VAT News

Russian Federation

Russia studies 22% VAT

March 26th, 2017

Russia is considering raising VAT from 18% to 22%. The rise in indirect tax would help fund a cut in employer social security levies from 30% to 22% to help reduce black economy employment.  The change would be implemented in 2019.  However, it appears that the VAT rise would fail to cover the hole left …


Italy

Italy new VAT reporting update

March 25th, 2017

The Italian parliament has ratified two interim changes to the new 2017 VAT reporting regime.  Previously, Italian VAT registered companies generally paid monthly VAT due with an annual VAT return in the following year.  For 2017, quarterly VAT reporting will be required. The two latest changes include: Intrastat acquisition reporting has been reinstated for 2017 only.  …


Spain

Avalara support for Spanish SII VAT changes

March 24th, 2017

On the 1st July 2017 the Spanish tax agency will introduce a new high frequency VAT reporting and management system based on the Immediate Supply of Information (Suministro Inmediato de Información del IVA or SII). Taxpayers subject to the SII (and those choosing to adopt it voluntarily) must send details of their billing records within …


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 …