Regulatory Analysis

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Posted 1 week ago by Ramón Frias
Mexico Enacts the 2020 Tax Reform

The Mexican Congress has approved the 2020 tax reform, The most important changes of this reform in relation to VAT is the establishment of a new system of the taxation of digital goods and services supplied by non-established entities to final consumers in Mexico. Under this new regime, foreign suppliers of digital goods and services […]

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Posted 1 week ago by Daniel Kostrzewa
Saskatchewan aims to collect provincial sales tax from out-of-province e-commerce platforms

As part of its 2020-2021 Budget Estimates, released on March 18, Saskatchewan revealed that it intends to pass the Provincial Sales Tax Amendment Act, 2020. This bill will enact initiatives to ensure out-of-province e-commerce platforms collect and remit Saskatchewan’s provincial sales tax (PST). Sovos is closely tracking Saskatchewan’s plans as they become available. To view Saskatchewan’s budget […]

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Posted 1 week ago by Daniel Kostrzewa
Manitoba decreases its general retail sales tax rate to 6% effective July 1

As part of its Budget 2020, released on March 19, Manitoba is lowering its general retail sales tax (RST) rate to 6% from the current rate of 7%. This rate decrease becomes effective on July 1, 2020.  To view Manitoba’s Budget 2020 in its entirety, please click here.

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Posted 1 week ago by Ramón Frias
EL SALVADOR: Ministry of Finance Announces New e-Invoicing Pilot Program

The Ministry of Finance of El Salvador has announced that the country is about to start an e-Invoicing Pilot program sponsored by the Inter-American Development Bank.  The exact day when the program will begin has not been released yet by the tax authorities, but the tax administration has informed that they are selecting the roughly 50 largest taxpayers to […]

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Posted 1 week ago by Denise Hatem
Poland Provides New Guidance for Large Businesses

The new “JPK with the declaration” JPK_V7M (monthly) and JPK_V7K (quarterly) periodic VAT reporting files are due to be implemented from 1 April 2020 for taxpayers defined under Polish legislation as being large businesses.  To recap, this means any businesses undertaking operations in Poland that in at least one year of the last two financial […]

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Posted 1 week ago by Matthew Gonnella
Puerto Rico Declares Emergency Sales Tax Holiday

In response to the COVID-19 crisis, Puerto Rico declared an emergency sales tax holiday on “Items of First Necessity” from Monday, March 23, 2020 until Thursday, April 30, 2020. During this period, the Puerto Rico sales tax will not apply to the following items: hand sanitizers, personal disinfectants, tissues, masks, household cleaning supplies, gloves, pain […]

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Posted 2 weeks ago by Elliot Shulver
UK Budget 2020 – IPT Gains a Reprieve

The Chancellor of the Exchequer announced his UK budget for 2020 earlier today. After three rate rises in the previous five years, Insurance Premium Tax (IPT) gained a reprieve from any further increases. The Chancellor mentioned in his Budget document that the Government will shortly publish a summary of responses to the recent call for […]

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Posted 1 month ago by Alex Samuel
Alaska Cities Enact Uniform Remote Seller Sale Tax Code

Eight local governments in Alaska have enacted ordinances implementing the Alaska Remote Seller Sales Tax Commission’s Uniform Sales Tax Code. They include: Juneau, Wasilla, Kenai Peninsula Borough, Kenai, Seward, Soldotna, Homer and Seldovia. Remote sellers and marketplace facilitators doing business in these locations are required to collect and remit sales tax if their statewide gross […]

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Posted 1 month ago by Jesse Rooney
Puerto Rico Extends 2019 Informative Due Dates

Puerto Rico’s revenue department, la Hacienda, has announced that its SURI system for electronic payment and filing of taxes will undergo a system upgrade from February 20 to February 24.  The system will be unavailable at that time.  As a consideration for this upgrade, la Hacienda is extending the due dates for 2019 informatives due […]

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Posted 1 month ago by Erik Wallin
Massachusetts Governor Proposes Sales Tax Modernization Initiatives

Massachusetts Governor Charlie Baker’s recent FY2021 budget proposal includes sections aimed at modernizing and improving the integrity of sales tax collection in the Bay State. The proposal takes a two-phased approach to modernization in order to improve the speed of current collection and remittance methods. Phase 1: Businesses will be required to remit collections from […]

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Posted 1 month ago by Paul Ogawa
IRS Releases Updated Withholding Certificate for Pension or Annuity Payments

The IRS recently released an updated copy of the 2019 Form W-4P, Withholding Certificate for Pension or Annuity Payments. This form is used by recipients of pensions, annuities, and certain forms of deferred income to communicate the correct federal income tax withholding to withhold from payments. There is no update to the form itself from […]

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Posted 1 month ago by Robert Beck
West Virginia releases updated Form WV/IT-101A

West Virginia has released an updated Form WV/IT-101A. See below for changes. Address for State Tax Department updated to P.O. Box 3943, Charleston, WV 25339-3943 but only on the top of the form, not at the “Mail To” address. Language removed: Taxpayers required to file electronically will no longer receive returns for the tax types subject […]

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Posted 1 month ago by Erik Wallin
Hawaii Considers Placing Tax Requirements on Vehicle Rental Marketplaces

A new bill making its way through the Hawaii legislature could impose tax on remote motor vehicle rental marketplaces. The proposed law would deem certain motor vehicle rental marketplaces (such as those popular on online travel websites) to be lessors and operators responsible for the collection and remittance of motor vehicle rental taxes and surcharges […]

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Posted 2 months ago by Oliver Mavor-Parker
Georgia Enacts Marketplace Tax Collection Requirements

Georgia has enacted marketplace legislation under HB 276. Effective April 1, 2020, marketplace facilitators are responsible for collecting and remitting Georgia sales and use tax when their sales equal or exceed $100,000 in the previous or current calendar year. Facilitated sales and sales made directly by the marketplace facilitator both count towards the $100,000 threshold. […]

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Posted 2 months ago by Gerry Nelligan
IRS Implements Changes to Deductions of Mortgage Insurance Premiums

The IRS recently announced the implementation of provisions from P.L. 116-94, Division Q, which extends the applicability of Section 163(h)(3)(E) for tax years 2018 through 2020 to provide for the deductibility of mortgage insurance premiums (“MIP”) which are reported on Form 1098. More specifically, MIP aggregating in amounts of $600 or more received during a […]

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Posted 2 months ago by Gerry Nelligan
Vermont releases updated WHT-436 and Instructions

The Vermont Department of Taxes has released updates to their WHT-436, Quarterly Withholding and Reconciliation and Health Care Contribution form, and their WHT-436 Instructions, Quarterly Withholding Reconciliation.  WHT-436 Changes In part III, line 6 has been changed to an un-numbered checkbox, shifting lines 7-12 down one number. The HCC Premium per FTE Exemption, on line […]

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Posted 2 months ago by Gerry Nelligan
New Jersey has updated its NJ Shared Responsibility Requirement page

New Jersey has updated its NJ Shared Responsibility Requirement page. See below for a detail of some of the important changes. Under the New Jersey Health Insurance Market Preservation Act (HIMPA), employers and providers of coverage must file with the Division of Taxation on or before March 31, 2020. The state has no plans for extensions […]

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Posted 2 months ago by Paul Ogawa
California EDD Releases Updated Withholding Certificate for Pension or Annuity Payments

The California Employment Development Department has released a new version of the DE-4P, Withholding Certificate for Pension or Annuity Payments. This form is used to provide withholding information to withholding agents and account managers for distributions from pension or annuity payments. The only changes to the form occurred on Worksheet B. The following updates were […]

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