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 Newsletter: August 2018
The Final Countdown to Mandatory eInvoicing in Italy
September 1 marked the second milestone of the entry into force of the Italian eInvoicing mandate – this time targeting certain B2C goods purchased by non-EU citizens over a certain amount. But crucially, it also marked the three month, or 122 day, countdown to the final deadline when eInvoicing will become mandatory for all domestic B2B and B2C transactions in Italy.
Argentina Modifies the Invoicing requirement for Small Taxpayers
On August 3, 2018, the federal tax administration of Argentina (AFIP) enacted Resolutions 4290, 4291 and 4292, which specify deadlines and unify procedures that taxpayers should follow when issuing, reporting and saving invoices. According to these resolutions, regular and small taxpayers, as well those that are not subject or exempt from VAT, should use Fiscal controllers of New Technology or use use electronic invoices when doing transactions in Argentina. For that purpose, Resolution 4290 establishes different deadlines for complying with the new mandate that depend on a) the type and category of taxpayer (exempt, small or regular taxpayers), b) the type of invoices to be issued (fiscal controllers or electronic invoices), c) the type of transactions carried out (B2C vs. B2B), and d) the level of revenues obtained during the previous fiscal year. Based on those parameters, the deadlines for starting to use the Fiscal Controllers or Electronic Invoices are as follows:
- For small taxpayers using the simplified regime
- For entities exempt from VAT
- For transactions where the invoice should be issued outside the location of the service provider (home delivered services or goods by mobile taxpayers)
Poland Considers Dropping Periodic VAT Return
While nothing is official yet, there have been rumblings out of the Polish Ministry of Finance that sometime in 2019 the Government may do away with the time-tested requirement of submitting a monthly VAT return. In lieu of requiring the monthly return, Poland would incorporate additional data elements into their existing monthly SAF-T (Standard Audit File – Tax) requirements, locally known as JPK.
Tax is definitely going digital, but only a handful of countries have even considered eliminating standard periodic VAT filings. Stay tuned through this forum as circumstances evolve in Poland.
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 […]