All posts by Zsolt Tenczer

About Zsolt Tenczer

Senior Manager PwC Switzerland email: zsolt.x.tenczer@ch.pwc.com Mobile: +41-79-580-5058 Office: +41-58-792-4560

I started my career at the Hungarian Tax Authority in the last millenium at the dawn of the internet. Joined PwC in 1999 on top of the ebiz boom, when we thought online business will revolutionise the economy in 5 years. I specialized on VAT or more generally on indirect taxes. After several years spent in the Hungarian indirect tax practice, I moved to Zurich, Switzerland where I am working as a senior manager in the International VAT team and Network Driver for the Global Indirect Tax Network of PwC.

South Africa – Revised e-business regulations will become effective from April 2019

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:

https://www.pwc.co.za/en/assets/pdf/taxalert/tax-alert-vat-treatment-of-supply-of-electronic-services.pdf

 

Australia – Framework questions for a possible digital tax

The   Australian Treasury released its digital economy tax discussion paper:
Comments are due 30 November 2018. The key substantive sections seem to be located in the Appendix, which sets out some of the items being considered in terms of potential unilateral “interim” measures pending broader OECD alignment – both digital advertising and online marketplace operators are mentioned as potential target taxpayers/services and a digital services tax or some similar type of tax on revenue is certainly being considered closely. 
Please see further details in PwC Australia’s information leaflet:

Canada – New QST registration rules for digital supplies by non-resident suppliers

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.

pwc-2018-quebec-budget-new-qst-registration-rules-digital-supplies-non-resident-suppliers-2018-04-en

 

Webcast: South Africa – VAT on the supply of electronic services -proposed reforms

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):

We do hope you can join us.

When
Mon 9 Apr 2018 15:00 – 15:30 London

European Commission proposes new rules on the taxation of the digital economy

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

PwC Newsalert EUDTG

 

Registration liability in Switzerland for ebiz providers

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

 

EU Parliament voted for reduced rate on e-books

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.

Reduced rate on e-books

Australian GST changes from 1 July 2017

1 July 2017, supplies of things other than goods or real property made to an ‘Australian consumer’ will be connected with Australia and subject to GST. The Australian provisions are broader than some other jurisdictions and essentially anything other than goods or real property are caught, and if an entity’s GST turnover exceeds the registration turnover threshold of AUD 75,000, it would be required to register for GST in Australia. Non-resident suppliers will be able to access a limited and simplified GST registration, although they can also register under the full registration procedure.

Where supplies of inbound intangibles are made through an Electronic Distribution Platform (EDP), the GST liability on these supplies would shift to the operator of the EDP (i.e. generally, online marketplaces that act as intermediaries). The Australian Taxation Office (ATO) has released a draft Law Companion Guideline (LCG 2017/D4) dealing with the EDP provisions.

In addition, under proposals still before Parliament (the Treasury Laws Amendment (Goods and Services Tax (GST) Low Value Goods) Bill 2017), low-value goods (AUD 1,000 and under) supplied by overseas retailers to Australian consumers would become taxable supplies  beginning 1 July 2017. The Bill was referred to the Senate Economics Legislation Committee which recommended that the implementation of the measures be delayed to 1 July 2018. The Bill is listed to be debated in Parliament in June 2017.

Please see the attached newsletter for further details.

Australia-gst-changes-13jun17

Webcast Recording: 2017 Changes to New Zeeland GST / Remote services

  • 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.

https://event.webcasts.com/viewer/event.jsp?ei=1136925

 

 

Global indirect tax webcast: Australian GST ​reforms ​ 

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.