Welcome to our latest issue of the Global Indirect Tax Newsletter. We thank you for your continued appreciation and readership, and we hope that you continue to be safe and well.

We anticipate more developments in the broader application of indirect taxes particularly as businesses shift into online or digitally-enabled models. In order to deliver the most relevant updates to our readers, we have refocused this newsletter to cover not just VAT and GST updates but the broader spectrum of indirect taxes worldwide.

In this issue, read key updates on the continuing application of indirect taxes in the digital economy. You will find updates on the new UK VAT liability for online marketplaces, reporting obligations introduced for digital platforms, and new VAT e-commerce rules introduced by the European Union. There are also details about digital and data tax proposals in the United States.

As you have questions about any topic covered in this issue, or you have legal concerns on the topics covered, please feel free to contact our newsletter editors Jochen Meyer-Burow and Martin Morawski, or any of the authors listed.

Featured Insights

  • Europe: Brexit — Three key changes to United Kingdom VAT from 1 January 2021
  • New guidance document on the import and export of low value consignments
  • Belgium: DAC 7 light reporting obligation(s) introduced for digital platforms in the sharing and gig economy

International

  • Will Pillar 1 gain impetus and reach a consensus-based solution in 2021?
  • Eleventh meeting of the OECD/G20 Inclusive Framework on BEPS
  • European Union / EMEA
  • European Commission adopts proposal to adapt decision-making process for interpreting certain VAT concepts
  • VAT rules for financial and insurance services consultation
  • Africa: AfCFTA is now operational — what to expect in the first few months
  • European Union: The European Union approach on the concept of intervention of the VAT fixed establishment with specific focus on the Italian and Czech approach and the latest developments
  • Europe: European Member States reach consensus on reporting obligation for digital platform (DAC 7)
  • France: Permanent establishment — an extensive approach adopted by the French Supreme Court
  • Germany: Tour operator margin scheme
  • Germany: Implementation of the Directive (EU) 2019/771 on the sale of goods, upcoming amendments to the German Civil Code governing the sale of goods with digital elements and other aspects of sales contracts
  • Luxembourg: Company cars made available to (cross-border) employees…always subject to VAT?
  • Spain: The general directorate of taxes and tax court update on indemnity payments and Spanish VAT refund after Brexit
  • Spain: The new tax convention with Japan
  • Sweden: New ruling — VAT liability for co-location services
  • Sweden: New proposal for a compensation scheme for companies affected by the new COVID-19 Act
  • Turkey: Amendment to the export condition on the implementation of income tax withholding incentive for free trade zones

Asia Pacific

  • Hong Kong: Stamp duty update
  • Japan: New invoicing requirements for consumption tax (JCT)
  • Vietnam: New draft regulation governing taxation of e-commerce activities
  • Vietnam: Export manufacturers entitled to import duty exemption for imported materials subcontracted to third parties in outsourcing activities

North America

  • Canada: Government proposing to increase GST/HST registration and collection requirements for non-residents
  • United States: New York administrative law judge determines that online security services are subject to sales tax
  • United States: SCOTUS invites acting solicitor general to weigh in on ongoing dispute between Massachusetts and New Hampshire regarding controversial COVID-19
    sourcing rule
  • United States: New year, new digital and data tax proposals

Latin America

  • Argentina: Adherence to the regime for the promotion of the knowledge economy
  • Brazil: The Brazilian Supreme Court decides to apply an exclusive ISS levy to software transactions, with 'modulation of effects'
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