Regulatory Analysis
The Dutch government has initiated public consultations on new VAT rules that would allow adjustments, similar to those which currently apply to capital goods, to apply to “valuable” services, i.e., services which are capitalized and depreciated by companies over a period of time. These rules, if approved, would take effect in January of 2018. Comments […]
Egypt’s VAT rate is scheduled to increase form 13% to 14% on July 1, 2017, as dictated by Article 3 of the Egyptian VAT Act. Egypt introduced VAT at the current 13% rate just last year, overhauling its previous sales tax law. In addition to the July rate increase, VAT liable persons should also note that […]
The first Brexit negotiations between the United Kingdom and the European Union have officially been scheduled for June 19. In preparation, the 27 remaining Member States have unanimously agreed on a set of guidelines that prioritize safeguarding the rights of EU citizens within the UK and obtaining a ‘single financial settlement’ for outstanding British contributions to common […]
Germany has passed a new law, retroactively effective to January 1, 2017, to simplify input VAT deduction procedures for low-value purchases (“invoices for small amounts”). Under Section 15 of the German VAT Act, input VAT deductions can only be claimed by recipients of invoices that meet standardized requirements – for instance, recipient information must be […]
France has recently published a decree on the obligations of foreign taxpayers to appoint a VAT representative. The decree amends a list of countries that have signed tax recovery assistance treaties with France. Foreign taxpayers established in the listed countries are not required to appoint a VAT representative to manage their VAT obligations in France. […]
Her Majesty’s Revenue and Customs (HMRC) has published Issue 1 of VAT Notes 2017, a newsletter providing VAT guidance to tax professionals. The current issue contains links to recently-published or revised HMRC notices, information on special schemes for alcohol and tobacco transactions, and a link to HMRC’s online VAT services. Four issues of “VAT Notes” […]
Under a new measure that enters into force on January 1, 2018, VAT taxpayers will be required to use only “secured and certified ” software accounting systems when recording customer payments. To be “secured and certified,” accounting systems must meet specified requirements of inalterability, security, retention, and archival prowess. The French tax administration is authorized […]
The UK HMRC has updated its list of CRS Reportable Jurisdictions in order to remove three countries from the list: Barbados, Curacao, and Niue. HMRC has decided that it will not be sharing financial account information with these three jurisdictions at this time. Financial Institutions may still send reports to HMRC containing data for […]
The Turks and Caicos Islands Exchange of Information Unit has published a set of guidance notes for the implementation of the Common Reporting Standard and related domestic legislation. The guidance addresses a wide range of AEOI topics, including the following: Operation of CRS in Turks and Caicos Treatment of investment manager/adviser financial accounts […]
The New Jersey Division of Taxation has released an updated version of its Form NJ-W-4P, Certificate of Voluntary Withholding of New Jersey Gross Income Tax from Pension and Annuity Payments. Pensioners and annuitants may use this form to instruct the payer withholding New Jersey Income Tax rather than making estimated tax payments. The form […]
Pennsylvania recently updated the file imports for their W-2 Employee Wage Records and 1099-MISC Distribution. These file imports are used by employers to report W-2 and 1099-MISC data to the Pennsylvania Department of Revenue. The changes made are as follows: Employer W-2 Employee Wage Records: For the Fields “PA Income Tax Withheld”, “Taxable Compensation”, […]
The State of Washington has passed new legislation which provides an exemption for materials incorporated into and services rendered in respect to adapted housing for disabled veterans from retail sales tax. The exemption only applies to construction projects for disabled veterans approved by the United States Department of Veteran Affairs. The exemption will be in […]
Guernsey recently published Bulletin 2017/3, detailing how Trustee Documented Trusts (“TDT”) must report under the Common Reporting Standard (“CRS”). This bulletin provides guidance on the format for electronic reporting through the Information Gateway Online Reporter (IGOR), the Guernsey electronic reporting portal. While trusts would ordinarily be considered Reporting Financial Institutions (RFIs) under Schedule 2 […]
On May 15, Costa Rica released additional documentation for reporting under FATCA 2.0. The documentation include Client Configuration Guide v 2.0, a user guide for the FATCA reporting site, and example XML files according to the 2.0 standard. These documents provide essential guidance for parties needing to file FATCA returns with Costa Rica. To […]
The Cayman Islands has opened its AEOI Portal for CRS and FATCA notification and reporting. In addition, a new portal user guide has been released. The guide provides assistance with both the notification and reporting requirements. Reporting Financial Institutions should keep in mind that there will be no CDOT functionality on the portal for this […]
North Dakota recently enacted legislation which will increase the Prepaid Wireless Emergency 911 Fee from 2.0% to 2.5% effective July 1, 2017. Retailers are required to collect this fee on all sales of prepaid wireless services and minutes. Retailers must remit the collection of such fees to the State Tax Commissioner. Revenue generated from this increase […]
Effective July 1, 2017, North Dakota will begin to provide an exemption from sales tax for sales of “internet access services.” Since 1998, the Internet Tax Freedom Act has prohibited federal, state and local governments from levying a tax on internet access however, seven states which previously had imposed taxes on internet access, including North Dakota, were […]
Effective July 1, 2017, North Dakota will expand the definition of “Farm Machinery” to include machinery, equipment and materials used exclusively in a milking operation of a dairy farm. In North Dakota, sales of new farm machinery sold exclusively for agricultural purposes are taxed at a lower tax rate of 3% compared to the general […]