Regulatory Analysis
On March 15, 2018, Finance Act 2018 was granted Royal Assent by the UK Parliament. The Act makes several changes to direct and indirect taxation in the UK, including new requirements for online marketplaces to display their VAT registration number on the marketplace and, further, an extension of joint and several liability to these types […]
On March 19th, the UK published a first draft of a withdrawal agreement, which although not finalized, indicates that for value-added and excise taxes, much of the status-quo with the European Union (EU) will remain until January 1, 2021. Notably, the Draft Agreement states that the UK and the EU will agree to have the EU […]
The EU VAT Forum (a sub-group of the European Commission) recently released a report on the VAT aspects of E-commerce. The Commission found that one of the biggest challenges facing tax administrations and businesses is how parties access and exchange information in the e-commerce supply chain. Tax Administrations are challenged to devise a way to […]
The European Commission recently proposed new rules to ensure the fair taxation of digital business, placing the EU at the forefront in designing tax laws aimed at the modern digital economy. The Commission is seeking to instate an interim tax to generate immediate revenues for Member States from digital activities that are currently taxed ineffectively. […]
The South African Revenue Service (SARS) has announced that the VAT rate increase from 14% to 15% effective April 1, 2018, is still moving forward. Under the South African Value-Added Tax Act 89 of 1991, Section 7(4), the Minister of Finance has the authority to announce in his budget speech a change in rate for […]
The finalized Value Added Tax Regulations for 2018 (herein "VAT Regulations") have been published by the United Kingdom's Parliament. The VAT Regulations clarify the digital record-keeping requirements that have been announced under the Making Tax Digital (MTD) initiative, starting April 1, 2019. Included in the VAT Regulations are definitions for "functionally compatible software" and "API", as well as […]
On February 28, 2018, the HMRC Commissioners presented the VAT Regulations Amendments for 2018 to the House of Commons. The amendments would become effective on April 1, 2019, and are intended to inform businesses impacted by the Making Tax Digital Initiative of their digital record-keeping requirements. Notably, the Amendments clarify the type of information required […]
On March 2, 2018, New Mexico Governor, Susana Martinez, signed House Bill 194 into law thereby allowing purchasers to provide evidence other than a nontaxable transaction certificate to prove eligibility for a gross receipts deduction. Permitted alternative evidence includes: invoices or contracts identifying the nature of the transaction, documentation of the purchaser's use or disposition of […]
South Africa's Finance Minister, Malusi Gigaba, presented the 2018 Budget to the National Assembly February 21, 2018. In his speech, Minister Gigaba announced several tax measures to address the budget deficit currently faced by the South African Ministry of Finance. Notably, the Minister has proposed an increase in the VAT rate from 14% to 15%. […]
The UK Parliament is currently debating a bill that could greatly impact how businesses in the UK handle cross-border supplies of goods post-Brexit. The bill, titled Taxation (Cross-Border Trade) Bill 2017-19, had it's second reading in front of the House of Commons on January 8, 2018, and is now open for further debate. The primary […]
On February 19, Singapore released its 2018 Budget which includes two significant changes to its Goods and Services tax (GST), including rules that will require foreign suppliers of services to register to collect and remit tax. Imported services will be subject to the GST starting on January 1, 2020 Business buyers of services (both digital […]
On February 14, 2018, the U.K. Upper Tribunal released their decision on an appeal filed by Nestlé UK Ltd., regarding the VAT treatment of strawberry and banana flavoured Nesquik, The ruling validates tax rule applying varying VAT treatment based on the particular flavours. Specifically, Justice Snowden affirmed HMRC and First-Tier Tribunal (FTT) findings that although […]
On February 5, 2018, the European Commission backed Italy's e-invoicing mandate by recommending the EU Council approve Italy's derogation request from the EU VAT Directive. By way of background, Italy's mandate (which would become effective in two stages starting on July 1, 2018) requires taxpayers to provide, in real time, electronic invoices through the Italian […]
On January 18, 2018, the European Commission proposed an overhaul of the European VAT System, building on the 2016 VAT Action Plan. The main goal of the proposed changes is to create a European VAT area that operates more efficiently in a globalized world and aids in preventing VAT fraud. The changes will also enhance […]
On December 29, 2017, Norway's Ministry of Finance amended their Bookkeeping Regulations to revise the timeline relating to the mandatory implementation of the Standard Audit File-Tax (SAF-T) mandate. The Ministry now specifies that SAF-T reporting will be required on January 1, 2020 or later. This action was entirely expected as the Norwegian Tax Administration had […]
On January 5, the Environmental Audit Committee (a sub-body of the UK Parliament) issued a report calling for a 25p ($0.34 USD) levy on prepared coffee sales where the customers receive a disposable cup. The funds from the levy would be earmarked to create additional recycling facilities and the “binfrastructure” necessary to support proper coffee […]
The European Commission has proposed a Council Directive that would make permanent a minimum standard VAT rate of 15% for all Member States. The 15% minimum rate currently exists as a "transitional" measure, though it has been extended six times since its enactment in 1992. If approved, the permanent 15% minimum rate of VAT would take […]