When New York first passed its law defining what constitutes a “vendor” subject to collecting sales tax in the 1980’s, the idea of online shopping sounded like science fiction. In retrospect, NY may have effectively enacted the first “economic nexus” law when they drafted their definition of “vendor” to include a person who regularly or […]
VAT & B2G Reporting Monthly Newsletter: May 2018
Mexico Allows Temporary Penalty Waiver for 2017 CFDI of Nomina
The Tax Administration Service of Mexico (SAT) has announced that it will allow, until May 15, 2018, the correction of CFDI of Payroll (CFDI de Nomina) issued during 2017. For that purpose, SAT issued a new Rule 220.127.116.11 in the First Modification of the Miscellaneous Fiscal Resolution for 2018. As a result of this provision, taxpayers who issued CFDI de Nomina with errors or omissions during 2017 will be able to correct them without any penalty, if the new CFDI correcting the old one is issued no later than May 15, 2018. In other words, the new CFDI is deemed to be issued in 2017 for all legal purposes. The above mentioned Miscellaneous Resolution can be found, here.
Malaysian Prime Minister Announces Desire to Abolish GST
Over the May 12, 2018 weekend, the Malaysian Prime Minister announced his intent to follow-through with his plan to abolish the current Goods and Service Tax in Malaysia. In a press release, Prime Minister Tun Dr Mahathir Mohamad announced that the country’s economy no longer requires income from GST collections, and promised to abolish the system in favor of Malaysia’s previous sales and service tax. No further details have been released as to an effective date, or the structure of another new system, however, any changes of this magnitude will have a large impact on businesses and consumers in Malaysia.
Malaysia Revises GST Standard Rate
As a part of the tax restructuring plan of the Malaysian Prime Minister, P.U. (A) 118 has been published today in the Official Federal Gazette, which changes the GST standard rate in Malaysia from 6% to 0%. Any supplies of goods or services previously subject to 6% GST, after June 1, 2018, will be subject to the new 0% rate.
For more information please see Order P.U. (A) 118 found here.
Italy Issued Guidance on E-invoicing Mandate
Under the Italian Budget Law for 2018, a general business to business and business to customer e-invoicing obligation will apply from January 1, 2019. Additionally, there will be an e-invoicing obligation for public subcontractors and for the supplies of petrol intended for use as motor fuel beginning on July 1, 2018. On April 30, 2018, the Italian Tax Authorities provided additional guidance regarding the technical rules for issuance and receipt of e-invoices as well as new rules for e-invoicing and payments of fuel supplies. A notable detail in the guidance on the supply of fuel is that input VAT is recoverable only if the payment for fuel is made in electronic format, such as credit card or debit card.
The guidance on the new rules relating to the July 1 fuel supply mandate can be found under Circular letter no. 8/E, located, here.
The guidance on the technical rules for the issuance and receipt of e-invoices can be found under Measure no. 89757/2018, located, here.
With recent enforcement measures, the IRS has offered definitive proof that the Affordable Care Act (ACA) is still alive and that the agency plans to strictly enforce ACA reporting. Last spring, the agency issued Letter 226J to Applicable Large Employers (ALEs) that failed to cover 95 percent of employees. ALEs are companies with 50 or […]
UPDATE (Jan. 8): Reporting season is moving forward according to plan. The IRS has announced that it will process tax returns on schedule and without delays. While the agency will clarify its contingency plan in the coming days, organizations should proceed as planned with 1099 reporting and other seasonal filings. The IRS will recall a […]
The South Dakota v. Wayfair decision last June has created a lot of angst for indirect tax professionals and the businesses they work so hard to protect from the burdens of sales and use tax filing. Six months later as we begin the new year, that angst has not gotten any lighter. Any federal legislative […]
2018 was a volatile year in indirect tax compliance for tax, finance and IT professionals worldwide. With an increase in globalization and tax gaps surpassing tens of billions in some countries, it’s not surprising that one of the biggest challenges governments are addressing is revenue collection. Like enterprises, governments are creating new, technology-driven processes to […]