International VAT Monitor Index 2009 - empcom.gov.in

International VAT Monitor 

Index 2009

Columns 

Marlene Botes: 

– A Harmonized VAT System for 

Africa? 441 

– Thoughts on the Interaction between 

VAT, Prices and Fraud in the Current 

Economic Crisis 97 

Han Kogels: 

E-Invoicing: Cheaper, Safer and Greener 176 

Michael van de Leur: 

A VAT in the United States? 360 

Patrick Wille: 

VAT Refunds in the EU from 2010 5 

Colin Woodward: 

United Kingdom – Incentivizing the 

Taxpayer 261 

Articles 

Osita Aguolu: 

VAT in Nigeria – Theory and Practice 296 

Mohammad Faridul Alam and Nikhil 

Chandra Shil: 

VAT in Bangladesh 124 

Christian Amand: 

The Limits of the EU VAT Exemption for 

Financial Services 263 

Fabiola Annacondia and Walter van der 

Corput: 

– European Court of Justice – Recent 

Developments 384 

– Overview of General Turnover Taxes 

and Tax Rates (No. 2, green pages) 

– Practical Information on European 

VAT (No. 1, green pages) 

– VAT Registration Thresholds in 

Europe 488 

Reuven S. Avi-Yonah: 

Structuring a US Federal VAT 275 

Jean-Paul Bodin and Vincent Koukpaizan: 

The Rise of VAT in Africa – Impact and 

Challenges 178 

Fabrizio Borselli: 

A Sensible Reform of the EU VAT 

Regime for Financial Services 375 

Walter van der Corput: 

New EU VAT Rules Applicable from 

1 January 2010 (1) 443 

Wei Cui: 

Business Tax: China’s Quasi-VAT 291 

Reginald Derks: 

Reform of Swiss VAT – The VAT Act 

from 2010 481 

Dr Hans-Martin Grambeck: 

– EU VAT Treatment of Reselling 

Tickets 198 

– Outsourcing in the EU Financial 

Sector – Where Are We heading? 462 

Index 2009 

Ine Lejeune, Silvia Kotanidis and Ellen 

Cortvriend: 

Joint and Several Liability relating to 

Intra-Community Acquisitions 362 

Ine Lejeune, Silvia Kotanidis and 

Sofie Van Doninck: 

The New EU Place-of-Supply Rules 

from a Business Perspective 100 

Ine Lejeune, Bert Mesdom and Olivier 

Verhaege: 

Simplification and Harmonization of 

the EU VAT Invoicing and Archiving 

Rules 280 

Ivan Massin and Dr Kenneth Vyncke: 

EC Communication on VAT Grouping: 

An Attempt to Harmonize or to Restrict 

the Use of Group Registration? 454 

Jenny Nittmann: 

The VAT Revolution – 2010 and Beyond 18 

Dr Joep J.P. Swinkels: 

– Abuse of EU VAT Law in Part Service 23 

– Effective Use and Enjoyment of 

Services under EU VAT 207 

– Limitations and Justification of the 

European Court of Justice’s Doctrine 

of Asset Labelling 285 

– Sharing Joint Expenses under EU 

VAT 474 

– The Scope of the EU Exemption for 

Cost-Sharing Associations 32 

– The Tax Liability of Public Bodies 

under EU VAT 369 

– Transitional Restrictions on the Right 

to Deduct EU VAT 111 

– VAT Status of the Recipient of Services 28 

John Watson and Kate Garcia: 

EU VAT and the Rule of Economics 190 

Patrick Wille: 

New EU Place-of-Supply Rules for 

Services 8 

Xiaoqiang Yang: 

Merger of Business Tax into VAT in 

China 120 

Book Review 

Gorka Echevarría Zubeldia: 

