VAT News

Canada

Canada 5% GST on car-sharing

March 23rd, 2017

Yesterday’s Canadian budget proposed extending GST to all private car-sharing services. The measure will require drivers working through Uber or similar services to register and charge 5% GST on any fees for journeys.  Currently, they can avoid GST if they earn less than C$30,000 per annum. Taxi companies already charge federal GST, and the budget measure …


Europe

EU VAT general reverse charge delayed

March 22nd, 2017

The European Commission’s proposal for the voluntary introduction of the general reverse charge to combat VAT fraud has been put on pause.  The delay is due to legal concerns raised at this week’s ECOFIN meeting of EU Finance Ministers. The EU’s Legal team has highlighted several issues, including: There is uncertainty if the EU Council or the …


Russian Federation

Russia e-services VAT registrations

March 19th, 2017

Following the introduction of VAT on B2C e-services sold by non-residents from 1 January 2017, the Federal Tax Service has confirmed that 28 companies are registered. These include: Airbnb, Alibaba, Apple, Bloomberg, Booking, eBay, Google, Microsoft and Nintendo. VAT in Russia is .


Germany

German call-off stock VAT registration

March 18th, 2017

The German Federal Tax Court (BFH) has ruled that non-resident companies providing call-off stock in German will no longer have to VAT register.  The tax authorities have yet to comment or apply the change. The ruling, FG Hessen, concerned a Spanish company that held stocks with a German customer.  The customer controlled the terms of …


New Zealand

New Zealand GST update

March 17th, 2017

New Zealand is to implement a number of changes to its GST Act which will come into force on 1 April 2017.  These include: Extension of the Goods and Services Tax only registration regime for non-resident businesses to simplify compliance Easement of the partial exemption rules and calculation for large companies Limitations to the application …


China

China small company VAT invoices

March 14th, 2017

The Chinese tax authority has granted the right for small tax payers in key sectors to the right to issue sales invoices without seeking prior approval via the Golden invoice regime. The new easement of the invoicing requirements will apply to companies with annual sales below CNY 90,000 per quarter. China’s Golden Tax System in …


United States

US Border Adjustment Tax

March 13th, 2017

Following the election of President Trump at the end of 2016, a standing Republican proposal for a Border Adjustment Tax (BAT) corporate tax has been gaining momentum. BAT – or more correctly Destination-Based Cash Flow Tax (‘DBCFT’) – would differ significantly from a simple border tariff, which had been proposed during the elections, or a …


Brazil

Brazil exempts e-books from tax

March 11th, 2017

Brazil’s Federal Court has exempted electronic books from tax.  This aligns to the tax treatment of paper books, magazines and newspapers.  The court held that digital books were indistinguishable from printed books.  The ruling relates to a number of federal, state (ICMS) and city taxes, and no implementation date has been set. This compares to …