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📝 VAT Refund for British Entities The VAT refund for British entities is regulated by an agreement between Italy and the United Kingdom, which came into effect on February 7, 2024. This agreement establishes the mutual recognition of VAT refunds between the two countries. 🇬🇧➡️🇮🇹 As a result, entities based in the United Kingdom can submit a VAT refund claim in Italy if the conditions set forth in Art. 38-ter of Presidential Decree 633/72 are met. This means that for purchases of goods or services made by British operators in Italy, it is possible to request a refund of the VAT paid, following the procedures established by the agreement. 📅 Important Deadline VAT refund claims must be submitted by September 30 of the year following the reference period. For the year 2023, the deadline is September 30, 2024. 🌍 Northern Ireland For transactions involving goods between Northern Ireland and Italy, Union law continues to apply. In these cases, the refund procedure through the "portal" remains available, as it is for entities within the EU. For services, however, refunds follow the procedures for non-EU entities. 🔍 Conditions for the VAT Refund Taxable persons without a permanent establishment in Italy can request a refund of VAT paid within the country, provided the following conditions are met: ✅ No taxable transactions were conducted in Italy during the refund period, except for transactions subject to VAT under the reverse charge mechanism, transport services, related exempt operations (Art. 9 of Presidential Decree 633/72), and transactions carried out pursuant to Art. 74-septies of Presidential Decree 633/72. ✅ The purchases or imports of goods and/or services for which the VAT refund is requested must be related to the taxable person’s business activity. ✅ The VAT requested for a refund must be deductible in Italy, as per the domestic VAT rules. It is no longer necessary to appoint a tax representative or register directly for VAT purposes in Italy. 💼 Need assistance? Our team of tax experts is here to help. Contact us! https://lnkd.in/d-myeEPY #tax #vat #refund

KRA has the power to register you for VAT Obligation in case you do not have such an obligation and it's satisfied you have not declared taxable supply that exceeds Kes 5 Million Case study: Abby Holdings Limited verse Commissioner of Domestic Taxes Abby Holdings Limited is a limited company incorporated in Kenya. The company deals with importation and sale of motor vehicles spare parts. On 27th July 2018 KRA gave Abby's Holdings Limited an additional VAT assessment for undeclared taxable supplies based on its records of the company. Additionally KRA issued an agency notice to the company's banker to enforce collection of the tax. On receiving the additional VAT assessment Abby's Holdings Limited filed an appeal at Tax Appeal Tribunal. However, the company did not produce documents to support their objection of the assessment. One of the company's key argument in the case was that KRA erred in registering the company for VAT obligation which they had not registered. On deciding the case on the matter of registration for VAT obligation the Tax Appeal Tribunal noted that; 1. Under section 34 of the VAT act that any person who in course if business, has made taxable supplies or is about to make taxable supplies that exceeds 5 million shillings in any period shall be liable to register for VAT within thirty days of becoming so liable. 2. Under Section 34(6) if the Commissioner is satisfied that a person eligible to register does not do so within the specified period the Commissioner shall register the person. With those remarks the Tax Appeal Tribunal found KRA not having erred in registering the company for VAT obligation. As such KRA won.

Update on Simplification of VAT Return Filing for VAT Registered Taxpayers. share article     The Kenya Revenue Authority (KRA) notifies all VAT registered Taxpayers that the VAT return will be pre-filled with tax information available to KRA starting from the November 2024 tax period. This is to simplify the VAT return filing process. All VAT registered Taxpayers are therefore advised to confirm the accuracy of their pre-filled November 2024 VAT returns prior to submission on or before 20th December 2024. In addition, all Taxpayers are hereby reminded of their obligation to issue electronic tax invoices and transmit the invoice details to KRA as prescribed in law. Any input VAT claim that is not validated through TIMS/eTIMS or against existing customs import declarations for import VAT claims will not be allowed for deduction in the return. KRA will continue to sensitize Taxpayers on the simplified VAT Return filing process. Further, KRA will continue to support and facilitate all Taxpayers to comply with the electronic tax invoicing requirements. KRA appreciates all compliant Taxpayers. For further information please call our Contact Centre on Tel: (0) 20 4 999 999, 0711 099 999 or Email: callcentre@kra.go.ke www.kra.go.ke

