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Senior Account Officers say VAT is causing them most concern

Why be worried about VAT compliance when the answer is out there?

A poll conducted by one of the big 4 consultancies and outlined in their ‘SAO Toolkit‘ said that from a recent poll (no date was given so assume still recent), “over three- quarters (77%) of Senior Accounting Officers say they undertook a review of their reporting systems and nearly half (46%) of firms say VAT is the area of tax which is causing them most concern, followed by PAYE (32%), corporation tax (11%) and excise”.

With this in mind, why then do so many companies have such poorly designed VAT systems and do not invest any money in reducing the risk of non compliance around VAT?

Get in touch with us to find out how we can lead the way to achieving 100% compliance.

Oman to introduce VAT in 2018

The Omani government has announced its plans to introduce a VAT regime, previously said to be as early as 2017, it’s now believed this will come into affect on the 1st of January 2018, giving businesses more time to acclimatise.

The VAT rate is expected to come in at 5%, which although low by European standards, is expected to generate OMR250 million a year. These extra funds are needed to cover the gap caused by the recent and continued drop in oil prices which are affecting many of the Gulf states. The Omani government have also stated that they will introduce a zero rate for many essential and basic goods and services.

For more information click here (note it goes to our new Innovate Tax site)

Puerto Rico VAT Plans blocked

Puerto Rico’s plans to introduce VAT on the 1st June 2016 appear to have been scrapped.

Earlier this month legislators voted against the introduction of VAT to replace the current Sales and Use Tax, with an almost unanimous vote of 21 to 1.

However, there is still much confusion as to what will happen with Puerto Rico’s indirect tax regime as they are still in dire need of a way in which to raise funds to cover their rising debt, so a VAT regime could still be on the cards?

European Council VAT Action Plan on VAT Fraud

On 25th May 2016 the ‘Council for the European Union’ and the ‘Economic and Financial Affairs Council’ (also known as ECOFIN) agreed on an action plan to tackle VAT fraud and the ever increasing VAT gap in Europe, leading towards a single EU VAT area.

At a recent meeting in Brussels the ECOFIN reviewed the programe see the original publication here, to tackle fraud and simplify the process around VAT compliance. The plan proposes a range of measures including the extension of MOSS (Mini One Stop Shop) reporting to goods, the removal of zero rating intra-Community supplies and better co-operation between tax authorities.

The key points raised were;

• Welcomes the findings towards a single EU VAT area with the aim of tackling VAT fraud and closing the VAT gap.

• It agrees with the Action Plans call for new and radical anti-VAT fraud measures, but highlighted that more simplification is required with the aim of introducing these legislative principles in 2017. Continue Reading

Canada: Prince Edward Island PST increase

On April 19th 2016, the finance minister for the Canadian province of Prince Edward Island, announced the fiscal 2016-17 budget. Whilst it contained no new taxes or further increases to income tax, it did contain an increase to the Provincial tax part of the Harmonised Sales Tax (HST), taking this from 14% to 15%. This is made up of 10% PST and 5% GST and will be effective as of the 1st of October 2016.

This is the third province this year to announce a rise in PST, see links below to earlier announcements.

New Brunswick increase HST (published April 2016).
New Foundland and Labrador to raise HST rate (published August 2015).

Bulgarian Oracle User Group – Spring Conference 2016

eBiz Answers are proud to be sponsoring the Bulgarian Oracle User Group (BGOUG) 2016 Spring Conference.

The event will be held at Hotel Rila in Borovets, Bulgaria from Friday 3rd – Sunday 5th June. Presented by the Bulgarian Oracle Users Group (BGOUG) this event will feature a number of educational presentations including, Keynote from Julian Dontcheff, Managing Director, Accenture Global Database Lead, Accenture Enkitec Group, Database Consolidation as well as presentations from some of the leading experts in the industry on:

– Database and Server Technology
– Database Administration and Tuning
– Design and Development
– Cross Stream (Cloud Computing, Enterprise Management, Engineered Systems)
– Middleware (Data Integration, Business Intelligence, Content Management)
– Business and Strategy

Join eBiz Answers at the conference

ORACLE eBTax – How to achieve 100% compliance
Friday 3rd June, 11.45am | Hall: Borovets

This event will also be holding a “TestFest” in partnership with Oracle Partner Network and Oracle University. This means during in the event you can take certification exams and take advantage of an exclusive 50% discounts courtesy of Oracle University and Oracle Partner Network.

For more information or to register for the event please visit: Bulgarian Oracle User Group website.

eBiz Answers win ‘European Tax Innovator of the Year’ award

We are proud to announce that eBiz Answers have won the Tax Innovator of the Year award at the International Tax Review’s – European Tax Awards 2016.

These awards, held annually since 2005 seek to recognise the leading international tax professionals from around Europe.

The award, ‘Tax Innovator of the Year’ has been awarded in recognition for the successful development of our ‘eBTax Rapid Install’ tool which plays a part of our continual development of innovative products to further enhance our clients’ ability to meet 100% compliance and reduce costs – all built around the Oracle tax engine.

