The VAT & Invoicing Requirements Update March 2012

Transcription

1 The VAT & Invoicing Requirements Update March 2012 Indirect taxes are a massive potential expense. For buyers and sellers of goods and services, how invoices are prepared and processed can affect a company's ability to avoid the imposition of expensive VAT and other indirect taxes. The VAT & Invoicing Requirements Helpdesk provides companies with a practical and easy-to-use online database featuring country-by-country information on invoicing requirements in 60 countries around the world. This update highlights a few of the recent developments and changes from the period of January March 2012 that are covered in more detail within the VAT & Invoicing Requirements Helpdesk. For more information on the VAT & Invoicing Requirements Helpdesk, please visit or contact us at info@lawincontext.com. INSIDE THIS ISSUE Key Country Developments for : Africa and the Middle East Israel South Africa United Arab Emirates (UAE) The Americas Venezuela Asia Pacific China Fiji Europe Cyprus Germany Greece Ireland Lithuania Sweden Client Alerts VAT/GST Supply Chains Professional Development Training Site Demonstrations with Free Trial Access! VAT and Invoicing Requirements Helpdesk Country Coverage LawInContext Contact Information

2 Key Country Developments Africa and the Middle East ISRAEL Value Added Tax (VAT) Rate Reduction for 2013 The VAT rate remains at 16% until December 31, 2012, as the scheduled reversion to 15.5% was postponed until January 1, See the homepage of the Israel country report and topic: Rates. SOUTH AFRICA Invoicing Requirements To view a revision to data requirements where invoicing is concerned Supplier Data (Table A, Row 9), see topic: Invoicing Requirements. UNITED ARAB EMIRATES (UAE) Indefinite Suspension of the VAT Law The Gulf Cooperation Council (GCC) countries have delayed the application of VAT. See the homepage of the United Arab Emirates country report. The Americas VENEZUELA General Rules on the Issuance and Preparation of Invoices The National Integrated Service of Customs and Tax Administration (SENIAT) issued Administrative Order No. 071 providing the general rules for the issuance and preparation of invoices and other documents. For more information, see the homepage of the Venezuela country report.

3 Asia Pacific CHINA Shanghai Pilot Program As of January 1, 2012, certain industries in Shanghai are subject to Value Added Tax (VAT) instead of Business Tax (BT) under the pilot program. See the homepage of the China country report and topic: Rates. Tax Rates under the Shanghai Pilot Program The VAT rates applicable to small-scale VAT taxpayers; export of services; and, certain industries in Shanghai, respectively, are available in topic: Rates. Prepaid Import VAT Prepaid import VAT may be considered as an input VAT credit if a formal invoice is issued. For more information, see topic: Invoicing Requirements (Table M Example Cases). FIJI VAT Exemption for the Supply of an Aircraft Used for Commercial Air Transport The supply of an aircraft used for commercial air transport services shall be treated as an exempt supply, subject to the prior written approval from the Minister of Finance, under Section 9(A), Decree No. 44 of See the homepage of the Fiji country report and topic: Rates. VAT Registration under the 2012 Budget The 2012 Budget introduced various changes, including an increase in the registration threshold from FJD50,000 to FJD100,000 in annual turnover, and the filing of only one annual return for small and medium enterprises with gross annual turnover below FJD300,000. These changes were implemented on January 1, For more information, see the homepage of the Fiji country report. Europe CYPRUS Reduced VAT Rate on the Purchase or Construction of Private Dwelling Houses The purchase or construction of private dwelling houses is subject to a reduced VAT rate of 5% under certain conditions. See the homepage of the Cyprus country report.

