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.

Amazon – VAT registration requirement for Austria

Amazon – Request from Amazon Sellers to present their VAT registration number for Austria. According to Austrian law Amazon has an obligation to share the sellers VAT registration number with the Austrian Tax Authority. This has become a requirement especially for amazon sellers that have not yet registered for a VAT number in Austria. These sellers are in danger of having their account suspended until they become compliant with the Austrian regulations. As a result, companies selling their products in Austria through Amazon have to upload their registration number on Seller Central. When do you need to have a VAT number in Austria? The transactions that are subject to Austrian VAT and trigger a VAT registration obligation are listed below: You are established in Austria and make taxable supplies in excess of €30k per year You are established outside of Austria and store goods in Austria for sale to customers You make distance sales of goods to customers in Austria, delivered from...

EU Wants China to Explore Cooperation to Fight VAT Fraud

The EU has requested that China begin “exploratory talks” to reach an agreement that would strengthen administrative cooperation to fight VAT fraud. China and the European Commission engaged in their eighth annual high-level trade and economic dialogue July 28, with focus on bilateral trade and investment, cooperation in financial services and taxation, and the joint response to coronavirus and the global economy, according to a July 28 commission release. Commission Executive Vice President Valdis Dombrovskis and EU Trade Commissioner Phil Hogan highlighted the importance of reciprocity in the treatment of companies, fairness, and a shared set of rules. “Today I have called upon China to engage in serious reform of the multilateral system and its rulebook and to remove the existing barriers impeding access to the Chinese market of EU exporters of goods and services as well as of European investors. Such an approach by China would show a level of responsibility which reflects its...

UK – VAT payments on account guidance

VAT payments on account - UK Find out who has to pay VAT payments on account, how HMRC works out your payments, the alternatives and how and when to pay. Payments on account arrangementsPayments on account arrangements‘Payments on account’ are advance payments towards your VAT bill. HMRC will tell you to make payments on account if you send VAT returns quarterly and you owe more than £2.3 million in any period of 12 months or less. The £2.3 million threshold includes VAT on imports and moving goods into and out of excise warehouses. Extract from the Guidance: "How we work out your ‘payments on account. We’ll work out your payments based on your annual VAT liability in the period that you go over the threshold. We’ll divide your annual VAT liability in that period by 24 to arrive at an instalment amount. If you’ve been in business for less than 12 months, we’ll work out the payments as a proportion. We do not include the VAT on imports and moving goods into and out of excise...

Circular 2020/C/99 about Incoterms 2020

Incoterms Updated 2020 On 13 July 2020, the Belgian General Administration of Customs and Excise issued a circular letter relating to Incoterms. Incoterms are international trade terms adopted by the International Chamber of Commerce. Besides a general explanation of the concept of Incoterms, the circular explains the most recent version of the rules, which are the Incoterms 2020. Additionally, the circular letter contains a specific paragraph about the link between Incoterms and customs valuation. The new incoterms explanation can be found in the link below in German, Dutch and French. Click Here to read the new Incoterms Source - Fisconet

Who will Ultimately Pay the Digital Services Tax in the UK? Amazon Passes the Cost Along to Sellers

DIGITAL SERVICES TAX IN THE UK In July, the UK’s digital services tax (DST) became law after receiving royal assent. The 2 percent tax applies to revenues from social media platforms, internet search engines, and online marketplaces. When developing tax policy, lawmakers often ignore the incidence of a tax, or who actually pays the tax. Many times, this is different from who is legally required to pay the tax. Just because a 2 percent revenue tax applies to large digital companies does not mean that the companies will bear the entire cost of the tax. One online marketplace has already provided evidence of this. According to reporting from Bloomberg, Amazon has announced that it will be increasing a variety of fees on UK sellers by 2 percent beginning in September. The announcement comes a year after Amazon announced a similar fee increase for French sellers when France adopted a 3 percent digital services tax. The digital services taxes in France and the UK can represent significant...

Customs representatives must be UK established from 1 January 2021

You can hire a person or business to deal with customs for you, such as: freight forwarders customs agents or brokers fast parcel operators What they can do for you (and who will be liable) depends on: the services they provide what you want them to do the commercial agreement you have with them They’ll need to be established in the EU. From 1 January 2021 They’ll need to be established in Great Britain or Northern Ireland. You can use the list of customs agents and fast parcel operators to help find someone to deal with customs for you. Freight forwarders Freight forwarders move goods around the world for importers. A freight forwarder will arrange clearing your goods through customs. They’ll have the right software to communicate with HMRC’s systems. You can find out how to use a freight forwarder on the British International Freight Association and Institute of Export websites. VISIT OUR BREXIT SOLUTIONS PAGE AND MAKE SURE THAT BREXIT DOES NOT AFFECT YOUR BUSINESS Customs agent or...

How GST reform can help reboot prosperity for Australia

The economic impact of COVID-19 and the steps taken to support businesses and individuals through the pandemic have resulted in ballooning government expenditure and shrinking government revenue. Even prior to this, Australia’s tax system was ill-equippedto support a growing economy due to a number of structural factors including an over-reliance on personal and corporate taxes. Efficient revenue collection will be necessary for economic recovery and budget repair in this environment, and reform to consumption tax is a clear option for investigation. Our latest projections show that reform of the Goods and Services Tax could deliver Australia a revenue boost of between $14 billion and $40 billion, stimulating productivity and economic growth and enabling the abolition of less efficient taxes.   Source - PwC  

One-stop shop: Not compatible with trade on Amazon

The cross-border fulfillment of Amazon & Co. is one of the growth drivers in online trade. This model could start to falter next year due to a change in the law. From 1 July 2021, the EU Member States want to see a fundamental simplification of cross-border Value...

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