UK VAT Report Begins

Posted on December 23rd, by Global Tax Weekly in Sales Tax. No Comments

The UK authorities have launched a consultation on VAT as it relates to the sharing economy in the UK.

In a new call for evidence on the need for reform of the UK’s VAT rules, the Government noted that the sharing economy (covering services such as ride-sharing and temporary accommodation) creates huge opportunities for the UK economy but also potentially presents certain challenges to the VAT tax base.

Specifically, the call for evidence noted the potential for long-term erosion of the VAT base due to consumers shifting their consumption to the sharing economy. Without reform, this erosion will take place, for instance, because individual suppliers are typically not required to charge and remit VAT because their turnover falls under the VAT registration threshold, the paper said. In addition, as they are not required to register for VAT, their payments of commission fees … Read More »

Canada Facilitates Home Office Deductions

Posted on December 18th, by Global Tax Weekly in Individual Taxation. No Comments

The Canada Revenue Office (CRA) has simplified the way employees can claim the home office expenses deduction and expanded eligibility for the 2020 tax year.

On December 15, 2020, the CRA said that employees who worked from home more than 50 percent of the time over a period of at least four consecutive weeks in 2020 due to COVID-19 will now be eligible to claim the home office expenses deduction for 2020. The use of a shorter qualifying period will mean that more employees can claim the deduction than would otherwise have been possible under longstanding practice.

The CRA also said that a new temporary flat rate method will allow eligible employees to claim a deduction of CAD2 for each day they worked at home in that period, plus any other days they worked from home in 2020 due to COVID-19, up … Read More »

France Implements Digital Services Tax

Posted on December 9th, by Global Tax Weekly in E-commerce. No Comments

France is putting into effect its proposal to impose a 3 percent DST on the revenue of revenue of digital companies providing advertising services, businesses selling user data for advertising purposes, and/or providers of intermediation services.

According to reports, France is now collecting its digital services tax from tech firms, with companies having been given notice that their 2020 DST is due.

Under the new French rules, companies with global revenues of EUR750m (USD811m) or more and French sales of at least EUR25m are required to pay the tax, which was approved by the French parliament on July 11, 2019, and applies to turnover realized in France since January 1, 2019.

The collection of DST instalments originally due in April and October 2020 was postponed until December 2020, in a bid to stop the United States from applying retaliatory tariffs on a range … Read More »

VAT To Return In Malaysia?

Posted on December 3rd, by Global Tax Weekly in Sales Tax. No Comments

In Malaysia, the Government is reportedly considering reintroducing goods and services tax.

Sales and Service Tax has applied in the country since September 1, 2018. It replaced the six percent goods and services tax – a VAT – which was effectively repealed when the rate was reduced to zero percent from June 1, 2018.

The state news agency reported that the possibility of reinstalling GST had been discussed in comments made by the Finance Minister to Maybank IB Research. The minister reportedly also discussed the potential to raise revenues through a carbon tax or digital tax, or by reining in tax breaks.

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