Mexico Tax Reform 2020

November 14, 2019November 14, 2019 Michaela Merz1 Comment

Mexico approves significant tax reform

In brief
Mexico’s Congress approved modifications to the following laws on October 30: The Income Tax Law (MITL), the Value Added Tax Law (VATL), the Excise Tax Law (IEPS) and the Federal License Law (LFD), and the Federal Fiscal Code (FFC) (together, ‘the 2020 Mexican Tax Reform’). Enactment of the 2020 Mexican Tax Reform will occur on its date of publication in the Official Federal Gazette. The 2020 Mexican Tax Reform will enter into effect January 1, 2020, unless an article expressly states a different effective date.Read More »

Brexit – Intrastat obligation reporting remains even if Brexit takes place

October 31, 2019November 5, 2019 Michaela Merz1 Comment

Many of my clients who are registered for VAT purposes in the UK were thinking that one of the very few advantages of Brexit in the area of VAT is the fact that Intrastat will disappear. In the middle of October HMRC destroyed these hopes with the publication of the information that Intrastat will be surveyed even if Brexit takes place.Read More »

Turkey – VAT on digital services and new proposal for 7,5% Digital Services Tax

October 31, 2019November 14, 2019 Michaela Merz1 Comment

On the 1 January 2018, the VAT rules for sales of electronic services to non-VAT registered individuals by electronic service providers who do not have a residence, business place, legal business centre and business centre in Turkey have changed. Non-resident electronic service providers have to declare and pay VAT which is charged on electronic services to non-VAT registered individuals. This change is only applicable to B2C transactions and irrelevant for B2B sales, where a reverse charge mechanism is still applicable. For cross border supplies of electronic services there is no registration threshold and therefore registration obligation arises as of the first revenue.

New Zealand – Registration obligation as from 1 of December for foreign suppliers

October 29, 2019October 30, 2019 Michaela Merz1 Comment

New Zealand has adopted a law that will require offshore sellers, electronic marketplaces and redeliverers to register and account for 15% GST on:Read More »

Mexico – New proposed VAT laws for 2020

September 11, 2019September 11, 2019 Michaela Merz1 Comment

The Executive Branch of Mexico’s federal government filed last September 8th, the 2020 Budget to the Congress. Among the relevant changes included in the Budget 2020 are those related to the Value Added Tax Law (VATL).

As of April 2020 (if approved) nonresident entities that provide digital services would be subject to 16% VAT rate if the recipient is located within Mexico, and the service is provided through applications or digital content, over the internet, and the process is primarily automatized. Such VAT will be determined upon the payment of the service rendered.Read More »

UK – EU VAT refunds amended legislation in connection with Brexit

September 10, 2019September 11, 2019 Michaela Merz3 Comments

HMRC confirmed that the transitional legislation for EU VAT refunds under Part 20 of the VAT Regulations 1995 has been amended to reflect the change in Exit Day from 29 March 2019. The revised legislation was laid on 5 September 2019. You can access a copy of it from this link >

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Czech Republik – Introduction of general reverse charge as from 2020 probable

September 9, 2019September 18, 2019 Michaela Merz1 Comment

The Czech Republic has applied for the introduction of a generalised reverse charge system, which will apply to all supplies of goods and services in the Czech Republic worth over 17,500 euros (approx. 450,000 CZK). In such cases, the obligation to declare VAT will automatically be shifted from the supplier to the customer. The possibility of introducing this measure in local legislation is subject to compliance with the entry criteria stated in the Council Directive and to the final approval of the EU Council. If the Czech application is approved, the MoF estimates that changes to the Czech VAT Act will be effective starting from 1 July 2020 and lasting until June 2022.Read More »

Mexico – VAT obligation for none-resident companies providing electronic services

September 9, 2019September 9, 2019 Michaela Merz1 Comment

Amendment to the current VAT Law and the federal fiscal code was submitted to the Chamber of Deputies on 5 of September. The aim is to amend the VAT Law in order to tax services provided through digital platforms by none resident companies. In order words it means that foreign companies without any permanent establishment in Mexico providing services through platforms to customers domiciled in Mexico will be subject to VAT. The bill mentions two options

PwC’s Pharma & Life Sciences Regulatory Radar

September 6, 2019September 6, 2019 Michaela MerzLeave a comment

Increasing regulatory challenges

The pharmaceutical & life sciences industry, a long-standing, innovative and successful industry, needs to function in an increasingly challenging market environment. Regulation is one of the main reasons for this. In an increasingly interconnected world where more and more sophisticated pharmaceutical (e.g. genetically engineered, and biologicals, orphan drugs), Medtech as well as nutrition products are being developed, public scrutiny and ultimately legal frameworks are tightening. Governments and regulators are adopting more regulations in order to meet the requirements of technological advancement and changing social conditions (e.g EU GMP/GDP Annex 21, Annex 6 and 16 for clinical trials and the new Swiss “Arzneimittelverordnung”). Given the vast quantity of regulations, there is an inherent risk of missing out on critical topics or taking the required action too late. Therefore, the pharmaceutical & life sciences sector will have to be vigilant and adapt to the constantly changing regulatory landscape.Read More »