Seifenkistenrennen

Michaela MerzLeave a comment

Wir haben mit meinem Jüngsten in Unterägeri das Rennen der Seifenkisten besucht.

Die Rennstrecke hatte alles was es zu gute Atmosphäre braucht. Ein Grill mit Cervelat und Bratwurst. Getränke um nicht zu verdursten, ein Glaceverkäufer, viele Fans. Gott sei Dank hat es nicht geregnet, auch wenn es bewölkt war. Die kleinen Rennfahrer waren mit dem Herz voll dabei. Wir haben uns in die “Jogurtenkurve” (die Kurve bei der Molkerei) platziert, dort wo man zwei Sekunden verschenken oder herausholen konnte, die am Ende um einen Podestplatz entscheiden konnten. Bestimmte Autos sind gemütlich reingefahren und es war von vornherein klar, die sind einfach dabei aber mit wenig Ambitionen auf Sieg. Der Kampf um den Podestplatz wurde jedoch gnadenlos geführt. Einige sind sehr rasant in die Kurve reingerast und haben die Kurve sehr eng geschnitten um das Maximum herausauszuholen. Das hellblaue Rennauto hat die Kurve so eng geschnitten, dass es teilweise nur auf zwei Rädern gefahren ist. Wir staunten über den Kampfgeist und der Kreativität der Produzenten der Fahrzeuge. Jedes von ihnen ein Unikat, wahrscheinlich hergestellt in langen Stunden. Der Fantasie waren keine Grenzen gesetzt, ausser dass man ein Steuerrad und Bremsen haben musste.

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CANADA: No more surtax on steel and aluminium as from 20, May 2019

Michaela MerzLeave a comment

On May 17, 2019, Global Affairs Canada released a joint statement with the United States, announcing the elimination (which became effective May 20, 2019) of all tariffs imposed by the United States under section 232 of the Trade Expansion act of 1962 (19 USC §1862) – duties on steel and aluminum, and all retaliatory tariffs imposed by Canada

Both countries have also agreed to terminate all pending litigation between them in the World Trade Organization, with respect to the section 232 duties on steel and aluminum and Canada’s retaliatory surtax.Read More »

Apprentices

Michaela MerzLeave a comment

Tuesday we were in the restaurant. A small restaurant beside the lake with a wonderful sunset. The atmosphere was fantastic.

In the small room there were four people taking and serving the orders. We wanted to order a drink as aperitif. It soon became clear that communication in German or English will be difficult. It was after work, we were all relaxed. We were not worried that we had to repeat the five drinks time and again until he had succeeded in registering them. But with the aperitif „Spritz», nothing helped. It was obvious that he did not know what it is. We had to go to the bar and show him the bottle.

When he later came in our direction with the tray and five drinks, I became aware that certain skills have to be practised. I had the feeling that he would not reach our table and that the drinks would crash to the floor. I was wrong. He did make it. Except that there was no glass for the bottle of beer and we had to insist that he bring one; it worked. I watched how he poured a “Stange” and was surprised, because it looked as if it was the first time in his life he had done this. The beer ran out of the glass, then he poured some out, re-filled it and spilled it. The same happened several times. Everything has to be learned.

The whole evening it seemed as if the employees had wandered in here for the first time in their lives and had no idea how to serve. The highlight was when one of them came with two plates in his hands – in each hand one plate. He stood before the table at a loss and I assume that he was considering how he should best put the two plates down on the table. Before I could help him, he leant sideways and the contents of one plate slid onto the lap of our youngest.

That evening it was again clear to me that many things that we consider to be absolutely obvious are not obvious. Much has to be learned, practised and rehearsed. Finally one should not get so excited about what goes wrong, and rather take pleasure in what functions effortlessly. In all honesty, it was a lot of fun for me to act as an honorary assistant that evening in the restaurant.

Image source: Anja Müller / pixelio.de

Lehrlinge

Michaela MerzLeave a comment

Wir waren am Dienstag im Restaurant. Ein kleines Restaurant am Seeufer bei wunderbarem Sonnenuntergang. Die Stimmung war fantastisch.

In dem kleinem Raum hat es vier Leute gehabt, die Bestellungen aufnahmen und ausführten. Wir wollten Getränke zum Apéro bestellen. Es war sehr schnell klar, dass die Verständigung auf Deutsch oder Englisch schwierig wird. Es war Feierabend, wir waren alle gelassen. Es hat uns nichts ausgemacht die fünf Getränke immer wieder zu wiederholen, bis er es geschafft hatte, sie zu notieren. Jedoch beim Aperol Spritz nütze alles nichts. Offensichtlich wusste er nicht, was das ist. Wir mussten mit zur Bar und ihm die Flasche zeigen.