The EU VAT System and the Internal 

Market by Rita de la Feria 395 

VAT News 

Algeria 

– Deduction of input tax 35 

– Refunds of VAT 302 

Argentina 

– Buenos Aires city 

– Rates and exemptions 131 

– Buenos Aires province 

– Discounts 491 

– Port activities 491 

– Price reductions 131 

– Services 491 

– Used vehicles 491 

– Withholding and reporting 211 

– Issue of receipts and invoices 302 

– Luxury products 302, 398 

– Maintenance of waterways 35 

– Meshes against hail 35 

– Payments by debit cards 35 

– Petroleum industry 303 

– Production of electricity 303 

– Refund of VAT 35 

– Small businesses 398 

Armenia 

– Hand-made carpets 212 

– Imported goods 212 

– Invoicing system 303 

Australia 

– Avoidance schemes – Immovable 

property 131 

– Changes to GST regime 

foreshadowed 303 

– Cross-border transactions 398 

– Global roaming 35 

Austria 

– Annual VAT congress 132 

– Bunker oil and lubricants 398 

– Conference rooms 132 

– Correcting invoices 133 

– Documentary evidence 132, 491 

– Faxed invoices 132 

– Good faith 133 

– Infringement procedure – 

Exemptions 492 

– Infringement procedures – Reduced 

rate 35, 492 

– Infringement procedure – Taxable 

amount 492 

– Late issue of VAT identification 

number 212 

– Letting of residential property 132 

– Managing directors 132 

– Pharmaceuticals 133 

– Place of supply 304 

– Place of supply – Refunds of VAT 492 

– Portfolio management 132 


– Sale of shares 491 

– Time of deduction 212 

Azerbaijan 

– Electronic invoicing and accounting 

methods 304 

– Export-oriented oil and gas projects 304 

– Special economic zones 304 

Bangladesh 

– Scope of VAT 304, 399 

Belarus 

– Investment projects 492 

– Passenger cars 399 

Belgium 

– Administrative obligations 212 

– Assessment period 36, 399 

© IBFD INTERNATIONAL VAT MONITOR NOVEMBER/DECEMBER 2009 

3


– CKBB and CLO – Change of address 134 

– Contract research by universities 36 

– Deduction of reverse charged VAT 305 

– Electronic and broadcasting services 35 

– Electronic returns and reports 214 

– Event-related supplies 399 

– Exemptions versus zero rates 305 

– Housing as part of a social policy 133 

– Lawyers 493 

– Letting of immovable property 493 

– Management of advertising space on 

websites 400 

– Monthly VAT refunds 133 

– New forms 493 

– Penalties relating to the reverse charge 

mechanism 133 


– Prepaid conferences 493 

– Pro forma invoices 305 

– Refunds of VAT – Partial refunds 134 

– Refunds of VAT – VAT groups 134 

– Rounding of VAT 213 

– Sales on approval 400 

– Supplies made by company directors 213 

– Tax collection 36 

– Travellers’ allowances 35 

Benin 

– Exemptions 135 

Bosnia and Herzegovina 

– Assessment of VAT 305 

– Diplomatic immunities – IPA 37 

– Goods financed by IPA funds 400 

Brazil 

– Bread and wheat 401 

– Crediting federal taxes against CIT 37 

– Deadlines for payment of federal taxes 37 

– FIFA World Cup 135 

– Flat-rate deductions 135 

– IT companies 214 

– Olympics and Paralympics 135 

– Tax amnesty 37 

– Transfer of ICMS credits 135 

– Transport services 135 

– Work on vessels 135 

Bulgaria 

– Acquisition VAT 38 

– Business restructuring 38 

– Exchange of goods 38 

– Investment gold 38 


– Thresholds 38 


Burkina Faso 

– Railway transport 135 

Burundi 

– Introduction of VAT 306 

Cameroon 

– Alcoholic beverages 136 

– Health and life insurance 135 

Canada 

– 2010 Winter Olympics 39 

– Aggressive tax planning 214 

– Direct selling industry 136, 214 

– Direct selling industry – Quebec 215 

– FNGST extended 38 

– Interest rate 38, 214 

– Non-resident security accounts 39 

– Ontario GST 215 

– Quebec sales tax rate 215 

Central African Republic 

– Petroleum products 137 

– Rates 137 

CFE 

– CFE Forum 2009: Cross-Border VAT 

Structures 306 

Chad 

– Disputes 216 

– Gambling and entertainment 216 

– Penalties 216 

– VAT returns 216 

Chile 

– Branches of non-resident companies – 

Double-taxation convention 494 

– Customs agents 308 

– Fuel for international transport 493 

– Interest and inflation adjustments 308 

– Mutual insurance organizations 494 

– Professional design services 494 

– Seminars and courses 308 

China (People’s Rep.) 

