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On October 4, 2017, the European Commission published a set of proposals aimed at simplifying and modernizing the current VAT system. The “cornerstone” principles of the Commission’s approach are: Combating VAT fraud and reducing the €150 billion VAT Gap. Establishing a “One Stop Shop” for cross-border trade. Consistently applying the “destination principle” for VAT. Simplifying […]
Earlier today, we announced that Sovos has acquired U.K.-based FiscalReps, Europe’s leading solution for Insurance Premium Tax (IPT) compliance. The acquisition does a few important things for our clients and the market as a whole: It adds IPT to our global solution for insurance companies, helping those businesses consolidate solutions on a single platform with […]
The VAT Gap in the EU was estimated to be €159.5 billion in 2014, and the enormity of that gap is one of the reasons why the global tax landscape is changing so dramatically. Sovos explained this development to attendees of the FD Exchange conference, which took place in the Steigenberger Airport Hotel in Amsterdam. […]
Two years ago, a small number of forward-looking enterprises issued RFPs requesting ‘end-to-end invoice compliance automation services’. These RFPs requested all VAT-related compliance decisions to be managed through a single SaaS platform which integrated with the requesting company’s invoicing engine. In this article, we’re exploring the background and implications of this apparent evolution in market […]
Keep current with VAT news without having to sift through the news every day. Here are the most significant happenings in the world of VAT reporting from August: International News OECD: OECD Publishes Comments on Model Tax Convention On August 11, the Organisation for Economic Co-operation and Development published comments to its newly-released 2017 Model […]
Recently, most medium and large retail businesses across Russia shifted to internet-connected cash desks that every day, in real-time, report to the Federal Tax Administration approximately 70 million B2C transactions. According to official sources, since July 1st 2017 when the mandate entered into force, over 6 billion B2C electronic receipts have been issued so far […]
Keep current with VAT news without having to sift through the news every day. Here are the most significant happenings in the world of VAT reporting from July: United Kingdom Announces Change in Timetable for “Making Tax Digital” Initiative for Businesses On July 13, 2017, the parliament of the United Kingdom, along with Her Majesty’s […]
Businesses in two of Spain’s autonomous communities – Basque Country and Navarra – will soon be subject to Spain’s Immediate Supply of Information on VAT (SII) mandate. On July 1, 2017, Spain launched SII, requiring companies operating in the country to electronically submit ledger and invoice details. With the extension into two of Spain’s autonomous communities, […]
At Sovos, we often find ourselves researching many different areas of compliance. Periodical tax reporting is one of the areas we’ve had reason to keep a close eye on. It wouldn’t be an overstatement to argue that tax authorities are getting increasingly more creative when it comes to finding new areas to come down hard […]
Effective July 1, 2017, the Minister of Finance in Malaysia announced that four groups of supplies will now be exempt from GST. The supplies that no longer apply GST include: The supply of services directly in connection with goods for export, to an overseas customer who belongs in a country other than Malaysia (for tax purposes), and […]
The Australian Parliament recently amended the GST Act of 1999, to add an additional category of drugs and medicine preparations, which are now included in the list of GST-free goods seen in section 38-50(6)(b) of the Australian GST Act. The new section, 38-50(6)(ba), states that a supply of a drug or medicinal preparation is GST-free, if […]
On July 13, 2017, the parliament of the United Kingdom, along with Her Majesty’s Revenue and Customs (HMRC), announced that the roll-out of the ‘Making Tax Digital for Businesses’ will be delayed until April of 2019. This initiative, first decided upon in December of 2015, is an effort by the government of the U.K., to digitize […]
Singapore recently published an update to their CRS Frequently Asked Questions (FAQs). Last updated in February 2017, the July 2017 update provides clarity and additional guidance in a number of areas that concern Singaporean financial institutions reporting under the Common Reporting Standard. These updates include the following sections. Section B.5, Reserved Investment Power Trusts: This […]
Organizations operating in the Basque region of Spain will soon be required to comply with SII reporting requirements. As reported in this forum, effective July 1 most companies operating in Spain are now required to transmit information to the Spanish Tax Administration (AEAT) regarding purchase and sale transactions within a few days of invoicing. Today, […]
The Secretary of the Treasury for the Commonwealth of Puerto Rico announced they plan on encouraging the local legislature to adopt significant tax reform measures, including a number of items that will impact sales tax (locally known as IVU). The details of the proposed reforms have not been released but the Secretary has indicated that […]
The United Kingdom has announced plans to eliminate its “use and enjoyment” provision for VAT on business-to-consumer (B2C) telecommunications services used outside of the European Union. Schedule 4A of the VAT Act of 1994 currently treats telecommunication services used outside of an EU member state as taking place where consumed, even if the service would […]
On July 12, 2017, the Tribunal Administratif de Paris struck down a bill of more than 1 billion euros assessed by the French government against Google for back taxes, including VAT. The Tribunal found in particular that Google did not have sufficient human and technical resources in France to subject the company to VAT; instead, the […]
The Federal Ministry of Finance has released guidance related to a VAT exemption on storage fees for frozen reproductive material. When frozen gametes are stored for therapeutic purposes – such as contributing to a pregnancy as part of fertility treatment – the storage fee is properly VAT exempt. Absent a direct therapeutic purpose, however, storage fees for […]