China is undergoing a Business Tax to Value Added Tax transformation (“B2V”) Pilot Program, with transportation and certain modern services becoming the first batch of pilot industries. Effective August 1, 2013, the B2V Pilot Program of transportation and certain modern services (including freight forwarding services) was expanded nation-wide. Under the B2V Pilot Program, the taxable service should be subject to VAT if either the service provider or the service recipient is within the territory of China.Read More »
Tag: domestic
Poland – Abolition of the reverse charge system as from 1 April 2013
Two years ago Poland introduced the reverse charge system for local supplies of goods by non-established entities. As a consequence foreign companies without permanent establishment in Poland are not allowed to charge VAT on their local supplies. This caused some cash flow difficulties as many of these companies are always in recovery position.
As from 1 April 2013 this system will be abolished and non-established companies will again have to charge local VAT on domestic supplies (some minor exceptions where the reverse charge will be applicable will remain).
Michaela Merz 