#VAT Archives - Page 2 of 3 - Law firm Finance Business Service: offshore registration, tax planning, legal services

Income tax and VAT on receiving the bonus in monetary form from non-resident supplier

Published: Dmitriy Batrakov | 18.11.2016 | blog

In the letter of 28.10.2016 State Fiscal Service of Ukraine has provided clarification regarding taxation of receiving bonus in monetary form from the supplier on the basis of non-resident credit note (the settlement document which contains the message which goes the supplier to the buyer about record on credit of the account of the last certain amount in connection with approach of a circumstance which created a right of claim of such amount for buyer). This explanation is proved by numerous requests from representatives of both small, and large business in a consequence of lack clearly defined by the legislation rules governing this sector of relationships. Concerning the taxation on profit it should be noted the following. So, according to provisions of the Tax Code of Ukraine (further – the Code) the object of taxation on income tax is a profit with an origin source from Ukraine and abroad, which is determined by adjusting (increase or decrease) a financial result to the taxation (profit or loss), determined in the financial reporting of the entity in according to national provisions (standards) of financial accounting or international accounting standards, on the...

HMRC publishes guidance on a tax-free trade

Published: Sergey Panov | 09.08.2016 | news

The tax authority and the Tax and Customs Service of the United Kingdom released a practical guide by the UK's special scheme which allows to non-EU countries taxpayers to reimburse VAT on goods purchased in some UK stores. VAT Notice №704 / 1, issued August 7 discusses how those who live outside the European Union may return the value added tax (VAT) paid for goods purchased in stores of Great Britain, which in turn provide retail products without VAT. Tax free retail trade allows individuals traveling to the European Union (EU) to obtain a VAT refund on goods bought in the UK and take home. However, it can not be used for any service. In most instances store or refund from the company will charge a payment for use of the taxpayer in its stores and tax-free goods can take the fee out of the money paid to the VAT refund. The manual discusses the right to use this circuit, which products satisfy the set requirements, the time required for export, as well as the requirements for receiving the refund. Author: Sergey Panovmanaging partner Finance Business...

UK revises VAT rules covering insured goods

Published: Sergey Panov | 15.07.2016 |

The UK Government has tabled the Value Added Tax (place of supply of services: exceptions relating to supplies made to relevant business person) order 2016, which will take effect for supplies on or after October 1, 2016. The change affects repair services following insurance claims which meet the following criteria: the supply is pursuant to a claim made under a contract of insurance, and the supply is made to a relevant business person who is not the person insured. In such circumstances, instead of being taxed in the UK, if the services are effectively used and enjoyed outside the EU, the supply is to be treated as made where it is used and enjoyed. Equally, where a supply of such services would typically be treated as made outside the EU, if the services are effectively used and enjoyed in the UK they will be subject to UK VAT. The change applies in the case of a supply of services consisting of the repair of tangible movable property (such as cars or mobile telephones) where the supply is made in pursuance of a contract of insurance and is made, for example, to the insurer rather than to the insured person. Author: Sergey Panovmanaging partner Finance Business...

China expands VAT refunds for tourists

Published: Sergey Panov | 05.07.2016 |

From 1 July, 2016 foreign tourists who plan visit to Chinese Guangdong province be available to get VAT refund for them purchases made in certain store if they departing from Guangzhou's Baiyun International Airport and Nansha Port or from Zhuhai's Jiuzhou Port. Foreign tourists including all from Hong Kong, Makau and Taivan also be available for this VAT refund if they will stay on the Mainland less than 183 days. They must spend at last RMB500 (USD75) for certain items in any store in one day to be able to claim an 11 percent refund where less a two percent handling charge. The refund is able if the purchases made during 90 days before departure. The measure has been taken in a further effort to boost inbound tourism and consumption. Guangdong province is the nearest geographically to Hong Kong and Macau, and receives the vast majority of inbound tourists to the Mainland. Hainan provided scheme of this refund in 2011, with Beijing and Shanghai being authorized to begin offering VAT refunds to tourists on July 1, 2015. From January of this year this scheme also able for foreign visitors in such Chinese provinces as Tianjin, Liaoning, Anhui, Fujian, Xiamen, and...

Puerto Rico’s VAT plans was declined by lawmakers

Published: Sergey Panov | 31.05.2016 | Без категории

Puerto Rico will no longer accept the value added tax, after lawmakers in the Senate voted in favor of the overthrow of the attempts of the governor of Puerto Rico, Alejandro Garcia Padilla, to veto the previously adopted law on the abolition. Puerto Rico was to introduce value added tax at the point of sales and use tax from 1 of June The Senate of Puerto Rico, May 5, 2016, unanimously supported the earlier legislation with the support of the lower house of Parliament on 2 May to prevent value-added tax from being introduced.. The governor then vetoed the legislation. However, the legislation is only necessary to collect two-thirds support to override this veto. May 26, 2016, the Senate voted to abandon plans for VAT 21 votes to 1. Author: Sergey Panovmanaging partner Finance Business...

