New rules in the Netherlands that disallow the inclusion in a Dutch VAT group of a foreign establishment that is part of a VAT group in another EU member state will have important consequences, particularly for the financial sector.
Elsewhere in the EU, the Czech Republic has consolidated its reduced VAT rates into a single rate, Italy has clarified the VAT treatment of crypto assets/NFTs, Luxembourg has extended its reverse charge, Poland is preparing for e-invoicing, guidance is provided on the operation of Spain’s new B2B e-invoicing and billing software requirements and Sweden’s administrative court has issued two decisions on the deduction of input VAT.
Two important developments in Asia are Japan’s proposal to require platform operators to remit JCT on behalf of foreign digital services businesses (measures similar to those in the EU) and a decision of the Singapore High Court that could affect businesses using a “direct selling” business model.
In the Americas, Argentina has increased the tax rate on foreign currency exchange transactions, Canada has proposed changes to the UHT to relieve certain taxpayers from the filing requirement and the U.S. has expanded its export controls on certain semiconductor and advance computing technologies supplied to China. Finally, companies operating in the U.S. should be aware of the numerous state and local taxes and reporting requirements.
Learn about these developments and VAT/GST rate changes for 2024 in BDO’s Indirect Tax News, and be sure to check out BDO’s new Pillar Two Implementation tracker.