As anticipated in our recent post tonight’s Budget announced new law in relation to the GST treatment of digital products and other services imported by Australian consumers, based on the OECD guidelines for the taxation of cross-border intangibles. The new law will apply to supplies made on or after 1 July 2017. The closing date for the submission of comments on the draft legislation is 7 July 2015, which does not give affected taxpayers long to consult on the process.
On 6 May the EU Commission announced its strategy for Digital Single Market. The aim is to further simplify and harmonize the applicable VAT and legislative rules to e-biz and e-commerce (in particular re telecommunication and copyrights) as well as to reduce the administrative burden companies are facing in this field.
Korea joins the group of countries which require non-established companies to register and account for on their B2C sales of electronic service into South Korea.
The VAT law has recently been amended to apply VAT to the supplies of electronic services (e.g. applications, games, music, films, electronic documents, software, etc.) purchased from non-resident service providers (i.e. offshore app developers or through offshore open markets app stores).
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.
On 9 April 2015, the Australian Treasurer announced that the government will be introducing new GST measures aimed at overseas companies supplying digital services into Australia. The Treasurer stated that “a company providing intangible services into Australia, such as media services or so on, wherever they are located they should charge GST on those services.”
Specific details of the proposed changes are not available yet, however, they are widely anticipated to be announced in the May 2015 Budget (on 12 May 2015).
On 1 January 2015, the new EU 2015 VAT rules came into effect changing the place of taxation in respect of all supplies of telecommunications, broadcasting and e-services to consumers in the EU, from the (single) place where the supplier is located to the (multiple) places where the customers belong.
Following the recent National Budget speech in South Africa, various proposals were tabled for consideration including a proposed amendment to the Electronic Services Regulation No. 37489, dated 28 March 2014.
Albania joined the group of countries which require non-established e-service providers to register for VAT for supplies made to private individuals.
Effective from 1 January 2015 the Albanian VAT legislation deems the place of supply of “telecommunication, transmission and electronic services” to non-taxable persons to be where the non-taxable person receiving the service is “placed, has a permanent address or resides usually”, regardless of the place where the supplier is established.