– Animation cartoon industry 401 

– Anti-fraud measures 309 

– Business tax 40 

– Consumption type of VAT 40 

– Credit guarantees 309 

– Export fraud 216 

– Export of textiles and garments 137 

– Export refund rates 217 

– Filing and payment deadlines 40 

– Fixed assets 308 

– Imported equipment 402 

– July 2009 riots 401 

– Non-resident suppliers 216 

– Rates of VAT 40 

– Reduced rates 137 

– Refund rates 308 

– Reorganization SAT 40 

– Revenue from VAT 401 

– Simplified collection system 137 

– Tax periods 40 

Croatia 

– Commissionaires 495 

– Exempt financial services 494 

– Free inventory goods 138 

– Import value 495 

– Margin scheme 495 

– Own consumption 495 



– Samples and gifts 495 

– Standard rate 402, 494 

– Tax representatives 494 

Cyprus 

– Hotel accommodation 218 


Czech Republic 

– Council Decision – Border bridges – 

Germany 138 

– Open-market value 402 

– Passenger cars 218 

– Place of supply of services 402 


– Proposed Decision – Territorial scope 41 

– Rates 495 

Denmark 

– Deferral of VAT 218, 402 

– Management of real estate 138, 310 

– New buildings and building land 138, 310 

– Newspapers 138 

– Passenger transport 138 


– Travel agents 138, 310 

Djibouti 

– Consumption tax rates 139 

– Free-trade zone 139 


Estonia 


– Rate of VAT 402 

– Reduced VAT rate 41 

– Retail export scheme 311 

– Standard rate 311 

ERA Conference 

– Fifth VAT Forum 52 

European Union 

– Anti-fraud agreement with 

Liechtenstein – Ecofin 144 

– Anti-fraud agreement with 

Switzerland 144 

– Cooperation between EU Member 

States 403 

– Cooperation between EU Member 

States – Working document 498 


Czech Republic and Germany 144 

– Council Decision – Deduction of 

VAT – Germany 497 

– Council Decision – Reverse charge 

mechanism – United Kingdom 311 

– Council Decision – Small businesses 

– Poland 497 

– Council Directive and Regulation 

– VAT fraud 41 

– Council Directive – Reduced VAT 

rates 311 

– Council Directive – VAT exemption 497 

– Council Directive – VAT fraud 311 

– Financial services 498 

– Grouping 402 

– Infringement procedure – Aircraft – 

United Kingdom 312 

– Infringement procedure – Building 

land – Latvia 311 

– Infringement procedure – Children’s 

items – Poland 43 

4 INTERNATIONAL VAT MONITOR NOVEMBER/DECEMBER 2009 © IBFD

– Infringement procedure – Crossborder 

passenger transport – Poland 311 


Exemptions – Austria 498 


Exemptions – Finland 498 

– Infringement procedure – First 

performances of a work – France 498 

– Infringement procedure – Flat-rate 

farmers – Portugal 311 

– Infringement procedure – Provision 

of personnel – Netherlands 43 

– Infringement procedure – Refund 

rules – Hungary 499 

– Infringement procedure – Refunds – 

Greece 498 


amount – Austria 498 


amount – Italy 220 


amount – Poland 220 


Transposition of two Directives – 

Greece 220 


Transposition of two Directives – Italy 43 

– Infringement procedure – Travel 

agents – Spain 499 


rate – Austria; France; Germany and 

Luxembourg 498 


rate – Austria, France, Germany, 

Luxembourg and Netherlands 43 

– Insurance and financial services – 

Ecofin 44 

– Invoicing rules – Frequently asked 

questions 140 

– Invoicing – Study and report 46 

– List of gold coins – 2009 49 

– Mutual assistance in recovery of 

taxes – Report 498 

– Political agreement on VAT Directives 

reached – Ecofin 311 

– Postal Directive – Working document 47 

– Proposed Decision – Cash-based 

deduction – Sweden and United 

Kingdom 497 

– Proposed Decision – Deduction of 

VAT – Germany 403 

– Proposed Decision – Reverse charge 

mechanism – United Kingdom 220 

– Proposed Decision – Territorial 

scope – Czech Republic and Germany 43 

– Proposed Directive and 

Communication – VAT fraud 42 

– Proposed Directive and 

Communication – VAT invoicing 

rules 139 

– Proposed Directive – Reverse charge 496 

– Proposed Directive – Reverse charge – 

Frequently Asked Questions 496 

– Proposed Directives – Mutual 

assistance in recovery of taxes 143 

