TaxTech May 14, 2018
Last week saw a rise in tax refund scams in the UK. HMRC warns that all emails, text messages, or voicemail messages saying you have a tax refund are a scam. How to recognize a genuine HMRC tax refund can be checked here. The Canary Islands are preparing for the SII, which will take effect on January 1, 2019 , for companies with turnover in excess of €6M. The OECD request comments on Transfer Pricing Guidelines. Comments are due until June 20, 2018. With the GDPR implementation 11 days away, there are still some that need to ensure that all steps are implemented. Be aware though that some services will simply stop providing services to citizens in EU countries. A recent study showed a shocking 705M unused vacation days in the US (out fear of being replaceable). Besides that vacationers are happier at work and do better, it also cost the US economy $255B and 1.9M jobs in the tourism and hospitality industry. So, let’s head to the beach this week to ensure full productivity!
Luxembourg: Defensive tax measures against EU-blacklisted jurisdictions. The Luxembourg direct tax authorities issued a circular, stating that they will reinforce monitoring of intra-group transactions and increase tax audit risk for transactions between Luxembourg companies and associated enterprises situated in the blacklisted jurisdictions. Update here.
Turkey: Introducing changes to the Tax regime. Turkey has introduced a range of changes to its tax regime, including new VAT exemptions. From January 1, 2019, the right to VAT deductions will be extended to the end of the following calendar year and the current principle of deduction within the same year will be abandoned. More updates here.
Argentina: VAT Regulations on Digital Services. Argentina published Decree No. 354/2018, implementing and clarifying the 2018 tax reform amendments to the country’s VAT rules on the supply of digital services by non-residents. The Argentina tax authorities will issue information about the details of the VAT reporting and payment requirements and prepare a list of digital service providers from whom collection agents will have to collect VAT. The Decree will apply once the tax authorities will issue the required information. More here.
Australia: GST on low-value goods. Starting July 1, 2018, Australia will impose GST on the supply of low-value goods (up to $750), from outside of Australia to Australian consumers. This article outlines the key elements of the regime, identifies the practical considerations for impacted businesses, and provides an overview of compliance guidance recently released by the Australian Taxation Office.
Finland: New VAT recovery guidelines on certain expenses. The Finish tax authorities published guidelines on VAT recovery on marketing and entertainment expenses. As a general rule, input VAT on marketing expenses is deductible in Finland. However, VAT incurred on entertainment expenses is not deductible. The guidelines provide details about the differences between entertainment and marketing expenses, including examples and clear explanations about these differences.
Upcoming VAT Recovery Deadline: June 30, 2018. The June 30 VAT recovery deadline, in relation to Directive 13th (86/560/EC), applies to non-EU companies that have incurred VAT on corporate travel expenses in certain European countries, depending on reciprocity. This deadline is also for EU companies that have incurred VAT on corporate travel expenses in specific European countries. Is your company ready with all its documentation? Check out how VATBox can still recover your VAT for the upcoming deadline! Request a free demo today!
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