Michaela Merz

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Italy: reduced VAT rate of 4% on e-books from 1 January 2015

PwC_R_Vinesh.Naidoo_Yoginee.Sharma_Vernie.Slabert_SouthAfrica_Jhb_P_CW_0017.JPGThe Italian Parliament passed the 2015 Finance Law on 22 December, which applies the 4% VAT rate to e-books as of 1 January 2015. According to the legislation any publication that is identified by an ISBN code (International Standard Book Number) and transmitted through any physical or electronic means, should be considered as a book and, as a result, subject to the 4% reduced VAT rate. Continue reading

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Japan: new legislation to tax cross-border electronic services provided by non-established companies to come soon

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


Italy – Web Tax legislation as from 1 of July 2014

The Italian Parliament approved on December 23, 2013, the Finance Law for 2014 (so called “Legge di Stabilità” – no. 147/2013). Such a law has provided for the set up of the so called “web tax”.

At a first stage, the web tax should have been both for VAT and corporation income tax perspectives. The VAT aspects of the web tax has now been repealed (please see below).  Continue reading

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Portugal – new administrative obligation for transportation of goods as from 1 of July 2013

All goods transported within the Portuguese territory to taxpayers must be accompanied by transport documents issued in accordance with the Portuguese legislation. As from the 1 of July 2013 there is a new obligation to submit the information of the transport documents to the Tax Authority prior to the beginning of the transport. Continue reading

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USA – Market Place Fairness Act – update

The Senate of the US Congress has passed the Market Place Fairness Act  on 6 May with bi-partisan support by a vote of 69 to 27. The legislation is meant to put online vendors on equal standing with “brick and mortar” stores in regard to tax collection. Currently most of the online vendors do not charge sales tax unless they have some sort of physical presence (i.e. “nexus”) in the state where they are selling to, Continue reading

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USA – one stop shop for internet sales (Marketplace Fairness Act)

US legislators want to introduce a basis for a system as quick as possible, which resembles the European one stop shop system for internet sales. Foreseen is a process where the online retailers have to collect sales tax, according to the state the customer resides in. This new piece of legislation is called Marketplace Fairness Act. The proposal was submitted last week; the vote is expected this week. The White House as well as big online retailers are backing this proposal. Continue reading