Als er später mit dem Tablett mit fünf Getränken in unsere Richtung lief, wurde mir bewusst, dass bestimmte Fertigkeiten geübt werden müssen. Ich hatte eher das Gefühl, dass er unseren Tisch nicht erreichen wird und die Getränke am Boden zerschellen. Ich täuschte mich. Er hat es geschafft. Ausser dass bei der Flasche Bier ein Glas fehlte und man es bei ihm mit Nachdruck verlangen musste, klappte es. Ich schaute ihm zu, wie er eine “Stange” abfüllte und wunderte mich, weil es so aussah, als ob dies alles das erste Mal in seinem Leben sei. Das Bier ist aus dem Glas herausgelaufen, dann hat er ein bisschen ausgeschüttet, noch mal nachgefüllt und verschüttet. Das Gleiche hat sich mehrmals wiederholt. Einfach alles muss gelernt werden.

Der ganze Abend ist so gelaufen, wie wenn sich die Angestellten zum ersten Mal in ihrem Leben hierher verirrt hätten und keine Ahnung hätten, wie man bedient. Als Höhepunkt kam einer von ihnen mit zwei Tellern in der Hand – in jeder Hand ein Teller. Er blieb ratlos vor dem Tisch stehen und ich schätze, dass er sich überlegte, wie er die zwei Teller am Tisch abladen sollte. Bevor ich ihm helfen konnte, lehnte er sich zur Seite und der Inhalt des einen Tellers kippte in den Schoss unseres Jüngsten.

An diesem Abend wurde mir nochmals klar, dass viele Sachen, die wir als absolute Selbstverständlichkeit betrachten, eben nicht selbstverständlich sind. Das vieles gelernt werden muss, geübt und einstudiert. Schlussendlich sollte man sich weniger über das, was schief geht aufregen und sich mehr freuen über alles, was tadellos funktioniert. Ehrlich gesagt hat es mir schlussendlich Spass gemacht an dem Abend als ehrenamtliche Mithilfe in dem Restaurant tätig zu sein.

Bildquelle: Anja Müller  / pixelio.de

POLAND: Mandatory split payment as of September 1, 2019

Michaela Merz1 Comment

On May 16, 2019 the Polish legislator published draft of amendments to the VAT act aimed at introducing mandatory split payment mechanism for selected goods and services in Poland. This is a follow up to derogation decision that granted Poland right to introduce mandatory split payment. Find below the most important information resulting from the draft legislation:

  • the obligatory split payment applies only to transactions made between taxpayers (B2B), which are subject to VAT in Poland and with value exceeding 15 000 zł,
  • the obligation to use the split payment mechanism will cover selected goods and services,
  • foreign entities settling transactions by means of bank transfers subject to VAT in Poland will be obliged to open a bank account in Poland,
  • new invoice layout requirements will be introduced in order to mark an invoice documenting delivery of goods / services subject to the mandatory split payment method,
  • it will be possible to cover multiple invoices with single split payment operation (collective payment),
  • funds accumulated on VAT account can be used to pay other tax liabilities (PIT, CIT, excise, customs duties) as well as social security (ZUS).

 

Goods and services covered by the mandatory split payment

 According to the annex to the draft legislation, the split payment mechanism will obligatorily be applied to 150 product and service groups defined in accordance with the Polish Classification of Products and Services (PKWiU) from 2008.

In general, the following groups of goods and services can be distinguished:

  • steel products, precious metals, non-ferrous metals;
  • waste, scrap, recyclable materials;
  • electronics, specifically: processors, smartphones, phones, tablets, net-books, laptops, game consoles, inks, toners, hard drives;
  • fuels for cars, fuel and lubricating oils;
  • greenhouse gas emission rights;
  • building and constructions services;
  • coal;
  • sale of car and motorcycle parts.

Sanctions for lack of compliance

There are numerous sanctions that can be imposed for lack of compliance with using split payment when it is required. In case of:

  • failure to include on the invoice information that transaction is subject to mandatory split payment regime, the invoice issuer may receive a fine of 100% of the VAT value resulting from such invoice,
  • failure to pay in the mandatory split payment regime, the buyer may receive a penalty equal to 100% of the VAT value resulting from such invoice,
  • failure to pay in the mandatory split payment regime, the buyer will not be entitled to treat such cost as tax deductible (from CIT / PIT perspective),
  • failure to pay in the mandatory split payment regime, the person responsible for the occurrence of such a situation will be subject to sanctions resulting from the fiscal penal code (up to 720 daily rates).

