TaxTech July 2, 2018
It has been an interesting week again! In Colombia the draft regulations on VAT registration and withholding requirements for foreign digital business platforms went into effect per July 1, 2018, while at the same time in Poland, the VAT “split payment” mechanism came into force. July 1 was also an important date for Hungary, where the real-time live invoice data reporting went into effect. Last week we also saw the Italian government publishing a decree clarifying the rules on VAT grouping. The Italian government also published a decree which postpones the mandatory e-invoicing requirements for business-to-business suppliers of fuel to Jan. 1, 2019. Additional updates and changes from the finance industry from last week are:
EU: Tax fraud. The EU countries with the “honour” of having the largest VAT collection gap in 2017 were Poland, Hungary, Romania and Slovakia. This post shows a deeper analysis with a breakdown of the four forms of VAT fraud. Key forms of fraud that recognized are the suppression of data (black market), taxpayer neglect (mistakes and omissions), criminal fraud (deliberate, organised fraud) and other fraud (e.g. relating to distance selling).
Greece: 30% discount on the reduced VAT rate. If you’re still deciding on where to go on vacation, you may want to try a Greek island this summer. Five islands of the north-eastern Aegean are enjoying a 30% discount on the reduced VAT rate. More here.
India: Updated Central Goods and Services Tax (CGST) Rules. India “celebrates” its first year of GST, although the system is far from being perfect. In fact there is already talk about a GST rate rationalization and a simplification of the GST Return Requirements. For the most recent consolidated version of the Indian VAT Law, click here.
US: South Dakota v. Wayfair implications. As we wrote last week, the US Supreme Court agreed that States can force online retailers, without a local presence, to collect sales tax. Vermont, Massachusetts and Louisiana have already responded, in different ways, and an analysis was done on the impact of this case. Read here.
Bahamas: Extension VAT pricing adjustments. In the Bahamas there’s a lot to do about the VAT rate increase per 1 July 2018. Retailers have been given some more time accommodate and to adjust their prices. It’s not all bad news… at the same time the Minister of State defended the government’s plans to remove VAT from electricity bills, which would benefit around 75% of the population. More here.
Bangladesh: changes in VAT. In Bangladesh various lobbies appear to be fruitful, as the VAT waiver for ship importers has been widened, and there is also talk about a 5% VAT cut on internet, and a tax holiday for digital service providers. More here.
VATBox on the road. As a Concur partner, we are proud to show our integrated solution at the SAP Concur Fusion Benelux 2018, which takes place tomorrow, Tuesday, July 3rd, in Den Bosch, The Netherlands. Check out here how VATBox’s partnership with a T&E system maximizes your VAT recovery. And if you are in Den Bosch tomorrow, come by our booth where we can show you a live demo.
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