Not long ago we have updated you about the EU Commission’s infringement procedure against France related to their application of the super reduced VAT rates for ebooks. France and Luxembourg share the opinion that ebooks should be taxed as their physical contra-parts (as books), whereas the EU Commission has the opinion that under the current VAT Directive rules ebooks should be regarded as all other eservices and therefore taxed with the standard VAT rate.
Following the published case against France two weeks ago, the Court of Justice of the European Union (“ECJ”) has also published the EU Commission’s infringement procedure against ...Find out more →
Date: Wednesday, 11 December 2013 Timing: 9.30 – 16.30 CET Location: PwC Brussels office (address) Participation to the meeting is by invitation only. The meeting will be held in English and is free of charge. You will have seen that the 2015 Implementing Regulation has now been published in the Official Journal of the European Union after legal clean-up and translation. You can access it via this link.
To ensure the uniform application of this Implementing Regulation and building on the contributions received from different stakeholders (including PwC), the Commission services have started with the preparation of VAT Explanatory ...Find out more →
Two months have passed since our last VIES report two months; its time to take a look at how this very important site hosted by the European Commission has behaved in September and October 2013. The reasons why the VIES application is so important for ecommerce businesses are explained here.
September was an incredible month for the VIES site – it was the first month ever (at least since we are monitoring the site) with a 100% up-time. It seemed that the IT team working for the European Commission has finally managed to keep everything in a perfect working order.
A reasonable response time of below 1 second was ...Find out more →
We have been discussing the developments about the EU Commission’s infringement procedure against Luxemburg and France related to their application of the super reduced VAT rates for ebooks several times in the past (last time here). The EU Commission is of the view that under the current VAT Directive rules ebooks should be regarded as all other eservices and taxed with the standard VAT rate. Luxemburg and France are of the opinion that ebooks should be taxed as their physical contra-parts – i.e. as books.
As reported on PwC’s GlobalVATonline, the Court of Justice of the European Union (“ECJ”) has recently published the EU Commission’s ...Find out more →
The start of 2015 will bring the biggest single change to the EU VAT regime that telecom operators, broadcasters and others that provide eservices have seen in decades.
The legislation is expected to have a profound impact on e-services providers, particularly on their pricing and commercial strategy. As providers of these services take steps to adapt to the new legislation, the result will be either a sharp increase in the prices charged to many consumers or a cut in suppliers’ profit margins – neither of which is a desirable outcome.
In practice, companies based in the EU will be affected the most, as the rules change mostly for ...Find out more →
With the availability of high speed Internet access, smart phones, and tablets, it is not surprising that the global retail industry is experiencing a fundamental shift in how individual consumers research, select, and eventually purchase products. Individuals are shopping through a variety of different channels, some physical, some virtual, making for an easier and more streamlined shopping experience. E-commerce has quickly become a key channel for retailers to reach their customers. This embrace of digital technology and social media is creating a new landscape for retailers as they ensure that their policies and practices support ...Find out more →
On October 18, 2013, in a 6-1 decision, the Illinois Supreme Court ruled that the state’s click-through nexus law is pre-empted by the federal Internet Tax Freedom Act’s ban against ‘discriminatory taxes on electronic commerce.’ The court did not reach the issue regarding whether the click-through nexus provision violated the US Commerce Clause. [Performance Marketing Association, Inc. v. Hamer, Ill. Sup. Ct., #114496 (10/18/13)]
Effective July 1, 2011, Illinois enacted a click-through nexus law, in which retailers that directly or indirectly refer potential customers to the retailer by a link on a person’s Internet ...Find out more →
The EU Commission has published practical guidelines on the mini-one-stop-shop to prepare businesses for the new B2C VAT rules for telecoms, broadcasting and eservices, which will enter into force with 1 January 2015.
The aim is to help businesses to be fully prepared on time for the change-over, whereby VAT will be charged in the country where the customer is based.VAT will have to be collected by all providers of telecom, broadcasting and eservices, regardless whether they are established inside or outside of the EU.
The published guidelines focus on the information that will be requested by the EU countries from the providers to ...Find out more →
“Today’s tax systems were conceived in a pre-computer age. So it is no surprise that they often clash with the modern, digital economy. Taxation must not be an obstacle to all that is good about the digital revolution. Yet, we must also ensure that the digital sector plays fair and pays fair.” These are the words of Mr. Šemeta, EU Commissioner for Taxation, Customs, Statistics, Anti-fraud and Audit, published in the recent press release of the European Commission.
“The digital sector must contribute fairly to public finances. Currently corporate tax avoidance and aggressive tax planning are particularly problematic in the digital ...Find out more →
The special VAT regime (taxation of the margin) that applies to travel agents and to tour operators (incl. of on-line travel agencies) – the TOMS – has just recently been commented on in detail in eight judgments handed down by the Court of Justice of the European Union. The eight decisions all relate to the issue of whether the special VAT regime must only apply in a transaction between a travel agent and a “traveler” or whether the regime must apply to any transaction falling within the scope of that scheme between a travel agent and any client. One of the decisions involving Spain also dealt with a few separate issues – mostly ...Find out more →