China canceled the income tax and established VAT

Published: Sergey Panov | 27.05.2016 | news

The taxpayers will pay VAT instead of tax on profits and that will reduce the burden on enterprises. The Chinese government has made certain changes in the procedure for taxation of companies: now companies are exempted from the need to pay income tax, but they will be required to pay value added tax. Tax reform is accompanied by the spread of the circular of the State Council and shall enter into force on 1 May 2016. For effective implementation of the new program administrations must interpreted new tax rules correctly. In turn, the companies are required to pay prescribed amounts of tax on time, refraining from evasion. According to preliminary data, the transition to the new system will affect about 10 million taxpayers who will be required to pay VAT (mostly working in construction and real estate, finance and the service sector). The authors of the bill believe that the innovation will facilitate the tax burden on many businesses. Li Keqiang, Premier Wu Yi said that the ongoing reform will have a positive impact on the profitability of companies by reducing the size of obligatory deductions to the treasury (more than 500 billion yuan for the whole of the current year)...

Sweden, plan to combat tax evasion

Published: Sergey Panov | 16.05.2016 |

Sweden announced that tax consultants should be obliged to inform the Swedish tax authority for tax planning schemes in the framework of the action plan to combat tax evasion, it also urges companies to preserve their own taxation policies at the board level. According to the Government, the introduction of the obligation for tax advisors can help the tax authorities to respond more quickly and close the scheme of tax evasion. This idea is part of the plan to combat tax evasion which encourages companies to tax issues on the agenda of board meetings. "Corporations should make tax policy and the system of internal control to ensure that the actions taken by corporate management,consistent with the opinion of the board on tax policy directors," according to the plan. The plan also calls for a review of the value added tax (VAT), as well as more effectively patrol the VAT system. Sweden also intends to launch an investigation into the effectiveness of penalties for incorrect tax returns. In addition, in order to counter the "informal" economy and the use of temporary labor the Government intends to seek the introduction of registers of staff in several sectors. The plan also...

Sri Lanka, tax reform

Published: Sergey Panov | 12.05.2016 |

Sri Lanka plans to make major changes in tax policy and administration in the framework of the economic program, which is supported by the International Monetary Fund loan (IMF). The two sides reached an agreement on the 36-month financing amounting to about USD 1.5 bn. The economic program aimed at increasing productivity which will reduce the budget deficit and public debt, as well as relieve pressure on the balance of payments, the fund reported. "The program of the authorities with the support of the IMF focuses on a set of reforms in the tax Sri Lanka's system - the elimination of exemptions and special rates broadening the tax base and creating a tax system that is simple, efficient and fairer," said Todd Schneider the head of the IMF mission in Sri Lanka. The government will seek to improve the ratio of taxes-to-GDP to about 15 percent by 2020 through the implementation of a new law on domestic revenue, VAT reform and the customs code. May 2, 2016, Sri Lanka has increased its rate of value added tax from 11 to 15 per cent to strengthen the finances of the nation. Author: Sergey Panovmanaging partner Finance Business...

The Ministry of Finance has improved the procedure of registration of VAT payers

Published: Sergey Panov | 10.05.2016 |

Ministry of Finance in his order of March 18, 2016 № 373 made new changes to the Regulations on registration of payers of value added tax approved by order of the Ministry of Finance of Ukraine from 11.14.2014, № 1130 (hereinafter - Regulation number 1130) that is simplified registration procedure for the future VAT payers. It has been established that if individual wants to register itself as a VAT payer then at first it must change the tax system taking into account the provisions of Article 293 of the Tax Code which sets tax rates for payers of the third group of the single tax providing for the payment of value added tax and do not provide the payment of the single tax. So now a VAT payer may indicate a new statement to the supervisory authority desired date of registration which was listed in the previous unaccepted application if eliminated all the shortcomings provided by the Regulation number 1130. In this case, a new application must be submitted no later than 3 working days before the beginning of the tax period when the such person shall be considered as a VAT payer. If a registration application to the supervisory authority is filed in electronic form, then to...

The fight against tax evasion in Poland

Published: Sergey Panov | 04.05.2016 |

The new amendment to the tax legislation, which introduced anti-avoidance applies to all types of taxes (excluding value added tax (VAT), which offers other provisions in order to prevent evasion of VAT). It prevents the taxpayer to obtain a tax benefit as a result of artificial transactions. According to a draft legal transactions aimed at obtaining tax benefits, contrary to tax legislation should not result in a tax benefit. The transaction is considered to be artificial if it is carried out by a taxpayer whose objectives are contrary to tax legislation. However, taxpayers have the right to use "fixing the opinion" to the Minister of Finance, which includes a description of the planned transactions and their economic objective in use. The Minister shall consider the application and decide whether the described transaction designed to evade tax. The main objective of this innovation - is a multinational company which minimize their tax liability in Poland, through the application of measures of tax evasion. Therefore, the Polish Government proposes duly documented business solutions and plan business considering the new amendments. Author: Sergey Panovmanaging partner...

Tag: #VAT