- Are you an offshore business supplying digital content (such as movies, music, games, downloads, apps, e-books) or remote services (such as softwre, gambling, webinars, web design, e-publishing) to New Zealand customers?
- Do you provide more traditional online services (such as IT, consultancy, legal advisory or insurance)?
- Do you provide an electronic platform for a principal offshore supplier of digital products and services?
If the answer is affirmative on any of the above question, please watch the recording of our webcasts where specialists from our New Zealand ITX practice will discuss changes to GS for remote sellers of digital services.
Time: 20 April 2017 at 8:30am AEST, (12:30 am CET, 6:30 pm Eastern 19 April 2017)
On 1 July 2017 new GST rules will apply on the supply of inbound intangibles to Australian consumers. There are also proposed measures to introduce GST on the Import of Low Value Goods into Australia. With less than three months until the commencement of the Inbound intangibles measures and potentially the low value goods measures, this webcast will be an opportunity to hear from both PwC Indirect Tax Specialists (Brady Dever, Partner and Suzanne Kneen, Director) and Senior Members of the Australian Taxation Office (ATO), Adrian Preston-Loh (Assistant Commissioner, Internationals, Indirect Tax) Amy James-Velagic (A/g Assistant Commissioner, GST Technical Product Leadership, Indirect Tax) and Jo Drum (Director, GST Technical Product Leadership, Indirect Tax).
PwC will provide an overview of these measures including details on when suppliers will be liable under the new system (highlighting some of the differences in the Australian legislation) and some of the practical questions that have arisen in determining whether sales are made to “Australian consumers” and an overview of the limited registration process and simplified reporting works. The ATO will provide insights into some of the practical issues; the ATO’s implementation strategy for this new system; and the ATO’s approach and compliance strategies for the proposed new law.
PwC and the ATO will provide an update on the low value goods measures (these are proposed to commence from 1 July 2017 but have not yet been passed by Parliament, but have been referred to the Senate Economics Committee which will be reporting back on the measures in early May).
You will have an opportunity to ask questions and interact with the ATO. This is a great opportunity to hear directly from the ATO, to understand the current approach of the ATO in addressing these matters and to convey practical considerations you are experiencing. Please click here to register https://event.webcasts.com/starthere.jsp?ei=1139220
Please note that due to time zone differences we will also have a recorded version of the webcast available afterwards.
On 1 December the European Commission adopted a bundle of measures to improve the tax climate for e-commerce companies within the EU. With these proposals, the Commission follows up on its commitments to creating a digital single market for Europe and the Action Plan for a common VAT Area in the EU. The overall aim of the proposed measures is to create an even playing field between traditional business and e-commerce. VAT compliance costs should fall sharply.
The European Commission’s proposals specifically relate to:
- new rules allowing companies that sell goods online, easily able to fulfill all their VAT obligations in the EU in one place;
- simplification of the VAT rules for start-ups and micro-enterprises that sell online: under € 10,000 VAT on cross-border sales will be handled domestically. SMEs will then be able to use
- simpler procedures for cross-border sales to € 100,000, which they can do business more easily;
- measures to combat VAT fraud from outside the EU, which could distort the market and cause unfair competition; and
- the possibility for Member States m to reduce VAT rates for e-publications such as e-books and online newspapers.
On 15 December 2016 at 15:00 CET, Stephen Dale, Partner and ITX Country Leader at PwC Société D’Avocats in France and Johnathan Davies, Director at PwC in the UK, two leading experts in this area, will be conducting a 30 minute global webcast to brief you on the following issues:
The Commission’s proposed measures including:
- Extending the current One Stop Shop concept to all cross-border e-commerce, including distance sales
- Introducing common EU-wide simplification measures to help small start-up e-commerce businesses,
- Stream lining audits in this sector (home country audits), and
- Removing the VAT exemption for the importation of small consignments from suppliers in third countries
- Possible alignment of the VAT rates (reduced) on e-books and printed books
- The potential impact of these measures on business
- How these measures link with wider global developments in Indirect Tax.
There will be time for questions and answers with the speakers.
To Access the Webcast (Via PC or Mobile Device):
Click on the following link to open the webcast: https://event.webcasts.com/starthere.jsp?ei=1127777
Complete the required registration fields and select “Submit”. The webcast will open to enable you to view the presentation.
Audio for this webcast will be heard through your computer speakers. If you have problems hearing audio, please post a question in the Q&A box to alert the presenters.
A recorded version of the webinar will be available afterwards on the same link.
We do hope that you can join us!
Further to our previous post the New Zealand Government submitted its legislative proposal in relation to the GST law reform on offshore online purchases of services.
The Government has followed the modern VAT/GST practices and OECD recommendations and has decided to reform the GST system. The reforms focus on two main areas:
- Digital products and cross border services, in respect of which draft legislation proposes imposing GST on digital products and other services purchased by New Zealand private consumers from offshore sellers. The new rules will apply from 1 October 2016.
- Low value imported goods, where a consultation paper is being worked on regarding the options to impose of GST and duties on low value imported goods. PwC New Zealand expects the document to be released in April 2016.
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As previously reported here and here the amended South Korean VAT law for the supply of e-services from overseas has been effective since 1 July 2015. Accordingly, overseas service providers shall apply for the simplified business registration by 20 July 2015.
The Korean National Tax Service (“NTS”) recently issued a notification indicating that the website for the application of simplified business registration is still under construction. The website is expected to go-live on 10 July 2015. If a taxpayer would like to apply for the registration earlier than that, it is possible to complete a registration form and submit it via email to the NTS.
For further information please contact Changho Jo of PwC Korea or me.
Further to our previous posts on the Japanese Consumption Tax changes (here, here, here and here), at a recent explanatory session by the Japanese National Tax Agency (NTA) on 9 June 2015 the NTA advised that the special indication “the supplier is liable to account for consumption tax” on B2C invoices can be replaced by implying that the sale price is inclusive of consumption tax. E.g. “JPY 108,000 yen (including 8% consumption tax of JPY 8,000)”. In addition the registration number of a Registered Offshore Business Person is still required to be included in the invoice.
However, given the new Consumption Tax Law which still clearly stipulates that input tax credit on a taxable purchase of B2C Telecommunication Online Services on or after 1 October 2015 is only possible if the supplier is a “Registered Offshore Business Person” and the invoice or purchase receipt (which can be prepared electronically) includes the registration number of the supplier and the special indication that the supplier is liable to account for consumption tax. If there is no such indication on the B2C invoice, a business customer should ask for re-issuing the proper invoice pursuant to the new Consumption Tax Law to ensure the deductibility of input consumption tax.
For reference please also see PwC Japan’s newsletter of 12 June 2015 on “New Japanese consumption tax rules on cross-border digital services”.
For further information please contact Kotaku Kimu of PwC Japan or me.
The Belgian tax authorities submitted questions to the VAT Committee regarding the notion of electronically supplied services as referred to in the EU VAT Directive and the Implementing Regulation, the possible interaction of this type of services with other services and the issue of VAT exemption of such services.
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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.
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