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.

Intra-Community Triangular Transaction

By Ulrich Gehrke and Vanessa Szymik, Gehrke econ Group

The Intra-Community triangular transaction is basically a transfer of ownership of goods from a first supplier to a last customer involving at least one intermediary supplier. To promote trade within the EU, the harmonised VAT system minimises administration requirements for this kind of trade.

Installed Goods or Land Related Services?

By Stuart Eccles, Haines Watts

There seems to be a conception that a VAT registered customer will account for, or “deal with”, the VAT on goods supplied to it from outside its own jurisdiction. This may be correct if the supply is solely of goods but what if there is also a service provided, such as fitting the goods being supplied?

Mandatory Electronic Invoices in Italy: Exemptions for Non-Residents

By Pasquale Della Corte, COMMA 10

Italy has adopted the mandatory system of electronic invoices, effective from 01 January 2019, with the authorisation granted by the Council of the European Union. The invoice is issued in a predefined electronic format and then transmitted to the client and to the Italian Revenue Agency via an interchange system (SdI). This obligation exists for the supply of goods and the provision of services carried out between persons resident or established in Italy. Therefore, the electronic invoice is the only “offcial document” for such transactions, and also for VAT purposes.

ECJ’s Decision: No VAT on Remuneration of Supervisory Board Members

By Brigitte Jakoby, Jakoby Dr Baumhof - Wirtschaftsprüfer Steuerberater Rechtsanwälte

The case before the European Court of Justice (ECJ) concerned a member of the supervisory board of a foundation located in the Netherlands. The tasks of the supervisory board are to decide on the composition of the management, to supervise it and to approve its financial statements. The plaintiff received a fixed remuneration for carrying out these tasks regardless how many board meetings he had to attend or how many hours he had to spend on those meetings.

Austria: Digital Services Tax

By Edith Huber-Wurzinger, Gaedke & Angeringer Steuerberatung GmbH

Austria presses ahead with a new tax on advertising service of internet giants after plans for an EU-wide levy fell. From the beginning of 2020, therefore, Austria will tax firms like Google, Amazon, Facebook, and Alibaba, 5% of their advertising revenue from within Austria.

UK and Dutch Brexit Teams Preparing for Kick-Off

By Toon Hasselman, EJP Accountants & Adviseurs

Whilst writing this, it is 36 degrees outside, and inside, I just saw that Boris Johnson won the Conservative leadership contest and should become the UK’s new prime minister tomorrow (24 July 2019). Boris is a hard-line Brexiteer who has vowed to take the UK out of the EU by 31 October, with or without a deal and at any cost. However, the UK Parliament is not so sure it wishes to leave with the currently tabled deal nor without any deal, and the EU has indicated that it will not renegotiate the deal. With Boris as Prime Minister, a no-deal scenario has become more likely and it was exactly that scenario that first raised our (the Indirect Taxes PG) idea of forming Brexit teams per country. We have been pushing this idea for two years, and it is exactly where we stand and what we need right now.

Dock Sales: When Simple Sourcing is not so Simple

By J. Pablo Garciga, Funaro & Co. PC

The sale of taxable property in the US is generally subject to sales tax at the location where the vendor delivers it to the buyer. This principle is not always as simple to apply as it might first appear.

AN OVERVIEW ON GOODS AND SERVICES TAX (“GST”) IN SINGAPORE

By Eddie Lee, Robert Yam & Co.

Generally, GST is levied at the current rate of 7% on the:

Local supply of goods and services in Singapore by any taxable persons in the course, or furtherance of a business; and
Import of goods into Singapore by any persons.

As a major source of governmental revenue, GST is the same as Value Added Tax in many other countries and is charged to buyers and end-consumers when goods and services are procured, used, or when goods are imported into Singapore. GST is collected at multiple levels from the purchases of materials, at every stage of production to the different stops of the distribution chains, until final consumption in Singapore.

VAT on Electronically Supplied Services in 2019

By Valeria Khmelevskaya, KBK Accounting

Along with the increase of the VAT rate from 18% up to 20%, the so called “Google tax” introduced previously as VAT on electronically- supplied services (“electronic services”) remains one of the hot topics in Russia. Starting from 2019, foreign entities rendering B2B electronic services to Russian clients are also obliged to register with the Russian tax authorities. Previously, this obligation existed for B2C service providers only.