The VAT Expert Group of which he IVA is a member recently presented to the VAT Committee two papers on:
Possible VAT implications of Transfer Pricing Adjustments - VEG No 071 REV; and
Meaning of "financial, economic and organisational links" among VAT group members -
VEG N° 070 REV1
The IVA contributed substantially to the preparation of both papers, copies of which are obtainable from the IVA’s Administration team.
Other issues recently discussed in the VEG include:
VEG N° 073: Council Directive EU 2017/2455 of 5 December 2017 amending Directive 2006/112/EC and Directive 2009/132/EC as regards certain value added tax obligations for supplies of services and distance sales of goods (VAT e-commerce Directive) – Special scheme for distance sales of goods imported from third territories or third countries (Import scheme) – Provisions with effect from 1 January 2021
VEG N° 074: VAT e-commerce Directive – Special arrangements for declaration and payment of import VAT – Provisions with effect from 1 January 2021
VEG N° 075: Implications of the CJEU judgments on cost-sharing for the financial and insurance sectors
The International VAT Association (IVA), represented by its President, Stephen Dale, and Board Member, Fátima Gouveia, met with the representatives of the Portuguese Secretary of State for Tax Affairs and of the Portuguese VAT Authority on the 9th of July 2019, in Lisbon. The IVA thanked the authorities for meeting with us at short notice.
Read more ...Some concerns currently exist as to the practical application of the Quick Fixes. However, it may be several weeks until the expected administrative circular is published by the Federal Ministry of Finance. The Explanatory Notes published on 20.12.2019, now also...
Read more ...European Commission
European Commission publishes Work Plan 2020
On 29 January, the European Commission published its work programme for 2020, indicating the new policy proposals and Communications to be expected in 2020. For tax, two items to note:
Reportedly, both are to be expected on 25 March but this is yet to be confirmed.
The work programme also specifies that definitive VAT, C(C)CTB and public CBCR continue to be the Commission’s priorities for the year.
Commission plans to evaluate VAT rules for travel agents
The European Commission intends to evaluate the effectiveness of the current special VAT rules for travel agents; including the so-called margin scheme. A public consultation will be launched on the topic in March. Should the evaluation process demonstrate the need for reform, the Commission may propose amendments to existing rules.
EU could use carbon border tax against Brexit Britain, warns MEP
The Chair of the European Parliament’s ENVI Committee, Pascal Canfin (RE/France) has suggested that the EU could use the planned carbon border tax (CBT) against the UK after Brexit. He argues that deploying the CBT against the UK might be necessary if the country’s environmental standards do not match those of the EU’s, thus risking leaving European businesses at an unfair disadvantage.
The European Commission is currently conducting a feasibility study on the CBT, the results and conclusions of which should not be expected before end-2020 at earliest.
MEP Questions & Answers
Commission confirms a donation given free of charge to a charitable organisation is outside the scope of VAT
International
US threatens retaliation against EU over carbon tax
As things are starting to calm down between France and the US in their clash over the French digital tax, a new trade war and tax front may be opening.
The Trump administration has warned that a prospective EU carbon border tax (CBT) could be met by trade sanctions by the US. CBT’s purpose is to protect European businesses from competition from third countries whose environmental standards do not meet the EU’s.
The European Commission is expected to publish further details on its thinking and approach to CBT towards the end of this year.
Taxamo publishes overview of digital indirect tax regimes from across the world
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.