Case Clarifies VAT Treatment for Pharmaceutical Industry
- Comments on ECJ C-429/23: VAT Deduction Refusal for Pre-registration Invoices
- Comments on ECJ C-73/23: VAT Exemption for Online Games of Chance
- Comments on ECJ C-83/23: Buyer’s claim for undue VAT
- Comments on ECJ C-639/22 & other: New developments regarding the VAT exemption for funds
- Comments on ECJ C-573/22 (AGO) – Denmark may levy VAT on media contribution
- Comments on ECJ C-83/23: Sale-and-Leaseback Transactions: VAT Refunds and Recalculation
- Comments on ECJ C-639/22 & other: Preliminary Rulings – Sectoral Pension Funds and Special Investment Funds
- Comments on ECJ C-243/23: Belgian adjustment scheme for renovation work in breach of EU law
- Comments on ECJ C-248/23: Payment by pharmaceutical company is VAT base-reducing price reduction
- Comments on ECJ C-429/23: Strict enforcement of VAT deadlines by Bulgaria not in breach of EU law
EUROPEAN UNION
- Understanding the notion of ‘VAT Paid Status’ of a luxury asset
- European Commission Updates Customs Forms for Intellectual Property Rights Enforcement
- Your obligations and other VAT reporting formalities abroad
- The Court of Justice abandons VAT, customs, and excise duties
- Reflecting on the SME Landscape in the EU: e-invoicing and other regulatory barriers
- Updates on Official Bulletins and VAT Regulations
- Possibility of Recovering VAT Paid on Client and Employee Expenses
- Guideline from VAT Committee: Independent Status for Online Skin Sellers on Trading Platforms
AUSTRIA
BELGIUM
- Belgium Delays VAT Declaration and Payment Reforms to Enhance Efficiency for Taxpayers and Authorities
- Belgian VAT Code Amendments Enhancing Periodic Declaration Processing Effective January 2025
- Upgrade to GKS 2.0 in Belgium: Impact on Tax Control Mechanisms and Penalties
- Belgium’s VAT Compliance Changes: Quarterly Deadlines, Substitute Returns, and Refund Process Updates
BULGARIA
- SAF-T Accounting Implementation in Bulgaria: Phased Rollout and Reporting Requirements for…
- Bulgaria to Implement Accounting SAF-T in 2025
CROATIA
DENMARK
ESTONIA
FRANCE
- How to Set Up VAT Rates on Shopify: Essential Guide for International Sellers
- E-Invoicing France: All You Need to Know
- Guide to Electronic Invoicing Reform in France: Simplifying Processes and Fighting VAT Fraud
- Understanding Box A1 of French VAT Return: Key Points for Accurate Reporting and Compliance
- VAT Fraud Prevention: Leveraging the Reliable Audit Trail for Business Success
- 2024 Olympics and Paralympics – VAT Recovery In France
GERMANY
- German B2B mandate: “E-Mail is enough” but parties may agree on other ways
- VAT Treatment of Educational Services: Challenges and Changes in German Tax Law
- Preparing for Germany’s B2B e-Invoicing Mandate: Steps to Compliance by January 2025
- State grants for local public transport not subject to VAT, full input VAT deduction allowed.
- German E-Invoicing Mandate: Phase One Begins January 1, 2025
- Changes to Small Business VAT Regulation: Impact of Proposed Legislation on Taxpayers’ Rights
GREECE
- AADE sends emails to 155,000 businesses for digital document issuance and transmission in myDATA
- Non-submission of VAT clearance statement, prescription, notification of legal entity act to unknown residence person.
- VAT Exemption for Overdue Interest: Impact on Prorata Fractions and Tax Calculation
- 140 Individuals Investigated for €150 Million Fraud and VAT Evasion Scheme
- Greece to implement electronic delivery notes for real-time tracking of goods
HUNGARY
IRELAND
ITALY
- VAT and Company Liquidation: Implications for Tax Compliance and Succession Effects
- Tax Declaration for Taxpayer Closing VAT Number in 2022 under Forfait Regime: Handling 2023 Income.
