Insights

January 26, 2021

Back to 19% and 7% as of January 1, 2021; Brexit - Expiry of the transitional period on December 31, 2020; MOSS transforms into OSS as from July 1, 2021; News for distance sellers as of July 1, 2021

January 7, 2021

As the United Kingdom left the EU do e-commerce sellers or B2B supply chain operators need approved VAT representatives?

December 10, 2020

If You enter the phrase „My VAT is missing on my Amazon FBA return/reimbursement“ into Google search engine You will find that this is a common issue among Amazon FBA sellers who enrolled themselves into Amazon VAT Calculation Services.

December 7, 2020

In 2021, the Canadian Government will change the taxation policies of digital services provided in the country by foreign entities.

November 30, 2020

If you own a business in the UK and sell your goods or services internationally, the upcoming conclusion of the Brexit transition period will likely affect your operations. To assist you in preparing for the changes that will take place on January 1, 2021, 1StopVAT team has created a checklist of essential action items for sellers in the UK.

November 25, 2020

As a socially responsible company, we are proud to not only promote living sustainable life, but also working with environment-friendly brands.

November 20, 2020

2020 has already been a hit for e-commerce retailers, as Black Friday and Cyber Monday sales are right around the corner here is everything you need to know as an online retailer.

November 12, 2020

California’s Franchise Tax Board (“CFTB”) has started a battle for income tax with Amazon sellers who makes use of the Amazon FBA program.

November 10, 2020

As of 1 January 2021, suppliers of digital goods and services based in the UK will lose access to the full scope of the VAT MOSS system. Mini One-Stop-Shop (MOSS) is a platform that allows European digital entrepreneurs to use a single point solution for dealing with VAT submission in every member state of the EU.

November 9, 2020

Only a couple of months till Brexit. From January 31st 2021 UK is leaving ES, so it means the UK will be hold as a third party country, e.g. all of the services and goods that are sold from the EU to the UK will be handled different.

October 21, 2020

Recently a law amendment, that was pending for a long time, has been finally adopted. The law amendment removed restrictions on the amount of VAT refundable over time. This provision of law will take effect from 1 January 2021.

September 2, 2020

On June 21, 2018 US Supreme Court released its decision in South Dakota v. Wayfair, Inc. case in which the Court ruled that South Dakota may charge sales tax from distance sellers making sales to South Dakota even if these distance sellers doesn’t have a physical presence in the state, but meets one of the following criteria (the so called “economic nexus”): Distance seller’s gross revenue (including taxable and nontaxable sales) from sales into South Dakota exceeds $100,000; or Distance seller made 200 or more separate sales (digital products and/or digital services transferred electronically) into South Dakota.

August 25, 2020

Amazon.com Inc started its business in Sweden and plans to establish a local presence here. What does it mean for the remote sellers? For EU and non-EU sellers who might use fulfillment centers in Sweden, it means the obligation to register as VAT payers in Sweden, for non-EU sellers it will be much more complicated - the fiscal representative will be a must. Will these news lead non-EU companies to think about the local establishments in the EU? Moreover, are the remote sellers already evaluated not only their new flow of buyers but also the forthcoming obligation for VAT compliance?

July 24, 2020

Ireland has recently announced a temporary Value Added Tax rate cut from 23% to 21%. The measure will come into place on September 1st 2020 until 28th of February 2021. The decision was made due to economic struggles in country that related with COVI-19 pandemic situation.

July 21, 2020

Louisiana‘s economic nexus bill is effective since 2020 1st of July. The requirements for foreign company without a physical presence are to register collected and remitted sales tax if they are over $100,000 in sales or products that were transferred electronically or other services that has over 200 separate transactions.

July 16, 2020

Not all Etsy sellers know that they might be responsible for the Etsy VAT compliance of their sales made on the platform. When collecting seller fees, Etsy automatically charges and remits Etsy fees VAT at checkout. However, sellers need to collect VAT on Etsy sales on their sold items. It is their responsibility to include the applicable VAT amount in their listings on Etsy so that their customers could evaluate the final Etsy VAT included prices.

July 10, 2020

In 2018 HMRC has signed an agreement with Amazon and eBay on voluntary disclosure of VAT evasion by distance sellers, giving HMRC access to all distance sellers transaction data. There were rumors that after analyzing those transactions HMRC even started to seize stock, belonging to non-compliant distance sellers, from Amazon.

June 26, 2020

Italy lost €33.5 million in 2017 over tax evasion. A survey by the Bank of Italy shows that self-employed, younger, and less educated citizens have a higher likelihood to evade paying taxes. Deliberate or accidental omission of daily remote transactions by marketplace operators also contributes to the immense VAT gap. This means there is a large difference between the expected tax and that which is collected.

June 23, 2020

Depending on a country’s threshold, big E-Commerce companies like eBay and Amazon could ship low-value goods across several borders without having to collect taxes on them.

June 19, 2020

Such platforms as Netflix and Amazon have billions of untaxed revenue flowing daily through their systems and tax authorities are looking into ways to seize them.

June 15, 2020

Etsy is a popular online marketplace that facilitates buying and selling various unique products, such as tailored arts and crafts for people worldwide. However, shop owners are sometimes puzzled by tax regulation when sales are made using the platform.

