Regulatory Analysis

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Posted 6 days ago by Andrew Decker
Hungary Releases Updated Specifications for Invoice Reporting

As long anticipated, Hungary has released the finalized specifications for version 2.0 of the invoice data reporting schema. At this time bilingual XSD documentation and Hungarian-only API documentation have been released. Tax authorities have indicated that full testing of the new schema is expected to be available in the test environment by the end of […]

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Posted 1 month ago by Ramón Frias
Upcoming Mandatory Use Electronic Tax Registers in Kenya

The Kenyan Revenue Authority (KRA) has informed taxpayers that in the upcoming months it will become mandatory for businesses with revenues above 5 million Kenyan Schillings (Around 48,470 dollars) to use electronic tax registers that communicate sales data in real time to the tax authorities. The announcement comes after KRA started a successful pilot program […]

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Posted 1 month ago by Ramón Frias
Mandatory Switch to UBL 2.1 in Colombia Delayed But Coming Up Fast

[August 9, 2019] Effective November 2, 2019, most taxpayers in Colombia will be required to transmit electronic invoices pursuant to the schema defined by Universal Business Language (UBL) Version 2.1. Specifically, the Colombian Tax Administration (DIAN) issued Resolution 000020/2019 establishing the schedule for complying with the new pre-clearance e-invoicing requirements and for upgrading to UBL […]

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Posted 1 month ago by Kaitlyn Smethurst
Zambia Delays Sales Tax Implementation Again

[August 5, 2019] On August 2, Zambia’s newly appointed Finance Minister, Bwalya Ng’andu, requested that the Sales Tax Bill be withdrawn from Parliament for consideration. The Sales Tax Bill, which was the initiative made by Zambia to shift from an existing Value Added Tax system to a new Sales Tax structure, was originally supposed to take effect […]

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Posted 2 months ago by Jeff Gambold
Sweden: lower VAT rate to be applied to electronic publications

With effect from 1st July 2019, e-books and electronically provided magazines and journals will become subject to the lower rate of 6% VAT (the standard rate of 25% previously applied) in Sweden. This change will result in equal treatment of electronic publications and their physical equivalents under Swedish VAT law. This falls into line with […]

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Posted 3 months ago by Jeff Gambold
Poland to introduce mandatory split payments regime

Following the introduction of a voluntary split payment system last year, Poland is now proceeding with a mandatory regime to come into effect from 1st September 2019 for all payments of 15,000zl (approximately 3,500 euros) or more.  Under the scheme, which will apply to both established and non-established businesses, the VAT element of any payment, […]

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Posted 5 months ago by Charles Riordan
Poland Introduces Obligation to Use Online Cash Registers

Effective May 1, 2019, Polish taxpayers making B2C supplies of goods and services will be required to use online cash registers connected to the newly established Central Repository of Cash Registers. Data from the Central Repository of Cash Registers will be available to heads of tax and customs offices, directors of tax administration chambers, and the Minister […]

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Posted 8 months ago by Sovos
New Rules for Taxpayers’ CFDIs Subject to Fiscal Benefits for Mexico’s North Border

By Francisco de la Colina, Legal Counsel, TrustWeaver Francisco de la Colina is a lawyer working on the regulatory team at Sovos TrustWeaver. On 31 December 2018 a decree establishing certain tax benefits for the North Border Zones in Mexico was published in the country’s Official Journal. The benefits aim to bring some stimuli and […]

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Posted 8 months ago by Sovos
EU Council Directive to Introduce Generalized Reverse Charge Mechanism

On December 27, 2018, Council Directive (EU) 2018/2057 was published in the Official Journal of the European Union, and it will enter into force on the twentieth day following that date. It amends the EU VAT Directive (2006/112) to provide for temporary application of a generalized reverse charge mechanism (GRCM) relative to supplies of goods and services […]

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Posted 10 months ago by Sovos
Vietnam E-Invoicing is Compulsory as of November 1, 2020

On November 1, 2018, Decree 119/2018/ND-CP took effect in Vietnam. Pursuant to this decree some businesses may be required to switch to e-invoicing upon notification by the tax authorities. However, e-invoicing will not be mandatory until November 1, 2020.

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Posted 10 months ago by Sovos
EU Directive Adopted Allowing Reduced VAT Rates on E-Publications

On November 6, 2018, the European Economic and Financial Affairs Council announced the adoption of a Council Directive which allows EU Member States to align their VAT rules for physical and electronic publications.  Electronic publications are currently taxed at the standard VAT rate, while physical publications may be subject to reduced rates.  With the adoption […]

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Posted 10 months ago by Sovos
Poland Confirms New SAF-T Structure for 2019

On October 26, the Polish Council of Ministers confirmed that it will introduce a new SAF-T scheme (JPK_VDEK) aimed at replacing the VAT-7 and VAT-7K declarations. The draft legislation will become available during the fourth quarter of 2018. If enacted, taxpayers will submit only one document, the JPK_VDEK file, without additional attachments. The Ministry of Finance […]

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Posted 11 months ago by Sovos
Australia to Abolish Tax on Feminine Hygiene Products

Australian Treasurer, Josh Frydenburg, has announced that the Australian Government is taking steps towards removing the 10% GST that is imposed on feminine hygiene products in Australia. Frydenburg stated last week that it was the intent of the legislature to have an exemption in place by January 1, 2019 for these products. This announcement comes ahead […]

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Posted 11 months ago by Charles Riordan
UK’s HMRC Opens The Door For More Making Tax Digital Pilot Program Testing

In a press release on October 16, 2018, Her Majesty's Revenue & Customs (HMRC) announced that the previously reserved pilot program for Making Tax Digital (MTD) was expanded to a much larger pool of businesses. According to the statement, HMRC is now allowing half a million businesses to enter the pilot testing program for MTD, in order […]

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Posted 11 months ago by Sovos
Bulgaria Changes Intrastat Reporting Thresholds for 2019

The National Statistical Institute of Bulgaria announced the following Intrastat thresholds for 2019: For Intrastat reporting dispatches, the threshold was increased from BGN 260,000 to BGN 280,000.  For Intrastat reporting arrivals, the threshold was increased from BGN 430,000 to BGN 460,000.   For further information regarding this announcement, please see here.

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Posted 11 months ago by Ramón Frias
Peru Issues New Regulations Regarding the OSE

The Peruvian Tax Administration (SUNAT) published on October 15, 2018, regulation 242-2018/SUNAT, which establishes some new obligations to Operators of Electronic Services (OSEs) and also updates the sanctions for non-compliance when applicable. According to the new regulation, OSEs are now required to post in a web page the invoices that they have validated and make […]

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Posted 1 year ago by Ramón Frias
Brazil Contemplating Tax Reform in 2019

The Brazilian Congress is once again considering a series of tax reforms aimed at simplifying its incredibly complicated indirect tax system. The primary proposal (known as PEC 293) proposes to replace the following taxes with a nationwide VAT.   1. ICMS – state-level VAT 2. IPI – federal tax on industrialized products 3. ISS – […]

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Posted 1 year ago by Ramón Frias
Mexico: New Tax Reform Plans to Re-establish Reduced VAT Rate at the Border

The Mexican Congress is proposing to re-establish a reduced VAT rate in the border states of Baja California, Baja California Sur, Quintana Roo, and in the municipalities of Caborca and Cananea of the state of Sonora. The new proposed rate for those regions would be 8%, applicable to transactions of goods or services made by inhabitants […]

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