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.
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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.
Further to our previous blog post, the South African Revenue Service (“SARS”) is planning to implement new VAT legislation which targets eservices provided by foreign (non-established) businesses to customers located in South Africa.
We have mentioned that at the end of August PwC South Africa was going to have a meeting with SARS and the National Treasury on this topic, in respect of which we are now pleased to provide you with an update. All parties agreed at the meeting that there are a number of issues that need to be addressed in respect of the proposed amendments. Nevertheless, there was consensus that the amendments need to proceed as a matter of priority, to ensure that there is no loss of tax revenue on these types of supplies, particularly as this is an area where trade is growing.
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A few months ago we have started to monitor the up- and down-times of the VIES application (as explained in more details here). While VIES had its “ups and downs” in the past its performance has increased substantially in August.
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The Malaysian tax authority has recently issued guidelines on the taxation of electronic commerce in Malaysia. The document provides guidance on the tax treatment of e-commerce transactions, including scope of the tax liability, treatment of servers and websites in determining the location of the ecommerce income, issues on withholding tax and double taxation and examples of the various business models with relevant explanations.
A new approach to the internet taxation
While Malaysia has not implement the VAT taxation (it applies sales tax) it has introduced a unique way to tax ebiz. This is effected by imposing a withholding tax (“WHT”) liability on the Malaysian recipients (both B2B and B2C) in relation to any royalty type payments made to non-Malaysian companies. Find out more