Michaela Merz


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Webcast: Poland – Revolutionary future


There’s an important change in VAT which you should know about if you generate revenues in Poland: from 1 April 2020 a new, uniform control file called JPK_VAT will replace the currently existing form. This is a crucial step in the Polish Ministry of Finance’s plan to abolish the VAT declaration requirement in 2020. In a nutshell, the new file could mean that VAT returns are no longer needed. Continue reading


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Mexico – New proposed VAT laws for 2020


The Executive Branch of Mexico’s federal government filed last September 8th, the 2020 Budget to the Congress. Among the relevant changes included in the Budget 2020 are those related to the Value Added Tax Law (VATL).

As of April 2020 (if approved) nonresident entities that provide digital services would be subject to 16% VAT rate if the recipient is located within Mexico, and the service is provided through applications or digital content, over the internet, and the process is primarily automatized. Such VAT will be determined upon the payment of the service rendered. Continue reading


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UNITED KINGDOM: UK firms will receive customs numbers that will let them trade with EU after Brexit


Thousands of British firms will finally be given crucial paperwork that allows them to continue trading with the EU after a no-deal Brexit. After months of demands from businesses, more than 88’000 VAT-registered companies will be given a registration number in the next two weeks that allows EU customs authorities to identify them.

Without the paperwork, known as an Economic Operator Registration and Identification (EORI) number, UK firms would not be allowed to trade with the EU after 31 October 2019.

 

Image source: unsplash.com


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USA: President Trump announces additional tariffs of 10% on ‘List 4’ China imports


President Trump on August 1 announced via Twitter that, beginning on September 1, the United States will impose additional Section 301 duties of 10% on Chinese-origin products with an annual trade value of approximately $300 billion, covered by List 4.

President Trump had agreed in June not to impose more tariffs while the two sides tried to reach a trade deal, but said August 1 that China has reneged on its agreement to buy agricultural products from the United States in large quantities, and also did not fulfill its commitment to stop the sale of fentanyl into the United States.

The announcement follows the office of the US Trade Representative (USTR)’s May publication of a notice in the Federal Register proposing additional Section 301 duties of up to 25% on the List 4 products. (For prior coverage of the List 4 tariffs, see PwC Insights, USTR proposes more tariffs on long list of China imports, May 15, 2019.)

Products that will be affected by the tariff increase include essentially all products not previously included in Lists 1-3, including all apparel, footwear, and manufactured textile products, as well as common consumer goods such as cellphones, televisions, toilet seats, and pillows. The proposed product list excludes pharmaceuticals, certain pharmaceutical inputs, select medical goods, rare earth materials, and critical minerals. Product exclusions granted by the USTR with respect to Lists 1-3 would not be affected.

 

The Takeaway

Now that President Trump has announced that additional duties on almost all remaining Chinese-origin products will begin in one month, US companies engaging in business with China need to assess their duty exposure. List 4 reinforces the importance of those companies taking action aimed at making their trade function and supply chains as efficient as possible.

Companies in previously unaffected industries need to re-examine their import profiles and supply chains, including the use of available analytical tools, to determine potential impacts and explore mitigation strategies.

 

For a deeper discussion regarding the Section 301 tariffs and how your business may be able to mitigate risks in the changing trade environment, please contact:

Simeon Probst, Partner
Customs, Trade and Indirect Taxes, PwC Basel
Tel. +41 58 792 53 51
simeon.probst@ch.pwc.com

 

Image source: unsplash.com


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Turkey: Only a Turkish resident entity can act as importer


In accordance with the Turkish VAT Law, importation of goods and services is subject to VAT, and the taxpayer for the importation is defined as the importer. In other words, the importer of record is the party which imports the goods. Please note that tax ID is required for importation procedures; therefore, only a Turkish resident entity may conduct importation. Continue reading


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CANADA: No more surtax on steel and aluminium as from 20, May 2019


On May 17, 2019, Global Affairs Canada released a joint statement with the United States, announcing the elimination (which became effective May 20, 2019) of all tariffs imposed by the United States under section 232 of the Trade Expansion act of 1962 (19 USC §1862) – duties on steel and aluminum, and all retaliatory tariffs imposed by Canada

Both countries have also agreed to terminate all pending litigation between them in the World Trade Organization, with respect to the section 232 duties on steel and aluminum and Canada’s retaliatory surtax. Continue reading


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UAE: Dubai Customs introduces new benefits for air shipments completed by courier companies as from 1 of July 2019


Dubai Customs has decided to provide additional customs benefits to air shipments completed by courier companies to facilitate and reduce the cost of exporting or transiting low value consignment goods in/from Dubai.

Dubai Customs has recently issued the Customs Notice No. (4/2019) to announce further benefits for courier companies that process export, transit and re-export declarations via the Dubai electronic clearance system (Mirsal II). The new benefits are applicable to air shipments only, and represent an important measure to facilitate the export, transit and re-export of low value consignments by courier companies. One of the main beneficiaries of this development are e-commerce businesses that ship goods from distribution centers located in Dubai to regional and global markets. The new facilities shall be effective as of 1 July 2019. Continue reading