Austria’s Ministry of Finance released a statement for taxpayers on the upcoming changes to the country’s value-added tax regime for e-commerce.
The changes are being introduced across the European Union from July 1, 2021. They are intended to simplify VAT rules for goods sold online and introduce new obligations on online marketplaces to require them to contribute in the fight against tax fraud.
In its June 14, 2021, statement, the Ministry said Austrian authorities are ready to implement the changes. It noted a doubling in the volume of packages reaching Austrian borders between 2019 and 2021. This, it said, demonstrates the need for action to ensure fairness for domestic brick and mortar stores, which it hoped would be supported by the removal of the VAT exemption for low value consignments of under EUR22.
“From July 1, 2021, the implementation of new EU customs … Read More »
On June 10, Kenya unveiled its 2021-22 budget, which had a BEPS focus, and contained a number of changes to the country’s international tax and value-added tax rules.
The Budget confirmed the introduction of new country-by-country (CbC) reporting requirements, based on the OECD BEPS Action Plan framework, for multinational groups. Reporting will be required for financial periods beginning from January 1, 2022, with a CbC report due within 12 months of the end of the relevant fiscal period.
The legislation also looks to amend the country’s permanent establishment provisions, introduces new provisions to deny treaty benefits in inappropriate circumstances, and allows companies to carry forward their losses indefinitely.
There will be considerable changes also for digital marketplaces and their business users. Those selling goods via marketplaces or digital platforms to Kenyan consumers will be required to obtain a tax identification number, and VAT … Read More »
The headline development this week has been the support voiced by finance ministers from the G7 countries for the US-backed global minimum corporate tax proposals that have been under discussion recently.
Meeting on June 5, the G7 finance ministers agreed that the new international tax architecture being discussed to resolve the tax challenges of the digitalized economy should include a minimum corporate tax burden for multinationals of no less than 15 percent.
During two-day talks in London, the finance ministers from the United States, Japan, Germany, Britain, France, Italy, and Canada agreed in principle to a global minimum rate of 15 percent, applied on a per-country basis.
According to a statement issued by the UK Government after the meeting, the ministers further voiced support for OECD proposals on international tax reform, agreeing “the principles of an ambitious two Pillar global solution to tackle … Read More »
The US Government has unveiled more domestically-focused anti-avoidance plans, to complement its international proposals, having set out measures to close the “tax gap” in the United States – the difference between the taxes owed and actually paid.
According to Treasury analysis, the tax gap totalled nearly USD600bn in 2019 and will rise to about USD7 trillion over the course of the next decade if left unaddressed – roughly equal to 15 percent of taxes owed.
Initiatives to close the tax gap were outlined in a recent report, which revealed that as a first step, the Biden Administration had made a multi-year commitment to “rebuild the IRS” with sustained funding. In total, it has pledged USD80bn in additional resources over the next decade. Funding would go to modernizing IT systems, improving data analytics and hiring experts dedicated to complex enforcement activities.
For more information … Read More »