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

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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USA: Internet Tax Freedom Act (ITFA) temporarily extended through 11 December 2014

USA:  Internet Tax Freedom Act (ITFA) temporarily extended through 11 December 2014

On September 18, 2014, President Obama signed House Joint Resolution 124, which includes provisions extending the Internet Tax Freedom Act (ITFA) through December 11. The Act was previously scheduled to expire November 1, 2014, and the extension gives Congress a chance to consider the ITFA’s long-term future during the lame-duck session after the midterm elections.

In detail

The Internet Tax Freedom Act Amendments of 2007, [House Resolution 3678], extended to November 1, 2014, a moratorium on the state and local taxation of Internet access and on multiple and discriminatory taxes on electronic commerce. While another extension of the ...

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October 1 – Pre-registration period for MOSS scheme starts

October 1 - Pre-registration period for MOSS scheme starts

On 1 October 2014 the pre-registration period in which EU and foreign suppliers alike can register for the Mini One Stop Shop regime has started. This pre-registration can be made on the website of the tax authority of the EU Member State that is chosen by ebusinesese for MOSS registration.

For non-EU suppliers, this could be practically any country in the EU. For EU entities, the country of establishment will be the country of MOSS registration.

The websites of tax authorities from several countries are already up and running, however there are still EU countries, where the online registration is still not possible.

Any registrations ...

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ECJ Decision (K Oy): VAT rate for non-printed books can only differ if they meet different needs for consumers

ECJ Decision (K Oy): VAT rate for non-printed books can only differ if they meet different needs for consumers

On 11 September 2014, the Court of Justice of the European Union (ECJ) gave its decision in K Oy regarding the question whether reduced rates for printed books should equally be applied to books published on another medium, or whether different VAT rates can be justified (case C-219/13 – click link) .

The Court has ruled that a selective application of the reduced VAT rates to printed books is not justified unless the printed books meet different needs for consumers as compared to books published on ‘other physical means of support’ (i.e. CD, DVD, USB stick).

The Court also finds that, to determine whether goods or services are ...

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Next meeting of PwC’s B2C 2015 Working Group: 15 October 2014

Next meeting of PwC’s B2C 2015 Working Group: 15 October 2014

Date: Wednesday, 15 October 2014 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.

From 1 January 2015, B2C supplies of telecommunications, broadcasting and electronically supplied services in the EU will be subject to VAT in the Member State where the customers belong. Businesses supplying those services to consumers in the EU, can make use of the Mini One Stop Shop (MOSS), a simplified procedure which allows them only to register for VAT in 1 EU country, regardless of how many other they are supplying to. ...

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PwC Global Billing Conference in Brussels – 21 October 2014

PwC Global Billing Conference in Brussels - 21 October 2014

On 21 October 2014, PwC will hold its 6th Global Billing Conference in Brussels to provide a 360° view on invoicing. Building further on five successful editions of the event, PwC Belgium, PwC Netherlands and PwC Germany will join forces to boost the conference’s international renown and reach.

In case we draw your interest, please find further details below:

Date: 21 October 2014

Venue: Diamant Brussels Conference & Business Centre Bd A. Reyerslaan 80 1030 Brussels

Fees: There is no charge to attend the conference.

If you are interested in joining the conference, please send us an e-mail.

Global conference “The Future of VAT in a Digital Global Economy” – Vienna – 24-26 September 2014

Global conference

What’s the future of VAT in a digital global economy? How are corporate, individual income taxes and VAT connected in a global digital economy?

Distinguished academics, policy makers from bodies such as the OECD, IMF and the EU Commission as well as practitioners and government representatives from all over the world will elaborate on the hottest topics regarding VAT related to the digitalisation of the global economy. They’ll be joined by leading PwC experts from the US (Peter Merrill), UK (Martin Blanche), Ireland (Tom Corbett), the Netherlands (Stef van Weeghel, Global Tax Policy Leader PwC), Sophie Claessens from the Belgian ...

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Czech virtual currency update

Czech virtual currency update

The new Czech virtual currency, Czech Crown Coin (officially named by the authors “CZC”) was for the first time offered to the public this week (Tuesday, 19th August) at noon, as part of a press conference held by its founders. The interest of the public in purchasing CZC was bigger than expected. The pre-mined amount released in the initial edition of 100,000 CZC was sold out within nine and half hours, whereby a third of this limited amount was sold already within the first hour! It is planned that within the next days, an additional set of 100,000 CZC will be offered to the public. After these ten days (on Friday, 29 ...

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