Compliance Category: Actualizaciones de los países

Proposal of exempting VAT from basic goods

In a recent bill (House Bill-5504), the House of Representatives urged the government to exempt basic goods from VAT, including bread, raw and refined sugar, canned goods, instant noodles, biscuits, cooking oil, salt, laundry detergents, firewood and charcoal, candles, and drugs labelled “essential” by the Health Department.   

HB 5504 aims to ease the economic burden of rising prices and a falling peso for ordinary Filipinos.  As lead representative of this bill, Arlene Brosas, Assistant Minority Leader, pointed out that: “Removing the 12-percent VAT on basic goods consumed by poor families on a regular basis will dramatically ease their economic suffering amid skyrocketing prices, massive joblessness, and depressed wages”.   

Additionally, she noted that the revenues lost under the proposed VAT exemption could easily be recouped by imposing a wealth tax on the wealthiest Filipinos.  

Upcoming new format for VAT number

Belgium’s standard VAT registration number comprises of a ‘0’ followed by 9 digits. The VAT number in a country uniquely identifies taxpayers.  

As the current sequence of VAT numbers in Belgium is almost exhausted, the VAT number format is now in need of modification. It is expected that the number format will be exhausted within a year. 

To this effect, the Banque-Carrefour des Enterprises is proposing to issue ‘1’ prefixed numbers to the existing Belgium VAT number format. Existing VAT numbers will remain unchanged.  

This will require some action from businesses in terms of their accounting and ERP billing processes to accommodate the change.  

If implemented, the change may also require some modifications to Tungsten’s internal systems. We are closely monitoring timeframes for the expected VAT number format change, while also assessing the impact of the potential VAT number format change. Tungsten Network will implement any required changes to accommodate the new number format when required.  

KSeF and VAT groups

We have recently communicated about VAT groups in Poland. Poland permits the formation of VAT groups. These are advantageous for many reasons- one such reason being that transactions between members of the same VAT group are not subject to VAT. Moreover, VAT groups have the added benefit of less VAT-related administrative obligations for members within the group. The designated representative of the group is typically assigned responsibility for these commitments.  

Poland has established a draft law which considers VAT groups much more sharply in light of the upcoming Polish e-invoicing mandate. Much in the same way as a member of a VAT group is afforded responsibility to carry out other VAT-related obligations, a similar process will be conferred on a designated representative of a VAT group, which allows certain members rights to manage the B2B e-invoicing platform, the KSEF.  

Tungsten will follow the publication of the draft law. 

Updated list for foreign providers of digital services

Tungsten Network earlier this year published some information relating to the background of the digital tax in Mexico. As a reminder, Mexico introduced some new obligations for foreign providers of digital services in June 2020 which obligated certain companies to register for VAT in Mexico. 

Further to these obligations, Mexico has published a list of 159 foreign providers of digital services that are registered for tax purposes in Mexico as of 31 August 2022. 

Versions of the Catalogues for CFDI 3.3 and 4.0

The Mexican government (SAT) has updated its catalogues for versions 3.3 and 4.0. Taxpayers should use these new catalogues to issue their e-invoices. 

The versions can be accessed via the following links: 

Version 3.3:  

http://omawww.sat.gob.mx/tramitesyservicios/Paginas/documentos/catCFDI_V_33_27072022.xls 

Version 4.0  

http://omawww.sat.gob.mx/tramitesyservicios/Paginas/documentos/catCFDI_V_4_27072022.xls 

Of particular significance is the increase of information in relation to the c_NumPedimentoAduana catalogue, which should be noted by taxpayers.  

Proposed tax reform changes

A new government took place in Colombia from August 2022 and perhaps inevitably, taxation will feature heavily in the proposed new agenda. 

The new government has already touted several new fiscal-related proposals.  

In 2021, Colombians were able to enjoy a ‘three-day holiday’ from VAT, where certain products were exempt from VAT. However, a repeat appears to be under threat from the new government as it looks to abolish the three-day reprieve. 

Amongst others, more social fiscal measures are proposed, including establishing a new tax for sugary drinks and certain processed foods; an increase in carbon tax emissions and the establishment of new environmental taxes, serving a distinctly new societal agenda. 

Tungsten Network is monitoring developments in Latin America and is committed to cascading meaningful e-invoicing developments in the country. 

Easing of compliance rules

In July, we communicated on Bolivia’s swift acceleration of its e-invoicing mandate.  

The Bolivian Tax Authorities have now published what will certainly be welcome news for taxpayers- the easing of some its compliance regulations, further to Law No. 1448, dated 25 July 2022 in the Official Gazette.  

Significant changes include:  

  • An extension of the time limit to pay outstanding tax amounts without a penalty from 10 days to 20 days 
  • The penalty for unpaid tax obligations will be reduced to from 100% of the unpaid tax to 60% of the unpaid tax. 

