The next meeting of the OECD Global Forum on VAT will take place on 12-14 April in Paris. This time, the discussions will focus on the policy and …
OECD Forum on VAT meeting in April – February
The next meeting of the OECD Global Forum on VAT will take place on 12-14 April in Paris. This time, the discussions will focus on the policy and operational challenges faced by tax authorities in the era of digital globalisation, and on the implementation of the standards and mechanisms for addressing recommended by the International VAT/GST Guidelines to address digitalisation. This will include, notably, discussions on the collection of VAT/GST on online sales by offshore vendors; the role of digital platforms in the collection of VAT/GST on online sales and the use of technology to support the effectiveness of VAT/GST collection. The meeting will also look at recent and ongoing VAT/GST reforms around the world and examine the outcomes of recent VAT/GST policy research and analysis in a range of areas. The meeting will also analyse and share experiences in the area VAT/GST fraud detection and effective countermeasures; on VAT/GST refunds policy and management; on digitalisation of tax administrations and on improving VAT/GST compliance through incentives. This will be the fourth meeting of the Forum, which brings together senior tax officials, representatives of international organisations as well as delegations of academics and business representatives.
- 30/03/2017, Do you have a taxable presence in a country? – The new reality Permanent and Fixed (VAT) Establishments in the post-BEPS world, CFE, Brussels. Source: http://www.cfe-eutax.org/node/5803
- 11/04/2017, Reforming European VAT: Boosting Trade and Achieving Modernisation, Public Policy Exchange, Brussels. Source: https://www.publicpolicyexchange.co.uk/events/HD11-PPE2
European Commission launches public consultation on the fight against VAT fraud – 2 March
The European Commission has launched a public consultation on the fight against VAT fraud and administrative cooperation in the area of VAT. The consultation stems directly from the Commission’s VAT Action Plan, in which addressing the VAT gap and tackling VAT fraud received prominent attention. This consultation aims, in particular, to gather views from stakeholders about their experience of the current rules governing administrative cooperation and fight against cross-border fraud in the field of VAT; to bring new insights for the on-going evaluation of Regulation (EU) 904/2010 (administrative cooperation on VAT); to provide information about possible improvements including ‘VIES on-the-web’; and to collect quantitative data on possible reduction or increase of regulatory costs/benefits (administrative burden and/or compliance costs) for businesses (in particular SMEs). The deadline for providing responses is 31 May.
Member States to grant Luxembourg and Estonia exemption from certain VAT rules – 3/8 February
EU Member States are considering proposals to grant VAT Directive derogations for Luxembourg and Estonia. ln the text on Luxembourg, it is proposed that the country may grant a VAT exemption to taxable persons with an annual turnover of maximum €30,000 for the period of January 2017 to December 2019. ln the case of Estonia, the VAT exemption is proposed to be allowed for taxable persons with an annual turnover not exceeding €40,000, the period covering January 2018 to December 2020.
UK Parliament briefing paper: Tax after Brexit referendum – 6 February
The UK House of Commons has published a briefing on the potential implications of Brexit for the applicability of EU tax rules in the UK. The paper outlines that although in the area of direct taxation the impact of Brexit will be more limited, VAT will be an issue due to its more harmonized nature. The paper also attempts to speculate what might be the UK government’s approach to tax during the Brexit negotiations.
Link to the paper: http://www.vatassociation.org/images/news/Tax_after_Brexit_referendum.pdf
Ruling on PIIE conditions for the exemption of an intra-community supply – 9 February
The Ninth Chamber of the Court of Justice of the EU (CJEU) has issued a ruling on the preconditions for the exemption of an intra-Community supply. The case code is C-21/16. ln its ruling, the Court establishes that it is not allowed for the tax authority of a Member State to refuse the exemption of an intra-community supply from VAT only on the grounds that at the time of the supply, the purchaser domiciled in the territory of the Member State of destination and who was in possession of a valid VAT ID number in that Member State is neither registered in the VAT Information Exchange System nor under a system of taxation on intra community acquisitions of goods, where there is no sound evidence pointing to the existence of fraud and it is established that the basic conditions of the exemption are fulfilled. The VAT Directive also precludes such a refusal where the vendor was aware of the circumstances of the situation of the purchaser with regard to the application of VAT and was convinced that; subsequently the purchaser would be registered as an intra Community operator with retroactive effect.
UAE confirms establishment of new VAT regime starting January 2018 – 13 February
According to Tax News, UAE has published additional details on its plan to introduce a 5% VAT rate starting January 2018. As part of the VAT rules, most registered companies will have to report every three months on their business activities and transactions. UAE’s move comes in line with the commitments made by the Gulf Cooperation Council (GCC) member countries, which included the establishment of harmonized excise duties from January 2017, on top of a common GCC VAT framework.