Regulatory Analysis

Posted July 26, 2017 by Sovos
Australia Amends GST Act to Include Another Category of Drugs and Medicine Preparations that are now GST-Free

The Australian Parliament recently amended the GST Act of 1999, to add an additional category of drugs and medicine preparations, which are now included in the list of GST-free goods seen in section 38-50(6)(b) of the Australian GST Act. The new section, 38-50(6)(ba), states that a supply of a drug or medicinal preparation is GST-free, if […]

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Posted July 26, 2017 by Sovos
Malaysian Minister of Finance Grants Relief from GST for Certain Supplies of Services

Effective July 1, 2017, the Minister of Finance in Malaysia announced that four groups of supplies will now be exempt from GST. The supplies that no longer apply GST include: The supply of services directly in connection with goods for export, to an overseas customer who belongs in a country other than Malaysia (for tax purposes), and […]

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Posted July 26, 2017 by Tom Hospod
Mexico Extends FATCA and CRS Deadlines; Releases Additional CRS Specifications

The Mexican Tax Administration Service (SAT) has published additional AEOI material, including a calendar with relevant deadlines and specifications for CRS transmittals. The AEOI Calendar indicates that the FATCA and CRS testing window will now end on July 14, 2017. At that time, the production period will begin – with reports being due to SAT […]

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Posted July 26, 2017 by Andrew Decker
Romania Modifies Rules on VAT Refunds

Getting a VAT refund has become simpler for suppliers registered in Romania under the MOSS scheme. In the past, taxable persons established outside the EU who supplied electronic services in Romania were required to appoint a tax representative. But on July 13th, the Fiscal Administration (ANAF) released a press release announcing that in accordance with […]

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Posted July 26, 2017 by Andrew Decker
Denmark Clarifies Positions on VAT Exemptions

The Danish Customs and Tax Administration (SKAT) has announced a limitation on the VAT exemption for supplies of blood plasma. Previously, the SKAT had allowed for exemptions on all deliveries of the human blood plasma. Going forward this exemption will no longer apply to supplies of plasma to companies intending to use the plasma in […]

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Posted July 26, 2017 by Andrew Decker
Hungary Releases Additional Information of Invoice Reporting

Hungary has continued to release additional information about its upcoming invoice reporting requirements. Starting on July 1, 2018 VAT registered persons will be required to report B2B invoices of over 100,000 HUF to the government. The National Tax and Customs Authority (NAV) launched the KOBAK program at the beginning of July 2017. Registered persons can use […]

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Posted July 26, 2017 by Andrew Decker
Amendment to Treatment of Vouchers Before Dutch Parliament

Earlier this month, bill number 34755, which would modify the treatment of vouchers under the Dutch VAT Act, was introduced to the Dutch Parliament. The proposed law would differentiate between single use vouchers, defined as vouchers where the place of supply and amount of VAT on the supply are known at the time of the voucher’s issuance, […]

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Posted July 26, 2017 by Sovos
Czech Republic Publishes Guidance on Changes to Filing Instructions for the VAT Control Statement

The Financial Administration of the Czech Republic recently published amended filing instructions for the “Kontrolní hlášení”, or the “Check Report” form, which is a required filing for all taxable persons under the Czech VAT Act. Among the changes to the instructions is, first, a new requirement for contract companies (partnership-structured entities) to now file by individual partner instead […]

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Posted July 26, 2017 by Brendan Magauran
Italy Provides Clarification on Communication of Data on Invoices

The Italian Tax Authorities issued Resolution No. 87/E on July 5, 2017, confirming that a taxable person may amend a previously filed communication even after the 15th day following the day on which the deadline expires. The communication must include sales invoices issued and purchase invoices recorded in the VAT ledger during the period of […]

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Posted July 26, 2017 by Charles Riordan
Germany Publishes Guidelines on VAT Exemption for Frozen Gametes

The Federal Ministry of Finance has released guidance related to a VAT exemption on storage fees for frozen reproductive material. When frozen gametes are stored for therapeutic purposes – such as contributing to a pregnancy as part of fertility treatment – the storage fee is properly VAT exempt. Absent a direct therapeutic purpose, however, storage fees for […]

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Posted July 26, 2017 by Charles Riordan
French Court Strikes Down Google VAT Bill

On July 12, 2017, the Tribunal Administratif de Paris struck down a bill of more than 1 billion euros assessed by the French government against Google for back taxes, including VAT. The Tribunal found in particular that Google did not have sufficient human and technical resources in France to subject the company to VAT; instead, the […]

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Posted July 26, 2017 by Jesse Rooney
Cayman Islands Extends AEOI Reporting Deadline to August 31

The Cayman Islands’ Department for International Tax Cooperation has recently announced a “final extension” for reporting under the FATCA and CRS regimes in a “AEOI News & Updates” release. Reporting under both systems will now be due August 31, 2017. Reporting entities must register with the Department by July 31, 2017 to ensure they meet […]

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Posted July 26, 2017 by Jesse Rooney
Bahrain Published Competent Authority Arrangement

Bahrain has recently published the Competent Authority Arrangement between itself and the United States for the purposes of FATCA reporting.  The agreement is required by the Inter-Governmental Agreement between the two states to facilitate FATCA reporting. The post Bahrain Published Competent Authority Arrangement appeared first on Sovos.

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Posted July 26, 2017 by Stephen Kessinger
France Updates CRS Technical Guidance

France has updated its technical guidance, Transfert d’Informations to version 1.3.  The new version contains some schema changes including the addition of the Address Type attribute that was previously not required, even though it is required under the OECD’s schema.  Reporting French Financial Institutions, who have Reportable Accounts, should give close attention to the new guidance to […]

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Posted July 26, 2017 by Charles Riordan
United Kingdom to Modify Place of Supply Rules for Telecommunications Services

The United Kingdom has announced plans to eliminate its “use and enjoyment” provision for VAT on business-to-consumer (B2C) telecommunications services used outside of the European Union. Schedule 4A of the VAT Act of 1994 currently treats telecommunication services used outside of an EU member state as taking place where consumed, even if the service would […]

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Posted July 24, 2017 by Ramón Frias
Puerto Rico Governor Signs Bill Requiring 2 Monthly Sales Tax Payments

The Governor of Puerto Rico has signed into law a bill (PC 1133) that changes the frequency of sales tax remittance. As reported earlier in this forum, the new rule requires most taxpayers to pay sales tax in the same month as it’s collected, in two monthly installments: The first payment is required on the […]

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Posted July 19, 2017 by Ramón Frias
Tax Reform on the Horizon in Puerto Rico

The Secretary of the Treasury for the Commonwealth of Puerto Rico announced that they plan on encouraging the local legislature to adopt significant tax reform measures, including a number of items that will impact sales tax (locally known as IVU). The details of the proposed reforms have not been released but the Secretary has indicated […]

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Posted July 5, 2017 by Brendan Magauran
ECJ Case Provides Guidance on Zero-Rated Services relating to the Exporting and Importing of Goods

The European Court of Justice has ruled, in Case C-288/16, that an exemption for services “directly connected” with exportation or importation of goods applies only if those services are supplied directly to the importer/exporter or to the consignee of the goods. The holding turned on the definition of the phrase “direct connection” within Article 146(1)(e) […]

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