As reported, the US Senate on May 6 passed, by a vote of 69-27, the Marketplace Fairness Act of 2013, which provides that full member states of the Streamlined Sales and Use Tax Agreement and non-member states that meet certain minimum simplification requirements may require remote sales tax collection. The Senate also passed a perfecting amendment by a vote of 70-24.
S. 743 is identical to the original version of the bill, S. 336, introduced on February 2. The legislation grants remote seller collection authority to states that are full members of the Streamlined Sales and Use Tax Agreement (SSUTA). States that are not SSUTA Find out more
The government proposes a 2% increase in the standard VAT rate from 17% to 19% in Montenegro. If the proposal is accepted by the Parliament, the VAT rate increases will take effect from 1 July 2013.
What does it mean for you
We recommend reviewing the VAT implications on your business operations in Montenegro due to these changes, to ensure full compliance with regard to VAT rules, rates and regulations. Systems must be adjusted and contracts may need to be reviewed. Please see news update on PwC’s GlobalVATOnline here.
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The Slovenian Parliament has approved an increase in the standard and reduces VAT rates. Subject to the approval from the National Council, the increases will be effective from 1 July 2013, as follows:
- Standard VAT rate: from 20% to 22%;
- Reduced VAT rate: from 8.5% to 9.5%;
No changes have been made to the list of goods/services which are subject to the reduced VAT rate.
What does it mean for you
We recommend reviewing the VAT implications on your business operations in Slovenia due to these changes, to ensure full compliance with regard to VAT rules, rates and Find out more
The results of the public consultation on the review of the existing legislation on VAT reduced rates are now available online.
A total of 333 contributions were received and the greatest number of submissions originated from Belgium (76), followed by those from Germany (65), France (52) and the United Kingdom (48).
The EU Commission’s summary report as well as an index and the individual contributions can be consulted via this TAXUD page (click-through to CIRCABC). Find out more
Effective April 3, 2013, certain types of software accessed via the internet or other wireless media are exempt from Idaho’s sales and use tax. Idaho taxpayers should be aware that this represents a reversal of the state’s prior treatment. [Idaho House Bill 243, enacted 4/3/13]
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According to a recently published press release, France is considering to apply a super reduced VAT rate for online press publications (2,1% instead of 19,6%) and this without the approval of Brussels.
As reported in previous posts, France and Luxembourg already started on 1 January 2012 to apply (super) reduced VAT rates for e-books (5,5% in France and 3% in Luxembourg) making them the cheapest countries to sell e-books in the whole EU.
The EU Commission saw this as an infringement against the EU VAT Directive and initiated infringement proceedings against both France and Luxembourg (Case No 2012/4080).
With this new proposal to Find out more
The Washington Department of Revenue released new regulations on the taxability of software and digital products. The two new regulations, WAC 458-20-15502 and -15503 were adopted February 25, 2013, and became effective March 28, 2013. The Department issued the new regulations to clarify the impacts of previous legislation taxing digital goods and to address other tax issues related to computer hardware, software, and computer services. Taxpayers engaged in selling software and digital products in Washington should review these regulations as they may provide clearer guidance for distinguishing between taxable and nontaxable digital goods, software, and services. [Computer Hardware, Software, and Digital Products, Washington Department of Revenue, WAC 458-20-155/15501/15502/15503] Find out more
US Senate has passed the Marketplace Fairness Act yesterday which aims at introducing collection of online sales tax in the US directly from online retailers.
Next stop: House of Representatives.
Here is the link to the text of the bill passed by the Sebate on 6 MAy 2013 and here an article which nicely summarizes pros and contras of the proposed bill.
On April 16, 2013, Kansas Governor Sam Brownback signed a new bill – S.B. 83, which generally creates a presumption that out-of-state retailers are doing business in the state for sales and use tax purposes based on the activities of other persons, applicable starting July 1, 2013.
The bill also adopts “click-through” nexus, applicable to sales made 90 days after the bill is published in the Kansas Register. Out-of-state retailers should be aware that, following the enactment of S.B. 83, the activities of an unrelated entity or person could potentially create sales and use tax nexus in Kansas.
Nexus based on activities of other persons
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In his recent “State of the Nation” speech Luxembourg’s Prime Minister, Jean-Claude Juncker announced that the standard VAT rate in Luxembourg will increase with effect from 1 January 2015 (i.e. from the date when the new VAT rules for B2C sales of eservices will become applicable in the EU). Mr. Juncker has explained, that this VAT rate increase should help Luxemburg to counterbalance the expected loss of the VAT revenues due to new VAT rules on eservices.
Current standard VAT rate in Luxembourg is 15%. Even though the new VAT rate has not been disclosed yet, we understand that the Luxembourg’s government intends to maintain the lowest standard VAT rate in the EU also after the proposed increase. This would mean that the new standard rate will have to be somewhere between 16% and 18%. Find out more