Indirect Tax News

Introduction

The transitional rules under the EU Carbon Border Adjustment Mechanism (CBAM) are now operative, and the Implementing Regulation sets out the transitional reporting obligations and methodology for calculating embedded emissions released during the production process. A registry has been set up for importers to comply with reporting obligations. 

We also include an article in this issue that looks at the complexities of the sales tax registration process in the U.S.

The indirect tax treatment of the supply of digital services continues to be a focal point for governments:

• New place of supply rules will be introduced in the EU for the live streaming of virtual events. 
• Nonresident suppliers of digital and other services to persons in Egypt must register, charge and collect VAT on the supply. 
• India requires domestic and foreign online gaming companies to charge a 28% GST on the full value of bets.
• Japan has proposed a “deemed supplier” on online digital platforms.
• New Zealand has proposed the introduction of a DST.
• Nonresidents providing electronic services to persons in Uganda are required to register and account for VAT and the scope of covered services has been expanded.

In other news, Brazil has approved an historic tax reform to restructure and simplify its constellation of indirect tax rules. The deadline for owners of underused residential property in Canada to file their UHT return is 31 October 2023, and new registration rules apply to importers. Germany will introduce e-invoicing in 2025 and has been granted a temporary derogation from the rules in the EU VAT directive. The Netherlands has updated its policy on the application of the VAT simplified triangular transaction rule in chain transactions to bring Dutch practice in line with CJEU jurisprudence. 

Learn about these developments and much more in Indirect Tax News, and be sure to read our multi-country summary of tax measures affecting plastic packaging.