Australia, as well as many other jurisdictions including New Zealand and Switzerland, are implementing new rules regarding the application of the goods and services tax (GST) or value added tax (VAT) to the supply of low value goods to consumers.
Changes are expected from April 2019 concerning the taxation of electronic services in South Africa. All non-resident suppliers of e-services (if not specifically excluded from the revised regulations) will have a potential VAT registration liability in South Africa if the total value of their supplies exceeds R1 million (approx. 70’000 USD) in any twelve-month period.
For further details, please see the tax alert from PwC South Africa:
A significant GST matter reflecting brave new policy globally
The NZ Government announced last week that it is seeking consultation on the best way to collect GST on online purchases, by private NZ consumers, of imported low value goods (LVGs) under NZ$400 (approx. USD 280). If enacted, the new rules will apply from 1 October 2019.
This is a significant issue which has been discussed by the OECD, governments and regulators around the world. If enacted as currently proposed, the new LVG rules will be broadly consistent with the introduction of NZ’s remote services rules (implemented in October 2016).
The March 27, 2018 Québec budget proposes to expand the mandatory Québec Sales Tax (QST) registration rules for non-residents of Québec making digital supplies to Québec recipients. Specifically, registration will be required for:
- non-residents of Canada that make supplies of incorporeal moveable property (IPP) and services to specified Québec consumers
- residents of Canada that reside outside Québec and make supplies of corporeal moveable property, IPP and services to specified Québec consumers.
For further Information, please see the attached Newsletter.
We are delighted to invite you to our next global indirect tax webcast :
South Africa: VAT on the supply of electronic services -proposed reforms
Date: 9 April 2018
Time 3pm BST, 10am Eastern
South Africa has proposed extensive reforms for electronic services supplies (“ESS”) which were announced in the draft electronic services Regulation on 21 February 2018. The draft regulation would repeal the current Regulation that sets out those services that are regarded as “electronic services”. The new Regulation if enacted will come into effect on 1 October 2018.
In this webcast we’ll focus on the following aspects:
- The current electronic services Regulation
- Proposed changes to the Regulation and a discussion on which services may now fall under ESS
- Who is required to register and account for VAT in South Africa?: The concept of electronic agent, B2B/B2C distinction
We will also discuss other aspects that businesses need to consider including the VAT registration process and filing timeframes.
You will also be able to ask the panel questions during this live webcast.
To Access the Webcast (Via PC or Mobile Device):
- Click on the following link to open the webcsast: https://event.webcasts.com/starthere.jsp?ei=1187040&tp_key=217b9e72c4
- Complete the required registration fields and select “Submit”. The webcast will open to enable you to view the presentation.
We do hope you can join us.
|Mon 9 Apr 2018 15:00 – 15:30 London|
Following years of changes in the indirect tax area, now also from direct tax side comes an EU proposal that will bring significant changes in the taxation of online businesses. Both the draft directive concerning long-term solution and the interim solution could bring radical changes for companies with a “significant digital presence”.
Please see PwC Newsletter for further detail
The NZ remote services (RS) rules have been in force since 1 October 2016 and are regarded as a remarkable success by NZ Inland Revenue. Over 150 offshore sellers have registered and more than NZ$125 million of annual GST has been generated – the GST collected is more than 4 times the original estimates. NZ Inland Revenue deserves credit for the informative education campaign on the RS rules and efficient service when the rules first came in.
The Swiss VAT law was recently changed. From 1 January 2018 onwards, any person or business with global turnover of CHF 100’000 or more may be liable to VAT starting from the first Swiss franc of turnover in Switzerland. This means that if you want to continue doing business in Switzerland, you need to register with the tax authority.
If you are looking for a solution that allows you to continue doing business in Switzerland without breaking the bank, PwC’s Smart VAT may be the right option for you. PwC’s Smart VAT is an online platform that allows you to do the following:
- Register for Swiss VAT and obtain a Swiss VAT number
- Appoint PwC as your fiscal representative to deal with the tax authority.
- Register for filing the quarterly Swiss VAT returns by electronic means
- Prepare quarterly VAT returns for electronic filing
- Access letters and queries from the tax authority and provide your replies
The European Parliament has backed, by 590 votes to 8 with 10 abstentions, the EU Commission’s proposal to bring the VAT treatment of electronic publications into line with those publications to which the Member States can apply a reduced rate. The proposal now requires unanimous approval by the EU Council.
You can find further Information on the vote in the attached proposal (see below link) and on the European Parliament’s Website.