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.