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.

SRI LANKA: CANADA: COVID-19 VAT IMPLICATIONS

SRI LANKA – Update 8th July Sri Lanka Further Extends Deadlines for Various Tax Returns The Inland Revenue Department has further extended the submission deadlines for various returns until 31 December 2020. The deadlines for the following returns had been previously postponed until 15 July 2020 : annual declaration of employer (PAYE Return) for year of assessment (YA) 2019/2020; - annual statement of withholding (WHT return) for YA 2019/2020; economic service charge return for YA 2019/2020; compounded stamp duty return for the quarter ended 31 March 2020; interim estimate of value-added tax (VAT) on financial services for the last 6 months of YA 2019/2020 (for financial institutions that submit returns on year of assessment basis); and VAT returns for February and March 2020 and the quarter ended 31 March 2020. In addition, the submission deadlines for the following tax returns have been extended for the first time until 31 December 2020: betting and gaming levy return for the...

UK: Preparing for VAT rate changes

There is increasing speculation that the Chancellor will shortly announce changes to some of the UK VAT rates. Organisations need to consider the impact of this on sales, purchases, systems and pricing. The potential changes that are being most frequently reported are: a reduction in the standard rate of VAT across the board applying a lower VAT rate to the hospitality and tourism sector reducing the VAT rate that applies to certain activities that require particular stimulus. Any general reduction in the standard rate is likely to be for a very limited period, in order to encourage consumers into discretionary spending in the knowledge that prices will soon rise. Germany is cutting its VAT rates for just six months. When the UK reduced the standard rate of VAT from 17.5% to 15% in December 2008, this lasted for 13 months. It then rose to 20% twelve months later. What should organisations consider if there is a temporary reduction in VAT rates? Are your systems set-up to cope with...

Romania: Digitization of the scal system – connecting cash registers, SAF-T, simpler payments, new sites at ANAF and Finance

The government intends to adopt several measures to digitize and debureaucratize the administration, including the scal one, according to the National Investment and Economic Recovery Plan, presented today. At ANAF, the measures mainly aim at connecting online cash registers with ANAF servers, introducing the standard control le (SAF-T), modernizing the ANAF website, but also that of the Ministry of Finance, but also simplifying the online payment of tax obligations. A long-awaited measure for the digital transformation of the tax administration is the project to connect electronic scal cash registers . The process started in May 2020. The calendar for connecting cash registers with electronic diary starts with the period July 1-September 30, 2020 for the category of large taxpayers. From September 30 to January 31, 2021, the electronic scal cash registers used by economic operators in the category of medium and small taxpayers will be connected. Through this project the information...

Germany: Tax Court of Hamburg: VAT treatment of so-called in-app purchases

Many game apps offer the user the option of purchasing additional benefits in the form of so-called in-app purchases via the app store on his/her smartphone. In its recent decision, the Tax Court of Hamburg dealt with the VAT treatment of these in-app purchases. In particular, it concerned itself with the question of who, from a VAT perspective, is the supplier vis-à-vis the user, the app developer or the app store.   Source Credit - kmlz.de   Related services:

Germany: Quick Fixes – Proof of intra-EU transport

Your company sells and dispatches goods from Germany and you always considered that the operations were qualifying as VAT exempt intra-EU supplies. Following the implementation of the Quick Fixes on 01/01/2020 and the related presumption regarding proof of transport, you now wonder whether additional documents would be necessary to secure the VAT exemption. Quick fixes : Two rebuttable presumptions Two rebuttable presumptions were introduced in the European VAT legislation allowing the seller to claim the VAT exemption on intra-Community supplies. It is now presumed that the goods have been transported outside the Member State of dispatch when the seller who takes care of the transport is in possession of at least two documents listed in the regulation. If the transport is carried out by the purchaser, the latter must also provide the seller with a written declaration indicating the country of destination of the goods so that the presumption can apply. German's VAT rules In Germany,...

RUSSIA: COVID-19 VAT IMPLICATIONS

RUSSIA – Update 7th July Ministry of Communications Proposes to Abolish Zero VAT Rate on Sale of Intellectual Property) In response to the COVID-19 pandemic, the Ministry of Communications proposed to abolish the 0% VAT rate on the sale of exclusive rights to intellectual property such as computer programmes and databases, and the right to use such products under a license agreement. This measure aims to compensate the government spending on the IT sector. If adopted, the exemption will be abolished from 1 January 2021.   Source Credit – IBFD   Related services:

SOUTH AFRICA: COVID-19 VAT IMPLICATIONS

SOUTH AFRICA – Update 7th July COVID-19 and the 2020 Supplementary Budget: measures include the fast-tracking of VAT refunds for smaller businesses It has been acknowledged by Government that the COVID-19 pandemic has had a significant impact on the South African economy, especially as a result of the far-reaching lockdown measures that have been implemented in order to contain the spread of the coronavirus. Compliance by businesses and households with the lockdown measures has resulted in a loss expected to provide around R70 billion in support to the South African economy, either by way of reducing taxes otherwise payable or by deferring tax payments. The measures are generally split between those that provide additional liquidity (in effect, interest free loans) that are ultimately paid back to Government, and those that provide additional subsidies and result in lower tax revenue. The measures include the following: Skills development levy holiday From 1 May 2020, there is a...

UK: Planning for a VAT Rate Change

There is an increasing level of chatter on the airwaves about the potential for the Chancellor to either reduce the Standard VAT rate from its current 20% level and/or look at introducing some Reduced VAT rates to support specific sectors of the economy – most notably...

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Temporary German VAT rate change

Due to the COVID-19 pandemic the German government has yesterday finally agreed on the temporary change of the VAT rate from 1st July till 31st December 2020.The standard rate will be reduced from 19% to 16% and the reduced rate from 7% to 5%. From 1 July 2020...

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