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.

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Sovos

Sovos is a global provider of tax, compliance and trust solutions and services that enable businesses to navigate an increasingly regulated world with true confidence. Purpose-built for always-on compliance capabilities, our scalable IT-driven solutions meet the demands of an evolving and complex global regulatory landscape. Sovos’ cloud-based software platform provides an unparalleled level of integration with business applications and government compliance processes. More than 100,000 customers in 100+ countries – including half the Fortune 500 – trust Sovos for their compliance needs. Sovos annually processes more than three billion transactions across 19,000 global tax jurisdictions. Bolstered by a robust partner program more than 400 strong, Sovos brings to bear an unrivaled global network for companies across industries and geographies. Founded in 1979, Sovos has operations across the Americas and Europe, and is owned by Hg and TA Associates.
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