Global Indirect Tax News

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Global Indirect Tax News

Monthly newsletter covering VAT, goods and services tax, sales tax issues, and global trade issues around the globe.

January 2018

Americas

  • Colombia: The Government has issued regulations on the VAT exclusion for tablets and cell phones.
  • Colombia: The tax authorities have published information regarding the VAT exclusion for projects from non-conventional sources of energy.
  • Colombia: The tax authorities have clarified that persons performing the operation of services for foreign exchange should maintain evidence of the provision of services contracted abroad.

Asia Pacific

  • China: The China Tariff for 2018 has been issued.
  • China: The Provisional Administration Measure on Customs Advanced Decision took effect from 1 February 2018, introducing a pre-ruling mechanism for valuation, classification, and origin matters.
  • China: New EU anti-dumping rules are in force, with implications for China.
  • Indonesia: There has been an increase in the value of the import duty exemption for a passenger’s personal goods.
  • Indonesia: There has been an amendment to the regulation on temporary imports.
  • Japan: The EU and Japan have finalized negotiations on the Economic Partnership Agreement.
  • Malaysia: The GST technical committee has met to deal with a number of technical issues where clarification was necessary.
  • Malaysia: There have been a number of Tribunal cases on GST issues.
  • Malaysia: It is now possible for GST registrants to file every two months, as opposed to the current monthly or quarterly filing of returns.

