Barely a week after we revealed seven VAT changes in seven days, a number of further updates have been announced by authorities in four more countries: Portugal, Ecuador, Canada and Poland.
Here’s the latest details from four important announcements around the world you’ll need to act upon over the coming weeks:
Portugal has recently implemented three out of four ‘2020 VAT quick fixes’ identified by the country to improve its VAT system. What’s more, it has backdated these regulations to 1st January 2020; the date all EU member states were required to incorporate quick fixes into local laws.
The three regulations concern the simplification measure for call-off stock transactions, determination of intra-EU transport within chain transactions and making a valid VAT number a condition of applying for VAT exemptions for intra-community deliveries of goods.
The fourth quick fix – relating to the proof of transport to support VAT exemptions for intra-community deliveries of goods – did not have to be officially transposed into national law.
New rules implemented this week (16 September 2020) require 12% of Ecuadorian VAT to be remitted on sales of digital services made to consumers in Ecuador by non-resident suppliers. A list of affected digital services providers was recently published and will be updated on a regular basis to include all suppliers that must adhere to the new law.
In the province of British Columbia, overseas suppliers of digital services will be required to register and charge a Provincial Sales Tax of 7% on revenues over CA$10,000. Digital services include all e-sales such as software and the requirement comes into effect on 1st April 2021. British Columbia is the third Canadian province to introduce such a regulation after Quebec and Saskatchewan.
From 1st October 2020, businesses registered for VAT in Poland will no longer have to complete and submit VAT returns. Instead, the existing return will be replaced by a new, expanded SAF-T (Standard Audit File for Tax) is a file type based on the XML standard. It is created in a standard readable format from data exports taken from accounting records. SAF-T is used internationally to ensure the fast and secure digital transfer of tax information. It is known for its high level of security, ability to simplify the collection of tax data and simple readability due to its standardised format. file. This will require certain details – including goods and services codes and procedures indicators – that have not been included to date.
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