Important matters

Taking into account the risk of imposing significant sanctions, both on the part of the supplier and the buyer, it will be crucial to properly identify the transactions covered by the obligatory split payment method and then comply with this regime. However, there are doubts about the transaction value, i.e. how to determine what triggers the 15 000 zl transaction limit (is this amount based on individual invoice, transaction group, payment) and how to identify certain goods and services covered by the mandatory split payment. Specifically, the way car and motorcycle parts were mentioned (as a reference to type of activity being wholesale and retail trade) will cause significant interpretation troubles for automotive industry.

Entry into force

The legislator planned that rules on the obligatory split payment become effective from 1 September 2019. Some provisions (for example PIT / CIT sanctions related with not using split payment) will take effect from January 1, 2020.

Necessary actions

In order to avoid sanctions and possible personal liability, every taxpayer who purchases or sells oods or services covered by the mandatory split payment should be prepared for introduction on this regime.

Such preparation should include at least:

  • identification of goods and services for which split payment will have to be used (AP),
  • identification of goods and services for which a VAT invoice issued should contain the
  • information “split payment mechanism” (AR),
  • establishing rules on recognizing when 15 000 zł threshold is exceeded,
  • aligning payment and invoicing processes in order to achieve compliance with split payment rules.

If your booking, invoicing or payment processing is done via SSC, it will be particularly important to initiate changes of these processes early enough.

Another important matter is solvency. With cash flow impact by receiving only net values on regular accounts, funds accumulated on VAT account could become significant challenge over time. Especially business that are on VAT refund position should be aware of this.

For further details please contact

Tomasz Kassel, Partner
Tel. + 48 502 184 846
tomasz.kassel@pwc.com

Tomasz Pabiański, Director
Tel. + 48 502 184 952
tomasz.pabianski@pwc.com

Jakub Matusiak, Director
Tel + 48 502 184 468
jakub.matusiak@pwc.com

 

 

Image Source: unsplash.com

NEW ZEALAND: Proposed changes in Goods and Services Tax for telecommunications

Michaela Merz1 Comment

The New Zealand Government has proposed to make changes to the goods and services tax (GST) telecommunications rules. The move is designed to bring New Zealand into line with OECD and international trends in relation to the provision of telecommunications services with focus on the customer’s usual place of residence. The Minister’s release (on 17 May 2019) and the officials’ issues paper can be viewed here.Read More »

WEBCAST: Selling into the United States: The New State Direct and Indirect Tax Landscape

Michaela MerzLeave a comment

I am pleased to invite you to our next webcast focusing on US sales tax and state income taxes for US inbound businesses. The webcast will be relevant for any business selling into the US, including those that do not have a physical presence in the US.

Recent significant developments in US case law (the Wayfair decision) make US sales tax and state income tax newly relevant to companies that may not have previously assessed whether a US tax requirement exists (for example, due to having no physical presence in the US), therefore this is a key time to assess the impact.

Our state tax experts will explain the current US sales tax and state income taxes requirements from a US inbound perspective, and will cover examples of circumstances where a compliance responsibility may exist and the potential consequences.

All live attendees will also have the chance to raise questions directly to our specialists during the Webcast.

Speakers for this webcast include:

  • Monica Cohen-Dumani – Partner, International Tax Services, EMEA ITS Leader – PwC Switzerland
  • Jennifer Jensen – Partner, State and Local Indirect Tax – PwC US
  • Robert Ozmun – Partner, State and Local Income Tax – PwC US

Date/Time:

Thursday May, 23rd, 15:00 (CET)

Agenda:

  • US Sales Tax – Jennifer Jensen, Partner, State and Local Indirect Tax – PwC US
  • US State Income Taxes – Robert Ozmun, Partner, State and Local Income Tax – PwC US

Note that you will need to register to join the webcast. Register here >

 

Image source: unsplash.com

BANGLADESH: Implementation of the VAT and Supplementary Duty Act 2012 as of July 1st 2019

Michaela Merz1 Comment

The reduced VAT rate and tariff value system are to be revoked in order to implement the single VAT rate system. However, it has been reported that the National Board of Revenue may implement multi-tier VAT rates instead of a single rate.Read More »

Das Besondere

Michaela MerzLeave a comment

Die Titanwurzel im botanischen Garten blüht. Das ist ein Spektakel, das zu sehen sich lohnt, zum einen, weil die Blume in unseren Breitengraden nur im botanischen Garten zu sehen ist und weil es selten vorkommt, dass sie blüht. Sogar der Zeitung ist es einen Artikel wert. Mit meinem Jüngsten sind wir gegangen dieses Spektakel anzuschauen. Das Wetter war mies, kalt und regnerisch. Und im botanischen Garten gab es eine Menschenschlange. Das hat einen zusätzliche Seltenheitswert. Viele wollten dieses Wunder der Natur sehen. Neben der Pflanze stand der glückliche Direktor des botanische Garten und gab allen, die es hören wollten, Auskunft über dieses seltsame Gewächs. Er strahlte wie wenn er die Geburt seines Erstgeborenen ankündigen würde. Es war beeindruckend, die Atmosphäre war mit Stolz und Bewunderung erfüllt,  einfach ein wunderbares Erlebnis, das lange in Erinnerung bleibt. 