- Supreme Court Ruling: VAT Recovery for SPVs in MLBO Transactions
- New Tax Penalty System in Italy: Legislative Decree No. 87 Imposes Stricter Measures
- VAT on transaction costs incurred by special purpose vehicle recoverable post-merger (Supreme…
- Updated tax penalty regime in Italy from 1 September 2024
LATVIA
- Latvia’s Mandatory E-Invoicing Implementation: B2G by 2025, B2B by 2026
- Latvia is Advancing its Digital Transformation with Mandatory e-invoicing
LITHUANIA
MALTA
NETHERLANDS
- Minister Heinen stands firm on VAT increase plan despite criticism from various sectors
- Zero rate applicable to export horse 5 months after sale
- No SME exemption by opting for VAT-taxed rent
- Impact of VAT Changes on Local Government Services and Finances in 2025
- Reimbursement of interest for wrongly levied VAT in violation of EU law
- Court settlement of invoices leads to VAT payment; legal ruling on debt offset in account.
- No VAT exemption for leased property due to choice for taxable rent – Court ruling
- Confusion and Complexity: Doubts on Higher VAT Rate for Hotels and Culture
- Budget day 2025: Changes in VAT Rates and Regulations for Various Sectors
- Reduced VAT rate abolished as of 1 January 2026 (on certain goods and services)
- Budget Day 2024: VAT Changes
- Decision on distinction between VAT entrepreneur status and income tax entrepreneur status, including consequences of distinction.
- Extension of default penalty waiver for non-compliance with OSS mechanisms of VAT e-commerce package
- Detailed Excel files on separate data carriers indicate shadow accounting
- VAT on fake invoice not deductible
- Schools to receive compensation for higher VAT on schoolbooks in 2024 budget announcement.
POLAND
- Relief from customs duty and VAT for imported goods for flood victims
- Discrepancy in VAT for flood donations
- Poland Proposes Exclusion of Integration Requirement for Online Cash Registers and Payment Terminals
- Poland Implements 0% VAT on Flood Relief Donations to Encourage Business Support
- 2024 Flood Relief: Zero VAT Tax for Companies Helping Victims – New Regulation in Effect
- Temporary 0% VAT Rate for Flood Relief Donations: Conditions, Scope, and Application Period
- Tax relief for flood-affected companies
- Poland E-Invoice FAQs
- Right to deduct input VAT on vehicles; correcting sales when supply at overstated VAT rate
- Legislation amending VAT law passed by Council of Ministers
- There will be a zero VAT rate on donations of building materials to flood victims
- Ministry of Finance to postpone tax payment deadline for flood-affected companies
- Donations for flood victims exempt from VAT
- VAT Statute of Limitations: Key Points and Deadlines for Taxpayers by End of 2024
- Zero VAT Rate Introduced for Flood Victims Support in September 2024
- Death exempts sanctions for lack of split payment
- Budget Revenues Growing Slowly, VAT Shortfall of 39 Billion PLN
- Fiscalization Requirements for Electric Vehicle Charging Stations in Poland
- SME project adopted by the Council of Ministers
- Do structures on the land preclude treating it as undeveloped for the purposes of VAT exemption?
- How do I record the plastic fee on my fiscal receipt?
