As an update to our previous webcasts on the 2015 EU VAT changes to electronically supplied services, we are pleased to inform you that we organize a follow-up webcast on August 22, 2013 at 12:00PM (EDT) to address the agreement reached by the EU Ecofin Council on June 21, 2013.
The council agreed upon the VAT Implementing Regulation addressing the new treatment for sales of electronically supplied services (e-services) by EU established sellers to EU private individuals effective January 1, 2015. The new rules will require an EU established seller to account for VAT for such sales at the rates where the EU private individuals are located rather than the EU established seller’s location as, historically, it has been done. The list of services considered e-services is broad and includes mobile applications, downloadable or cloud accessible games and music, and online subscription services.
Find out more
Effective January 1, 2014, West Virginia expands the definition of a “retailer engaging in business in this state” for sales and use tax purposes to include affiliates which operate a website or Internet business within the state. Specifically, “any retailer that is related to, or part of a unitary business with, a person, entity or business that . . . is a subsidiary of the retailer, or is related to, or unitary with, the retailer as a related entity, a related member or part of a unitary business” that meets one of the following criteria will be required to collect and remit taxes in West Virginia: Find out more
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
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]
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
Find out more
It might well happen that in the not so far future all US online vendors with over $1 million in annual online revenue will be required to pay state and local taxes to the governments that their customers reside in. There are more than 9.600 different state and local tax jurisdictions within the US. This news makes issues related to the upcoming EU VAT 2015 ebiz changes look like a piece of cake.
A federal Marketplace Fairness Act was submitted to the US Congress in February 2013 and aims to substantially reform the taxation of the ecommerce industry in the US. PwC’s summary on the bill can be accessed here. For some more information on the taxation of internet transaction in the US we suggest you to read this report. Find out more
For those of you who have missed our US webcast of 14 March 2013 on the 2015 EU VAT changes to electronically supplied services: you can access its recording here.
Find out more
Please join PwC’s Value Added Tax Practice for a webcast on Thursday, March 14th from 12:00 to 1:00pm ET.
Webcast will focus on the challenges that sellers of electronically delivered content face when selling to customers in the European Union and elsewhere.
The European Union (EU) has long required EU established businesses to account for VAT, at the rate where the business is established, on sales of electronically supplied services (eservices), such as mobile applications, downloadable or cloud accessible games and music, and subscriptions to websites, to private individuals located in the EU. Find out more