Dann sind wir weiter gefahren, um die Grossmutter zu besuchen. Und an den Bächen in den umliegenden Wäldern haben sich Biber angesiedelt. Sie waren mehr als 30 Jahre lang verschwunden und jetzt sind sie wieder da. Ihr Gestaltungsdrang hat die Natur innerhalb kurzer Zeit massgeblich geprägt. Unzählige grosse Bäume haben die Biber zu Fall gebracht, das Wasser gestaut, der Pegel im Bach um einen halben Meter erhöht. Die Biber sind scheu und  selten und wir wanderten ihren Spuren nach und staunten.

Der Grossmuter haben wir aber versprochen im Dorf Farbe abzuholen. Wir machten uns auf den Weg. Auf der Wiese neben der Strasse weiden Kühe. Es ist eine seltsame Rasse, die ich noch nie gesehen hatte. Sie sind Schwarz und in der Mitte haben sie regelmässige, weisse Streifen. Es sieht so aus, als ob ein Maler einen breiten Pinsel genommen und alle Kühe markiert hätte. Es waren auch viele ganz kleine Kälber dabei. Und plötzlich merkten wir, dass fast neben der Strasse hinter dem elektrischen Zaun gerade in diesem Moment ein Kalb zu Welt kommt. Die Kuh hat sich ängstlich zu uns gedreht und wir wählten eine Distanz, die sie nicht mehr zu stören schien. Es war ein spezielles Erlebnis mitten in der Natur die Geburt so nah zu verfolgen und zu staunen mit welcher Leichtigkeit es die Kuh geschafft hat. 

Die Farbe mussten wir am nächsten Tag holen, da wir so fasziniert waren, dass wir erst im Dorf angekommen sind als das Geschäft schon geschlossen war.

Es waren einzigartige und einmalige Ereignisse, die zu planen unmöglich war. Die Anziehungskraft des Speziellen, Einmaligen ist erstaunlich und wozu sie die einzelnen Menschen treibt, umso mehr.

Die Titanwurzel ist immer noch im botanischen Garten aber jetzt eher als unscheinbare Pflanze, da sie nur eine Woche lang blüht, wohingegen man die Baukünste der Biber weiterhin besichtigen kann. Lasst es mich wissen, falls ihr Interesse habt und ich sende Euch die GPS Koordinaten.

Something special

Michaela MerzLeave a comment

The titan arum in the Botanical Gardens is in flower. That is a spectacle worth seeing, firstly because the flower can be seen in our latitudes only in the botanical garden and secondly because it happens infrequently. It’s even worth an article in the newspaper. We went with my youngest to see this spectacle. The weather was lousy, cold and rainy. And in the Botanical Gardens there was a long queue. That gives it even greater rarity value. Many people wanted to see this natural wonder. Next to the plant stood the happy Director of the Botanical Gardens and gave all who wanted to hear information about this strange plant.  He beamed with delight as if he were announcing the birth of his first child. It was impressive, the atmosphere was replete with pride and wonder, simply a wonderful event, which will long remain in our memories.    

We then moved on to visit grandmother. And in the streams in the surrounding woods beavers have settled. For more than 30 years they had disappeared and now they have returned. Within a short time, their creative urge has left a significant influence on nature.  The beavers have felled numerous large trees, dammed the water, raised the water level in the stream by half a meter. The beavers are shy and rare and we wandered along their tracks in astonishment.

But we have promised grandmother to fetch her some paint from the village. We continued our journey. In the meadow beside the road cows are grazing. It’s a strange breed, which I had never seen. They are black and in the middle they have regular white stripes. It looks as if an artist had taken a wide paint brush and marked all the cows. There were also a lot of very small calves. And suddenly we noticed that almost next to the road behind the electrified fence at this very moment a calf is being born. The cow had turned anxiously towards us and we chose a distance, which no longer seemed to disturb it. It was a special happening to follow the birth so closely in the nature and to be amazed at how easily the cow had managed it.        

We had to fetch the paint the next day because we were so fascinated that we didn’t arrive in the village until the shop was already closed.

These were unique, one-off events, which you couldn’t have planned. The appeal of the special, the unique is astounding and given to what it drives the individual, the more so.

The titan arum is still in the Botanical Gardens but now is only an inconspicuous plant, because it flowers only for a week, while the construction skills of the beavers can still be viewed. Let me know if you are interested and I’ll send you the GPS coordinates.