From 1st January 2019, foreign suppliers of business-to-business (B2B) electronically supplied services are required to register with the Federal Tax Service in Russia.The method applied in 2018 whereby the Russian business customer collects and remits the VAT at the standard 18% rate to the tax authorities through the reverse charge mechanism is not applicable anymore. Continue reading
South Africa has proposed extensive reforms for electronic services supplies (“ESS”) which were announced in the draft electronic services Regulation on 21 February 2018. A recorded version of the Webcast is now available on our Webcast page. Continue reading
Norway introduced VAT on supplies from abroad of electronic services to consumers (B2C) as from 1 July 2011. VAT is collected through a simplified registration arrangement, called the VOES-scheme, similar to the MOSS scheme in the EU. Reporting of output VAT is done electronically on a quarterly basis, but VAT recovery is not possible through the scheme. Supplies of electronic services to Norwegian businesses (B2B) is VAT taxable on the purchasers hand via the reverse charge mechanism. Continue reading
Part of the EU’s ‘digital single market’ strategy, the proposals are aimed at facilitating the collection of VAT when consumers buy goods and services online. Continue reading
Russia’s State Duma passed at third reading a bill that would charge 18% VAT on the sale via the Internet of electronic services, games, music, books and video products, to Russians. Continue reading
The European Commission has launched a public consultation to help identify ways to simplify the Value-Added Tax (VAT) payments on cross-border e-commerce transactions in the EU.
This consultation is also part of the ongoing assessment of the new rules for VAT payments on cross-border telecommunications, broadcasting and electronic services which came into force last January. Continue reading
Currently the B2C supply of services by a non-established company to Japanese customers is not subject to Japanese consumption tax (JCT). This provides competitive advantage to non-established service providers of electronic services compared to Japanese businesses. Since the JCT rate increased from 5% to 8%, with another increase to 10% estimated from 1 October 2015 this advantage is increasing further. Continue reading