Regulatory Analysis
The IRS recently released revised instructions for Form 941 which is used by employers to report quarterly federal withholding. Several changes have been made to the instructions and form in response to COVID-19 and the passage of the CARES Act. As some of these changes were made prior to the end of the First Quarter […]
The IRS has released its draft Form 8809, “Application for Extension of Time to File Information Returns,” for tax year 2020. Form 8809 is an application for extension to file information returns with the IRS, it does not grant an extension to issue recipient copies. References to box 7 of the 1099-MISC, which reported non-employee […]
The Peruvian tax administration (SUNAT) released Resolution 105-2020 by which it postpones the effective dates of several requirements related to the electronic invoice mandate of that country. This Resolution postpones until December 31, 2020, the mandatory use of OSE or the SEE-SOL portal of the SUNAT, for electronic issuers that as of December 31 of 2018 were […]
The Peruvian SUNAT has issued Resolution 108/2020. This resolution is intended to postpone several obligations that otherwise would become effective July 1, 2020. As a result, the mandatory use of the United Nations Standard Products and Services Code (UNSPSC) or the Global Trade Item Number (GTIN) as identifiers of fixed assets in the Ledgers of […]
The Chilean tax administration (SII) has issued a new resolution extending until December 31, 2020 the use of Invoices, Purchase Invoices, Liquidation Invoices, Dispatch guides, credit and debit notes in paper format that had previously been authorized until June 30, 2020. Resolution 70/2020 of the SII applies only to those specific taxpayers that by law, […]
Tennessee Governor Bill Lee signed legislation on June 30, 2020 adjusting the state’s sales thresholds for economic nexus. Effective October 1, 2020, remote sellers making in excess of $100,000 in annual sales into the state will be required to collect and remit sales tax, which is a change from the previous threshold of $500,000 in […]
North Carolina enacted legislation to remove economic thresholds applied to marketplace facilitators. Previously, marketplace facilitators were required to collect and remit sales tax on their marketplace-facilitated sales if they had gross sales in excess of $200,000 or 200 or more separate transactions in the previous calendar year. Effective July 1, 2020, all marketplace facilitators are […]
Beginning July 1, remote sellers making sales into Louisiana must register with the Louisiana Sales and Use Tax Commission for Remote Sellers (“the Commission”) in order to be compliant with new requirements to collect, remit and report state and local sales tax. For a full explanation of this update, read our blog here.
On June 24, 2020, European Union member states’ ambassadors reached a preliminary agreement on postponing the VAT e-Commerce Package from 1 January 2021 to 1 July 2021. Reports indicate that the postponement should be formally adopted by the Council following legal and linguistic review. The European Commission initially proposed the postponement in May due to the impact […]
Massachusetts Governor Charlie Baker recently announced that the 2020 Sales Tax Holiday will take place on August 29 and 30. By way of a quick recap, the holiday exemption applies to most retail items with a sales price up to $2,500 purchased for personal consumption. Further details regarding the sales tax holiday can be found here.
The Colombian tax administration (DIAN) has announced that the VAT Holiday established by the Law 2010/2019 and the Legislative Decree 682/2020 will be held on the following three days: June 19, July 3, and July 19 of 2020. Participation in the VAT Holiday is not mandatory. Businesses opting to participate in the VAT Holiday should […]
The IAPR and the Ministry of Finance have signed the long-awaited bill, which once turned into law will enforce the myDATA system within Greece. According to the IAPR’s announcement, the bill will specify: the scope of application, any exceptions, the data to be submitted, the time, methods of transmission and the specific obligations of businesses. […]
UK HM Revenue & Customs has announced that the application of VAT by reverse charge on the provision of construction services in the UK will be delayed from 1 October 2020 to 1 March 2021 (the originally planned commencement date was 1 October 2019). The revised reverse charge rules will impact any businesses that supply […]
Germany’s Federal Ministry of Finance has announced that VAT rates will be temporarily reduced from 1 July 2020 through 31 December 2020 to stimulate the economy in response to the coronavirus pandemic. The standard rate is to be lowered from 19% to 16%, and the reduced rate is to be lowered from 7% to 5%. […]
The Czech Ministry of Finance has announced the removal of the concession whereby the import into Czech from outside the EU of small consignments valued at less than 22 euros were exempted from import VAT. This equalizes the VAT treatment with goods arriving from EU countries. This change will coincide with the adoption of the […]
Through Notice 2020-35, the IRS further extended the due date for Form 5498 series records including Form 5498 (IRA Contribution Information), 5498-ESA (Coverdell ESA Contribution Information) and 5498-SA (HAS, Archer MSA, or Medicare Advantage MSA Information). The due date for filing these forms with the IRS and furnishing these forms to recipients has been extended to […]
The tax administration of Paraguay (Secretaria de Estado de Tributacion or SET) has announced that the country will be delaying for six months the application of VAT on digital services supplied by foreign non-established providers. According to the recent tax reform, a new withholding system would start to apply on July 1, 2020 to all […]
In conjunction with its revised 1,100 bn budget projection for the period 2021-2027, the European Commission has published its Next Generation EU strategy for alleviating the social and economic impact of the Covid-19 pandemic, to be financed by up to 750bn euros of borrowing. The intention is that this borrowing will be paid back in […]