Michaela Merz


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India – electronic services – new place of supply as from 1 of December 2016


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The Central Government of India amended the service tax law in relation to the provision of electronic services to include services that are provided by a service provider located outside India to a service recipient located in India. Place of supply of electronic services has changes as from 1 of December 2017. The ‘place of provision’ of electronic services has changed from ‘location of service provider’ to ‘location of service recipient’. Continue reading


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EU: Commission proposes new VAT rules B2C (e-commerce / online gambling platforms)


726171_web_r_k_b_by_rainer-sturm_pixelio-deOn 1 December the European Commission adopted a package of measures to improve the tax climate for e-commerce companies in the EU. With these proposals, the Commission follows up on its commitments made in the strategy for a digital single market for Europe and the Action Plan for a common VAT Area in the EU and a new VAT approach introduced e-commerce. Continue reading


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Japan – Update on proposed legislation proposed for Japanese consumption tax (JCT) on cross-border services


72266_web_R_by_mg-projects.at_pixelio.deAs previously reported, the Japanese government plans to tax the supply of electronic services by non-established service providers, as of 1 October 2015. The proposal is expected to pass through the legislation this spring.

According to the draft legislation the place of supply of electronic services will change from the origin principle (i.e. where the supplier is established) to the destination principle (i.e. to the place where the recipient is located). Continue reading


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E-books – ECJ rules reduced VAT rate is not applicable


PwC_R_Jolene.Visser_SouthAfrica_Jhb_P_CW_0013.JPGThe ECJ today delivered its long awaited judgments in the infringements procedures against France and Luxemburg for the application of the reduced VAT rates to e-books.

The court held that in line with VAT Directive and Implementing Regulation e-books qualify as electronically supplied services, in respect of which the reduced VAT rates cannot be applied. Continue reading


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Iceland – increase of reduced VAT rate applicable to e-books from 7% to 11%


Technology - using an iPad outside PwC office, PwC_R_NYC_Technology_56.jpgIn Iceland the reduced VAT rate applicable to e-books and electronically published music increased from 7% to 11% as of 1 January 2015. Therefore, it must be ensured that you account for VAT on such sales at the appropriate rates. You can access further information of the overall Icelandic tax rules in 2015 here. Continue reading


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Finland – Supreme Administrative Court decision on the VAT treatment of non-printed books after ECJ decision (K Oy – C-219/13)


PwC_Teetasse_EN2015 seems to start with book related VAT news in the EU. After the ECJ’s judgment in the K Oy case (C-219/13), the Finnish Supreme Administrative Court (“SAC”) delivered its ruling at the end of December. Continue reading