Indirect Tax News Issue 3/2020 - October 2020

The latest edition of BDO Indirect Tax News is now live. 

Globally, these are still challenging times, and no one knows exactly what lies ahead of us. We still see governments taking measures to deal with the consequences of the COVID-19 crisis, such as VAT rate cuts in Ireland, Germany, and Belgium, while some countries are slowly cutting back on measures taken previously.

In issue 3 | 2020, our BDO Global colleagues report on the significant developments and changes in behaviour, as a result of the Covid-19 crisis, that have led to shifts in focus for tax authorities. 

In Ireland, as part of the July 2020 stimulus package, the Irish Tax Authorities have announced the introduction of a temporary reduction in the standard VAT rate from 23% to 21%. This reduction in the VAT rate will remain in place for six months from 1 September 2020 until 28 February 2021.

Find out more about the Temporary reduction in the standard rate of VAT in Ireland.

This issue also looks at:

• BAHRAIN: Bahrain National Bureau for Revenue (NBR) has published two new VAT Guides on its website 
• CANADA: Proposed British Columbia “Netflix Tax” deferred
• CZECH REPUBLIC: The general reverse-charge is being postponed
• THE EUROPEAN UNION:
  • Cancellation or dissolution fee: VAT or no VAT? 
  • European Commission postpones the VAT e-commerce rules until 1 July 2021
  • How to deal with adjustments of deductions in case of retrospective rebates or transfer pricing adjustments
  • HUNGARY - In which country do you pay VAT for international online sales?
  • POLAND - Subsidiary fixed establishment for VAT purposes?
  • ROMANIA - CHEP Equipment Pooling case: Transfer of goods is not an intra-Community supply and refusal of a VAT refund due to lack of VAT registration is unjustified
• FRANCE:
  • First application in France of the ECJ’s Mercedes Benz Financial Services UK case law 
  • VAT on rents: French High Court confirms one option per lot
• GERMANY: New circular of the German tax authorities regarding retroactive invoice corrections
• GUATEMALA: Recent VAT changes in 2020
• HUNGARY:  Radical changes in the online data reporting regulations
• INDIA: Introduction of World Trade Organisation-compliant export benefit schemes in India
• INDONESIA: Value Added Tax on sales of digital products to Indonesian customers
• IRELAND: Temporary reduction in the standard VAT rate
• ITALY: New VAT provisions for medical devices supplied during the COVID-19 emergency
• JAPAN: A new system in Consumption Tax–filing extension rule
• MALAYSIA: Extension of group relief for Service Tax
• THE NETHERLANDS:
  • Exempt hiring or a different taxable supply: An important distinction
  • Possibilities for VAT deduction for costs of unoccupied buildings
  • Greater clarity on the VAT position of members of Supervisory Boards
• OMAN: Developments on implementation of VAT
• SINGAPORE: Changes affecting certain GST zero-rating conditions
• SLOVAK REPUBLIC: The Slovak branches and VAT deductions arising from purchased services
• SOUTH AFRICA: Recently proposed amendments and other changes in Value Added Tax for 2020
• SPAIN:
  • Spanish criterion regarding verification of VAT credits related to statute barred years
  • Financial transactions - pro rata calculation
• SRI LANKA: Indirect Tax Regime geared to meet macroeconomic changes
• UNITED ARAB EMIRATES: UAE amends VAT Executive Regulations
• UNITED STATES: Sales and Use Tax and Value Added Tax pitfalls for e-commerce businesses