Major GST Relief For Foreign Airlines, Shipping Lines On Cards After Elections The move is expected to improve the ease of doing business in India for foreign airlines and shipping lines. Government mulls easing GST compliance for foreign firms, exempting airlines and shipping lines from paying GST on import. Source: Money Control The government is working on easing the ‘related party transaction’ clause under the Goods and Services Tax, for foreign companies in India. This is likely to happen within 100 days after the elections, which will exempt airlines and shipping lines from paying GST at the time of import of services, but which they can pay at the time of disbursal of services, a senior government official said. As per GST laws, related party transaction refers to the transfer of goods or services between entities which are under common ownership or management. “All companies with related party transactions, including airlines, shipping lines, import supplies from their parent company outside India. Under GST, the related party transaction is taxable at 18 percent and its compliance is very stringent for foreign companies. What relief is the government considering? Compliance relief is likely for companies with related party transactions as an evolution of GST. The government is currently discussing exempting payment of GST for related party transactions, wherein full input tax credit (ITC) is eligible. The subsidiary companies will thus be allowed payment of GST later, at the time of discharge of services. Any change in law, if required for this, may also be examined, he said. The issue will be examined in detail by the GST’s fitment committee and will be placed before the Council just after general elections, he said. “Easing of the related party clause under GST is likely, if they are getting full ITC. Else, it is increasing their compliance burden. The GST authorities are discussing how this clause is being interpreted by companies and the tax department,” the official said. What does the relief imply? If a subsidiary Indian company is importing services from the parent company and does not pay GST on it, the tax authorities detect it and send a demand notice. The deemed supply is taxable at 18 percent for which input tax credit may be received later at the time of further supplies by the company. But if the Indian company is not paying GST on import of services, and is paying the entire tax later at the time of supply of services, the tax department should not bother, the official explained.

Another Victory for PGA & Co. under GST: Refund on Exports of services without payment of tax rejected on account of lack of documentation upheld by the Commissioner Introduction: In a notable legal achievement, our firm successfully represented an IT company in an appeal challenging the dismissal of the export’s refund claim. The victory in the GST case stemmed from a thorough review of documents and facts, established the authenticity of foreign remittances, validated excess amounts in FIRCs, and fulfilled all conditions of service export, ultimately confirming the legitimacy of their refund claim. The appellate authority's decision in our favour not only helped our client but also set a pivotal precedent for similar contentious matters. Case Background: In March 2021, the party submitted a refund claim under the category of 'Export of Services without payment of tax’. However, this claim encountered a hurdle when the GST department issued a Show Cause Notice (SCN) raising several allegations regarding an ineligible Input Tax Credit against specific invoices and a significant variance between declared zero-rated supply and foreign remittance invoice wise, prompting further investigation. Issues and Arguments Presented: 1. Allegations concerning the utilization of ineligible Input Tax Credit (ITC) against invoices for March 2021, indicating potential discrepancies in the usage of goods/services for business purposes. 2. Discrepancies observed between the declared zero-rated supply of services for March 2021 and the amount documented in the Foreign Inward Remittance Certificate, indicating possible inconsistencies in export documentation. Department's Stand: The department took a stand that since the payments are not received invoice wise from the customers, the refund of tax on export of services could not be established correctly and hence rejected the refund. Judgment: Upon thorough review of RFD-01 and its accompanying documents, the Commissioner had the following findings: I. The Commissioner highlighted the party's receipt of foreign remittances from its foreign associates, emphasizing lump-sum payments against exported services, rather than e-FIRCs invoice-wise. II. Upon re-evaluation of FIRCs submitted with the initial refund claim reconciliation supported foreign exchange receipt for services exported, justifying the excess amount in FIRC. III.Invoices issued to its foreign associates were duly declared in GSTR-1, confirming compliance with GST Laws. Conclusion: In light of thorough consideration of all pertinent facts and compliance measures, the Joint Commissioner (Appeals) has directed the officer to verify the claim and issue the refund order to the aggrieved party. #TaxLaw #GST #GSTrefund #LegalVictory For more insights and updates on tax law and corporate compliance, follow our LinkedIn page PGA & Co. Chartered Accountants www.pgaca.in

🧋 Beverage Company and #Directors Charged with Failing to Pay #ServiceTax A beverage company and its two directors have been charged in the Sessions Court for failing to remit service tax payments and penalties totaling RM1.6 million to the Royal Malaysian Customs Department (RMCD) for 2023. 🔸 Indirect Taxes: The Overlooked Liability🔸 Many business owners tend to focus primarily on income tax, concentrating on maximizing expense claims against taxable income. However, indirect taxes, such as service tax and sales tax, often fall under the radar, despite their significant implications for compliance and cash flow management. 🔸 E-Invoicing: A New Era of Transparency🔸 With the implementation of e-invoicing, the Inland Revenue Board will now share business transaction data with RMCD. This enhanced transparency makes it easier for RMCD to identify businesses that have not registered or fulfilled their indirect tax obligations. Businesses should take proactive steps to ensure their compliance, as enforcement is likely to become more robust. 🔸 Act Now to Minimize Penalties🔸 For those who may have fallen behind, there’s still an opportunity to review and regularize your indirect tax affairs. The RMCD’s penalty and surcharge remission program is available until the end of the year. For more info: https://lnkd.in/gC-ZWdwk https://lnkd.in/gvawWbQu #MalaysiaTax