– Reduced VAT on environment-friendly 

products – Study 145 

– Reduced VAT rate – Directive – Report 

European Parliament 219 

– Reduced VAT rates – Ecofin 44, 145, 218 

– Reduced VAT rates – Opinion 

EESC 219 

– Reverse charge mechanism – Ecofin 220 

– Taxation trends 403 

– Taxes in Europe – Database 312 


– VAT collection and control 

procedures – Report 47 

– VAT fraud – Directive and 

Regulation – Opinion EESC 42 

– VAT fraud – Directive – Opinion 

European Parliament 42 

– VAT fraud – Fiscalis Seminar 144 

– VAT fraud – Regulation – Opinion 

and Report European Parliament 42 

– VAT rates 43 

– Verifications of VAT identification 

numbers 312 

Questions from the European Parliament 

– Educational IT equipment 316 

– Letterbox companies 313 

– Mobile-home occupants in the 

Netherlands 315 

– Pay TV services 316 

– Printing work for funerals 314 

– Race horses in Ireland 312 

– Registration tax 314 

– Taxable persons – Italy 312 

– Unlawfulness of VAT on waste tax 315 

Fiji 

– Zero rating 145 

Finland 

– Cars 220 

– Food 146 

– Infringement procedure – Exemption 499 

– Personal tax account 404 


– Rates 499 

– Tax accounts 145 

France 

– Assembly and installation 499 

– Books 499 

– CO2 emission allowances 404, 500 

– Collectors’ items 54 

– Deduction of VAT 317 

– Failure to declare self-assessed VAT 500 

– Greenhouse gas emissions units 317 

– Infringement procedure – First 

performances of a work 500 


rate 54, 500 

– Monthly refunds 220 

– Overseas economic development 54, 317 


– Public/private partnerships 49 

– Rate of VAT 404 


– Restaurant services 318 

– Self-employed status 318 


– Transfers of buildings 317 

– VAT audit unearths identity of Swiss 

bank account holders 500 

– Voluntary disclosure – 5% penalty 220 


Germany 

– Cash receipts 405 

– Combating tax evasion 501 


Czech Republic 146 

– Council Decision – Deduction of VAT 501 

– Free ports 146 

– Home production of energy 221 


rate 54, 501 

– Medical services 146, 404 



– Postal services 146 

– Proposed Decision – Territorial scope 54 

– Summary invoices 146 

– VAT returns 146 

Greece 


Refunds 501, 502 

– Infringement procedure – Transposition 

of two Directives 221 


Grenada 



Guernsey 

– Goods and services tax 221 

Hungary 

– Business records 222 

– Infringement procedures – Refund 

rules 502 

– Invoices 221 



– Rates 502 



– Standard and reduced rates 221 


– Tax procedure 222 

– Technical amendments 221 

Iceland 

– Food 405 

IFA 

– Physical presence 503 

India 

– Builders 146 

– Dual GST 405 

– Educational institutions 147 

– Export of services 222 

– Input tax – Mixed use 406 

– Introduction of GST 223, 503 

– Packages of goods and services 406 

– Proposed GST 318 

– Refunds of service tax 406 

– Scope of service tax 406 

– Service tax 318 

– Special economic zones 222 

– Standard rate of service tax 147 

– Standard software 407 

– Territorial jurisdiction 406 


5


– Unused goods 406 

Indonesia 

– Fee trade zones 319 

Ireland 

– Filing and payment 147 

– Low-emission company cars 147 



– Public bodies 407 

– Second-hand cars 223, 503 


– Tea and coffee 148 

– Travel agents 147, 407 

– Unjust enrichment 148 

Israel 


Italy 

– Annual VAT returns 223 

– Cash accounting 319 

– Cash accounting method 54 

– Contribution of lease contracts to real 

estate fund 56 

– Crediting excess input tax 55 

– Electronic transmission of sales 223 

– Emission rights 224 

– Excess input VAT 408 


amount 224 


Transposition of two Directives 56 

– Intermediary services 408 


– Non-resident entities 504 

– Pay-TV 55 

– Penalties on voluntary settlement 55 

– Place of supply – Refunds of 

VAT 408, 504 

– Products subject to excise duty 408 


– Renovation of dwellings 55 

– Reverse charge mechanism 223 

– Taxable amount – Value at arm’s 

length 408 

– Thresholds 408 

– Use of identification numbers – 

Non-resident entities 55 

Japan 

– Consumption tax 319 

Kenya 


– Mobile telephones 319 

– Tax relief 319 

– Zero rates 319 

Korea (Rep.) 