Information about Bolivia’s e-invoicing mandate can be found here. 

New technical specifications

The Revenue Agency in Italy has announced a new version of the Technical Specifications (1.7.1) for electronic e-invoicing in Italy. 

These are applicable from 1st October 2022.  

The Technical Specifications are regularly updated with a view to improving the e-invoicing process, as well as highlighting changes to the invoice layout, amongst other modifications. 

 

Changes to the Technical Specifications include the introduction of a new document type (TD28), relevant for purchases from San Marino, as well as the completion of a new field for certain transactions exempt from stamp duty. 

 

Tungsten Network is analysing the changes to ensure we are compliant with version 1.7.1 of the new technical specifications from 1st October 2022. 

Anti-inflationary shield 2.0

Poland introduced the anti-inflation package to reduce the VAT burden on taxpayers. We communicated last month these measures had been extended until 31st October 2022. 

The Council of Minister has now extended the measures to the end of the year. 

Increase in the VAT registration threshold

Countries are continually reviewing their fiscal structures for multiple reasons. This can be in response to the specific current economic climates, such as rising inflation, or for other commercial or cost-effective reasons.  

Various countries are increasing the VAT threshold, reducing the scope of taxpayers obligated to register for VAT. We saw this in Bulgaria last month.  

Sweden has become the latest country to increase the VAT registration, in line with the following from 1st July 2022: 

 

  • 30,000 SEK to 80,000 SEK 

 

Increasing the VAT registration threshold will remove the need to charge VAT and submit regular tax returns for several taxpayers.  

Further expansion of the Fully Digitized e-fapiao

As announced by the Chinese State Tax Administration (STA), the scope of recipients for fully digitized e-fapiao will be extended to 15 more provinces from 28 August 2022. In other words, all taxpayers in China are now able to receive fully digitized e-fapiao issued by pilot taxpayers from Guangdong, Shanghai, and Inner Mongolia.  

Additionally, a new feature has been added to the national e-portal, which enables pilot taxpayers to issue the fully digitized e-fapiao in batches by uploading the invoice data in a standardized Excel file. 

Fully digitized e-fapiao has the same legal effect as paper fapiao and standard e-fapiao, with the originals required to be stored in China for 30 years. 

Impose Sales Tax on imports of low value goods

The Malaysian parliament has passed the Sales Tax (Amendment) Bill 2022, which introduces the taxation of low value goods sold online and imported to into Malaysia.  

Currently, taxes are not imposed on imports of low-value goods (RM500). It results in an unfair treatment of local traders since local produced goods are subject to sales taxes. 

As of 1 Jan 2023, 10% of SST (Sales and Service Tax) will apply to low valued goods (LVG) sold online and imported into Malaysia by vendors based in or outside of Malaysia. The Minister of Finance will determine low-value goods based on the class and price of goods, and the channel used to import the goods into Malaysia.  

GST on imports of low valued goods 

As of 1 Jan 2023, Singapore will implement GST on imports of low-value goods and non-digital services. The purpose of taxing low-value goods is to level the playing field between overseas and domestic vendors, also ensuring a fair and resilient GST system. 

Overseas suppliers who sell low-value goods (S$400 or less) to customers in Singapore must register GST with Singapore’s Overseas Vendor Registration (OVR) if the business:  

  • has an annual global turnover exceeding S$1 million; and 
  • makes B2C supplies of low-value goods to Singapore exceeding S$100,000.  

For more information, please refer to the e-Tax Guide.  

Release of new e-invoice schema

The Uruguay Tax Authorities (DGI) have released an updated version of the e-invoice XSD schema – version 1.4.2.1. This replaces version 1.4.2.0.

The new schema is available for download via the following link:

https://www.efactura.dgi.gub.uy/files/xsds_fe_1_42_1-zip?es

The testing phase of the XSD Schema supporting the country’s electronic invoice mandate will start from 1 October 2022. Changes will enter into production on 1 November 2022.

More information is available on the following website:

https://www.efactura.dgi.gub.uy/principal/ampliacion_de_contenido/documentos-de-interes?es

Deadline for transmission of electronic invoices and receipts extended

Following Emergency Decree No. 113-2021, the Peruvian government issued a new Emergency Decree No. 016-2022, which again postpones the deadline of four days again.

The deadline for transmission of e-invoices and fee vouchers has now been extended until December 31, 2022. Taxpayers should issue their e-invoice within 4 days from the day of issuance to the purchaser and transmit it to the National Superintendency of Customs and Tax Administration (SUNAT).

As from 1 January 2023 taxpayers should issue and transmit their e-invoices in one day (counted from the next day of issuance, and 2 days if the same day of issuance is taken into consideration).