Calgary, Canada

Duty to Collect Goods and Services Tax in Canada

By Greg Gartner and Lindsay Kindrachuk, Moodys Gartner Tax Law LLP

Recipients of most supplies made in Canada must pay federal tax of 5% of the value of the supply, referred to as goods and services tax (GST) and legislated under Canada’s Excise Tax Act (the ETA). The supplier, however, has the duty to register to collect and remit this tax to the Canada Revenue Agency (CRA), with few exceptions, or risk assessment for the uncollected GST, plus interest and penalties. All but one province, Alberta, also have a provincial sales tax. Some provinces have “harmonised” their sales tax with the GST (e.g. Ontario) resulting in a higher rate (HST) to be collected and remitted to the CRA where supplies are made in that province, and others administer their own sales tax (e.g. British Columbia) requiring a separate consultation of that province’s sale tax legislation.

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Indian businessman in modern office

Indian GST on Digital Services

By Siffat Kaur, Ashwani & Associates

Rapid digitisation is one constant that has changed the world we live in. From buying groceries to booking cabs, almost everything is possible online. As more and more people participate in the digital economy, there is a need for countries to develop a framework to regulate and to get a “fair” share of taxes from the revenues generated by such businesses.

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e-scooter in Vienna

Austria: VAT Changes with Effect from 01 January 2020

By Edith Huber-Wurzinger, Gaedke & Angeringer Steuerberatung GmbH

The Austrian tax reform for 2020 necessitated some organisational modifications and implementations within the scope of the IT systems for many entrepreneurs. The new provisions are especially important for the transnational movement of goods in the internal market.

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South Africa Implements VAT on Foreign Electronic Service Providers

By Graeme Saggers, Nolands

On 01 June 2014, South Africa implemented regulations that required certain foreign providers of electronic services to register for VAT. These regulations have gone through an amendment and new regulations were published on 18 March 2019 with an effective date of 01 April 2019. The original regulations limited the scope of services that qualified as electronic services and which must be charged with VAT at the standard rate.

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An Alternative to Sales Tax Registrations

By Pablo Garciga, Funaro & Co. PC

Since Wayfair was decided by the US Supreme Court in October 2018, economic nexus has dominated state and local tax discussions. It is important to remember that physical connections to a state will still create nexus even if the economic nexus thresholds are not exceeded. For example, an outof- state vendor (“vendor”) attends a trade show in a state and makes USD 25,000 in sales. This may not exceed the sales threshold to meet the state’s sales tax economic nexus definition, but the vendor may have created nexus for the sales or use tax.

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Schwyz, Switzerland

VAT on Electronic Services to Clients Domiciled in Switzerland

By Marc Nideröst, Treuhand- und Revisionsgesellschaft Mattig-Suter & Partner

As per definition, electronic services are deemed to take place and are taxed at the domicile of the recipient of such services. If such services are rendered to Swiss counterparties that are non- VAT payers, the service provider is required to register for Swiss VAT.

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Moscow, Russia

New Rules on the Export of Services

By Valeria Khmelevskaya and Gleb Stepanov, KBK Accounting

Following the assignment of the Russian President to make the export of services equal to the tax regime of the export of goods, new rules on VAT were introduced starting from 01 July 2019.

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San Francisco at night

How the Change in US Sales Tax Rules has Impacted International Sellers

By Chris Vignone, Prager Metis International LLC

On 21 June 2018, the US Supreme Court passed a landmark decision that transformed the landscape of sales tax in the US. The South Dakota vs Wayfair decision effectively permitted states to create new rules for salestax collection requirements based on the dollar or transactions amount of sales – otherwise known as economic nexus. Previously, companies were only required to collect sales tax based on a physical presence test. Over the past year, thousands of US companies have had to grapple with this new requirement.

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