As part of the changes to India’s tax landscape and in alignment with BEPS Action Paper on the Digital economy (eCommerce, internet businesses, etc), the Government of India has made certain key amendments to the Indirect tax law as applicable to B2B and B2C Online as well as eCommerce companies. Read More »
Introduction of GST in India – less than 6 months
GST will be introduced in India on 1 April 2017, will you be ready? Please join our partners from our indirect tax practice in India, Pratik Jain and Denis McCarthy with our international indirect tax specialist from London, John Shuker to discuss the latest developments on the introduction of GST in India.Read More »
Wadu hat ein Problem
Bis gestern war die Welt noch in Ordnung. Heute aber ist seine Freundin zu ihm gekommen und sagte, dass sie ein Kind möchte. Wadu hat Kindern gern aber eigene will er keine. So haben sie es damals vor 6 Jahren als sie zusammengezogen sind, auch abgemacht.Read More »
Wadu has a problem
Until yesterday the world was still in order. But today his girlfriend came to him and said that she wanted a child. Wadu likes children, but he doesn’t want any of his own. That’s what they agreed 6 years ago when they moved in together.
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Webex: Data Analytics for ITX – Dec 7th 2016
Evolving trends are changing the way tax functions are operating – both day-to-day and with long-term strategic planning. Tax functions are facing increasing pressure to remain compliant in a world of challenging data collection and manual processes, leaving tax with little time to focus on strategic planning. Also, the introduction of data analytics for ITX by authorities in most EU countries is now an impending reality.Read More »
EU – Taxation trends in the European Union
Tax revenues are continuing to rise in most EU Member States, a study by the European Commission has found. The 2016 edition of the Taxation Trends report takes stock of tax systems in the EU with extensive and comparable data on the different tax structures and rates of Member States. It also provides an analysis on the medium- to long-term evolution of these trends. This staff report, published annually, offers a breakdown of comparative tax levels in the EU and of tax revenues raised from consumption, labour and capital.Read More »
Barcelona im November
Am Sonntag war der erste Schnee bis auf 1000m in der Schweiz angesagt. Es wird kalt. Aber ich habe das Glück diese Woche in Barcelona zu arbeiten und dort ist für einen Mitteleuropäer kein Herbst zu spüren.
Ich bin jeden Morgen, sobald es hell wurde, am Meeresufer entlang gelaufen. Es war herrlich. Die optimale Temperatur um zu laufen, eine leichte Brise, ein menschenleerer Strand. Jeden Morgen habe ich den Mann mit dem Metalldetektor gesehen, der den Strand nach Münzen und Schmuckstücken absuchte. Jeden Morgen habe ich die Obdachlosen gesehen, eingemummt in ihre Schlafsäcke. Und jede Morgen habe ich irgendeine irritierende Beobachtung gemacht, die nicht zur Idylle passte, wie der gut gekleidete Mann, der die Mülleimer durchsuchte. Sobald er eine leere Alkoholflasche fand, hat er sie mit einem beängstigenden Eifer in tausend Stücke am Boden zerschlagen. Irritiert hat mich auch die alte Frau, die ganz allein und nackt weit weg aufs Meer hinausgeschwommen ist.
Auch ich war nach dem Laufen schwimmen, schliesslich war das knapp 20 Grad warm. Aber ich schwamm risikobewusst nur sehr nah am Strand und entsprechend bekleidet.
Das einzige wirklich verstörende Erlebnis in Barcelona waren die zwei Jungs im Zimmer neben mir, die um halb fünf Uhr morgens, völlig besoffen, versuchten die Verbindungstür zwischen unseren Zimmern aufzubrechen. Es ist ihnen nicht gelungen, aber bei dem Lärm war an Schlaf nicht zu denken und bis die hotelinterne Security es endlich geschafft hat, sie zur Vernunft zu bringen, war es schon fast Zeit, um laufen zu gehen.
Bildquelle: Wolfgang Dirscherl / pixelio.de
Barcelona in November
The first snow down to 1,000 m was forecast in Switzerland for Sunday. It will be cold. But this week I had the good fortune to be working in Barcelona and there for a mid-European there is no autumn to be felt.
Every morning, as soon as it was light, I ran along the shore. It was terrific. The ideal temperature for running, a light breeze, the beach empty. Every morning I saw the man with the metal detector, searching the beach for coins and jewellery. Every morning I saw the homeless, wrapped up in their sleeping bags. And every morning I made an irritating observation, which didn’t fit the idyll, like the well-dressed man, who sorted through the rubbish bins. As soon as he found an empty alcohol bottle, he smashed it on the ground into a thousand pieces with frightening fervour. I was also irritated by the old woman, who all alone and naked had swum far out into the sea.
After my run I also went for a swim, after all it was 20 degrees. But, aware of the risks, I swam only close to the beach and properly dressed.
The only really disturbing experience in Barcelona was the two youths in the room next to mine, who at half past four in the morning, quite drunk, tried to break open the connecting door between our rooms. They didn’t succeed, but, with all the noise, sleep was impossible and, until the hotel security had finally succeeded in talking sense into them, it was almost time to go for a run.
Image source: Wolfang Dirscherl / pixelio.de
EU – Council adopts proposed improvements to the VAT rules on cross-border transactions
On 8 November the Council adopted conclusions on improvements to VAT rules for cross-border transactions.
The conclusions come in response to certain issues raised in an April 2016 Commission action plan.
Taiwan – registration obligation for foreign companies providing B2C services expected soon
Under current VAT regulations, payment of VAT on provision of services sold by foreign companies to individual Taiwanese customers are the obligation of the individual Taiwanese customer for purchase of services exceeding TWD 3,000 per transaction.
22 of September, a draft amendment of the Business Tax Act concerning sales of cross-border B2C services was approved by the Executive Yuan, where the obligation to report and pay VAT is to be switched to the foreign companies that provide services to individual Taiwanese customers.
The foreign companies would be required to register for VAT purposes in Taiwan and pay VAT. However, many of the key aspects (e.g. VAT registration threshold, definition of a foreign taxpayer etc.) of the new VAT mechanism have not been announced by the tax authority. Moreover, the draft amendments to the Business Tax Act should be further passed by the Legislative Yuan in order for it to be enacted.
For cross-border B2B sales, the current reverse charge mechanism is to remain in place.
Following issue remain open
Uncertainty over definition of foreign taxpayer liable for VAT :
As cross-border digital services are often provided via a platform (e.g. App developer selling Apps through an App platform), whether the App developer or the platform provider would be the taxpayer liable for VAT registration is uncertain. During open discussions with the tax authority, a clear answer was not provided. Therefore, this issue will need to be resolved in the future, possibly through further promulgations by the tax authority or via private tax ruling applications.
VAT registration and exemptions
Under this new mechanism, foreign taxpayers liable for VAT would be required to register in Taiwan. However, as compared with the requirements for domestic companies, it is expected that the registration procedures and requirements for foreign taxpayers would be simplified. Moreover, it is also expected that there would be an exemption threshold, whereby foreign taxpayers with sales under said threshold would be exempt from registration and payment of VAT. However, at what amount the exemption threshold would be set at is currently unclear.
Implications for corporate income tax.
The tax authority has indicated that they have plans to propose corresponding corporate income tax reform for foreign cross-border sellers of services. However, there is currently no official time frame for this as the tax authority has been concentrating its efforts on the new VAT mechanism.
For further details please contact li-li.chou@tw.pwc.com | http://www.pwc.tw.
draft-vat-regulation-on-cross-border-b2c-services_english-version
Michaela Merz 