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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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.

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Wind turbines in the winter

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?

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electronic invoices

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.

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supervisory board meeting

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.

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