TaxTech June 18, 2018
Last week in the UK the Chartered Institute of Taxation published its response to the Treasury Committee VAT inquiry with their recommendations on VAT issues. To fight VAT fraud, Amazon UK has been following up with many Chinese sellers, giving them until the end of this month to provide their VAT numbers, ensuring compliance with HRMC. Last week we saw also the release of the Taxation Trends report, a yearly snapshot of tax systems in the EU, Iceland and Norway that provides extensive and comparable data on the different tax structures and rates of the EU Member States. And on the other side of the world, the Australia Taxation Office issued a release on the impact of the upcoming rules that require the payment of GST on low value imports, starting July 1st, 2018. More updates and changes from the finance industry from last week are below:
UK: Digital records for VAT. HMRC has confirmed that starting April 1, 2019 all VAT registered businesses with a turnover in excess of £85k will have to maintain digital records for VAT and submit their returns digitally. Details here.
Hungary: Real-time invoicing obligation. The Hungarian Ministry of National Economy has published MoF Decree No. 2/2018 (VI.1) on the amendment of Decree No. 23/2014 (VI.30), stating that any Hungarian VAT registered entity that issues invoices to another VAT registered entity with a VAT amount above HUF 100,000 (approx. EUR 320) is affected by the real-time invoicing obligation starting July 1, 2018. This also includes businesses established outside Hungary but are registered for VAT in Hungary. RITR is not applicable to B2C supplies (distance sellers). More here.
Russia: VAT increase. The Russian government submitted a draft VAT bill, proposing to raise the VAT from 18% to 20%. The bill implies freezing social payments at the level of 30%, as well as abandoning the tax regime for the consolidated group of taxpayers. Details here.
Barbados: VAT increase. In the Budget presentation in parliament on June 11th 2018 was announced that effective from July 1, 2018 a 2.5% VAT on all direct tourism services will be levied. From January 1st 2020 the rate of VAT on the tourism sector will increase from 7.5% to 15%. Accommodation arranged through platforms like Airbnb will be levied 10% VAT. More here.
Uganda: VAT rules updates. The Uganda 2018/19 budget contains a range of VAT rule updates. A full guide can be found here.
Worldc Cup 2018: VAT Recovery. With the World Cup kicking off last week, don’t forget, if your business is involved in the organization or is sponsoring the FIFA World Cup 2018, your company may qualify for a Russian VAT refund. VATBox’s World Cup specialists are ready to assist you in fulfilling all the necessary obligations to ensure your refund. More here.
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