Regulatory Analysis
On August 11, 2017, the European Commission proposed that Romania be allowed to extend its current derogation on VAT threshold for small business registration until December 31, 2020. Romania currently sets its threshold at EUR 65 000 pursuant to a derogation that expires at the end of 2017. The Commission's proposal would extend this derogation […]
The United Kingdom is contesting a charge that "continuous negligence" by its customs agency has resulted in 1.987 billion Euros in lost duties on Chinese merchandise. The Office de Lutte Anti-Fraude (OLAF) conducted a two-year investigation into the matter, and recommended earlier this year that the UK pay the money into the EU budget itself as […]
On August 8, 2017, the Bundesministerium der Finanzen (BMF) published an up-to-date list of NATO Headquarters to which deliveries are tax exempt under Article 4 paragraph 7 of the German VAT Act.
In its most recent framework for a budget agreement, the Belgian government has proposed giving taxpayers the option to collect VAT on the letting of immovable property, beginning January 1, 2018. This would allow taxpayers to deduct any input VAT incurred on operations such as construction that are directly related to the letting of the […]
The European Commission has proposed Poland be authorized to assess a reverse charge on hard drives, such as solid-state drives and hard disk drives, which would impose VAT liability on the purchaser of such items. Article 199(a) of Council Directive 2006/112/EC (“the EU VAT Directive”) currently allows for Member States to impose a reverse charge […]
The Romanian Ministry of Finance released a draft ordinance introducing a split-payment mechanism for VAT payments on August 4. A revised version of the order was released on August 18th. The order requires that all VAT registered persons must open a dedicated VAT account for the collection and payment of VAT on supplies and purchases […]
For those not yet in the know, the Multistate Tax Commission (MTC) has coordinated an unprecedented voluntary disclosure/amnesty program with 24 states. Eligible sellers should give serious consideration to enrolling. More importantly they should take immediate note of the short window of opportunity. The program began on August 17 and will be closing on October […]
The Hawaii Legislature has passed Senate Bill 1007. This bill changes the filing frequency for withholding tax to a uniform quarterly filing frequency. Prior to this bill, only employers with withholding liabilities of $5,000 or less were allowed to file returns quarterly. Despite the change in filing frequency, the payment frequency of withholding taxes remains […]
The Sixth Circuit for the United States recently upheld a dismissal of a suit brought by individuals challenging the legitimacy of FATCA. Plaintiffs argued that FATCA’s enforcement should be enjoined under a variety of reasons, including the requirement that the IGAs be ratified through the US Senate. The Circuit Court upheld the District Court’s dismissal […]
The tax administration of Chile has issued Resolution 61/2017, which introduces significant changes to the VAT compliance obligations of Chilean taxpayers. Effective August 1, 2017, taxpayers will no longer be required to submit their ledgers of sales and purchases to the Chilean tax administration (SII). Instead, the regulation provides for a new ledger of purchases […]
Transactions carried out by taxpayers located in Álava, Guipúzcoa and Vizcaya (commonly known as the Basque Country) plus Navarra should not be reported to the Spanish tax administration (AEAT) as part of the SII, if said taxpayers are considered to be under the tax authority of those regions for VAT purposes. Who is considered to […]
Following a recent trend in the United States, North Carolina has joined Indiana and Ohio in exempting currencies that may be used as investments from sales and use tax. North Carolina House Bill 434 (Ch. SL 2017-181) was signed by Governor Roy Cooper on July 25, 2017. The bill, which is retroactively effective on July […]
The D.C Office of Tax & Revenue (OTR) recently published two updates to instructions for annual withholding forms. These instructions are used to properly fill out and file their respective forms. The first set of updated instructions is for Form FR-900A, the Employer/Payer Withholding Tax Annual Return. Generally, the OTR reminds filers they will be […]
Her Majesty's Revenue and Customs (HMRC) has published the latest version of VAT Notice 700, which is a guide for a variety of topics related to VAT. This latest publication simplifies numerous sections of the notice for easier understanding and clarity, and provides additional guidance on topics such as single and mixed supplies of goods, as well […]
On August 11, the Organisation for Economic Co-operation and Development published comments to its newly-released 2017 Model Tax Convention. The Convention contains a proposed new paragraph stating registration for VAT has no bearing on the question of whether an organisation has a "permanent establishment" within a jurisdiction; this clarification is especially timely now that a number of […]
The British Virgin Islands recently issued a press release extending the reporting deadline for FIs from August 18, 2017 to September 1, 2017. This extension applies to FIs reporting under the CRS and UK CDOT agreements, and is being granted because the BVI Financial Account Reporting System (BVIFARS) is down as a result of a Tropical […]
A provision contained in the FY 2018 Massachusetts Budget looks to set the stage for possible real-time sales tax remittance requirements in the Commonwealth. While nothing is official yet, the Massachusetts legislature believes that it has recognized an opportunity to utilize “third party payment processors” as a means of ensuring proper tax collection and accelerating […]
Puerto Rico has released 2017 versions of Form SC 2720, Form 499R-2/W-2PR, Form 499R-2c/W-2cPR. While there are some slight changes in wording and updated contact information to the newly released forms, the most significant change is the addition of a new Code F to Form 499R-2/W-2PR. Code F is an exemption code that applies to […]