By Martin Thieslauk, Benefitax GmbH
On 01 July 2021, the e-commerce VAT package of the European Union was implemented in the German VAT Act. If goods are sold by the seller via platforms (e.g. Amazon) on the internet, the operator of the platform must pay German VAT (on those supplies it is required to under the legislation) to the tax offce on behalf of the seller. For the seller, the sale is thus free of VAT. This regulation is intended to ensure that VAT is actually paid to the German tax authorities.
By Brigitte Jakoby, Jakoby Dr Baumhof
The ECJ decision Titanium deals with the controversial issue of fixed establishments for VAT purposes. In this case, an entity named Titanium Ltd., whose registered offce and management are located in Jersey, rented (subject to tax) a property located in Austria to two Austrian entrepreneurs.
By Pasquale Della Corte, COMMA 10
The Court of Veszprém in Hungary submitted this preliminary matter to the ECJ (European Court of Justice) concerning the interpretation of art – section 168(a) of Directive 2006/112/ EC regarding the right to deduct VAT for advertising services which are not profitable, either because the services were disproportionate to the revenue generated, or because they failed to generate any sales revenue for the recipient.
By David Truong Lang, Viettonkin Consulting
The Vietnamese government recently issued several regulations to support tax collection on digital transactions conducted by non-resident foreign contractors without a permanent establishment (“PE”) in Vietnam. Moreover, according to the Ministry of Finance (MOF), effective on 01 February 2022, the value-added tax (“VAT”) on goods and services will be reduced from 10% to 8% to support businesses recovery from the Covid-19 pandemic. This regulation only applies to goods and services with a tax rate of 10%, regardless of the tax calculation method, so digital transactions initiated by foreign contractors as mentioned above are entitled to the same VAT rate reduction.
By Gaby Grzywacz, Haines Watts
Effective 01 April 2022, the UK has introduced a new Plastic Packaging Tax (PPT), which affects importers, exporters, and producers of plastic packaging. Such businesses are required to register for PPT if they import or produce 10 or more tonnes per annum. PPT also applies to non-resident entities.
By Scott D. Davis, Tonneson + Co
In 2018, the United States Supreme Court passed a landmark decision in the Wayfair v. South Dakota case concerning sales tax that broadened states’ abilities to require remote sellers to collect sales tax even if they had no presence in a particular state; the so called ‘economic nexus’. Three or so years after the passing of this landmark decision, how have things changed?
By Valeria Khmelevskaya, KBK Accounting
Russian general anti-avoidance rules (GAAR) are basically provided in Article 54.1 of the Russian Tax Code. Reduction of tax liability (e.g. deduction of expenses for profits tax purposes, VAT offsets, etc.) is allowed only when no distortion in the substance of the transaction has occurred, and when the principal purpose of the transaction has not been to minimise the tax burden. However, these provisions have proved to be insuffcient to safeguard customers when it comes to VAT offsets – in particular when working with counterparties in certain problem areas (e.g. cleaning services).
By Toon Hasselman, EJP Financial Astronauts
With the European Green Deal announced in December 2019, the EU is now aiming to reduce greenhouse gas emissions from transport by 90% by 2050 compared to 1990. The most common alternate source of energy is electricity, especially for passenger vehicles.
By Siffat Kaur, Ashwani & Associates, Chartered Accountants
According to the World Investment Report 2021, published by the United Nations Conference on Trade and Development (UNCTAD), India received USD 81 billion in foreign investment in 2021: the highest ever Foreign Direct Investment (FDI) to date. Although India has considerably improved its overall ease of doing business, moving from a ranking of 77th place in 2018 to 63rd place in 2019, the country still needs to iron out a lot of creases before international companies can become part of its growing economy.
By Marc Nideröst, Treuhand- und Revisionsgesellschaft Mattig-Suter & Partner
Foreign sports competitors and sports clubs are liable for Swiss VAT and must register for VAT purposes in Switzerland if they receive appearance fees, prize money or the like for sports competitions in Switzerland. If they are registered for Swiss VAT, they also have to tax and declare their sales of merchandise in Switzerland and the income from Swiss sponsors or other advertising revenue, as well as sales of broadcasting rights.