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Global Indirect Tax News - 09/02/2017

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

In this edition, it is understood that the six Gulf Cooperation Countries have now all signed the VAT agreement paving the way for VAT introduction across the GCC in 2018. Other features of this edition include official clarification of certain VAT issues in China following the 2016 VAT reform, a further update on GST implementation in India, a European Commission proposal for a VAT generalized reverse charge mechanism, and a decrease in the standard VAT rate in Romania.  
See here for the January 2017 edition of GITN.

David Raistrick

Deloitte Global Leader – Indirect Tax
Country summaries Americas Argentina

There have been amendments to the application of the VAT reverse charge mechanism.
Gambling and online gambling taxes have been imposed.

Costa Rica
There are updates regarding excise tax applied to carbonated beverages, beers and wines.
There have been changes to the customs tariff.

Asia Pacific Cambodia
There are a number of updates on customs duty and VAT rates.

There has been a circular issued clarifying certain VAT issues.
An extra 10% consumption tax has been imposed on ultra-luxury motor vehicles.
A circular has been issued setting out China’s tariff policy for 2017.
The Environment Protection Tax Law will take effect on 1 January 2018.

GST now to be rolled out from 1 July 2017.
A revised enrolment schedule has been released by the GST Network.
The Government has provided a facility for the insurance of electronic invoices without authentication by foreign OIDAR service providers.
There has been integration of the Indian Customs and Central Excise Tariff with the World Customs Organisation HSN classification with effect from 1 January 2017. There has been a court judgment on the application of entry tax in Uttar Pradesh.

The regulation on exemption from VAT and Luxury Goods Sales Tax for imported goods has been revised.

There have been some key amendments to the GST and related regulations, which took effect from 1 January 2017.

Customs has implemented revised requirements, formats and application procedures for the Certificate of Non-Manipulation.

European Union

The European Commission has published three consultations following last April’s ‘Action Plan on VAT’. The European Commission has issued a proposal for a generalized reverse charge mechanism.

The tax authorities have issued a draft binding instruction regarding the VAT treatment of the private use of business assets.
The customs authorities have set the fees for the customs guarantee scheme for 2017.

There is an update on the reverse charge mechanism for import VAT.
VAT deductibility on fuel purchases by companies will be implemented progressively.
The application of the 5.5% reduced VAT rate has been extended.
From 1 January 2017, there is a new audit procedure for the checking of VAT refund claims.
There is an update on third party seizures as part of tax inspections.
There are new customs procedures.
There is a salary tax exemption regarding salaries paid to expatriates.
A credit tax on salary tax has been introduced for certain non-profit organizations.
Social Security and Solidarity Contribution (C3S) – a new additional contribution is to be introduced.

The Federal Fiscal Court has ruled on the correction of invoices with retroactive effect.
Gulf Cooperation Council
The six GCC countries have now signed the VAT Treaty.
The Kingdom of Saudi Arabia has announced the implementation of VAT and excise tax.
The KSA has increased customs duty on a wide range of products.
The UAE has set up the Federal Tax Authority.

There is a review of VAT amendments for the 2017 fiscal year.
The tax authorities have clarified the VAT treatment of ‘bunkering’ of petroleum products.
There is an update on excise duty.

There has been an increase in penalty rates, and joint liability has been introduced for persons in charge of management.
The VAT authorities have published a circular regarding the VAT treatment of directors’ services.
There has been an increase in the VAT threshold for the small enterprise regime.
The obligation to register rental agreements has been abolished.
From 1 January 2017, it will be mandatory to use the eCDF platform for filing VAT returns.

The Netherlands
The Tax Plan 2017 has been adopted by the House of Representatives and the Senate, including three VAT changes regarding:
       The VAT exemption for water sports associations;
       The definition of ‘building land’;
       Simplification of the bad debt relief scheme.

There has been an amendment to the VAT exemption applicable to non-conventional medicines.
The excise duty rates applicable to petroleum and energy products have been amended.
There is an update on the excise duty refund scheme for road freight companies.
A decree has been published regarding procedures for holding non-alcoholic drinks with sugar added in an excise warehouse.

The standard VAT rate decreased from 20% to 19% on 1 January 2017.
An agricultural flat rate scheme has been introduced.
The Register of Intra-Community Operators has been repealed.
Measures have been introduced regarding VAT deduction when the VAT ID code of a taxable person has been cancelled.
Form 088 Affidavit has been repealed.
There is a new methodology for the computation of contributions, taxes, penalties and other amounts owed to the environmental fund.

There is an update on the VAT regulation on e-services rendered by foreign companies.
There have been amendments to the list of goods subject to the reduced VAT rate of 10% and the list of medical goods exempt from VAT.
Import licensing has been introduced for macadam, gravel and crush of macadam, gravel and sand imported into Russia from countries that are not members of the Eurasian Economic Union.
The Government has put forward an initiative to introduce excise duties on alcohol-containing non-food products, household chemicals and cosmetics.

Serbia has adopted several amendments to the VAT law, primarily with the purpose of harmonizing domestic tax legislation with EU legislation.
New rules regarding fiscal representatives came into force on 1 January 2017.

South Africa
Draft amendments have been published to the Rules of the Customs and Excise Act 1964.
Safeguard measures on frozen bone-in chicken portions originating from the EU have been imposed.

There have been customs duty amendments.

Currency restrictions have been extended.
Export procedures for services have been simplified.

United Kingdom
The tax authorities have updated their policy on the VAT zero-rating treatment of adult coloring and dot to dot books.
There has been a court decision on VAT self-billing.

Eurasian Economic Union
The new Customs Code of the Eurasian Economic Union is being finalized.
The commodity nomenclature of the Eurasian Economic Union has been updated.
There are new requirements on equipping transport vehicles with emergency call devices.
The list of goods that may be placed under the special customs procedure has been amended.

This publication has been written in general terms and we recommend that you obtain professional advice before acting or refraining from action on any of the contents of this publication. Deloitte LLP accepts no liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication.

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