31 January 2017
In an effort to prevent VAT fraud the European Commission has put forward a proposal which will allow European Union (EU) member states to introduce the reverse charge on all domestic sales between businesses with a value over €10,000.
Currently, EU member states can only apply the reverse charge to sales in specific industries (such as mobile phones and precious metals). If the above proposal is accepted then it will mean the reverse charge can be applied across all sectors.
The reverse charge allows the business customer to account for the VAT on the transaction in their own VAT reporting. This removes the requirement for the supplier to charge VAT on the transaction which means that no cash payments of the VAT amounts are exchanged.
LATEST NEWS
Canada - British Columbia PST applied on digital...
From April 2021, the Canadian province of British Columbia imposed Provincial Sales Tax (PST) at 7% on income earned by non-resident providers of e-services...
SEE MORE
LATEST NEWS
Singapore to introduce GST on e-commerce imports
From 1 January 2023, the Singaporean government confirmed that it will introduce a Goods and Service Tax (GST) on imported sales of goods and non-digital...
SEE MORE
LATEST NEWS
Thailand to implement VAT on digital services from...
From September 2021, Thailand has confirmed it will introduce VAT at 7% on sales of electronic services by non-resident providers to consumers in the...
SEE MORE