Category Archives: News & alerts

Singapore – GST on Imported Digital Services—What is Your Game Plan?

 

Globally, the rapid growth of e-commerce in recent years has left tax administrators worldwide scrambling to find and implement mechanisms to secure a piece of the (untouched) digital tax pie.

Consumers are spending an ever-increasing amount on “digital services” such as games, streaming services and online news subscriptions and this is largely driven by the ubiquity of the smartphone and the vast array of mobile applications, which have changed forever the way which businesses reach out to and deliver services to their customers. The Internet of Things has also resulted in businesses gravitating towards “Product-as-a-Service” business models where the outcome of using the product is sold rather than the product itself.

German Federal Ministry decrees on joint VAT liability for onliny marketplaces

With effect from 1 January 2019, a new rule has been introduced in Germany to make the operator of an online marketplace jointy liable for German VAT no accounted for by the online traders on goods sold via the marketplace.

For further details please see the newsflash from PwC Germany:

https://blogs.pwc.de/steuern-und-recht/files/2019/03/VAT-Newsflash-02-2019.pdf

VAT-Newsflash-02-2019

 

 

 

New Zealand’s New GST Collection Model for Low Value Imported Goods

The latest New Zealand low value imported goods changes are another of many occurring globally in the e-commerce indirect taxes area. On December 5, 2018 the New Zealand government introduced into Parliament the Taxation Bill that is a landmark development proposing new rules that will require offshore sellers, from October 1, 2019, to register and account for Goods and Services Tax (‘‘GST’’) at 15 percent on supplies of low value imported goods (‘‘LVIGs’’) if sales to New Zealand private consumers in a 12-month period exceed NZ$60,000 ($41,380). The $60,000 threshold is the same GST registration threshold that applies to domestic businesses and offshore suppliers of cross-border remote services.

For detailed information please see the below link or the attached article from Eugen Trombitas, PwC NZ Partner and PwC Global E-commerce indirect taxes leader, published in Bloomberg International Tax News.

https://www.bna.com/insight-new-zealands-n57982094757/

NZ GST article

Latest EU proposals concerning e-commerce

The e-Commerce VAT package of the EU introduces simplification measures for intra-EU sales of electronic services from 2019 onwards, and also extends by 2021 the Mini One-Stop Shop to a One Stop Shop. Furthermore, new rules for electronic interfaces such as marketplaces or platforms will be introduced, which deem them for VAT purposes (in certain scenarios) to be the supplier of goods sold to customers in the EU and make them collect and pay the VAT on these sales.

Detailed implementation rules have been published în December on:

  • the extension of the scope of the Mini One Stop Shop (MOSS) to all types of services as well as to intra-community distance sales of goods and distance sales of imported goods from third countries – turning the MOSS into a One Stop Shop; and
  • the introduction of special provisions applicable to operators of electronic marketplaces, platform, portal or similar means with the effect that the these persons may be deemed to have received and supplied the goods itself applying from 1 January 2021.

The Proposal is available via this LINK and contains more detailed explanations of the following specific provisions.

Find out more

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

 

New Zealand – Low value goods – NZ’s new GST dimension in the global economy

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).

Find out more

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

 

New Zealand – update by Eugen Trombitas (PwC global ITX e-commerce leader)

Remote services

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.

Find out more

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