Regulatory Analysis
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.
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 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 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 […]
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 […]
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 […]
In 2016, the European Commission released several proposals for new Directives amending Council Directive 2006/112/EC ("the EU VAT Directive"). The Commission’s first proposal would to introduce an intra-EU VAT threshold and simplified compliance obligations for the Mini-One-Stop Ship (MOSS) scheme for e-services, with the aim of removing VAT barriers to online businesses, particularly start-ups and small-to-medium […]
As part of an effort to facilitate a better understanding and increase compliance of taxpayers subject to the Supply of Information System (locally known as SII), which became effective July 1, the Spanish tax administration (AEAT) has updated its content of the Frequently Asked Questions document that explains, using a question and answer format, how […]
The tax administration of Portugal has issued a new regulation (Portaria 221/2017) that will allow taxpayers to pay the VAT due on imports using Portugal's periodic VAT return. The new measure is expected to enter into effect in two stages: September 1, 2017 for most goods contained in Annex C of the VAT Code (except […]
Two major announcements on a modernized system of VAT have been made in the past month, as part of an ongoing discussion among European Union leaders. First, the Estonian Presidency of the Council of the European Union stated its intention to launch negotiations on a definitive cross-border system of VAT, based on the principle of taxation in […]
The European Commission has published its 2017 report on Taxation Trends in the European Union, which is now available online. The Commission notes that consumption taxes grew slightly as a share of total tax revenue in 2015, and that VAT typically composes between two-thirds and three-quarters of the implicit tax rate on consumption. This figure will […]
The Court of Justice of the European Union (CJEU) has issued recent opinions in two cases involving VAT: In Case C-633/15 (London Borough of Eating), the CJEU held that the UK could not apply a condition to an exemption for services related to sporting facilities only on non-profit organizations governed by public law, without also applying the […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]