4 European Court Decision - Society for Worldwide Interbank Financial Telecommunications (SWIFT) Services According to the European Court's decision re: C-350/10 Nordea Pankki Suomi Oyj Cyprus, SWIFT services do not meet the requirements to qualify as an exemption from the imposition of VAT. For more information, see the homepage of the Cyprus country report and topic: Rates. GERMANY Electronic Invoicing The legislation process to facilitate electronic invoicing with reduced formal requirements is now completed, in compliance with the European Union Directive. Taxpayers may refer to the Explanatory Notes on VAT invoicing rules published by the Taxation Customs Union Directorate-General for clarifications regarding the application of the new rules. See the homepage of the Germany country report for more information. GREECE VAT Rates Applicable to Supply of Food and Drinks Certain supplies of food and drinks are currently subject to the standard VAT rate (23% and 16% in the Aegean islands). For more details, see the homepage of the Greece country report and topic: Rates. IRELAND New VAT Rate Effective January 1, 2012, the standard VAT rate is now 23% from 21%. For more details, see the homepage of the Ireland country report and topic: Rates. Reduced VAT Rate Reduced VAT rate of 9% now applies to goods and services related to tourism, including hotels and restaurants. See topic: Rates. Invoicing Requirements See topics: Invoicing Requirements to view revisions to data requirements where invoicing is concerned Financial Data (Table D, Rows 11 and 14), Additional information if the supply of goods and services is reverse charged or VAT/GST exempt (Table E, Row 3), and Example Cases (Table M, Row 3).

5 LITHUANIA Cancellation of the Reduced VAT Rates for Certain Goods and Services As of January 1, 2012, the reduced VAT rates for certain goods and services are no longer applicable except for the 9% reduced VAT rate for books and non-periodical publications. For more information, see the homepage of the Lithuania country report. SWEDEN Cancellation of the Reduced VAT Rates for Certain Goods and Services Reduced VAT Rate on Restaurant and Catering Services. On November 23, 2011, the Swedish parliament decided to reduce the VAT rate applicable to restaurant and catering services from 25% to 12%, effective January 1, See the homepage of the Sweden country report and topic: Rates. Client Alert Baker & McKenzie (Belgium) Tax Alert January 2012: Notaries Public and Bailiffs are Subject to VAT Effective January 1, 2012 while Attorneys Remain Exempt. See the homepage of the Belgium country report. VAT/GST Supply Chains Professional Development Training Sign-up for a global professional development webinar program co-sponsored by Baker & McKenzie and LawInContext highlighting developments on key VAT issues. This webinar-based training program is designed for those working for buyers and sellers of goods and services that may be subject to value added tax (VAT) and other indirect taxes. The course will provide practical insights on the management of VAT with specific attention to VAT/GST and supply chains of goods and/or services. Following the introductory session, each of the 60 or 90 minute sessions will focus on a specific geographical area with VAT specialists from Baker & McKenzie sharing their knowledge of their respective jurisdictions. This year's program will include a new session focused on VAT implications for e-commerce. For details and registration please click here. Schedule: Session 1: Introduction Wednesday, April 4, am London / 10 am Zurich / 4pm Singapore and April 4, am New York / 4 pm London / 5 pm Zurich

6 Session 2: Europe Wednesday April 11, am London / 10 am Zurich / 4 pm Singapore and Wednesday April 11, am New York / 4 pm London / 5 pm Zurich Session 3:Asia Pacific Tuesday April 17, 2012 (April 18, Asia Pacific Morning Session) 9 pm New York / 6 pm Los Angeles / 9 am Shanghai (April 18) / 11:00 am Sydney (April 18) and Wednesday, April 18, am London / 10 am Zurich / 2:30 pm Mumbai / 4 pm Singapore Session 4: Indirect Taxation and the Americas Wednesday April 25, am Los Angeles / 11 am New York / 12 pm Sao Paulo / 4 pm London / 5 pm Zurich Session 5: E-Commerce and VAT Wednesday May 02, am London / 10 am Zurich / 4 pm Singapore and May 02, am New York / 4 pm London / 5 pm Zurich Site Demonstrations with Free Trial Access! LawInContext is pleased to offer web-based site demonstrations with free trial access to the VAT & Invoicing Requirements Helpdesk. Please contact: Chris Hargraves christopher.hargraves@lawincontext.com +41 (0)

7 The VAT and Invoicing Requirements Country Coverage The Americas Argentina Brazil Canada Chile United States Venezuela Africa and the Middle East Bahrain Cyprus Egypt Israel Jordan Kenya Kuwait Saudi Arabia South Africa Turkey United Arab Emirates Asia Pacific Australia China Fiji Hong Kong India Indonesia Japan Korea (South) Malaysia New Zealand Philippines Singapore Taiwan Thailand Vietnam Europe Austria Belgium Bulgaria Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia

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