Jun 4, 2018

TaxTech June 4, 2018

Last week we saw Amazon, eBay and Fruugo sign HRMC’s VAT compliance agreement. The aim of the agreement scheme is to stamp out VAT fraud and VAT compliance errors by users of online marketplaces.  International passengers traveling from India, don’t need to pay GST anymore for goods bought at the airport ‘duty-free’ shops. The European Commission has issued detailed technical amendments to overhaul the EU rules on VAT to cut down on fraud across the 28 member states, effective from 2021. And before we continue with the additional updates in the Finance industry, check out these new secret smartphone features that will make your life easier.

VAT refunds @ The FIFA World Cup in Russia. The FIFA World Cup 2018 in Russia is about to start. If your business is involved in the organization or is sponsoring this event, your company may qualify for a Russian VAT refund. Find out more here.

Italy: Final regulations on transfer pricing. Following public consultations on the draft regulations, the Italian Ministry of Economy and Finance has signed the final transfer pricing regulations. All the definitions and transfer pricing methods outlined in the final regulations were largely unchanged from the draft regulations. Update here.

UAE: VAT and exhibition supplies. The Cabinet Decision no. (26) of 2018 relates to VAT charged on certain supplies relating to exhibitions, conferences, and related services, with immediate effect. The supplier of exhibition and conference services shall, in certain cases, not be required to collect VAT from customers who are not established in UAE. User guide here.

Uruguay: Implementing decree Taxation of the digital economy.The government of Uruguay issued a decree on May 24, 2018, concerning the tax treatment of the digital economy, and measurements that will affect multinational corporations operating in the digital economy space or providing digital economy services in Uruguay. Update here.

Malta: New regulations on VAT Grouping. The Regulations on VAT Grouping in Malta will enter into force June 1, 2018. Legal notice 162 of 2018 was published on 22nd May and allows for two or more taxable persons established in Malta to form a VAT group and apply to the Commissioner to be registered as a single taxable person. More here.

Argentina: VAT on digital services and list of foreign providers. Argentina published, in the Official Gazette, General Resolution No. 4240/2018, implementing the mechanism for the payment of VAT on digital services provided by foreign entities and used in Argentina. The provisions of GR. 4240 will go into effect on June 27, 2018. Info here.

Bahamas: VAT increase. Starting July 1, 2018, the VAT rate will increase from 7.5% to 12%. This was announced last week by the Minister of Finance in the House of Assembly. Certain items will not be subject to VAT anymore. More here.

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