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Global Indirect Tax News - 01/08/2017


Global Indirect Tax News - July 2017

Your reference for indirect tax and global trade matters

Welcome to the July 2017 edition of GITN, covering updates from the Americas, Asia Pacific and EMEA regions.

Features of this edition include the introduction of GST in India on 1 July, an update on VAT implementation in the Gulf Cooperation Council, the announcement by the EU and Japan of political agreement on a bilateral Free Trade Agreement, a proposal to implement the EU voucher directive in the Netherlands, and the introduction in Spain of the Immediate Information Supply (SII) on 1 July 2017.

See here for the July 2017 edition of GITN.

David Raistrick
Deloitte Global Leader – Indirect Tax

Country summaries

Americas

Colombia

The tax authorities have concluded that cellphones and tablets are VAT excluded, if their value is lower than 22 Tax Value Units (UVT in Spanish) (approximately USD $250).

The tax authorities have enacted a new resolution, which includes the new form to file and pay the new national Carbon Tax. The form is now available on the tax authorities’ webpage.

The tax authorities have published general guidelines related to tariff preferences of the North America Free Trade Agreement.

The Trade Ministry has set the tariff charge at 5% for hybrid cars and 0% for electric cars, based on the annual number of vehicles imported.

United States

Ohio: A new law expands the ‘substantial nexus’ presumption to include a USD 500,000 gross receipts threshold.

Washington: The Governor is expected to sign a Bill with expanded economic nexus provisions, as well as information reporting and notice requirements on some remote sellers, including marketplace facilitators.

Asia Pacific

China

A circular has been issued clarifying VAT rules regarding asset management, with a 1 January 2018 implementation date (delaying the initial live date of 1 July 2017).

The Customs Clearance Integration Reform has been rolled out nationwide.

India

On 1 July 2017, the GST entered into force in India.

Japan-EU

Japan and the EU have announced that the two trading powers have reached a general political agreement on the EU-Japan Free Trade Agreement.  

Malaysia

The Goods and Services Tax (Zero-Rated Supply) 2014 has been amended.

The Royal Malaysian Customs Department (RMCD) has provided guidelines on the rounding of decimal points for GST.

The RMCD has launched an audit operation to improve GST compliance.

There is an update on the proposed Tourism Tax.

EMEA

EU-Japan

Japan and the EU have announced that the two trading powers have reached a general political agreement on the EU-Japan Free Trade Agreement.  

EU

The European Commission has issued an implementing regulation to amend the Union Customs Code Implementing Act.

Cyprus

The Cyprus Tax Authorities will soon introduce the electronic transfer of VAT repayments to taxable persons via bank transfer.

The Cyprus Tax Authorities have issued a notification providing details of when the law regulating the settlement of overdue taxes will enter into force, the periods covered by the scheme, and the discounts to be provided.

Finland

The value added taxation of imports will be transferred from Finnish Customs to the Tax Administration as of 1 January 2018.

GCC

There is an update on VAT implementation.

The GAZT in KSA has published a new user manual for excise tax registration. Excise tax came into force in KSA on 11 June 2017.

Italy

There are new terms regarding the right to VAT deduction.

There have been changes to the VAT credit offsetting with other taxes.

There have been changes to the split payment mechanism.

A new TR form has been approved.

There is further clarification regarding the periodical e-submission of invoices issued/received.

The electronic accounting ledger will be available for certain excise purposes.

Guidelines have been issued in relation to excise controls on certain energy products.

Certain current tax litigation will apply to the customs field.

Latvia

There are proposed amendments to the VAT law relating to the VAT registration threshold and the domestic reverse charge mechanism.

The threshold for reporting each tax invoice separately in VAT return appendices PVN1-I (input VAT on local acquisition) and PVN1-III (output VAT on supplies) has been reduced to EUR 150.

Netherlands

The Government has released a proposal to implement the EU voucher directive.

The European Commission’s opinion has confirmed the point of view of the Dutch Government on the VAT treatment of management services to Defined Benefit and Defined Contribution pension funds.

Poland

The tax authorities have started verifying SAF-T files submitted by taxpayers on a mandatory monthly basis.

A voluntary VAT split payment mechanism has been proposed.

The Ministry of Finance is developing standards on the due diligence of suppliers.

From the July 2017 Intrastat reporting period there will be a new box in the Intrastat return.

Portugal

A decree has been published to regulate the procedures and time limits applicable to taxpayers intending to apply the reverse charge mechanism for VAT due on the importation of goods.

The periodic VAT return form has been updated.

There has been a Supreme Administrative Court judgment on the legal deadline to review the pro rata VAT deduction percentage.

The technical specifications have been issued for the VAT exemption for acquisitions by non-EU-residents (tax free).

Russia

The Ministry of Finance has clarified the procedure for VAT payment with respect to e-services rendered by a foreign company to Russian legal entities and private entrepreneurs.

Mail.Ru Group has received confirmation from the tax authorities that additional content revenues are eligible for VAT exemption.

The federal law on the introduction of VAT exemption for the lease of medical devices has been signed by the President.

The Ministry of Finance has clarified the VAT treatment of goods exported under retail sales agreements.

The application of the 10% VAT rate for domestic flights may be extended to 31 December 2020, and a group of experts is considering the application of a 0% VAT rate.

The embargo on the import of certain foods has been extended to 2019.

South Africa

There has been an application for a reduction in the rate of customs duty on digital smart cards.  

Spain

The application of the reduced VAT rate (10%) has been extended.

The Immediate Information Supply (SII) came into force on 1 July 2017.

United Kingdom

VAT alignment period claims have been rejected by the CJEU.

A Tribunal has ruled that car park overpayments are subject to VAT.

A Tribunal has ruled that con-counting machines are exempt from VAT.

Eurasian Economic Union

There has been a decrease in the rates of import customs duty for certain goods.

Unified quarantine phytosanitary requirements have been introduced for the EEU.


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