World VAT/GST News - July 2018

Australia

Australia intends to implement a taxation of sales and the commission of hotel rooms by non-established suppliers. Where the annual turnover from the provision of Australian hotel rooms exceeds AUD 75,000 p.a., the supplier will have to account for 10 % Australian GST.

Columbia

The Colombian tax authority has recently confirmed that local VAT will be applicable on the sale of e-services to consumers by non-resident businesses.

At present, non-resident businesses providing digital services in Colombia do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage that this gives to non-resident companies over Colombian resident providers, the Colombian tax authorities have now confirmed that VAT at 19% will be applied on these types of transactions from 1 July 2018.

This new tax will be applied to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.

India

The VAT System, which was implemented on 01.07.2017, should be simplified by the end of the year. Currently, there are three VAT returns to be submitted each month. The extensive reporting obligation should be replaced by a single summarizing VAT return which is due once a month. Furthermore, small companies will only be obliged to submit VAT returns on a quarterly basis.

Malaysia

The Goods and Service Tax, which was implemented on 01.04.2015, effectively ceased operation on 01.06.2018, when the tax rate was decreased from 6 % to 0 %. In a further step, it is planned to replace the GST by a Sales and Service Levy.

Russia

The exemption threshold for the importation of goods will be reduced by the end of the year. The previous exemption threshold of EUR 1,000 was reduced to EUR 500 on 01.07.2018. With effect from 01.01.2019, a further reduction to EUR 200 is planned.

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News from the Board

IVA Meeting with the Portuguese Tax Authorities

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.

Download the full Communique soon available.

News from IVA members

Mexico proposes the implementation of VAT on e-commerce supplies

The Mexican senate is proposing to levy VAT at 16%, on digital e-commerce supplies provided to consumers by non-resident online platforms...

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News from EC

News from EU - August 2019

Cross-border rulings (pilot project) – Update July 2019

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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.