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 […]
Latvia has adopted several amendments to its VAT Act. Included among these amendments are adjustments to the timing of VAT input deductions, adjustments to the section on the deductions of bad debts, and updated references to European Council Regulations. Additional amendments eliminate the exemption for services provided by cooperative societies, and specify that non-Latvian EU […]
The Cyprus Tax Department has announced that from May 2, 2017, periodic VAT returns (Form 4) must be submitted electronically through the TAXISnet system. The announcement stresses that the TAXISnet system for indirect tax is separate from the TAXISnet system for income tax, and requires a separate request for access. The post Cyprus: Electronic VAT Returns […]
Earlier this month the Hungarian government introduced a budget bill for 2018. Included in the budget is a proposal to reduce the VAT rate on fish, catering services, and internet services to 5%. The bill also confirms an implementation delay for the mandatory filing of B2B VAT invoices with the government, which was scheduled to start on July […]
The Belgian parliament is currently debating a bill that would grant VAT enforcement authorities the power to attach property implicated in willful tax evasion. According to the Commission of Finance and Budget, such attachment will follow the common law regarding seizures. At this time, there is no indication of when the bill will enter into force […]
On March 24, 2017, Bill No. 1564, amending Poland’s VAT act, was ordered to be read in Poland’s lower house of parliament. The bill would shorten the government’s deadline to refund overpaid VAT from 60 to 25 days, thus reducing cash-flow burdens on compliant businesses. As written, the bill would take effect on July 1, […]
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 […]
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” […]
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. […]
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 […]
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 […]
The Economic and Financial Affairs Council of the European Union (ECOFIN) recently discussed two hot-button topics that could ultimately lead to changes in European VAT law. First, ECOFIN discussed whether Member States should be allowed to reduce-rate electronic publications. This option already exists for ‘physical’ books, newspapers, magazines, and the like, but EU authorities have […]
Prime Minister Theresa May has called for an early general election on June 8, claiming it’s the only way to guarantee certainty and stability in Brexit negotiations. The Prime Minister’s Conservative Party is currently polling far ahead of the opposition Labour Party, and her clear hope is that Conservatives will gain enough seats in Parliament […]
The Organization for Economic Cooperation and Development (OECD), in newly-published 2017 Guidelines for VAT/GST, has opined on how they believe VAT should be assessed on services and intangibles. Their primary recommendations are that countries adopt regimes which: 1. Tax services and intangibles at the place of consumption; 2. Tax business-to-business (B2B) transactions at the […]
The Belgium Ministry of Finance recently published updated Business Rules and Example Scenarios to aid financial institutions in creating compliant CRS XML files for reporting purposes. These most recent updates include changes to important elements critical to a successful transmittal. The Business Rules, which lay out the multitude of requirements for each field in an […]
The four bills that would implement the long-awaited Goods and Services Tax (GST) in India have taken their first step towards enactment, passing India’s lower house of parliament (the Lok Sabha) on March 29, 2017. The State of Jammu and Kashmir is notably excluded from the scope of one of the bills, the Integrated Goods […]
The United Kingdom took the long-anticipated first formal step towards officially leaving the European Union when on March 29, the UK Envoy to the EU hand delivered the “Article 50 Letter” to the EU Council President. As of today, the clock begins ticking on a 2 year window in which the UK can negotiate its […]
The Brazilian government is considering several proposals to reform their indirect tax system, widely considered to be one of the most complex in the world. One such proposal is being crafted by the Special Commission on Tax Reform within the Chamber of Representatives. The Commission is proposing the introduction of a value added tax to […]