– Administrative obligations 57 

Kyrgyzstan 

– New Tax Code 57 

Laos 

– Extension of VAT 148 

– Utilities, beer and fuel 148 

Latvia 

– Authors 57 

– Building land 148, 409 

– Compensation of VAT claims 57 

– Infringement procedure – Building 

land 320 

– New buildings 57 

– Optional regimes 504 



– Reduced rate 319 



– VAT options 409 

Liechtenstein 

– Anti-fraud agreement with the 

European Union – Ecofin 148 

Lithuania 



– Reduced rates 409 

Luxembourg 

– Cooperation between tax 

administrations 224 

– Infringement procedures – 

Reduced rate 58, 505 

– Payment codes 58 

– Place of supply – Refunds of 


Macedonia 

– Deferral of payment 148 

Madagascar 

– Budget for 2009 58 


Malawi 

– Budget 2009/10 409 

Malta 

– Administrative penalties 225 

– Interest 58 

– Interest rate 225 

– Pharmaceuticals and food 226 


Mexico 

– Medical products 320 

– New consumption tax 505 

Moldova 

– Online filing 58 

– Taxable persons 226 

– Transnistria – Discriminatory VAT 

treatment 149 

Monaco 

– Registration thresholds 226 

Montenegro 

– Deferral of VAT on importation 320 

Morocco 

– Registration threshold 58 

Namibia 

– Zero rate 226 

Nepal 

– Construction 409 

– Hydro-electrical projects 409 

– Registration 409 

Netherlands 

– Anti-fraud measures 506 

– Company cars 149 

– Economic stimulus package 227, 320, 410 

– Infringement procedure – Provision 

of personnel 59 


VAT rate 59 

– Intra-Community VAT fraud 320 

– Invoicing requirements 226 

– LEDs 506 

– Place-of-supply rules – Refunds of 


– Quarterly VAT returns 58 


– Refunds of excess input VAT 505 


– Trade in CO2 emission rights 409 

– VAT Compensation Fund 410 

– Vocational training 505 

New Zealand 

– Small and medium-sized 

businesses 149, 227 

– Tax reform 506 

– Tour operators 410 

– Treasury briefing 59 

Niue 

– Consumption tax 410 

Norway 

– New VAT Act 321, 411 

OECD 

– Recovery of VAT – Survey 321 

– VAT Conference 506 

Pakistan 

– Introduction of VAT 321, 411 

– Retail stage 411 

Peru 

– Advance VAT collection 228 

Philippines 

– Directors’ remuneration 59 

Poland 

– Additional tax liability 61 

– Bad-debt relief 60 

– Call-off stocks 59 

– Contributions in kind 321 

– Correcting invoices 60 

– Council Decision – Small businesses 507 

– Deduction of input VAT 61 

– Documentary evidence 61 

– Exports 60 

– Fairs and exhibitions 60 

– Gifts of low value 61 


– Infringement procedure – Children’s 

items 61 


Cross-border passenger transport 321 


amount 228 

– Non-deductible input tax 60 

– Perpetual usufruct 61 


– Postponed accounting 60 

– Quarterly VAT returns 61 

– Refunds to new taxable persons 60 

– Registration threshold 61, 507 


– Supply of imported goods 61 

– Transfer of a business 59 

– Used goods 60 

– Work on goods 61 

Portugal 

– Artistic services 229 


– Donations 62 

– Imports 507 

– Infringement procedure – Flat-rate 

farmers 322 

– Leasing by financial institutions 228 

– National transport 322 

– Option for taxation of sublease 62 


– Place-of-supply rules – Refund 

procedure 62 

– Recapitulative VAT statements 507 


– Refund application threshold 228 


– Registration 507 

– Reverse charge mechanism 63, 228 

Romania 

– Administrative penalties 229 

– Cars and car fuel 229 

– Groups 63 

– Import VAT 63 

– Inactive taxpayers 322 

– Incidental intra-Community 

acquisitions 64 

– Interest and penalties 323 

– Means of transport 323 

– New VAT return 64 

– Option for taxation 64 


– Rescheduled tax payments 323 

– Residential property 63 

– Supplies of buildings 63 

– Tax period 229 

– Tax procedures 322 

– Tax record 323 

– Travellers’ allowance 64 

Russia 

– Accelerated refunds 66, 508 

– Amendments to the VAT chapter 

of the Tax Code 64 

– Commercial credit 324 

– Contributions to charter capital 508 

– Customs brokers 230, 412 

– Deferred expenses 508 

– Deferred payment 65 

– Diplomatic tax immunity 411 

– Discounts and bonuses 230 

– Due care and diligence 323 

– Electronic invoices 509 

– Foreign exchange differences 508 

– Funds transferred to subsidiary 411 

– Imported production equipment 323 

– Joint construction 412 

– Lease agreements 230 

– Leasehold improvements 324, 411 

– Non-resident suppliers 65 


– Prepayments 229 

– Purchase ledgers and sales ledgers 323 

