Global indirect tax news update - September 2011
The results of the British Columbia Harmonized Sales Tax referendum call for the abolition of the tax and a return to Goods and Services Tax and Provincial Sales Tax.
New VAT rules apply to certain sales made by foreign residents to Mexican residents.
Texas has amended the rules establishing whether a retailer is engaged in business in the states for sales/use tax purposes. The State Comptroller also has clarified the concept of nexus for certain users of Internet hosting.
A VAT exemption for certain sales of meat has been extended.
A Full Court of the Federal Court has ruled that no taxable supply for VAT purposes was made by Qantas to "no show" passengers. Also, a report was published on the Inspector-General of Taxation's review of the Australian Tax Office's large business risk review and audit policies, procedures and practices.
Recent developments include a Finance Ministry's concept paper on the taxation of services; an increase in the Andhra Pradesh VAT rate; and mandatory e-filing for excise returns and annual statements, as well as for certain manufacturer reporting with respect to central VAT.
A new currency law requiring use of the Rupiah has entered into effect.
The government has terminated its investigation on imports of hot-rolled coils after determining that the imports are not a threat to the domestic steel industry.
The tax authorities have released a discussion document on GST and transactions with nonresident businesses. Also, a number of legislative changes to GST have been introduced into Parliament.
Recent VAT developments cover electronic invoicing, registration of foreign enterprises, various exemptions and input VAT rules.
The Supreme Administrative Court has ruled on the applicability of the "transfer of a business as a going concern" rule for VAT purposes.
A new hotel tax has been introduced.
The Parliament has approved draft legislation simplifying e-invoicing for VAT purposes.
A VAT suspension system has been introduced.
The VAT treatment of the sale of electronic services is to be revised.
The new standard VAT rate of 21% became effective on 17 September 2011. Other changes to the VAT rules address VAT warehouse exemptions for non-EU imports, VAT warehouse withdrawals, reporting exemptions, inactive VAT numbers and reduced penalties.
New rules address the transfer of a business for VAT purposes, the registration threshold and various tax payment codes.
The VAT rate for performing arts has been increased.
The government has decided to increase the VAT rate applied to electricity and natural gas in the Mainland.
A temporary reduction of the VAT rate applicable to the transfer of buildings has been proposed.
The First-tier Tribunal has ruled on the VAT treatment of temporary staff and a consultation document has been issued on simplifying the Climate Change Levy.
Visit the Global Indirect Tax News archive for issues from the past year.