European Indirect Tax

On September 29, 2015, TEI submitted comments to the Japanese Ministry of Finance regarding proposed changes to Japan's taxation of cross-border supplies of services, as most recently articulated in Japan's May 2015 Revision of Consumption Taxation on Cross-Border Supplies of Services Guidelines.

On February 19, 2015, TEI submitted comments to the OECD regarding two new draft elements of the International VAT/GST Guidelines, entitled Guidelines on Place of Taxation for Business-to-Consumer Supplies of Services and Intangibles and Provisions on Supporting the Guidelines in Practice (Draft Guidelines). TEI's comments emphasized the benefits of a simplified registration and compliance regime for non-resident suppliers of business-to-consumer services and intangibles, as well as the importance of clear guidance from tax authorities to facilitate compliance.

On December 15, 2014, TEI submitted a letter to the European Commission discussing the significant challenges businesses face when implementing VAT rate changes. The letter also recommends the creation of a common protocol for VAT rate changes in the EU that would include minimum advance notice, common transitional rules, and alignment between effective dates and established VAT reporting periods.

On October 29, 2014, TEI submitted a letter to the Japanese Ministry of Finance responding to a number of Japanese Consumption Tax proposals that would affect foreign-based suppliers of electronic services. The Institute's comments addressed several areas to be considered if a mandatory registration system for foreign e-commerce providers were created. TEI has submitted comments on this issue in a number of other jurisdictions, including Canada, the European Union, and South Africa.

On July 14, 2014, TEI submitted a letter to the South African Revenue Service (SARS) addressing new rules affecting foreign-based supplies of electronic services. The letter identified several areas where further guidance or amendments to the rules would assist businesses and SARS.The letter was prepared under the aegis of TEI's European Indirect Tax Committee, whose chair is Jean-Francois Turgeon of Caterpillar SARL. Materially contributing to the development of TEI's comments were Julien Brugere of Time Warner Inc. and Lynne Clare of Sony Corporate Services Europe Ltd.

On July 14, 2014, TEI submitted a letter to the South African Revenue Service (SARS) addressing new rules affecting foreign-based supplies of electronic services. The letter identified several areas where further guidance or amendments to the rules would assist businesses and SARS.

On June 5, 2014, TEI submitted a letter to the European Commission recommending areas where additional guidance would help businesses and tax authorities implement recent amendments to Implementing Regulation (EU) No 282/2011. The new rules for determining the place of supply for VAT purposes within the EU for sales of services connected with immovable property will take effect on January 1, 2017.

On March 6, 2014, TEI submitted a letter to the European Commission urging the creation of a web portal that would provide a repository for current VAT rules of the EU Member States. This critical tool would greatly assist businesses in their efforts to comply with VAT obligations in the EU.

On September 16, 2013, TEI submitted a letter to the European Commission recommending areas where additional guidance would help businesses and tax authorities implement recent amendments to Implementing Regulation (EU) No 282/2011. The new rules for determining the place of supply for VAT purposes within the EU for sales for telecommunications, broadcasting, and electronic services will take effect on January 1, 2015.

On May 10, 2013, TEI submitted the following comments to the Organization for Economic Co-operation and Development on the Draft Consolidated Version of the International VAT/GST Guidelines. These comments follow letters submitted by TEI on previously released VAT/GST guidelines and related commentary filed on March 31, 2010 and September 26, 2012. The Institute's letter praised the work of the OECD and urged clarification on rules applicable to determining the place of supply for cross-border sales of services and intangibles.