Regulatory Analysis
Foreign suppliers of digital services to customers located in Mexico are required by law to register at the tax administration of Mexico (SAT), charge VAT for the services that they provide to final consumers and issue the corresponding invoice to their customers. Taxpayers that do not comply with this mandate may be subject to sanctions […]
The Immediate Supply of Information (SII) version 1.1 has been updated to version 1.1-Bis. The changes will be effective from January 1, 2021. The Spanish tax administration, the AEAT, has introduced new fields required for sales under the consignment of goods regime. The ledger of invoices issued, and the ledger of invoices received are also affected […]
The Peruvian SUNAT has issued Resolution 108/2020. This resolution is intended to postpone several obligations that otherwise would become effective July 1, 2020. As a result, the mandatory use of the United Nations Standard Products and Services Code (UNSPSC) or the Global Trade Item Number (GTIN) as identifiers of fixed assets in the Ledgers of […]
The Chilean tax administration (SII) has issued a new resolution extending until December 31, 2020 the use of Invoices, Purchase Invoices, Liquidation Invoices, Dispatch guides, credit and debit notes in paper format that had previously been authorized until June 30, 2020. Resolution 70/2020 of the SII applies only to those specific taxpayers that by law, […]
On June 24, 2020, European Union member states’ ambassadors reached a preliminary agreement on postponing the VAT e-Commerce Package from 1 January 2021 to 1 July 2021. Reports indicate that the postponement should be formally adopted by the Council following legal and linguistic review. The European Commission initially proposed the postponement in May due to the impact […]
The Colombian tax administration (DIAN) has announced that the VAT Holiday established by the Law 2010/2019 and the Legislative Decree 682/2020 will be held on the following three days: June 19, July 3, and July 19 of 2020. Participation in the VAT Holiday is not mandatory. Businesses opting to participate in the VAT Holiday should […]
UK HM Revenue & Customs has announced that the application of VAT by reverse charge on the provision of construction services in the UK will be delayed from 1 October 2020 to 1 March 2021 (the originally planned commencement date was 1 October 2019). The revised reverse charge rules will impact any businesses that supply […]
Germany’s Federal Ministry of Finance has announced that VAT rates will be temporarily reduced from 1 July 2020 through 31 December 2020 to stimulate the economy in response to the coronavirus pandemic. The standard rate is to be lowered from 19% to 16%, and the reduced rate is to be lowered from 7% to 5%. […]
The Czech Ministry of Finance has announced the removal of the concession whereby the import into Czech from outside the EU of small consignments valued at less than 22 euros were exempted from import VAT. This equalizes the VAT treatment with goods arriving from EU countries. This change will coincide with the adoption of the […]
The tax administration of Paraguay (Secretaria de Estado de Tributacion or SET) has announced that the country will be delaying for six months the application of VAT on digital services supplied by foreign non-established providers. According to the recent tax reform, a new withholding system would start to apply on July 1, 2020 to all […]
In conjunction with its revised 1,100 bn budget projection for the period 2021-2027, the European Commission has published its Next Generation EU strategy for alleviating the social and economic impact of the Covid-19 pandemic, to be financed by up to 750bn euros of borrowing. The intention is that this borrowing will be paid back in […]
On 28 May 2020, the Polish Ministry of Finance announced that compulsory filing by all taxpayers of the new combined JPK_VAT uniform control file and VAT return structure has been deferred to 1 October 2020 due to compliance challenges arising from coronavirus, according to a Gazeta Prawna report. It was previously deferred to 1 July as […]
Due to the coronavirus (COVID-19) crisis, the European Commission has proposed to defer the application of the VAT e-commerce package from 1 January 2021 to 1 July 2021. The Commission expects that the European Parliament and Council will soon adopt the proposal.
Spain enacted Decree 15/2020 by which electronic publications become subject to a reduced rate of 4%. This new rate became effective on April 23, 2020 and applies to all books, magazines, newspapers and similar publications issued digitally. The new decree also establishes a temporary exemption until July 2020, of all imports and intra-EU acquisitions of […]
According to the ruling 166579/2020, from 20 April 2020, the version 1.6 of the technical specifications of the FatturaPA introduced by ruling 99922/2020 is now applicable as of 1 October 2020 on a voluntary basis and will be mandatory starting on 1 January 2021. Taxable persons may use the schema attached to version 1.5 of […]
Turkey introduced the Economic Stability Shield Package (Package) to lessen the impacts of COVID-19 on businesses. According to the Package there are two types of measures: measures for taxpayers that are considered to be under force majeure conditions and general measures introduced for all taxpayers. The latter are as follows; The filing date of the […]
La Hacienda, the revenue department for the island territory of Puerto Rico, has issued an additional extension for the filing of 2019. Administrative Determination DA 20-09 has extended the due date for 2019 informatives to May 15; informatives filed with the SURI system on or before May 15 will not be subject to penalties. Other […]
We recently reported that the new “JPK with the declaration” JPK_V7M (monthly) and JPK_V7K (quarterly) periodic VAT reporting files (a combined Uniform Control File and VAT Return) were due to be implemented from 1 April 2020 for taxpayers defined under Polish legislation as being large businesses. However, as part of a new “Anti-Crisis Shield” (Tarcza […]