Global Indirect Tax News

August 2018

Global

• Global: The US has issued a second round of section 301 tariffs on China-origin goods and extended the public comment period for a third round. China has responded with additional tariffs.
• Global: The US has implemented India’s membership of the Wassenaar arrangement.
• Global: The US has reimposed sanctions on Iran.
• Global: The US doubles tariffs on steel of Turkish origin and reexamines Turkey’s eligibility under the Generalized System of Preferences. Turkey has responded with additional tariffs.

Americas

• United States: The recent Wayfair case on sales tax has implications for non-US companies with US customers.

Asia Pacific

• India: The GST Council has made recommendations for changes in the GST law.
• India: There is an update on foreign trade policy.
• India: A recent Customs decision held that exemption notifications must be strictly interpreted and the benefit of ambiguity interpreted in favor of the Revenue.
• Malaysia: The GST ended on 31 August 2018, and the Sales Tax and Service Tax apply from 1 September 2018.

EMEA

• European Union: There is a new definition of exporter of record for Customs purposes.
• Belgium: A draft bill is to be submitted to Parliament on optional VAT on immovable letting.
• Denmark: A draft for a binding instruction has been issued by the tax authorities regarding VAT exempt services provided to sea going vessels.
• Denmark: A draft for a binding instruction has been issued by the tax authorities regarding the VAT exemption for transport services related to the export of goods to outside the EU.
• Denmark: A binding ruling has been issued by the tax authorities regarding a transaction fee for payment in an app.
• Finland: The tax authorities have published new guidance regarding the VAT treatment of service purchases made by a VAT group.
• Finland: The Finnish Tax Administration have published guidance on the determination of the taxable basis for import VAT.
• France: The tax authorities have updated their guidelines regarding the place of supply of services for VAT purposes with respect to immovable property.
  
• Ghana: The VAT regime has been restructured with respect to the claiming of input VAT.
• Hungary: The real-time invoice data provision obligation entered into force in Hungary as of 1 July 2018, and the ‘grace period’ has now ended.
• Hungary: Rules have been introduced regarding the VAT treatment of vouchers.
• Hungary: The reverse charge mechanism will continue to apply to supplies of grain and steel products until 30 June 2022.
• Italy: Guidelines have been issued regarding the non-preferential origin rules set out in the Union Customs Code legal package.
• Portugal: From 1 January 2019, there will be mandatory e-invoicing for B2G transactions.
• Portugal: There is an update on the increase in vehicle tax following implementation of the Worldwide Harmonized Light Vehicle Test Procedure.
• Russia: The standard VAT rate will increase from 18% to 20% from 1 January 2019.
• Russia: There have been a number of other VAT amendments.
• Russia: The Federal Tax Service has published an overview of the court position with respect to VAT recovery issues.
• Russia: Russian counter-sanctions measures have been extended.
• South Africa: The annual quota for bone-in cuts of frozen chicken from the US has been increased.
• United Kingdom: The CJEU has ruled that direct debit administration is not exempt from VAT.
• United Kingdom: A court has ruled that VAT is payable on the salaries of temporary staff.
• United Kingdom: The tax authorities have provided guidance on the application of the VAT cost sharing exemption and the ‘directly necessary’ test.
• United Kingdom: Draft legislation has been announced to counteract VAT ‘offshore looping’ in financial services.
  
• United Kingdom: Under the tax authorities’ Making Tax Digital for VAT initiative, taxpayers will be required to manage their VAT record-keeping and compliance reporting digitally. One key part of this initiative will be around digital submission of VAT returns.

Eurasian Economic Union

• Eurasian Economic Union: The zero import customs duty rate has expired for certain types of goods.
  

Archive

Global Indirect Tax News, July 2018

Global Indirect Tax News, June 2018

Global Indirect Tax News, May 2018

Global Indirect Tax News, April 2018

Global Indirect Tax News, March 2018

Global Indirect Tax News, February 2018

Global Indirect Tax News, January 2018

Global Indirect Tax News, December 2017

Global Indirect Tax News, November 2017

Global Indirect Tax News, October 2017

Global Indirect Tax News, September 2017