EMEA

  • European Union: There has been a CJEU judgment on using transfer prices for customs valuation.
  • European Union: New anti-dumping rules are in force, with particular implications for China.
  • European Union: The EU and Japan have announced the successful conclusion of the remaining negotiations for the EU-Japan Economic Partnership Agreement (EPA).
  • Gulf Cooperation Council: VAT came into force in the United Arab Emirates and Kingdom of Saudi Arabia on 1 January 2018 as scheduled.
  • Croatia: Amendments to the VAT legislation apply from 1 January 2018.
  • Finland: Official guidance has been published on procedures relating to changes in import VAT reporting and collection.
  • Finland: The Central Tax Board has published a ruling on the VAT treatment of storage services.
  • France: The French Administrative Supreme Court (Conseil d'Etat) has issued a decision concluding that the tax authorities may not reject a VAT refund claim submitted after 30 September of the calendar year following the refund period.
  • France: The tax authorities recently published a FAQ specifying the scope of the anti-fraud legislation requiring a certification for cash-register software, applicable as from 1 January 2018.
  • France: The taxable basis for reduced VAT rates for certain goods has been specified.
  • France: The highest rate of payroll tax has been removed.
  • France: The late interest rate has been reduced.
  • France: VAT recovery rates on fuel and gas oil have been increased.
  • France: Non-EU companies will have to appoint only one VAT representative competent for VAT and other taxes, as from 1 January 2019, with some exceptions.
  • Germany: There has been a CJEU judgment on output tax adjustments for rebates paid to insurers.
  • Greece: The application of the special VAT rates (reduced by 30%) has been extended for the islands of Leros, Lesvos, Kos, Samos and Chios until 30 June 2018.
  • Greece: A new category of services will be subject to the reduced 13% VAT rate.
  • Hungary: The environmental product fee legislation has been amended.
  • Hungary: As of 1 January 2018 every Hungarian company is required to register for official electronic communications through the 'Company/Business Gateway' to communicate with the authorities electronically.
  • Hungary: Hungarian-established companies must disclose to the tax authorities information regarding bank accounts held in foreign banks.
  • Hungary: A food chain supervision fee applies to VAT-registered foreign businesses.
  • Ireland: The Irish Revenue has updated the guidance on the submission of payment notifications in relation to closed contracts.
  • Israel: The VAT law has been amended with respect to assessments.
  • Italy: The Law Decree of 16 October 2017 n° 148 has been definitively approved and converted into Law n. 172 dated 4 December 2017, including a number of VAT measures.
  • Italy: The 2018 Budget Law included a number of VAT measures.
  • Italy: There are updates on the split payment regime.
  • Italy: The tax authorities have provided official clarifications concerning VAT deduction.
  • Italy: The tax authorities have published a press release to announce 'simplifications' regarding the data to be reported in the communication of the invoices issued and received.
  • Italy: Guidance has been issued regarding the Registered Exporter system, excise duties warehouses, and the Excise Movement and Control System.
  • Italy: Certain excise duty obligations have been postponed.
  • Italy: There has been clarification regarding the end use procedure.
  • Italy: Budget Law 2018 includes a number of excise duty provisions.
  • Luxembourg: The VAT law has been modified to expand the list of funds that benefit from the VAT exemption applicable to management services of investment funds.
  • Luxembourg: The decree related to the VAT exemption for independent groups of persons has been repealed.
  • Luxembourg: A draft law has been introduced to implement the EU vouchers Directive.
  • Luxembourg: The draft law would also amend the VAT law to provide for the taxation of goods retained after the termination of an economic activity.
  • Malta: The tax authorities have published guidelines regarding which gambling supplies qualify for VAT exemption in terms of the VAT Act, in line with the EU Principal VAT Directive.
  • Netherlands: The State Secretary of Finance has answered questions raised by the Parliament on the bill to implement the voucher Directive.
  • Norway: SAF-T will be voluntary until 1 January 2020, at which time it will become mandatory.
  • Poland: The CJEU has ruled that the Polish definition of 'first settlement' was not compliant with the EU Principal VAT Directive.
  • Poland: The CJEU is to decide on the VAT tax point for construction services.
  • Poland: The CJEU is to decide on the VAT treatment of fuel card schemes.
  • Poland: The transitional period implemented into the Polish VAT law on 1 January 2017 has expired and thus as of 1 January 2018 all Polish VAT-related returns must be submitted only in electronic form.
  • Poland: As of 1 January 2018, the third version of SAFT file will be applied.
  • Poland: The application of the split payment mechanism has been postponed to 1 July 2018.
  • Portugal: On 29 December 2017, the Budget Law for 2018 was published in the Official Journal, including a number of indirect tax changes, which entered into force on 1 January 2018.
  • Portugal: The excise duty rate on petroleum products has increased.
  • Portugal: The tax authorities have issue a binding ruling on the application of the VAT exemption for operations related to the suspension arrangement, in customs warehouses, regarding non-alcoholic beverages with added sugar.
  • Romania: There is an update on the split payment provisions.
  • Russia: Unified agricultural taxpayers will become VAT payers.
  • Russia: There have been amendments to the law regarding the allocation of input VAT between taxable and exempt supplies.
  • Russia: The rules for VAT deductions on purchases using subsidies and/or budget investment have been clarified.
  • Russia: VAT exemption for sales of non-ferrous and ferrous metals scrap has been removed and the reverse charge mechanism for VAT payment introduced for sales of this scrap and for sales of waste, secondary aluminium alloys and raw animal skin.
  • Russia: The VAT place of supply for certain services has been refined.
  • Russia: The list of data necessary for purchases from foreign online stores delivered by express carriers has been expanded.
  • Russia: Temporary import restrictions have been introduced on live animals and birds from Malaysia.
  • Russia: There have been amendments to the lists of goods subject to export control.
  • Russia: Export customs duty have been introduced on tungsten and cermet waste and scrap.
  • Serbia: The National Assembly of the Republic of Serbia has adopted a number of changes to the VAT law, primarily with the aim of harmonizing the rules with EU rules.
  • Slovakia: A number of changes to the VAT law came into effect on 1 January 2018.
  • South Africa: Customs duty rates have been amended for certain commodities.
  • Spain: On 1 January 2018, Royal Decree 1075/2017 entered into force, modifying a number of indirect tax rules, including the application of the SII (Immediate Information Supply) and the VAT invoicing rules.
  • Turkey: From January 2018, nonresident electronic service providers are obliged to register for VAT due for electronic services sold to real person end customers in Turkey.
  • United Kingdom: A court has held that a bank cannot recover VAT incurred in operating deposit accounts, for which it did not charge customers.
  • United Kingdom: There has been a court ruling regarding VAT input tax on single farm payments.
  • United Kingdom: New anti-avoidance disclosure rules have come into effect.
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