– Recovery of VAT on construction 230 

– Recovery of VAT – Real estate and 

capital goods 65 

– Refund procedure 325 

– Sales bonuses 66 

– Separate accounting 508 

– Subsidies 324 

– Trade-in sales of vehicles 149 

– Transfer of creditor’s rights 149 

– Transfer of right to receive securities 412 

– Transfers between insurers 149 

– Transport of imported goods 324 

– VAT invoices – Seller’s name 411 

St Kitts and Nevis 


Serbia 

– Tax procedure and administration 231 

Seychelles 

– Tax reform 325 

Singapore 

– Appeals 509 

– Deduction by funds 150 

– Electronic vouchers 509 

– Exempt wine 150 

– International aircraft 150 

– Temporary removal from GST 

control 150 

– Trusts 509 

Slovak Republic 

– Group registration 231 

– Late registration 231 




Slovenia 

– Accelerated refunds 150 

– Cancellation of VAT identification 

numbers 412 

– Correction of output VAT 150 

– Electronic VAT returns and EC sales 

listing forms 150 

– Filing and payment deadlines 412 

– First VAT return 413 

– Guarantees 412 

– Joint liability 412 

– Open-market value 412 


– Pro rata 150 

– Refund of excess input VAT 325 



South Africa 

– Combating fraud 325 

– Company reorganizations 151 

– Compulsory registration threshold 150 

– Corporate reorganizations 232 

– Documentary proof 413 

– Duty and tax-free shops 413 

– FIFA World Cup 2010 413 

– General Rulings Register 232 

– Guides 232 

– Interest on overpaid VAT 325 

– Interest on underpaid VAT 325 

– Issuing of invoices in the case of sale 

of a business 509 

– Late-payment interest 151 

– Tax periods – Cut-off dates 232 

– Transfer of an enterprise 325 

– VAT fraud 66, 151 

– Voluntary registration threshold 151 

– Withdrawal of VAT rulings 413 

Spain 


– Import VAT 67 

– Infringement procedure – Travel 

agents 510 

– List of invoices 413 

– Low-value imports 67 


– Place of supply of services, VAT 

refunds and fraud 326 

– Rates 510 

– Recapitulative statements 414 

– Refunds of VAT 66, 414 

– Taxable person 67 

– Transfer of businesses 67 


Sri Lanka 

– Deduction of input tax 68, 151 


– Rates 151 

– Registration threshold 68, 151 


Sudan 


Sweden 

– Construction sector 233 

– Letting of commercial buildings 68 




deduction 510 


– Sales List 233 

– VAT compensation 68 

– VAT grouping 68 

Switzerland 

– Anti-fraud agreement with the European 

Union 152 

– Free warehouses 151 

– New VAT Act 326 



7


Tajikistan 


Tanzania 


– Human medicines 414 


Thailand 

– Business transfer 414 

– Debt restructuring 414 

Togo 

– Free zones 152 

Tunisia 

– Electronic tax returns 152 

Turkey 

– Cars – Electrical and electronic 

appliances 415 

– Reduced rates 233, 415 

– Refund of input VAT 68 

– Restaurant services 415 

Uganda 


Ukraine 

– Agricultural businesses 69 

– Biofuel 415 

– Energy-saving technologies 152 

– Pledged goods 415 

United Kingdom 

– Budget 2009 152 

– Council Decision – Reverse charge 

mechanism 327 

– Infringement procedure – Aircraft 327 


– Overseas business entertainment 233 


– Postal services 511 


deduction 511 

– Proposed Decision – Reverse charge 

mechanism 235 

– Refund application and assessment 

periods 234 

– Refund application period 415 

– Refunds of VAT – Direct tax aspects 234 

– Registration threshold 235 

– Sponsored theatrical performances 510 


– Tour operators 234 

– Unjust enrichment 152 

United States 

– Cash for clunkers 511 

– Cheap clothing 70 

– E-commerce transactions 327 

– Nexus for business activity tax 235 

– State compliance review 69 

– Arkansas 

– Groceries 235 

– Taxable services 235 

– California 

– Diplomatic exemptions 235 

– Economic nexus 235 

– Nexus of Internet vendors 153 

– Proposed tax policy changes 416 

– Colorado 

– Cigarettes 416 

– Clean technology companies 416 

– Penalty for sales tax 328 

– Connecticut 


– Florida 

– Recreational facilities 416 

– Georgia 

– Portable toilets 511 

– Hawaii 

– “Amazon” legislation 328 

– County tax surcharge 328 

– Kansas 


– Kentucky 

– Collection costs compensation 236 

– Digital sales 236 

– Retailers 235 

– Louisiana 

– Bait and feed for crawfish 416 

– Food for home consumption 417 

– Radiation therapy treatment 

centres 417 

– Shelters for homeless 417, 512 

– Trucks and trailers in interstate 

commerce 417 

