VAT & B2G Reporting Monthly Newsletter: May 2018

Sovos
June 5, 2018

Country-by-Country News

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 2.7.5.7 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.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Sovos

Sovos is a leading global provider of software that safeguards businesses from the burden and risk of modern tax. As governments and businesses go digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud is the first complete solution for modern tax, giving businesses a global solution for tax determination, e-invoicing compliance and tax reporting. Sovos supports 5,000 customers, including half of the Fortune 500, and integrates with a wide variety of business applications. The company has offices throughout North America, Latin America and Europe. Sovos is owned by London-based Hg. For more information visit http://www.sovos.com and follow us on LinkedIn and Twitter.
Share This Post

Tax Information Reporting United States
July 11, 2019
Why the IRS Needs to Release Cryptocurrency Tax Guidance

Despite IRS Commissioner Charles Rettig’s promise of “within the next 30 days” more than 30 days ago to Congress regarding the release of forthcoming cryptocurrency tax guidance, we have not seen anything materialize.  As we mentioned previously, the ongoing confusion related to tax reporting obligations continues to plague payers such as crypto or digital currency […]

EMEA Tax Compliance
July 10, 2019
New Regulation Reinforces Free Flow of Data in the EU

When thinking about the aim of GDPR, one of the first things that comes to mind is the set of rules, obligations, and restrictions on the processing of personal data. When in fact, as the full title of GDPR – General Data Protection Regulation – and its recitals explain, the subject matter and purpose of […]

E-Invoicing Compliance EMEA
July 10, 2019
Greek E-Invoicing Reform: Potential Impact of Recent National Elections

On 7 July, Greece began voting to elect a new government.  The disposed governing left party has been dealt with a hefty blow having been in power since 2015.  It was hoped they would introduce less severe politics which many claim they have not only failed to do but, in fact, they actually introduced stricter […]

Tax Information Reporting United States
July 9, 2019
The IRS Is Allowing TIN Masking on Form W-2. Here’s Why It’s a Good Idea

At last, the IRS is allowing payers to truncate, or effectively mask, tax identification numbers (TINs) on Forms W-2 sent to payees. The decision comes after years of concern from companies and taxpayers about the risk of exposing TINs, or Social Security Numbers in the case of individual payees, in W-2 distributions.  The new policy […]

EMEA IPT
July 9, 2019
Interpreting Insurance Tax Legislation

Tax legislation is sometimes structured, or worded, ambiguously.  This leaves scope for a number of different interpretations for the treatment of tax on insurance policies, some leading to a lower tax liability than others. This can often be seen when different insurance premium tax (IPT) rates apply to specific sub-classes of the same business or […]