“This is the second year running eBiz Answers have been nominated for this award. Just being regarded in the same categories as such industry peers is a great honour, but winning this award is a fantastic achievement for everyone at eBiz. A massive thanks must go out to all of our growing team at eBiz Answers, who without their continuous hard work and effort we would not be receiving this recognition. This is our third industry recognised award in the last three years and we are all extremely proud.”
Alastair Doe – Oracle R12 Practice Lead at eBiz Answers Ltd. Continue Reading

When using the Bill from, Bill to, Ship from or Ship to for the Place of Supply is not enough

Traditionally in AR the place of supply is based on the following factors:

Bill From: Legal Entity address Bill To: Customer site

Bill To address given on the Invoice

Ship From: Warehouse Address given as additional information

Ship To: Customer site Ship To address given on the Invoice

 

But what happens when these are not valid for the transaction. What if a legal entity has a registration in two European countries and has the place of supply in the country which is not their legal entity address. Or there is no Warehouse address for the transaction.

AR has an addition factor for Point of Origin which can be used to determine the place of supply.

Point of Origin is used within the Vertex/Taxware tax engines but it can also be used within standard eBTax rules to determine place of supply (and other tax determination rules). This gives the extra flexibility to be able to drive taxes from different countries on transaction other than Bill/Ship To/From. Or from other scenarios which were previously not possible.

Continue Reading

Confirmed – Greek standard rate VAT to increase to 24%

On the 22nd May 2016, the Greek Parliament confirmed that the standard rate of VAT will rise from 23% to 24% on the 1st June 2016.

This is part of a group of measures, agreed to after 6 months of negotiations with is creditors, Greece hopes will help unlock bailout funds needed to repay loans and cover the gap in the 2017-18 budget forecast. It is estimated that the rise will generate between €400m and €500m additional revenue.

However there is still much scepticism as to whether the Tax hike will be counterproductive or not, as Greece are still in a recession many believe that raising VAT is one of the worst things they could do right now, especially after the previous VAT hikes and scrapping of the lower rates for some Greek Islands.

This could also lead to Tourists and companies going else where.

 

Spain – To Allow VAT Refunds To A Foreign Bank

SPAIN ALLOWS VAT REFUNDS INTO FOREIGN BANK ACCOUNTS

The Spanish government has now made it possible to receive Spanish VAT refunds into a foreign bank account. This will be particularly useful for those companies that have a Spanish VAT registration number (ES VAT) but no physical location in Spain.

Previously, VAT registered companies had to have a bank account set up under a bank registered in Spanish  to receive a refund.

It does appear that only the SEPA format can be used so any country that is using SEPA will be able to take advantage of this new change. SEPA (Single European Payments Area) covers all EU countries, Norway, Iceland, Liechtenstein and Switzerland (there are a few exclusions like overseas territories).

The original article was from Marosa and you can read more about VAT refunds in our article EU VAT Refunds. Recover VAT through your VAT return or separate refund claims?.

The shortlists are out for The European Tax Awards 2016

The shortlists are out for the International Tax Review’s European Tax Awards 2016 and eBiz Answers are pleased to confirm we have been nominated for two of this years’ awards. The winners of all awards will be announced and presented during a dinner at the Savoy in London on the 26th May and eBiz Answers would like to wish all nominees across all awards, the best of luck.

eBiz Answers have been nominated for the following awards:

– European Tax Innovator of the Year
– European Tax Technology Firm of the Year

“It is a pleasure to be nominated for these awards for the second year running. It is great to see all of our hard work being recognised by being nominated for awards won in the past by major companies in the industry such as Deloitte and KPMG”.
Andrew Bohnet. Managing Director and Oracle Fusion Tax / eBTax expert.

The European Tax Awards have taken place every year since 2005 and seek to recognise the leading international tax professionals from around Europe.

The Awards are judged in accordance to:

  • – Size (Not conclusive, although it does indicate what your tax team is capable taking on).
  • – Innovation (Did the advice that the firm gave something show more than the straightforward answers commonly given?).
  • – Complexity (Did the matter address tax issues that were out of the ordinary and what ingenuity did the firm show to solve them?).

To see the full list of the 2016 nominees click here

China Completes VAT Implementation

Since May 1st 2016, China has now fully rolled out a value-added tax (VAT) system across all industries that previously had a business tax. This completes the most ambitious overhaul of its tax regime in three decades.

China has been moving progressively over the past years from a Business Tax (BT) system to a Value Added Tax (VAT) system in an attempt to streamline China’s indirect tax system. The VAT reform project was launched first as a pilot program in January 2012 in Shanghai with an objective to remove dual indirect tax system and to give Chinese business a better global competitive tax structure in order to boost the economy’s growth.

The final four service sectors, financial services, consumer services, real estate and construction completed the transition to VAT in all service sectors. The replacement of VAT with Business Tax will mean the end of double taxation that businesses in China have faced.