Quebec introduces sales tax on digital sales to consumers

From 2019, Quebec will be the first Canadian province to introduce sales tax (QST) on sales made by non-resident providers of digital services to consumers residing in the province. At present, non-resident businesses providing digital services in Quebec do not have to charge QST on their sales. However, in an effort to remove the unfair… Read More

HMRC calls on online marketplaces to sign agreement tackling VAT fraud in the UK

During April 2018, HMRC asked all online marketplaces operating in the UK to sign an agreement to help tackle online VAT fraud. This agreement states that these online platforms have a responsibility to: Educate the sellers who use their online marketplaces in the UK, on their VAT obligations either by producing their own guidance or… Read More

ECJ judgement on the VAT treatment of travel agents supplies in Germany

The European Court of Justice (ECJ) has made its judgement in the case C-380/16 relating to the application of the special scheme for travel agents, referred to as the Tour Operators Margin Scheme (TOMS), in Germany. The court ruled that Germany failed to fulfil its obligations set under the EU VAT directive by: • Only… Read More

UK issue a further Split VAT Payment consultation

The UK tax authorities have issued a further public consultation relating to the adoption of Split Payments for e-commerce transactions in the country. If introduced it’s hoped that the mechanism will help to prevent online VAT fraud and would require the VAT-element of online sales to be paid directly to the UK tax authorities by… Read More

Iceland removes e-book VAT from 2019

From 1 January 2019, Iceland’s Ministry of Finance and Economic Affairs will reclassify electronic books as zero-rated for Value Added Tax. E-books are currently subject to the reduced VAT rate of 11% in Iceland, however as Iceland is not a member of the European Union (EU) they can decide their own VAT rates which has… Read More

Russia considers lowering VAT and duty exemption on imported goods

The Russian Ministry of Finance has proposed significantly lowering its import VAT and duty exemption threshold for goods imported into the country (“low value consignment relief”). Currently foreign suppliers can use this relief to import goods with a value under €1,000 VAT and custom duty free.  However, if introduced the threshold will be reduced to… Read More

REMINDER: Portugal – Import VAT reverse charge effective 1 March 2018

From 1 March 2018, Portugal has extended its current reverse charge mechanism on imports to include all goods imported into the country. Previously this was restricted to certain goods mentioned in the Portuguese VAT legislation. This will allow any VAT registered businesses to apply to the Portuguese tax authorities for authorisation to use this reverse… Read More

Czech Republic propose VAT amendments from 2019

From January 2019 the Czech Republic are proposing to amend their VAT legislation. Some of the changes include: The adoption of the new EU VAT rules for the treatment of single and multi-purpose vouchers – Please click here for our previous article explaining the new VAT treatments. Non-resident suppliers of e-services not having to charge Czech… Read More

UK Making Tax Digital: Legislation Published

The UK tax authority (HMRC) recently published a final version of the legislation that will introduce new digital reporting obligations from April 2019. As stated in our previous article, when introduced, businesses with a turnover greater than the VAT registration threshold of £85,000 will be required to use the system to provide summary tax data… Read More