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.
- 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!
As you may already know, starting from 1 January 2017 new rules regarding VAT on digital services supplied by non-Russian entities to Russian customers come into force. Under the new rules, non-Russian companies supplying digital services to individuals will be obliged to register in Russia for VAT purposes and pay Russian VAT. B2B supplies of digital services will also be VATable and such VAT should be withheld from payment to foreign supplier. Given that there is only one month left prior these rules come into force, we would like to draw your attention to some issues currently seen in respect of introduction of VAT on digital services.
Indirect tax team of PwC Russia is delighted to invite you to a webcast on the matter which will take place on 14 December 2016 (9:00 am US Pacific; 12:00 pm US Eastern, 17:00 GMT, 18:00 CET, 20:00 Moscow time). Estimated duration of the webcast is 45 minutes + Q&A.
During the webcast we will cover, in particular, the following matters:
- Registration procedure, including some insight from the tax authorities (required documents and similar issues);
- Compliance matters (project of VAT return, supporting documents, information required to fill the VAT return in and other);
- Unclear methodological issues, including:
- Differences in determination of the place of location of the buyer between Russian and EU rules;
- Under what circumstances the liabilities to register and pay Russian VAT may remain with an intermediary;
- What is the point of taxation for Russian VAT purposes;
- Are any exemptions applicable for digital services;
- How to avoid double taxation;
- Control, enforcement and overall tax environment in Russia.
- Actions to be taken in advance (pricing, commercial arrangements, changes to internal systems, etc.).
The speakers of the event are from PwC Russia ‘s team dealing with a number of projects in this field. We also currently discuss the possibility of participation in this event with representatives of Russian Federal Tax Service involved in taxation of digital services. There will be the opportunity to ask questions during the webcast.
If you plan to attend the webcast we would appreciate if you could let us know. This will allow us to plan for technological capacity accordingly. Please send a short confirmation e-mail to Igor Zafirov at firstname.lastname@example.org. If you have any preliminary questions or would like to receive materials in advance, please mention this in the note.
We do hope that you can join us for this event. To join the webcast, please follow the instructions below.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.
To Access the Webcast (via PC or Mobile Device):
Click on the following link to open the webcast: https://pwc-emeaec.webex.com/pwc-emeaec/onstage/g.php?MTID=e2142c43ab0abad5b8ff2c299076ac14a
Complete the required registration fields and select “Submit”. You may be asked to install a plugin to view the webcast. We recommend to connect 5-10 minutes before to test sound and video settings.
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 made in the pre-registration period, will be effective from 1 January 2015.
In Hungary, under the Act on Telecommunications Tax, telecom companies are subject to a new tax calculated on the basis of phone calls initiated and messages (SMS, MMS) sent by their subscribers. The new act took effect on 1 July 2012. The tax is payable by the service providers and the tax base is calculated on the basis of the total time of calls initiated and the number of messages sent from the call number of the subscriber, or, in the absence of a subscription, the call number registered at the service provider. The tax rates are HUF 2 per minute started for initiated phone calls and HUF 2 per message sent.
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