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Starting January 2018, all taxpayers in Ecuador will be required to start invoicing under Ecuador’s new offline schema. Announced by the SRI, Ecuador’s tax authority, in 2015, this new e-invoicing model presents both benefits and challenges to companies operating in Ecuador. On one hand, this new process will give companies a slight buffer for compliance, […]
The IRS has published draft versions of its revised Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding and Reporting, and instructions for filers of this form. There are a number of significant updates to this form of which filers should be aware: Qualified Derivatives Dealers […]
The IRS released an updated FFI Agreement for Financial Institutions with FATCA obligations on December 30, 2016. Those FFIs whose agreements expired at the end of last year, and that wish to retain their GIINs, are required to renew their FFI Agreements. They can do so through the FATCA FFI Registration System. The FFIs will be […]
The South Carolina Department of Revenue recently published Information Letter #17-9, detailing interest rates for overpayments and underpayments relating to withholding tax through September 2017. South Carolina publishes these Information Letters periodically throughout the year, and these letters are the primary method of notifying the taxpaying public about changes in withholding tax interest. The effective […]
South Carolina recently released an updated Form WH-1601, Withholding Tax Coupon. This form/coupon is used to submit payment to the South Carolina Department of Revenue. This form/coupon also has an electronic counterpart on the South Carolina MYDORWAY online portal for those who make their payments electronically. There was one minor change to the preliminary instructions […]
Virginia has lately released an updated copy of its Electronic Payment Guide. This guide details the instructions necessary to complete an ACH payment to the Department of Taxation. No material changes were made to instructions for filing or paying taxes related to withholding or information returns. Some changes were made to the instructions for filing […]
Just two days before it was slated to take effect, the Massachusetts Department of Revenue revoked the highly controversial Directive 17-1 that sought to extend sales tax collection and remittance responsibilities on internet vendors that licensed software to Massachusetts customers, used cookies or contracted with marketplace providers located in the state. While Directive 17.2 revoking the earlier guidance is […]
The Senate has proposed legislation that would nullify penalties for the individual and employer mandates. However, it would not repeal IRS reporting obligations under IRC §§ 6055 and 6056 or nullify penalties under IRC §§ 6721 and 6722. Accordingly, any employer or insurer that does not issue and file the relevant 1094 and 1095 forms […]
Sales and Use Tax Process: Benchmarks and Best Practices for Retailers Webinar Recap Thank you again for joining us on June 14 for our latest webinar, “Sales and Use Tax Process: Benchmarks and Best Practices for Retailers.” Mark Christenson and I shared results of a recent Aberdeen Benchmark Study revealing the unique challenges retailers of […]
On June 26, 2017 Her Majesty’s Revenue and Customs (HMRC) published Spotlight 38, which divulges the HMRC position on supply-splitting tax avoidance schemes. The publication makes clear that HMRC considers any type of VAT supply-splitting arrangements, when designed to reduce the amount of VAT owed, to be tax avoidance. The publication goes on to state […]
Senate Majority Leader Mitch McConnell announced Tuesday afternoon that the Senate would not hold a vote this week on the Better Care Reconciliation Act of 2017, as had been originally planned. Senate leadership cited a need for further revision to the original draft, as five Senators have vowed to vote against the bill in its current form. A […]
In the iconic 1997 movie Wag the Dog, Hollywood producer Stanley Motss — played by Dustin Hoffman — has the same reaction to every problem he faces. “This is nothing!” he says repeatedly in his quest to get an unpopular president reelected. His overconfidence, however, ends up having serious consequences as the movie’s dark plot […]
No one really knows what percentage of today’s invoices are noncompliant with VAT law. Given the complexity and rate of change in VAT law, there is an almost unlimited set of possible nonconformities on the scale between outright fraud and clerical errors. One big problem is that it is often very difficult to gather all […]
El 31 de mayo de 2017 la SEFAZ (Secretaría de Hacienda brasileña), organismo vinculado al Ministerio de Hacienda y principal autoridad tributaria en Brasil −presente en cada estado del país−, publicó una nueva Nota Técnica sobre la Nota Fiscal Eletrônica (Factura Electrónica en Brasil, NFe por su sigla en portugués) 4.0, comunicando que el plazo […]
The Congressional Budget Office has handed down its report on last week’s discussion draft of the Senate’s Better Care Reconciliation Act of 2017. By the CBO’s estimate, the Senate bill would result in an additional 22 million Americans being uninsured over the next 10 years – on top of the current estimated 28 million who […]
Spain is quickly and steadily marching towards the planned July 1 implementation of the new Supply of Information System (locally known as SII) reporting requirement. Under the law, businesses have four days from the time an invoice is issued or received to notify the Spanish Tax Administration (AEAT) of the transaction. Determining the exact day […]
The Spanish tax administration (AEAT) has released a comprehensive set of files, tools, and documents necessary for the definitive implementation of the Immediate Information Remittance system, locally known as SII Version 1.0. As of June 15, all of the documentation, testing and validation files available to taxpayers and software providers were based on pre-releases used for […]
West Virginia recently enacted legislation which will increase the motor vehicle sales tax from 5% to 6% effective July 1, 2017. Dealers are required to collect and remit this tax to the Division of Motor Vehicles. Revenue generated from this tax increase will be used to fund highway construction projects across the state.