Regulatory Analysis

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Posted June 29, 2017 by Erik Wallin
Massachusetts Revokes Nexus Directive 17-1 Before it Takes Effect

Just two days before it was slated to take effect, the Massachusetts Department of Revenue revoked the highly controversial Directive 17-1 that sought to extend sales tax collection and remittance responsibilities on internet vendors that licensed software to Massachusetts customers, used cookies or contracted with marketplace providers located in the state. While Directive 17.2 revoking the earlier guidance is […]

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Posted June 29, 2017 by Jesse Rooney
Virginia Releases Updated Electronic Payment Guide

Virginia has lately released an updated copy of its Electronic Payment Guide.  This guide details the instructions necessary to complete an ACH payment to the Department of Taxation.  No material changes were made to instructions for filing or paying taxes related to withholding or information returns.  Some changes were made to the instructions for […]

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Posted June 29, 2017 by Paul Ogawa
South Carolina Releases Updated Withholding Tax Coupon

South Carolina recently released an updated Form WH-1601, Withholding Tax Coupon. This form/coupon is used to submit payment to the South Carolina Department of Revenue. This form/coupon also has an electronic counterpart on the South Carolina MYDORWAY online portal for those who make their payments electronically. There was one minor change to the preliminary […]

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Posted June 29, 2017 by Paul Ogawa
South Carolina Releases Updated Interest Rates for Overpayments and Underpayments

The South Carolina Department of Revenue recently published Information Letter #17-9, detailing interest rates for overpayments and underpayments relating to withholding tax through September 2017. South Carolina publishes these Information Letters periodically throughout the year, and these letters are the primary method of notifying the taxpaying public about changes in withholding tax interest. The […]

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Posted June 28, 2017 by Tom Hospod
Senate Delays Vote on Health Care Bill until after July 4th Recess

Senate Majority Leader Mitch McConnell announced Tuesday afternoon that the Senate would not hold a vote this week on the Better Care Reconciliation Act of 2017, as had been originally planned. Senate leadership cited a need for further revision to the original draft, as five Senators have vowed to vote against the bill in its current form. A […]

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Posted June 28, 2017 by Sovos
United Kingdom Publishes Guidance on Supply-Splitting Tax Avoidance Schemes

On June 26, 2017 Her Majesty’s Revenue and Customs (HMRC) published Spotlight 38, which divulges the HMRC position on supply-splitting tax avoidance schemes. The publication makes clear that HMRC considers any type of VAT supply-splitting arrangements, when designed to reduce the amount of VAT owed, to be tax avoidance. The publication goes on to state […]

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Posted June 27, 2017 by Tom Hospod
CBO Scores Senate Healthcare Bill–22 Million Additional Uninsured

The Congressional Budget Office has handed down its report on last week’s discussion draft of the Senate’s Better Care Reconciliation Act of 2017. By the CBO’s estimate, the Senate bill would result in an additional 22 million Americans being uninsured over the next 10 years – on top of the current estimated 28 million […]

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Posted June 27, 2017 by Sovos
No Tax Breaks for Georgians

Georgia residents will not be getting a break on their back-to-school shopping next month.  Each year, the legislature passes sales tax holidays for back-to-school items and energy efficient appliances; however, the legislature did not pass any holidays for 2017.  Therefore, there will be no tax break for back-to-school items in July, and no tax break […]

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Posted June 27, 2017 by Alex Samuel
West Virginia Increases Motor Vehicle Sales Tax

West Virginia recently enacted legislation which will increase the motor vehicle sales tax from 5% to 6% effective July 1, 2017. Dealers are required to collect and remit this tax to the Division of Motor Vehicles. Revenue generated from this tax increase will be used to fund highway construction projects across the state. The post West Virginia […]

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Posted June 27, 2017 by Charles Riordan
India Notifies Non-Resident OIDAR GST Registration Process

On June 19, 2017, the Indian Central Board of Excise and Customs published Notification 02/2017-Integrated Tax regarding the registration process for non-resident suppliers of online information and database access retrieval (OIDAR) services. The notification is available here. It provides that, pursuant to sub-section (2) of section 14 of the Integrated Goods and Services Tax Act, 2017, non-resident […]

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Posted June 27, 2017 by Sovos
Final push for Implementing the SII

The Spanish tax administration (AEAT) has released a comprehensive set of files, tools, and documents necessary for the definitive implementation of the Immediate Information Remittance system, locally known as SII Version 1.0. As of June 15, all of the documentation, testing and validation files available to taxpayers and software providers were based on pre-releases used for […]

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Posted June 27, 2017 by Sovos
Spain Issues SII Filing Deadline Calculator

Spain is quickly and steadily marching towards the planned July 1 implementation of the new Supply of Information System (locally known as SII) reporting requirement. Under the law, businesses have four days from the time an invoice is issued or received to notify the Spanish Tax Administration (AEAT) of the transaction. Determining the exact day […]

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Posted June 26, 2017 by Tom Hospod
Hong Kong Expands List of Reportable Jurisdictions to 75 Countries

The Legislative Council of Hong Kong has passed a bill that adds 73 countries to its list of CRS Reportable Jurisdictions, bringing the total number to 75 jurisdictions. In enacting this bill, Hong Kong is committing to automatic exchanges of account information with each of its preexisting tax treaty partners that has signed the Multilateral […]

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Posted June 26, 2017 by Paul Ogawa
Netherlands Publishes Reminder of AEOI Reporting Due Date

The Netherlands Competent Authority, through their Community Data Partners website, published a reminder for all FIs submitting FATCA and/or CRS data in 2017. All submissions must be made by August 1, 2017: any initial file deliveries or corrections received after that date may not be considered. To review this published notice, please visit the […]

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Posted June 26, 2017 by Tom Hospod
Gibraltar Publishes CRS Guidance and Reportable Jurisdictions

The Gibraltar Competent Authority has published its list of CRS reportable jurisdictions, as well as some specific guidance related to reporting obligations, due diligence, debt interest, the transition from CDOT, and the XML schema. Gibraltar currently has agreements to exchange information with 20 countries – 13 of which are early adopters and will commence […]

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Posted June 26, 2017 by Tom Hospod
Croatia Publishes New CRS Technical Instructions and Reporting Information

The Croatian Tax Administration has published a final draft of its CRS Schema Guide and Technical Specifications. The specifications for several of the data elements and attributes in the XML have been modified since the prior publication. Additionally, the schema guide now contains a table of validation rules that the XML files must meet in […]

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Posted June 24, 2017 by Charles Riordan
Romanian Senate Rejects Zero-Rate on Social Housing

The Romanian Senate has significantly amended a bill proposed by the ruling Social Democratic Party, which was designed to reduce VAT on social housing and agriculture. The bill originally proposed a zero-rate on the construction of buildings used for social purposes, such as housing for the elderly, orphanages, and rehabilitation centers. The Senate’s Budget and […]

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Posted June 24, 2017 by Charles Riordan
Court of Justice of the European Union: Recent VAT Decisions

The Court of Justice of the European Union (CJEU) has recently published three decisions related to VAT law: In Case C-26/16 (Santogal), a motor vehicle dealership in Portugal sold a new vehicle to an Angolan national allegedly residing in Spain, and claimed a VAT exemption on the sale under Article 138(2) of Council Directive […]

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