News from IVA members

19 July 2018
USA - Online sellers are liable to local sales taxes in the USA

On 21 June 2018 the US Supreme Court ruled that out-of-state retailers must charge and remit sales tax, even if they do not have a physical nexus in the customer’s US State. It thereby confirmed the economic nexus legislation introduced by South Dakota. Furthermore, the court’s decision effectively overturns contrary earlier rulings. Other US States will follow South Dakota’s example. US and non-US online sellers with customers in the US must now check whether they are affected.

19 July 2018
New Zealand – GST update

Government Consultation to apply GST (VAT) on low-value imported goods proposals and offshore supplier GST registration system proposed from 1st October 2019

19 July 2018
Italy - Electronic invoicing for identified VAT payers

As regards the new electronic invoicing obligations, which will generally come into force in Italy as of January 1st 2019 (except for transactions between contractors and their subcontractors in public procurement and supplies of fuel occurring along the relevant supply chain before final sales at the gas stations, for which new obligation started on July 1st 2018).

20 June 2018
Germany - Deduction of input VAT from advance payments where supply does not ultimately take place

Input VAT deduction from advance payments is part of a taxable person’s daily business. Where the supply does not take place, input VAT deduction can only be denied if the payer, at the time of the payment on account, knew or reasonably should have known that the supply was uncertain (judgement of 31.05.2018, C-660/16 and C-661/16, Kollroß und Wirtl)...

20 June 2018
Germany - Input VAT deduction even if a reference to other invoice documents is missing

In its legally binding judgement of 16.03.2018 (1 K 338/16 U), the Düsseldorf tax court granted input VAT deduction from an incomplete invoice. The incomplete invoice did not explicitly refer to any other invoice documents, which contained the missing information. Nevertheless, the Düsseldorf court granted the input VAT deduction anyway...

20 June 2018
EC - Directive 2006/112/EC – proposed amendments

The draft Council Directive amending Directive 2006/112/EC as regards the introduction of the detailed technical measures for the operation of the definitive VAT system for the taxation of trade between Member States was published on 25th of May.

10 May 2018
Sweden – Latest News

The Swedish Board for Advance Rulings has stated that rental of doctors should be regarded as a staffing service subject to VAT, despite the fact that the doctors providing VAT exempt medical services...

10 May 2018
Germany - Applicable Law on Taxation of Travel Services

 Companies receiving travel services have a choice as to whether to apply sec. 25 of the German VAT Act (which violates EU law) or art. 306 ff. of the EU VAT Directive. The German Federal Fiscal Court confirmed this in its judgment of 13.12.2017, which was published on 02.05.2018 (XI R 4/16). This allows companies to choose the most preferable taxation scheme, for themselves and for their customers, who ultimately have to bear the VAT burden. As a result, companies have a maximum degree of flexibility and can theoretically generate non-taxed turnover. This remains applicable until the legislator reacts and adapts sec. 25 of the German VAT Act...

10 May 2018
EU Commission draws up a proposal for a new “digital service tax”

In the EU Commission’s view, the existing corporate tax law has failed when it comes to the taxation of revenue generated by the digital economy. An interim tax of 3% on specific online revenues should be levied until the OECD is able to come forward with a long term global solution. The Commission proposes that companies with a world-wide revenue exceeding EUR 750 million would be affected. The placing of online advertising, the facilitation of online sales portals and the sale of user data would all be taxed. Thus, the digital service tax would be focused on the USA’s internet giants, which represent more than 50% of the businesses affected.

12 April 2018
UK - VAT after Brexit – Installed Goods

Assuming a deal for its on-going trading relationships with the EU, cannot be done, the UK will, from the end of the ‘transitional period’ at the latest (31 December 2020) be outside of the Single Market and the Customs Union...

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News from the Board

Meeting with the French Tax Authorities

Representatives of the Board of the Association, Stephen Dale, Emmanuel Cottessat and Cyrille Konter, met with the DINR, the Non-Resident Unit of the French tax authorities in charge of EU companies not established in France but registered for VAT purposes in France.

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News from IVA members

USA - Online sellers are liable to local sales taxes in the USA

On 21 June 2018 the US Supreme Court ruled that out-of-state retailers must charge and remit sales tax, even if they do not have a physical nexus in the customer’s US State. It thereby confirmed the economic nexus legislation introduced by South Dakota. Furthermore, the court’s decision effectively overturns contrary earlier rulings. Other US States will follow South Dakota’s example. US and non-US online sellers with customers in the US must now check whether they are affected.

Read more ...

News from EC

News from Accountancy Europe - July 2018

The ECON Committee has voted on its non-binding opinion on the Commission proposal for better VAT administrative cooperation, including provisions concerning the certified taxable person (CTP). The file is led by the MEP Roberts Zile (ECR/LAT)...

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Disclaimer:  The information contained in the present page is general and does not constitute legal advice. Before taking any decision or action on the above information you should take the appropriate professional advice.