Editor's Letter

Dear Readers

The year 2020 is now well under way. This new decade is when digitalisation will surely dominate some of the major changes in the field of VAT and customs, as current developments in Poland, Italy and India already show.

This new decade for BDO also marks a change in BDO’s Chair of the VAT Center of Excellence from Ivor Feerick, to myself. I am the Head of the UK Indirect Tax at BDO in the UK, based in London, and I look forward to stepping into this additional role, which includes being the editor of this newsletter. Let me first of all thank Ivor for his excellent work over the past 9 years and wish you, the readers of our newsletter, all the best for 2020.

As mentioned by Ivor in his last editor’s letter to the 4-2019 edition the EU Member States have implemented the so-called quick fixes. However, not all of the Member States succeeded in completing this process in time. This means that it is important to be aware of some of the peculiarities that apply in some of the EU Member States. We have included articles on the implementation of the quick fixes in Germany, Latvia and Denmark in this edition of our newsletter. On 31 January 2020 the United Kingdom left the EU. A transitional period applies until and including 31 December 2020 during which EU VAT and customs legislation will still apply. However considering the upcoming end of this transitional period businesses should look at their future position, if they have not yet done so.

In the US all but two States have enacted economic nexus rules following the Wayfair Supreme Court that is now 18 months old. The UAE celebrates the two year anniversary of its VAT system with some amendments to the legislation, while in Saudi Arabia operating rules of the tax appeal process have been approved. It is important to follow these rules strictly to avoid the rejection of an appeal.

All the above shows that a careful approach of your VAT and customs obligations is essential. Of course, my BDO international colleagues and I are here to provide any assistance that may be required.

In this issue:

ARGENTINA: Tax incentive regime for capital goods, information technology, and telecommunications
CHINA: Recent announcements related to VAT collection matters and the incremental VAT refund policy
CZECH REPUBLIC: Information about application of Quick Fixes in the Czech Republic
DENMARK: The Danish implementation of EU’s Quick Fixes
THE EUROPEAN UNION: New developments in VAT e-commerce rules
GERMANY: Changes in German VAT law - Implementation of new special warehousing scheme (also consignment)
INDIA: E-invoicing under GST Law
INDONESIA: The latest value added tax facility in Indonesia
ITALY: New VAT provisions for 2020 and beyond
LATVIA: Amendments made to the value added tax for 2020
LUXEMBOURG:
- Luxembourg authorised by the Council of Europe to increase its small entrepreneurs’ threshold
- Luxembourg extends the super-reduced VAT rate to activities of writers, composers, and performing artists
MALAYSIA: Expansion of scope of service tax and service tax exemptions
NETHERLANDS:
- Real estate transfer tax and transformation projects in the Netherlands
- VAT taxable person - Independency criterion
PANAMA: Panamanian VAT withholding agents
POLAND: New schema will replace VAT returns
ROMANIA: Amendments related to the definition of the exporter
SAUDI ARABIA: Operating rules for the tax appeal process published
SINGAPORE: GST treatment for transactions involving digital payment tokens
SPAIN:
- Main changes related to the Canary Islands Indirect Tax
- New criterion for the use and enjoyment rule
- Statute of limitation for the deadline for requesting VAT refunds
SRI LANKA: Tax cuts and rate slashes to boost economic growth
UNITED ARAB EMIRATES: Two years of VAT
UNITED STATES: 18 months after the Wayfair decision, all but 2 states have enacted economic nexus rules
ZIMBABWE: Latest VAT and customs developments in Zimbabwe