VAT News

Europe

EU VAT Gap shrinks to €147.1billion

September 21st, 2018

The latest estimate for missing EU VAT from the European Union, the VAT Gap, has shrunk to €147.1 billion in 2016 from €157.7 billion in 2015. This represents a revenue gap of 12.2%. In terms of tax base, the gap has improved from 13.2% of VAT due down to 12.3%. The VAT Gap is a …


United Kingdom

UK Making Tax Digital pilot goes public

September 20th, 2018

The UK’s HRMC has confirmed the next-stage plans for its Making Tax Digital (MTD) for VAT pilot. The pilot is aimed at helping develop filing solutions to ensure businesses are ready to file returns on the new HMRC API platform from 1 April 2019. So far, the pilot has been closed just to software developers …


France

France ends Saisonnier VAT returns

September 20th, 2018

France has withdrawn the Saisonnier VAT reporting regime, which only required intermittent providers of taxable supplies to file VAT returns. Typically this was event organisers, large contractors and supply and install. Current Saisonnier registrations will be moved to quarterly returns from quarter 3, 2018. If a tax payers has an annual turnover above €4,000 per …


United States

US Congress bill to curb out-of-state Sales Tax Jan 2019

September 19th, 2018

US legislators in Congress are to consider two bills providing for a consistent imposition of the ‘economic nexus’ Sales Tax test, including a $10million annual sales threshold. This follows the Supreme Court South Dakota vs Wayfair, Inc ruling which freed states to oblige out-of-state e-commerce sellers to collect state Sales Tax. Only South Dakota and Maine prohibit …


Italy

Italy SdI live reporting delay refused

September 18th, 2018

The Italian authorities have this week turned down a request to delay the scheduled 1 January 2019 introduction of e-invoicing and live reporting, Sistema di Interscambio (SdI), for all resident businesses. The measure is being extended in 2019 to all resident tax payers for B2B and B2C domestic supplies. It has been required of B2G transactions since 2014. …


Netherlands

Netherlands pilot pre-completed VAT returns

September 16th, 2018

The Netherlands is running a pilot scheme to accept small entrepreneurs’ financial transactions online, and provide a completed draft VAT return for them to approve. The scheme has been running under the control of the Dutch Tax and Customs Administration for self-employed professionals. The first wave of filed returns have been judged a success and …


India

India 2% e-commerce withholding GST Oct 2018

September 15th, 2018

Indian e-commerce marketplaces are to be required to withhold up to 2% (to be confirmed) of the GST payments on sales by third party retailers. The split payments measure is being introduced to help reduce online GST fraud. The new requirement is obliging major marketplaces, resident and non-resident, to GST register in all Indian states …


Brazil

Brazil may block ICMS on e-services

September 14th, 2018

Brazil’s Chamber of Deputies is reviewing blocking the new ICMS  (Imposto Sobre Operações Relativas à Circulação de Mercadorias e Serviços de Transporte Interestadual de Intermunicipal e de Comunicações) charge on digital and electronic services. ICMS has recently been levied on the supply to consumers of digital goods via downloading or streaming. This includes: music; video; …


United Kingdom

UK non-tariff Brexit risks

September 13th, 2018

As the increasingly febrile politics of a no-deal Brexit pushes the UK towards a no-deal EU departure, businesses are beginning to take the implications for their international trade seriously. This includes concern over potential tariffs if the UK leaves the Single Market and EU Customs Union. But fretting about tariffs is 19th Century thinking for a 21st …