– Maine 

– Tax rates and tax base 417 

– Massachusetts 

– Tax rate 417 

– Michigan 

– Biomass-harvesting machinery 153 

– Conformation to SSUTA 153 

– Definition of sales price 153 

– Medicaid medical services 153 

– Redefinition of gross receipts 153 

– Statistical audit methods 417 

– Minnesota 


– Mississippi 

– Definition of “business” 328 

– Digital products 236 

– Farm equipment 328 

– New Jersey 

– Small businesses 154 

– New York 

– Sales tax in New York City 418 

– Training software 236 

– Web-based homecare systems 417 

– North Carolina 

– Agricultural products 512 

– Fish and seafood 512 

– Meat 512 


– Retailers’ liability for over-collection 512 

– Vegetables 512 

– Volunteer emergency response 

organizations 512 

– South Dakota 

– Telecommunications services 236 

– Tennessee 

– Compliance with SSUTA 418 

– Vermont 

– Digital downloads 418 

– Virginia 

– Food, computer equipment 328 

– Washington 

– Biomass energy 328 

– Conformation to SSUTA 418 

– Energy incentive legislation 328 

– High technology 418 

– Hybrid vehicles 329 

– Renewable energy 328 

– Solar energy 329 

– Wisconsin 

– Digital goods 237 

– Significantly modified software 236 

– Single-owner entities 418 

– Sourcing 237 

– SSUTA conformity 237 

– Wyoming 

– Renewable energy 237 

Uzbekistan 

– Commercial banks 419 

Venezuela 

– Exonerated imports 71 

– Invoices relating to utilities 70 


Vietnam 

– Deduction of VAT 72, 329 


– Exported services 329 

– Non-resident contractors 154 


– Standard and reduced rates 329 

– Tax concessions 154 

– Taxable persons 329 

West African Economic and Monetary 

Union 

– Amendments to VAT Directive 419 

Zambia 

– Deferment scheme 155 

– Multi-facility economic zones 155 

– Refunds 155 

– Seasonal crops 155 

– Storage of records 155 

– Zero rate 155 

Zimbabwe 

– Budget 2009/10 238 

VAT Case Notes 

Australia 

– Credit card surcharges 420 

– First sale of immovable property 155 

– Foreign currency 513 

– Hobby-business borderline 238 

– Units in unit trusts 72 

Austria 

– Bad debts 156 

– Business entertainment 422 

– Deduction of input VAT 156 

– Deduction of VAT relating to 

immovable property 239 

– Good faith 513 


– Margin scheme and small businesses 330 


– Mixed use of buildings 421 

– Mixed use of buildings by public 

bodies 422 

– Overpriced goods 421 

– Proof of transport 513 


Brazil 

– IPI export regime 514 

– Rate of COFINS 514 

Canada 

– Adult education 157 

– Ambulance services 514 

– Camp’s day visits 160 

– Charitable donations 158 

– Cutting up hunters’ meat – Supply of 

goods or services? 73 


– Financial services and loyalty 

programme points 428 

– Group audit 515 

– GST paid in error 422 

– Holding company 156 

– Information about third parties 516 

– Investment management services 72, 425 

– Lawyer’s disbursements 75 

– Legal fees 159 

– Non-therapeutic massage 331 

– Passenger vehicle 332 

– Pension plan investment management 

services 424 

– Provincial exemptions on bankruptcy 

apply to GST garnishment 332 

– Sales of land 330 

– Superior Court can make declaratory 

judgment on GST law!? 75 

– Termination payments 239 

– The real recipient 517 

– Tour packages to non-residents 517 

– Wood marketing association was not 

agent of wood producers 74 

Czech Republic 

– Audits limited to suspicion of fraud 160 

Germany 

– Board and accommodation 239 


– Headhunting 160 

– Input tax adjustments – VAT groups 160 

– Organization of conferences 240 

India 

– Advertising expenses 518 

– Customized software 161 

– Legal certainty 334 


– Lottery tickets 240 

– Telecommunications services 333 

Italy 

– Abuse of law – Part Service 77 

– Quantity discounts and bonuses 241 


– Signature on VAT returns 334 


Netherlands 

– Assets labelling 431 

– Circumstances beyond the taxable 

person’s control 241 

– Deduction of input tax 520 

– Dental prostheses 241 


– Exchange of currency 430 

– Financial and insurance services 241 

– Money laundering 431 

– Operation of slot machines 335 

– Place of supply of services 431 

– Reverse charge mechanism – 

Transfer of immovable goods 430 

– Rounding amounts of VAT 335 

– Tax-staggering scheme 520 

– Travel agents – Recovery of VAT 335 

Peru 

– Input tax deduction 242 

Poland 

– Bonuses 336 