- Ministry of Finance: Zero VAT rate for donations for flood victims
- Poland: SAF-T JPK_CIT Possible Postponement
PORTUGAL
ROMANIA
- Tax amnesty in Romania till November 25, 2024
- Comarch – E-book: E-invoicing and E-transport in Romania – Current Legal State, Challenges and Forecast
RUSSIA
- Russian Government to Adjust Purchase and Sales Books for VAT Changes by September 20, 2024
- Development of judicial practice on VAT deductions for advances in Russia: Case of Central Telegraph
- 2025 VAT Clawback Rule Amendments Clarified by MoF
- Revised Customs Duties on Alcohol from Unfriendly States by Government
SERBIA
SLOVAKIA
- Slovak Republic Government Approves VAT Rate Increase from 20 to 23% per Jan 1, 2025
- VAT Return and Summary Statement according to Slovakian VAT Act
- Government Plans to Raise Standard VAT Rate to 23%
- Slovakia VAT rise to 23% 2025
SLOVENIA
SPAIN
- Simplified Corrective VAT Returns in Spain By September 2024
- Publication of Report on Conflict No. 17: VAT Exemption for Health Activities and Company Interposition
- Conflict Report No. 19: VAT Exemption for Health Activities and Artificial Company Interposition
- Adaptation of DIVA System to New Tax Rates for Basic Foodstuffs Including Olive Oil
- Confirmation from DGT: No need to increase VAT taxable base after partial debt collection
SWITZERLAND
- Switzerland Plans 0.7% VAT Rate Hike for Pension Reforms by 2026
- Draft Adjustments for Health Sector under revised VAT Act – Call for Comments
- Draft Practice Adjustments rev MWSTG Topic: Tax Refund
- Switzerland’s New E-commerce VAT Rules: Implications for Platforms and Suppliers from 2025
- Switzerland proposes raising standard rate of VAT from 8.1% to 8.8%.
TURKEY
- Turkey Implements New Digital Payment Rules to Combat Grey Economy
- Turkey Implements Changes to Tobacco Tax Rates and Fixed Amounts
UKRAINE
- Taxation of Destroyed Goods under Force Majeure during War and Emergency in Odessa Region
- Rules for Refunding Excess Payments to VAT Account in SEA: Electronic Form Guidelines.
- Ukrainian Parliament Considers Eliminating Import Duty and VAT Exemption Threshold
- Potential Increase in VAT in 2025 Budget Due to Significant Changes
- Taxation of VAT on services received by VAT payer from non-resident
- When can the tax authority refuse to cancel the VAT registration of a taxpayer?
- Detection of VAT evasion schemes in large taxpayers in early 2024: findings and consequences
- Taxation of Services Provided by Non-Resident to Another Non-Resident
- Increase of LLC’s authorized capital by non-resident: VAT implications for cash contributions.
UNITED KINGDOM
- ICAEW Urges Delay in VAT Implementation on Private School Fees for Better Preparation
- VAT Reverse Charge Technical Guide for Construction Industry Scheme Businesses
- VAT Reporting Manual Adjustments: Common Types, Recording, and Control Points
- Updates to Northern Ireland’s Excise Goods Legislation: Effective October 1, 2024
- ATT Urges Delay in Imposing VAT on School Fees to Allow Time for Preparation
- Increase in Maximum Imprisonment Terms for Indirect Tax Evasion: Isle of Man Legislation 2024
- E-Invoicing in the United Kingdom
- Help with VAT compliance controls — Guidelines for Compliance GfC8
- UK Upper Tribunal Dismisses TalkTalk Appeal in VAT Prompt Payment Discount Case
- Private Schools and VAT: Changes Explained by ICAEW Tax Faculty
- VAT Zero Rating for Residential Caravans – Updated Regulations for Compliance
- Report on HMRC’s Efforts to Combat Tax Evasion in High Street and Online Retail
- Zero-Rating VAT for Residential Caravans: HMRC Guidance Update 2024
- Tribunal ruling on Bangla Lounge VAT assessments and penalty appeals: delays and suppression of…
- HMRC launches VAT registration tool
- The VAT treatment of sightseeing passes, VAT costs on property transactions, and other news
MIDDLE EAST
BAHRAIN
- Bahrain Updates List of Zero-Rated Basic Food Items for VAT Exemption.
- Bahrain Updates VAT Guide for Real Estate
ISRAEL
SAUDI ARABIA
- Ultimate Guide to KSA e-Invoicing: VAT, QR Codes, and Compliance Regulations
- ZATCA: Driving Economic Growth in Saudi Arabia Through Efficient Tax and Customs Management
- Saudi Arabia Publishes New Version of Sandbox
- Saudi Arabia proposes amendments to VAT Implementing Regulations
- New Customs Service Fee Rules Effective October 6, 2024: Boosting Trade Efficiency and Lowering Costs
- Proposed amendments to VAT regulations, including expansion of VAT obligations of marketplaces
