Michaela Merz


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Switzerland: VAT changes for imports of low-value goods from 1 January 2019


Due to the change in legislation, non-established sellers of “low-value” goods into Switzerland will be obliged to register for VAT if they generate more than CHF 100,000 (approx. USD 100,000) of sales of low-value goods per year.

Low-value goods are defined as imports where the VAT charge does not exceed CHF 5. At the currently applicable Swiss VAT rates these are shipments of CHF 65 at the standard VAT rate of 7.7%, or CHF 200 at the reduced VAT rate of 2.5%. Import VAT and customs duties are not levied upon the importation of goods if the amount of import VAT does not exceed CHF 5. Continue reading


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NL – Reduced VAT rate to be increased from 6% to 9%


As of 1 January 2019 the reduced rate for VAT is to be increased from 6% to 9%. This change in rate will mean extra costs for some businesses and an additional administrative burden for almost all of them. A business applying the reduced VAT rate on supplies of goods and services will have to prepare for the change. The rate change will require internal changes (the administrative system) and external adjustments (for example the pricing of services and products).

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Germany: “Boehringer Case” – EUGH C-462/16, 20 December 2017- new development


The German Federal Ministry of Finance (MoF) has published a decree (dated October 4, 2018) with respect to the VAT treatments of mandatory rebates.

Within this decree, the MoF states that mandatory rebates according to the drug discount law (“Arzneimittelrabattgesetz”) do entitle the taxpayer to reduce the relevant tax base for VAT purposes. Continue reading


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A.I. Upcoming webcast: Machine learning and artificial intelligence for indirect tax


The easy availability of vast amounts of transactional data that follow rules makes indirect tax a great candidate for machine learning. We show you how to use artificial intelligence to improve quality and validate your VAT data – and someday maybe even take care of tax determination for you.

Join my experts this Thursday, 25. October 2018, 2.00 – 3.00pm

REGISTRATION LINK:

https://www.pwc.ch/en/events/taxtechnology-webcasts.html

 

 

Bildquelle: unsplash.com


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Bahrain – one step closer to the introduction of VAT as from 1 of January 2019


barhainflagBased on media news available in Arabic media, the Bahrain House of Representatives has voted in favour of  the VAT Law last week.

The news also confirmed that the VAT will be effective on 1 January 2019.  Continue reading


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EU – Council agrees short-term VAT fixes as from 1 of January 2020


euro-comPlease find attached a press release as published last week by the European Council. This concerns so called “Quick Fixes” aimed to be implemented as per 1 January 2020 (and as an interim step towards a definitive EU VAT system). Due to the numerous discussion around the definition, the “Certified Tax Person (CTP)” concept has been postponed and will likely be part of the definitive VAT regime.

On 2 October 2018, the Council agreed on four adjustments to the EU’s current VAT rules to fix specific issues. Continue reading


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India – tax at source of electronic services at 1% as of 1 of October


india.pngThe e-commerce space in India has always been subjected to scrutiny and litigation from an indirect tax perspective. With a view to monitor transactions done through e-commerce operators, the GST regulations have vested e-commerce players with additional compliance burden.

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