Issue 3 - March 2013

VAT News

Digital products and eCommerce continue to be hot topics in the VAT world. Of note this month is the proposal by the South African National Treasury that foreign businesses selling digital products to South African customers be required to register for VAT purposes in South Africa. Other developments include new rules on the offshore processing zero-rating rules in South Korea and the amnesty program in Mexico, allowing for significant reductions of combined tax, interest and penalty liabilities owed by taxpayers through 2012.

The newsletter also highlights the following items of interest:

  • VAT due diligence check rulings regarding Bulgarian cases by the ECJ
  • An ECJ judgment concerning defined benefit pension schemes and associated VAT exemption
  • New draft Financial Transactions Tax proposal presented by the European Commission
  • Late payment interest scheme introduced, increased standard and reduced rates, and changes in place of supply rule for services in Cyprus
  • VAT reclaim opportunity on portfolio management in Denmark
  • New VAT invoicing requirements in Estonia
  • An extension of the 2012 tax return filing date for the State of Hessen in Germany
  • A Bavarian Decree on late payment penalties in Germany
  • Recast VAT law in Latvia regarding the VAT treatment of low value gifts and samples
  • Amendments to the Fiscal Code in Romania with indirect tax changes
  • Technical VAT changes in Spain to align with EU legislation
  • Tax ruling clarifying the new reverse charge regime for construction services in Spain
  • A principal vs. agent dispute resolution for services physically performed by other parties in the UK
  • New Turnover tax introduced to replace VAT and/or corporate income tax for small and middle enterprises in Armenia
  • The issuance of four determinations on the GST treatment of telecommunications supplies in Australia
  • A public notice issued in China providing an opportunity to utilize excess input VAT in asset restructuring transactions
  • A regulation in Indonesia stating that natural gas is no longer subject to VAT


VAT News