Swiss VAT law changes as per 1/1/2018

The Swiss VAT law changed. From 1 January 2018 onwards, any person or business with global turnover of CHF 100’000 or more may be liable to VAT starting from the first franc of turnover in Switzerland. This means that if you want to continue doing business in Switzerland, you need to register with the tax authority.
Please find HERE the most important changes.Read More »

Germany: Ministry of Finance publishes a new Decree on VAT grouping and input VAT recovery for holdco’s

Please find attached a newsflash from our German colleagues regarding the new Decree on VAT grouping and input VAT recover for holdco’s:

The Decree will apply to VAT groups and holdcos from  31 December 2018, but local tax authorities have the authority to allow an earlier application with explicit reference to the Decree for all transactions performed (it is not allowed to single out transactions from the application). Read More »

Poland – Standard Audit File (Jednolity Plik Kontrolny) to be introduced as per 1 of July 2016

748722_original_R_by_verbraucherpapst_pixelio.deAccording to the changes in Polish tax law, which will come into force as of 1st July, there will be a new obligation for the taxpayers to have so called Standard Audit File (in Polish: “Jednolity Plik Kontrolny” or “JPK”) – special reporting form, in a special format [determined by Polish tax authorities] that will allow tax inspectors to have an easy access to accounting / tax data / records. Read More »

Hungary – Data export requirements effective as from 1 of January 2016

Photo_RGB_R_CAN_TR_D1_CM1_6401.jpgCorus Entertainment - One of Canada's largest media companies with a focus on children's televisionAs of 1 January 2016 in accordance with a new regulation (Decree of the Ministry for National Economy No. 23/2014, the „Invoicing Decree”) invoicing software must include a new function called “data export for tax authority review” (adóhatósági ellenőrzési adatszolgáltatás) and must be able to extract invoicing data either for a certain invoice (number) range or for a certain period. Read More »

USA – tax regulation of bitcoins and other crypto currencies

IRS (internal revenue service), the US tax authority, published this year (March 25, 2014) a clear guidance (Notice 2014-21) on how the tax principles apply to transactions involving bitcoins and other crypto currencies. It is not a new law but just an interpretation of how the existing law should be applied to the new technology. It describes how Bitcoin and other crypto currencies transactions should be taxed. Read More »

Poland – Bitcoin Mining subject to 23% VAT

Local Tax Authority in Lodz in Poland announced that the sale of mined bitcoins is subject to 23% VAT. The activity of mining is being seen as service by the local tax authority and for this service the place of service is where the customer is located. Therefore for local sales the VAT apply and has to be charged. For sales to foreign customers it is not needed to charge VAT. Read More »

Australia – tax guidance on bitcoin published on 20 August 2014

The Australian tax authority released a number of draft tax determinations and a guidance paper, in which it states that bitcoin and other cryptocurrencies are not money or foreign currency for taxation purposes. It is the view of the Australian Taxation Office that: Read More »

Germany: new limitation in the application of deemed intra-community supplies transition period until 1 of March 2013

Based on the opinion of the German Federal Ministry of Finance (Bundesfinanzministerium – BMF) the simplification rule is only applicable if the supplier transports the goods himself. In case the recipient organises the transport or the goods are transported by a third party freight forwarder, the simplification cannot be used. Germany has a simplification scheme in place which allows suppliers to treat the cross-border transaction as an intra-community transfer of own goods. In such a case, the supplier reports an intra-community supply in the EU member state of dispatch and an intra-community acquisition in Germany. The delivery to the recipient of the goods in Germany is treated as a domestic supply of goods and charged with local German VAT.

This simplification rule is very useful as the supplier has only a limited administrative effort. Furthermore, the VAT numbers of the recipients neither need to be requested nor verified on regular basis (which might be a huge administrative burden).

The new limitation of the use of the simplification will not generate more revenue for the tax authority but it will create lots of administrative work which could be easily avoided.