PwC's ebiz & ecommerce tax portal In year 2015 and beyond

Luxembourg – increase of VAT rates from 1 January 2015

Luxembourg – increase of VAT rates from 1 January 2015

As already anticipated in 2013 Luxemburg will increase its VAT rates as of 1 January 2015 to balance the loss of VAT resulting from the new B2C 2015 changes. Subject to the Luxemburg Parliament passing the proposed changes VAT rates will be increased as follows:

  • the standard rate from 15% to 17%;
  • the intermediary rate from 12% to 14%and
  • the reduced rate from 6% to 8%.

You can find further information on the VAT and other tax changes here or you can contact Mr, Laurent Grençon at laurent.grencon@lu.pwc.com or +352 49 4848 2060

Bitcoin – the rise of virtual currencies and their VAT implications

Bitcoin – the rise of virtual currencies and their VAT implications

In the last couple of years virtual currencies become more popular. Recently we can see that more and also well established businesses are accepting this as payment method every day, e.g. Dell, Overstock.com or Expedia – just to name a few completely different businesses. We already posted some updates on virtual currencies (here, here , here and here). In this update we focus on bitcoin, being one of the most widely known virtual currency and the VAT questions it has already triggered.

What is this and how it works?

Bitcoins and other virtual currencies are also referred to as crypto-currencies. It refers to the ...

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Czech Republic: introduction of reduced VAT rate from 1 January 2015

Czech Republic: introduction of reduced VAT rate from 1 January 2015

The Czech Republic is going to introduce a new VAT rate into its VAT legislation with effect from 1 January 2015.

On 6 November, the president of the Czech Republic signed the amendment to the current VAT law introducing a VAT rate of 10% from 1 January 2015. As a result of this, the Czech VAT law will have two reduced VAT rates.

The new VAT rate of 10% will apply to the following supplies:

  • supplies of books,
  • supplies of medicines,
  • supplies of pharmaceuticals and,
  • supplies of baby food.

What does it mean for you?

Businesses should review their contracts to identify whether their supplies will be subject to the new reduced rate. ...

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EU 2015 VAT Changes – Results of PwC’s 2015 Impact and Readiness Survey

EU 2015 VAT Changes - Results of PwC's 2015 Impact and Readiness Survey

As indicated at our recent B2C 2015 work group event in Brussels PwC recently conducted a “2015 Impact and Readiness Survey” for which we invited businesses from across all sectors (telecom, broadcasting and eservice providers) and all geographical regions.We launched this survey with the aim of gathering data on the impact of the EU 2015 VAT changes on affected businesses. The survey also testes how ready businesses feel to be able to deal with the imminent changes.

We have now concluded the survey – which brought up some interesting themes and results – and are happy to share with you the summary report of our findings.

If you have ...

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Czech Virtual Currency – Another Distribution step

Czech Virtual Currency - Another Distribution step

The Czech virtual currency, Czech Crown Coin (officially named by the authors “CZC”) which started the distribution of the pre-mined CZC in August 2014, is distributing a next set of 100,000 CZC to the first 1,000 EU based individuals who have registered and obtained the so called “myID” via the official website of CZC. This should increase the amount of CZC in the circulation as well as to support its usage and importance on the global level.

As indicated by the CEO of CZC, the way how the Czech virtual currency is distributed to the public is rather unique. First of all, the actual release is free of charge. Furthermore, ...

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France – B2C 2015 VAT chages – free event in Paris – 3 November 2014

France - B2C 2015 VAT chages - free event in Paris - 3 November 2014

The French tax authorities together with the Enterprise Europe Network Paris Ile-de-France Centre and the European Commission will held a free of charge conference in Paris on 3 November 2014 to provide guidance on the new EU rules which will apply from 1 January 2015 regarding the B2C supply of telecommunication services, television and radio broadcasting, and electronically supplied services.

  • Conference date: 3 November 2014
  • Time: 9.30am to 1.30pm
  • Venue: French Economy and Finance Ministry, Paris

For registration details please click here.

Hungary – Creative taxation: Internet Tax proposed

Hungary – Creative taxation: Internet Tax proposed

Earlier this week the Hungarian government submitted its proposed tax bill for 2015. One of the most interesting changes is the proposed introduction of the “Internet tax” that will be imposed on Internet service providers at a rate of HUF 150 (approx. USD 0.60) for every gigabyte of data or part thereof. By way of example, downloading a movie in HD quality (8.5 GB) would attract a tax charge of approx. USD 5 or the download of a 6GB game would have an additional cost of approx. USD 4 according to the original version of the proposal. You may expect that providers will try to recharge this cost to their customers, which makes ...

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Japan: Legislation proposed for new Japanese consumption tax (JCT) on cross-border service transactions

Japan: Legislation proposed for new Japanese consumption tax (JCT) on cross-border service transactions

Current Rules

Japan’s current JCT regime was established in 1989 – before the rise of the digital economy. Accordingly, the taxation of B2C supply of eservices by non-established companies to Japanese customers was not considered and currently these are not subject to JCT.

This provides an unfair advantage to non-established eservice providers compared to Japanese businesses in this field, which has become more apparent since the JCT rate increased form 5% to 8%, with another increase to 10% estimated from 1 October 2015.

Reforming the rules

The Japanese government took the discussion further in its fifth meeting of the ...

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Vienna Conference “The Future of VAT in a Digital Global Economy” – Key note presentation on Intermediated delivery and third party billing’

Vienna Conference

From 24 to 26 September 2014, over 150 experts in indirect taxation have come together in Vienna to discuss critical issues of VAT in a Digital Global Economy.

Organizations like the OECD, European Commission, IMF and others teamed up with key stakeholders from business and with government representatives, as well as with leading experts from the global tax advisory business.

At the Conference, the EU 2015 VAT webportal with rates and rules in the EU 28 Member States was announced to be launched shortly in October.

Enclosed my key note presentation on ‘Intermediated delivery and third party billing: Implications for the operation ...

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Belgium – Bitcoin Trading Exempt from VAT … for now

Belgium – Bitcoin Trading Exempt from VAT … for now

In a recent decision issued for an online Bitcoin trading platform, the Belgian tax authorities have confirmed that the trading of Bitcoins and other virtual currencies is similar to the activity of an intermediary negotiating in securities and other negotiable instruments and, as a consequence, is exempt from VAT under the Belgian VAT code provision implementing Article 135(1)(d) of the EU VAT Directive. As a result, the activities should be treated as exempt from VAT and Bitcoin and alike trading platforms should not charge VAT to their customers with respect to their exchange services. On the other hand, those platforms have no ...

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