In September, the European Commission released its latest study on the so-called ‘VAT Gap’. The VAT Gap is defined as the difference between the amount of VAT collected and the VAT Total Tax Liability (VTTL), in absolute or percentage terms. The VTTL is an estimated amount of VAT that is theoretically collectable based on VAT […]
What to Expect Next In Parts One and Two of this series on the VAT MOSS scheme for digital services we provided a background, considerations for applying and a recent update on the existing MOSS scheme. This recent update is the first stage that will pave the way for a smooth transition to the new VAT […]
An update and the effects of Brexit In the first part of this series on the VAT MOSS scheme for digital services we provided a background on this scheme and considerations for applying. In this second part we provide you with a recent update and describe how Brexit will affect the scheme. Our third and […]
In our previous piece reflecting on the aftermath of the initial MTD deadlines for ‘First Stage filers’ we also noted that the first submission experiences of ‘Second Stage’ filers should hopefully run more smoothly. To recap, Second Stage filers are often referred to as ‘complex’ businesses, as HMRC have determined certain features to their operations […]
The European Commission published in September a statistical report on the VAT Mini One Stop Shop (MOSS). According to this report the overall VAT revenue collected under MOSS (Union and Non-Union) shows a constant growth from EUR 3 billion of VAT collected in 2015 to EUR 4.57 billion collected in 2018. In 2018, the VAT […]
7 August 2019 was a landmark in one of the most significant changes ever to occur in UK business-to-government VAT reporting. The requirement to file VAT returns via HMRC’s new digital tax system Making Tax Digital for VAT (MTD) affected 1.2 million VAT registered taxpayers. The vast majority file quarterly returns and were therefore expected […]
Greece made an important step to digitize its tax system and introduce an innovative platform for taxpayers to fulfil their tax obligations. The new platform will offer businesses a collaborative environment where the data they provide to the Greek Independent Authority of Public Revenues (IAPR) will not only affect their own books but will also […]
For some of us, this journey started back in 2018 when we were notified that the Consorcio de Compensacion de Seguros (CCS) was implementing a new reporting requirement. The intention was to make insurance companies provide information at a transactional level on an ongoing monthly basis. To date, this change has had one of the […]
Back in June this year, many heads were turned when the French Minister of Public Accounts and Action, Gérald Darmanin, went on record stating that the French Government has the intention of making e-invoicing mandatory also for B2B transactions. Now it seems that the Government – spearheaded on this topic by Minister Darmanin as well as by the Minister of Finance Bruno Le Maire – has moved from word to […]
A substantial number of companies are unaware of the full challenges around tax compliance and their procurement processes. Part of the challenge is that tax compliance must functionally sit with procurement and other business functions in the enterprise that own the data interchange, while the ultimate responsibility for tax compliance remains with the tax department. […]
In less a weeks’ time, on 1 October, all purchase orders associated with the Italian National Health System (Servizio Sanitario Nazionale, SSN) will be exchanged through the public administrations’ Purchase Orders Routing Node platform (Nodo di Smistamento degli Ordini), commonly referred to as NSO. Although the new e-order mandate won’t affect the collection of VAT, […]
AP automation is supposed to save SAP customers money, but developments in digital tax could derail its benefits and actually create further liabilities. With tax authorities all over the world seeking to increase revenues and close tax gaps, IT professionals and AP system administrators face new challenges in indirect tax compliance. Among those challenges are […]
In the increasingly complex world of IPT, understanding, assessing and applying the right taxes to new insurance products can be a challenge for insurers when complying with fragmented regulations. As new risks continue to emerge, so do new insurance products. But how can insurers ensure insurance premium tax (IPT) is correctly applied? The three questions […]
It’s very possible that US companies are breaking laws governing storage of electronic invoices in the EU without realizing they’re putting themselves at risk for financial penalties. The EU is an entity that, as the Brexit debate has shown, can frustrate and baffle its own citizens. In the US, the EU is frequently misunderstood. The […]
EU and local legislation Location of risk is one of the key criteria an insurer must identify and consider before thinking about insurance premium taxes. It’s important to understand the location of risk rules and apply them correctly to be able to settle insurance premium taxes compliantly and to the correct tax authority. Whilst location […]
Using reduced VAT rates to influence consumer buying choices Charging VAT and other consumption taxes rarely has a significant effect on a nation’s economy. The impact is felt at a specific industry sector level and more acutely when applied to goods and services in the B2C environment where any additional tax burden can impact price […]
Anyone familiar with the Discovery Channel’s Shark Week and the portrayal of hungry sharks setting their sights on surfers may be surprised to learn that tax and IT professionals may be feeling every bit as wary as those surfers as they enter their own version of shark-infested waters. The reason: IT and tax pros are […]
For those currently in the midst of preparing monthly Intrastat returns, the recent increase in reporting thresholds by a number of countries across the European Union (EU) will be of limited comfort. For those companies where the volume of goods being moved between EU countries are close to the current reporting thresholds however, the updates […]