– Car expenses 242 

– Cash registers 431 

– Delayed refund of VAT 243 


Portugal 

– Taxable base 336 

Russia 

– Advertising expenses 522 

– Allocation of VAT on 

self-construction 337 

– Amended invoices 521 

– Discounts 162 

– Due diligence 522 

– Foreign exchange differences 243 

– Interest on delayed refund of 

overpaid taxes 243 


– Joint activity agreements (simple 

partnership) 432 

– Leasehold improvements 162 

– Payments under preliminary 

agreements 432 

– Pro rata deduction 161 

– Recovery of VAT on construction 521 


– Reissued VAT invoices 78 

– Retrospective discounts 432 

– Returned goods 78, 432, 521 

– Sales bonuses 432 

– Services relating to imports 521 

– Time of deduction 337, 432, 521 

– Utility charges under lease 

agreements 243 

– VAT offsetting 522 

South Africa 

– Supplies without consideration 522 

Spain 

– Default interest 522 

– Late deductions 337 

Sweden 

– Activities of trade unions 523 


– Construction services – Installation 

of alarm software 78 

– Consultancy services 338 

– Custody services 244 

– Depository services 244 

– Fixed establishment 78 

– Intermediary services of subagents 78 

– Management of assets 523 

– Sub-agents 338 

Switzerland 

– Import of aircraft – Territorial scope 

of VAT 162 

– Taxable transactions 163 

United Kingdom 

– Abuse of law 78 

– Advertisements for mixed 

transactions 524 

– Airport park and ride 433 

– Bingo games – Equal treatment 340 

– Debt collection 164 

– Holiday homes – Abuse of law 339 

– Insurance agents 79 


– Joint recipients 524 

– Lighter-Life services 164, 433 

– London pass 164 

– Non-profit sports club – Abuse of law 165 

– Novated contracts 244 

– Penalties – Mistake by third party 339 


– Registration threshold – Abuse of law 339 

– Sponsored cultural events – 

Attribution of input tax 338 

– Tax-free margin scheme goods 524 

United States 

– Hotel tax – Online travel agencies 166 

– Surcharge on certain Internet services 340 

– Alabama 

– Free peanuts 434 

– Goods used by service provider 525 

– California 

– Consumers cannot reclaim sales 

tax on exempt coffee 341 

– Connecticut 

– Nexus of book distributors 341 

– Illinois 

– Amusement tax on online tickets 434 

– Go-go dancing 341 

– Iowa 

– Internet services 525 

– Kansas 

– Educational exemption 81 

– Kentucky 

– Software licensing 166 

– Massachusetts 

– Presumed use 526 

– Missouri 

– Purchases by government 

contractor 435 

– Tickets for resale 526 

– New York 


– Nexus through web link 342 

– Reward points 80 

– Strip dancing 341 

– Transfer of business 435 


9


– Ohio 

– Constitutionality of CAT 81 

– Pennsylvania 

– Permanently installed medical 

equipment 526 

– Tennessee 

– Illegal drugs tax 527 

– Texas 

– “Out-of-the box” software 343 

ECJ VAT Cases 

Judgments 

– Case C-174/07 European Commission v. 

Italian Republic 81 

– Case C-288/07 The Commissioners of 

Her Majesty's Revenue and Customs v. 

Isle of Wight Council, Mid-Suffolk District 

Council, South Tyneside Metropolitan 

Borough Council, West Berkshire District 

Council 387 

– Case C-291/07 Kollektivavtalstiftelsen 

TRR Trygghetsrådet v. Skatteverket 82 

– Case C-302/07 Wetherspoon plc v. 

The Commissioners for Her Majesty’s 

Revenue and Customs 245 

– Case C-357/07 TNT Post UK Ltd v. 



– Case C-371/07 Danfoss A/S 

AstraZeneca A/S v. Skatteministeriet 82 

– Case C-407/07 Stichting Centraal 

Begeleidingsorgaan voor de 

Intercollegiale Toetsing v. Staatssecretaris 

van Financiën 83 

– Case C-414/07 Magoora sp. zoo v. 

Dyrektor Izby Skarbowej wKrakowie 84 

– Case C-460/07 Sandra Puffer v. 

Unabhängiger Finanzsenat, Außenstelle 

Linz 247 

– Case C-488/07 Royal Bank of Scotland 

Group plc v. The Commissioners for Her 

Majesty’s Revenue andCustoms 85 

– Case C-502/07 K-1 sp.z o.o. v. Dyrektor 

Izby Skarbowej w Bydgoszczy 86 

– Case C-515/07 Vereniging Noordelijke 

Land- en Tuinbouw Organisatie v. 

Staatssecretaris van Financiën 167 

– Case C-554/07 Commission of the 

European Communities v. Ireland 387 

– Case C-566/07 Staatssecretaris van 

Financiën v. Stadeco BV 344 

– Case C-572/07 RLRE Tellmer 

Property s.r.o. v. Finanèní reditelství v 

Ústí nad Labem 345 

– Case C-1/08 Athesia Druck Srl v. 

Ministero dell’Economia e delle Finanze, 

Agencia delle Entrate 167 

– