Global Indirect Tax News

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Global indirect tax news

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

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December 2015

Featured articles:

Americas

  • Canada: The proposed HST rate increase in Newfoundland and Labrador has been cancelled.

Asia Pacific

  • India: There has been an increase in the rate of interest under the Maharashtra VAT Act.
  • India: The Delhi VAT Act has been amended; major amendments relate to the payment of advance tax, the use of digital signatures, and the installation of devices/ software by dealers.
  • India: Clarifications have been issued regarding the Swachh Bharat Cess of 0.5%, which was effective from 15 November 2015.
  • India: A salary paid to a seconded employee has been found not to be liable to service tax.
  • Malaysia: Budget 2015 was presented on 23 October, including a number of announcements concerning GST.
  • Malaysia: The Director General of the Royal Malaysian Customs Department has issued a decision regarding input tax credit claims.
  • Kazakhstan: There are certain issues following Kazakhstan’s accession to the World Trade Organization.

EMEA

  • Czech Republic: From 1January 2016, all Czech VAT payers will be required to prepare and submit a VAT control statement.
  • Denmark: The Danish Tax Authority has issued guidance on the application of the ATP PensionService, case.
  • Finland: Services related to vouchers were deemed VAT exempt payment transfer services.
  • Finland: Incorrectly recovered input VAT does not have an effect on a company’s income taxation after the three year statutes of limitation.
  • Finland: There has been a CBT ruling on VAT exempt health and medical care services.
  • Finland: The CBT has published two rulings on the VAT treatment of special investment funds.
  • Finland: MBA education sold by a foreign university has been deemed subject to VAT.
  • Gulf Co-operation Council: The answer to the question of whether the Gulf States will ever implement VAT has long been unclear, and given the complexities of moving from a virtual ‘no tax’ regime to a new world of tax, it is difficult to be certain. However, most commentators seem to think there is a gradual move from 'if' to 'when'.
  • Iceland: Changes to VAT on tourism take effect on 1 January 2016.
  • Italy: Customs has issued new guidelines on customs duties payments and deposits.
  • Poland: Changes to the Polish Tax Ordinance come into force on 1 January 2016, including changes to penalties.
  • Poland: There has been a judgment regarding the shortened, 25 day VAT refund period.
  • Portugal: The Tax Arbitrage Court has ruled that private companies rendering VAT exempt medical services may waive such VAT exemption (and apply the 5% VAT reduced rate), irrespective of whether or not they render such services in a hospital environment.
  • Portugal: The Tax Arbitrage Court has ruled that the intermediation fee charged by independent sellers of tourist use rights over immovable property or part thereof for more than 20 years is VAT exempt.
  • Portugal: There is an update on the presentation of the 2016 Budget.
  • Russia: There has been an amendment to the list of technological equipment the import of which into the territory of the Russian Federation is not subject to VAT.
  • Russia: A Letter of the Ministry of Finance has been issued regarding the determination of the VAT base on receipt of advance payments in foreign currency.
  • Russia: A Letter of the Ministry of Finance has been issued regarding the application of VAT to premiums (bonuses) received by buyers of non-food goods.
  • Russia: A Letter of the Ministry of Finance has been issued clarifying the three year period to claim VAT credit.
  • Russia: A Letter of the Ministry of Finance has been issued clarifying the procedure for applying the 0% VAT rate upon export of goods from Russia to the states – members of the Eurasian Economic Union upon transportation of which a loss is identified that is higher than norms of natural loss.
  • Russia: The Federal Tax Service is developing an extension to the functionality of the IT system ASK-VAT-2 to review information on the transfer of funds between bank accounts of companies and counterparties.
  • Russia: There may be an amendment to the VAT treatment of supplies of electronic services via the Internet.
  • Russia: There may be an amendment to the procedure for determining the VAT base when receiving advance payments.
  • Russia: There may be an amendment to the documentary support for applying the 0% VAT rate when exporting goods by international mail.
  • Russia: There may be an amendment to the legal regulation of state support for exports.
  • Russia: The import of certain goods originating from Turkey has been prohibited.
  • Russia: An exemption has been introduced for customs clearance fees for goods exempt from export customs duties exported in international postal items.
  • Russia: There have been a number of amendments to the Tax Code with respect to excise tax.
  • Sweden: The tax authorities have published formal guidance on their interpretation of the CJEU’s decision in the Skandia case.
  • Ukraine: Electric car import duty has been abolished.
  • Ukraine: There have been changes in the application of certain special duties.
  • Ukraine: Fodder grain veterinary certificates are no longer required.
  • Ukraine: Limits have been introduced on the importation of seeds and planting material.
  • United Kingdom: There has been a decision in the ‘dental plan’ VAT exemption case.
  • United Kingdom: The UK Autumn Statement contained some indirect tax issues, although little of note.
  • Ukraine: The Ukrainian Parliament ratified the Trade Facilitation Agreement.

Eurasian Economic Union

  • Eurasian Economic Union: Certain information will be required on goods imported via aircraft.
  • Eurasian Economic Union: There are amendments to import customs duties rates on drilling machines and beryllium oxide and hydroxide.
  • Eurasian Economic Union: Antidumping duty on certain steel pipes originating from Ukraine has been extended.
  • Eurasian Economic Union: Antidumping duty has been introduced on truck tires and crawler bulldozers originating from China.
December 2015
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