Conducting your #clinicaltrials in South Korea? Here's an update on the VAT laws for you ⬇ #clinicalsupply #supplychain #pharmaceuticals #biotech #VAT

📢 EU-wide VAT exemption of small enterprises : opportunities to seize and errors to avoid Starting from January 2025, European companies will be able to benefit from the turnover-based VAT exemption not only in their country of establishment, but also in other EU Member States.💡 This VAT exemption of taxable transactions abroad of small enterprises will be subject to the respect of two thresholds: ✅ Union annual turnover ≤100 K € ✅ National annual turnover of each foreign Member State (≤ 85 K €) According to the updated European VAT Directive, the Commission will provide several tools for the implementation of this new EU SME scheme and for onwards compliance controls. Our latest article analyses the overall impact of this measure: ➡️ Obligations of companies receiving VAT exempt supplies from small enterprises ➡️ Advantages and inconveniences for companies applying for the EU SME scheme ➡️ Opportunities for the EU e-commerce ➡️ Tools and procedures of the SME scheme Feel free to contact us directly for more information and for the related operational support: contact@btobnice.com 📨 #VAT #SMEscheme #Europe #Taxation Siouzanna Maignan https://lnkd.in/eFjGFkuj

🌟 Understanding Reverse Charge Mechanism in VAT Quick Recap::  Introduction to VAT: Value Added Tax (VAT) is an indirect tax paid by the final consumer on goods or services. The burden of tax falls on the consumer, and it's assessed, collected, and deposited by the person registered under VAT.  What is Reverse VAT? : Reverse VAT is an exception to the normal VAT process. Here, the recipient of goods or services assesses, collects, and deposits VAT at the Inland Revenue Department (IRD), whether registered under VAT or not.    Reverse VAT on Import of Services : When a person in Nepal takes services from a non-resident, the recipient must assess, collect, and deposit VAT on the taxable value at IRD. This applies whether the recipient is VAT registered or not. 📝 Key Points for Import of Services: Timing: Assess and collect tax at the time of payment or service receipt, whichever is earlier. Credit Facility: Section 17 of VAT Act, 2052 allows registered persons to offset the deposited amount of output VAT. Example: Ram, a resident, hires a Spanish translator for Rs.100,000. Ram must deposit 13% VAT, i.e., Rs. 13,000 at IRD.    Reverse VAT on Construction : For business-related construction projects (e.g., buildings, apartments), if the cost exceeds Rs. 50,00,000, it must be done by a VAT registered person. If not, the owner must pay VAT as if constructed by a registered person. 📝 Key Points for Construction: Liability: The owner is liable to pay VAT. Penalty: Failure to deposit VAT may result in a penalty of up to 25% of the tax amount. Offset: Only available if the construction is done by a VAT registered person. Example: A business constructs a shopping complex costing Rs. 60,00,000. If done by an unregistered person, the owner must pay VAT and may face penalties if not deposited correctly. The Reverse Charge Mechanism ensures VAT compliance even when services or construction are provided by non-residents or unregistered persons. It’s crucial for proper financial management and tax compliance.    Stay Compliant and Informed: Ensure you understand and apply the Reverse Charge Mechanism in VAT. Follow us for more insights and updates on VAT and financial management. #VAT #ReverseChargeMechanism #TaxCompliance #FinancialManagement #TaxTips #FinancialInsights #BusinessCompliance #StayInformed #TaxUpdates #FinancialEducation #BusinessFinance #TaxRegulations #ComplianceMatters #VATAct #TaxPlanning #FinanceForStartups

Taxpayer Victory in Abu Dhabi: A Landmark VAT Recovery Ruling In a groundbreaking decision, the Abu Dhabi Court has ruled in favor of taxpayers, allowing them to recover VAT from non-compliant suppliers. This case sets a crucial precedent, affirming that taxpayers shouldn't bear the burden of VAT due to suppliers' non-compliance. It's a significant win that underscores the importance of adhering to VAT regulations and reinforces the rights of businesses in the UAE. For more insights, read the full article