Michaela Merz


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AUSTRIA: E-Commerce Package from January 2021


The e-commerce package shall enter into force from 1 January 2021. The goal is to better ensure taxation in the destination state. At the same time, the simplifications for businesses (One-Stop-Shop), which avoids a VAT registration in every destination Member State, shall be extended.

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AUSTRIA: Changes as from 2020 – Digital services tax on online advertising services and Obligation to keep records and liability for online platforms


Digitalization and the business models of “digital MNEs” present challenges for international taxation. At EU level, the proposed “Council Directive on the common system of a digital services tax on revenues resulting from the supply of certain digital services” has recently been rejected. On a global level, there are discussions on digital taxation within the G20/OECD with a view to developing digital PEs and a digital services tax. Nevertheless, some states have chosen not to wait for international solutions and have started to implement unilateral measures. Continue reading


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USA: President Trump announces additional tariffs of 10% on ‘List 4’ China imports


President Trump on August 1 announced via Twitter that, beginning on September 1, the United States will impose additional Section 301 duties of 10% on Chinese-origin products with an annual trade value of approximately $300 billion, covered by List 4.

President Trump had agreed in June not to impose more tariffs while the two sides tried to reach a trade deal, but said August 1 that China has reneged on its agreement to buy agricultural products from the United States in large quantities, and also did not fulfill its commitment to stop the sale of fentanyl into the United States.

The announcement follows the office of the US Trade Representative (USTR)’s May publication of a notice in the Federal Register proposing additional Section 301 duties of up to 25% on the List 4 products. (For prior coverage of the List 4 tariffs, see PwC Insights, USTR proposes more tariffs on long list of China imports, May 15, 2019.)

Products that will be affected by the tariff increase include essentially all products not previously included in Lists 1-3, including all apparel, footwear, and manufactured textile products, as well as common consumer goods such as cellphones, televisions, toilet seats, and pillows. The proposed product list excludes pharmaceuticals, certain pharmaceutical inputs, select medical goods, rare earth materials, and critical minerals. Product exclusions granted by the USTR with respect to Lists 1-3 would not be affected.

 

The Takeaway

Now that President Trump has announced that additional duties on almost all remaining Chinese-origin products will begin in one month, US companies engaging in business with China need to assess their duty exposure. List 4 reinforces the importance of those companies taking action aimed at making their trade function and supply chains as efficient as possible.

Companies in previously unaffected industries need to re-examine their import profiles and supply chains, including the use of available analytical tools, to determine potential impacts and explore mitigation strategies.

 

For a deeper discussion regarding the Section 301 tariffs and how your business may be able to mitigate risks in the changing trade environment, please contact:

Simeon Probst, Partner
Customs, Trade and Indirect Taxes, PwC Basel
Tel. +41 58 792 53 51
simeon.probst@ch.pwc.com

 

Image source: unsplash.com


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Taxmarc is now certified for SAP S/4HANA


I’m proud to announce that SAP has certified our Taxmarc solution for the latest SAP version S/4HANA.

This certification guarantees the quality and compatibility of Taxmarc within the SAP S/4HANA platform. As a result, the customers of SAP can implement the solution without encountering problems in their SAP systems. Last year, we received the SAP certification of Taxmarc for the platform ECC. This means that currently our solution is certified for the two most used SAP platforms.

 

Image source: unsplash.com


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POLAND: Mandatory Split Payment as of 1 November 2019


On 19 July 2019, the changes in the Polish VAT law have been approved and published.

One of those revolutionary changes relates to the implementation of the Mandatory Split Payment Mechanism as of 1 November 2019.

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RUSSIA: VAT recovery for export of services is possible as from July 1


The State Duma approved amendments to the Russian Tax Code (RTC) introducing the right for input VAT recovery in relation of export of many types of services. This is generally in line with the VAT principles in many other countries. Continue reading


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Turkey: Only a Turkish resident entity can act as importer


In accordance with the Turkish VAT Law, importation of goods and services is subject to VAT, and the taxpayer for the importation is defined as the importer. In other words, the importer of record is the party which imports the goods. Please note that tax ID is required for importation procedures; therefore, only a Turkish resident entity may conduct importation. Continue reading