Global Indirect Tax Brief - December 2013

Tim Gillis - Head of Global Indirect Tax Services of KPMG:

With changes in indirect tax rates, rules and regulations happening around the world, the number of countries with news to share in GITB is growing. Twenty-seven KPMG member firms from around the world contributed to updates and insights in this edition of GITB.

As you read through the articles, you will see common themes of regulatory and legislative activity such as:

• a focus on indirect tax compliance audits
• implementation of anti-fraud measures
• changes in tax law to broaden the tax base
• the introduction of revision of customs policies.

All of this new activity – on top of the massive expansion of indirect taxes around the globe during the last 20 years – creates global complexity and can result in leaving potential value on the table. KPMG’s Global IndirectTax Services (GITS) seeks to cut through the complexity using our deep understanding and approaches to indirect tax. Simply put, KPMG’s network of indirect tax professionals around the world believes that:

1 the quality and structure of transaction-level data is critical to performance of the indirect tax function
2 automation of data interface transactions is readily available now and will become ubiquitous
3 through process orientation and greater use of technology, businesses can transform data into value
4 data analytics should be central to and a core activity of every businesses’ indirect tax function.

Businesses will have their work cut out for them in order to ensure their functions are prepared to face the global indirect challenges of today and tomorrow. Please read through the articles in this edition of GITB to find out the latest information you need to know.

Articles and countries included in this edition of GITB include:

Australia - ATO 2013-14 Compliance Program
Belgium - Recent evolutions with respect to customs and import VAT
Canada – Does your business have Canadian GST/HST obligations?
Chile – Recent VAT exemption changes for services supplied from Chile
China – New VAT grouping rules to benefit multinationals in China
Colombia – Claiming and applying VAT credit balances in Columbia
Croatia – Full harmonization of VAT system due to EU accession
Cyprus – VAT relief for owners of lessees of pleasure boats and yachts
France – VAT recovery rights of mixed holding companies: New French case law developments
Germany – EU agreement on place of supply interpretations for immovable property
India – Amendments to and impact of service tax on supplies made by restaurants and eateries
Italy – Removal of joint VAT payment responsibility for contractors
Japan - No new proposed changes to consumption tax in government’s 2013 Tax Reform
Malta – Mobile telephony services changes found not in violation of Authorization Directive
Mexico – New developments in e-invoicing
New Zealand – Non-residents now permitted to register for GST and claim input tax deductions
Peru – Strict conditions for VAT exemptions of exportation of services
Portugal – Rehabilitation of immovable property in urban and applicable benefits
Romania – The mandatory cash accounting system and why it failed
Russia – New rules on VAT treatment of bonuses
Singapore – New GST e-Tax Guide – Reimbursement and Disbursement
South Africa – Foreign e-commerce suppliers required to register for VAT in South Africa
Spain – New cash accounting scheme
Turkey – Recent court decision on VAT applicability in Turkish free trade zones
United Kingdom – The ongoing quest for VAT neutrality
United States – Often overlooked compliance burden of unclaimed property
Vietnam – Amendments to VAT law to take effect 1 January 2014

From: KPMG Global Indirect Tax Brief - December 2013