June 12, 2020

After long negotiations Germany government has approved the decision to reduce VAT rate in order to stimulate economy.

May 11, 2020

On June 21, 2018, the Supreme Court of the United States ruled in favor of the state in South Dakota v. Wayfair, Inc. case. The decision allows states to tax remote sales and changes how companies must view sales tax nexus and when they have a sales tax exposure.

May 4, 2020

With the Coronavirus outbreak forcing countries around the globe to quarantine their citizens at home, people are naturally turning to digital entertainment to pass the time or online platforms to facilitate work from home. Tech companies have started to note that this has led to a significant rise in the usage of certain online services. But with new users popping up in various countries and purchasing specific services, businesses now have to be extra wary of global VAT compliance as many countries tax digital goods sold to their citizens.

April 23, 2020

Companies selling digital products and services must comply with the VAT destination principle in different countries. Each of them has different tax rules, thresholds, services, and means of payment, registering and filing the correct VAT amount is very complex. Thus, many companies make mistakes.

April 15, 2020

Amazon is further expanding its business and has recently announced that it will be opening a new marketplace in the Netherlands.

April 9, 2020

The Nordic Region is one of the largest economies in Europe. Combined, this region has a population of 25 million people and they are very receptive to digital products.

April 1, 2020

An EU-wide tax reform called Quick Fixes 2020 was introduced at the beginning of the year and a big part of it concerns call-off stock.

March 27, 2020

The COVID-19 virus is disturbing the daily lives of many and people are taking pre-emptive measures to help minimize the threat. To avoid contracting the virus, many must stay and work from home, if possible. This, for better or for worse, is impacting businesses around the globe. While some are growing in these rough times, many more are struggling to stay open. As the pandemic is affecting various economies, countries are now opting for emergency tax incentives to help support their businesses. New measures are applied VAT registration to ensure that those affected could still operate as usual as possible.

March 4, 2020

The consumption tax is assessed and placed on every product also known as Value Added Tax, or VAT.

March 2, 2020

When it comes to running your business and selling goods on Amazon, one must decide how their products will reach the customers.

February 27, 2020

On the 11th of February 2020, Mexico’s Congress approved a bill that will impose Value Added Tax (VAT) on all digital services supplied by foreign businesses.

February 26, 2020

2021 will start with new OSS system in Europe. New regulations will effect e-commerce platforms, distance sellers and importers of low value goods.

February 24, 2020

As of 1 April 2020, Norway will introduce a simplified VAT regime for sellers and intermediaries. Online marketplaces will be liable for VAT on cross-border sales of low value goods to consumers in Norway (B2C sales).

February 21, 2020

This week (February 18, 2020) the British Colombia government announced planned changes that should be effective since July 1, 2020 to the PST (Provincial sales tax) laws. Government proposed changes to PST registration and collection requirements that will be applicable not only for Canadian but also to foreign businesses, providing software and telecommunication services in the province as well.

February 21, 2020

Ukraine‘s parliament is considering to draft law according to which non-residents that provide electronic services to Ukrainian residents (B2C sales) will be obliged to register for and collect VAT if such taxable sales of electronic services exceeds UAH 1 million per year.

February 5, 2020

Since 2015, a simplified Mini One Stop Shop (MOSS) system is in place to declare and pay VAT on business-to-consumer (B2C) supplies of telecommunications, broadcasting and electronic (TBE) services in the EU. Following 2021, scope of MOSS will be extended turning it into a One Stop Shop (OSS)

Turkey’s Inspection Board of Ministry of Treasury and Finance has initiated a wave of tax audits of nonresident taxpayers engaged in the digital economy by sending an official audit letters to multiple nonresident taxpayers. These letters states that VAT and corporate income tax liabilities of nonresident taxpayers engaged in the digital economy will be audited for the 2015 – 2018 period. This is a concerning situation as tax auditors can retrospectively audit corporate income tax and VAT liabilities of nonresident taxpayers in Turkey.

September 5, 2019

In this our insight we would like to overview the most common myths about VAT.

August 23, 2019

On June 21, 2018, the Supreme Court of the United States ruled in favor of the state in South Dakota v. Wayfair, Inc. case. The decision allows states to tax remote sales and changes how companies must view sales tax nexus and when they have a sales tax exposure.

June 26, 2019

If you are supplying digital services to consumers (B2C) abroad and if You haven’t registered for VAT/GST and filled VAT/GST returns, in those foreign countries, you might face reassessment of VAT/GST on Your remote sales of digital services going back up to 5 years, penalties from 10% to 300% depending on the foreign country’s legislation, late payment interests from the time when VAT/GST should have been reported and even imprisonment.

March 5, 2019

If you carry out the trade with the UK and import goods from EU or outside EU, your business will need to comply with new processes and controls in case of No-Deal Brexit scenario. Overseas businesses importing low-value goods to the UK will be expected to register with HMRC in order to be provided with Unique Identifier.

March 1, 2019

If you are doing business online, you might have been hearing from your partners or competitors their concerns on VAT compliance for e-businesses. In 2015 the Organisation of Economic Cooperation and Development (OECD) published updated international VAT guidelines which endorsed many countries to implement new rules of taxing cross-border e-commerce transactions based on destination principle, meaning B2C transactions be taxed in the country in which the customer is established.