Global indirect tax news update - October 2012
There are updates on the harmonization of the Quebec Sales Tax with the federal GST, the transitional rules on the elimination of the Harmonized Sales Tax in British Columbia and the introduction of Harmonized Sales Tax in Prince Edward Island.
There is a proposal to amend the VAT rates.
Australia’s ultimate court of appeal has ruled that Qantas was liable to pay GST on domestic airfares in cases in which passengers failed to travel. Proposed improvements to the processing of low value parcels may enable the AUD 1,000 low value importation threshold for GST and customs duty to be lowered.
Two recent court cases have ruled on the concept of “sale in the course of import” and on the tax treatment of the sale of natural gas for transport to other states.
There have been further developments on a proposed Financial Transaction Tax in the EU, and the European Commission has launched a public consultation on reduced VAT rates throughout the EU.
The Court of Justice of the European Union has issued a decision in a German case regarding unregistered intermediaries in a triangular intra-EU movement of goods. The German Ministry of Finance has published a draft amendment of the regulations regarding the evidence needed for intra-community supplies.
The 2013 budget law proposals include changes to the VAT rules and excise duties. For Intrastat reporting purposes, the tax authorities are eliminating the use of the IDEP software as from 2013.