Our professionalized and specialized VAT team is always informed with the latest VAT updates and regulations from around the world. Here you will find all you need to know regarding VAT news and information.

Turkey VAT reduction from 18 to 8% due to Covid-19 til end of year for events

31 Jul - VAT has been reduced to 8% from 18% until 31 December 2020 on the following: events and conferences; cultural events; domestic repairs; accomodation services; hospitality services 24 April - all other businesses (see sector exceptions below) may delay Value Added Tax payments and filings for the months of February and March, or Q1 2020. The new filing deadline is 28 April instead of 24 April. 9 April update - goods intended for export enjoy VAT payment deferrment for the exporters purchasing them (to avoid VAT credits). This deferment period has been extended. The dealine for the upload of electronic ledgers and books has been moved from 31 March to 30 April 2020. The Turkish tax office on 24 March introduced VAT payment reliefs in addition to last week's measuers. Several sectors will have their VAT returns for April, May and June delayed until 27 July 2020. VAT payments for April to June are delayed six months out to October to December. The sectors include: automotive;...

Brazil: Proposal to replace PIS and COFINS with new federal VAT

The Brazilian government presented to Congress a draft bill (Bill No. 3,887/2020) that would aim to unify certain federal taxes under a federal value added tax (VAT) regime. The proposed VAT (Contribuição Social sobre Operações com Bens e Serviços—CBS) or “contribution on goods and services” would replace the existing PIS and COFINS* system of social security contributions charged on gross revenues. This bill is one step of a broader tax reform effort being proposed by Brazil’s federal government—reform that could be implemented in a phased process. *PIS (programa de integração social) refers to an employees’ profit participation program and COFINS (contribuição para o financiamento da seguridade social) refers to a social contribution program for social security financing. Summary PIS and COFINS are frequently a source of dispute between the tax administration and taxpayers especially concerning the discussion on which inputs can be recoverable (i.e., which inputs generate...

What are Digital services Taxes, and what aren’t?

“A DST is a new tax imposed on the revenues or profits of nonresident firms that provide digital advertising, services, or content to a local user base. This definition excludes VAT withholding taxes or digital nexus rules.” In this entry, we want to take a bit of a deeper dive into this proposed definition, by way of defending our proposed definition. Any proper law journal article starts with a defined term or two, often accompanied by a lengthy footnote in explanation. The area of DSTs undoubtedly deserves no less. Since DSTs are unilateral measures with no playbook, defining what constitutes a DST and what does not is a matter of some debate. We have investigated the available reports to date and analyzed the taxes that have been described by journalists or policymakers as DSTs, and we find that many seem to describe virtually any tax that appears to be aimed at either digital firms or digital services as DSTs. Even professional tax advisers like KPMG mix and alter their terms...

EU: Agreement for new rules regarding excise taxes on alcohol

The European Commission today announced an agreement has been reached in the Council regarding new rules concerning the excise taxes (duties) imposed on alcohol within the EU. According to the EC release, the new rules will provide small and artisan alcohol producers access to a new EU-wide certification system and confirm their access to lower excise tax rates across the EU. The new rules will be effective 1 January 2022. Excise duties are indirect taxes on the sale or use of specific products, such as alcohol, and are usually applied as an amount per quantity of the product (e.g., per 100 litres). All revenues from excise taxes go to national budgets of the EU Member States. Existing EU rules on the harmonisation of the structures of excise taxes on alcohol and alcoholic beverages were agreed in 1992, and set out common definitions of alcoholic products that are subject to excise tax and provide that all EU Member States are to treat the same products in the same way. The rules...

Brexit update: BE VAT registration with the appointment of a fiscal representative for UK companies

Considering the UK left the European Union on 31 January 2020 and the ‘stand-still‘ transition period will come to an end on 31 December 2020, new details on how UK companies will need to organize their business in terms of VAT registration in Belgium and the related timing to comply are beginning to surface. As such, 1 January 2021 is the next date to mark in our calendars, as Brexit will – under the present circumstances – have an effect on that particular date. This means that UK companies will have to fulfill all the VAT obligations linked to their ‘non-EU’-status from that date on and thus need to appoint a fiscal representative when being registered or registering for VAT purposes in Belgium. In that context, the Belgian VAT authorities recently released a communication on the timing to comply with the so-called ‘switch’ for UK companies with a direct registration in Belgium to a VAT registration with the appointment of a fiscal representative once Brexit is effective. In...

Judge blocks AirBnB injunction over Mexico’s digital VAT

A judge has blocked an injunction filed by AirBnB over Mexico’s digital VAT claiming that the information requirements of the legislation are excessive and violate data privacy rules. Source - internationaltaxreview.com Related services:

Netherlands – Refund of foreign VAT; take action before 1 October 2020

If you received invoices with foreign VAT from another EU country in 2019, you can reclaim this VAT from the Dutch tax authorities. This does not apply if you are located in that specific country or if you owe VAT. A refund request must be submitted no later than 30 September. Conditions for refund To be able to make a VAT refund request for foreign VAT, the following conditions apply: Your company or organization is not located in the EU Member State where you want to reclaim VAT, but it is located in another EU Member State; Your company or organization has not carried out any activities in the EU Member State on which you owe VAT; In any case, your company or organization carries out activities for which you are entitled to deduct input tax. Please note that the VAT legislation of the Member State of refund is also important in this condition. If you do not meet the conditions mentioned under 1 and 2, you can reclaim the VAT via the regular VAT return. If you do not meet condition...

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