Indirect Tax News – December 2017

Editor's Letter

Dear Reader,

As we wind down at the end of another busy year, it's great to see the BDO international network now extends to 162 countries and territories in which our global team of about 58,000 professionals are available to service the current and future needs of our growing numbers of domestic and international clients.

Despite a significant time lapse since the Brexit Vote, there's little clarity to report. We don't know whether there will be simplification arrangements made to reduce or eliminate the expected costly and bureaucratic indirect tax consequences and challenges that await European Union businesses that trade into the UK and vice versa. The article from BDO in the United Kingdom on the front page of this issue provides more detailed insight into the current position.

And, as a number of the 6 GCC Gulf States prepare for the introduction of VAT in January 2018, there's little doubt there will be a lot for us to report from that part of the world next year also.

I thank you for your support of the BDO Network throughout 2017 and I wish you a peaceful and safe Christmas and New Year holiday season!

Kind regards from a chilly Dublin,

Ivor Feerick

Chair - BDO International VAT Centre of Excellence Committee 

Contents

• UNITED KINGDOM: Brexit – Official position papers and their impact on VAT and customs duty
• ARGENTINA: Status of withholding tax on non-residents: provincial scope
• AUSTRIA: European court judgement threatens independent groups of persons (IGP) exemption for finance and insurance companies
• BELGIUM: VAT recovery - New approach to correction of VAT invoices
• BRAZIL: Federal government’s tax instalment program
• ECUADOR: Special consumption tax
• THE EUROPEAN UNION: Intra-EU trade in goods: European Commission proposes new VAT regime
• FINLAND: Changes in reporting and accounting of import VAT
• GERMANY: Consignment stock in Germany - Is VAT registration required or not?
• ITALY: Timing of recovery of input VAT
• LATVIA: Reduced VAT rate on vegetables, fruits, and berries
• MONTENEGRO: New VAT rate and other VAT changes
• THE NETHERLANDS: Lease with a purchase option - Supply of goods or supply of services?
• PANAMA: VAT withholding agents
• ROMANIA: Update on the VAT split payment mechanism
• SINGAPORE: Clarification on “directly in connection with” and “directly benefit” for GST purposes
• SPAIN: Modification of VAT base in insolvency: Spanish court rules in favour of taxpayer / VAT treatment of intermediary services provided electronically
• UNITED KINGDOM: Littlewoods loses compound interest appeal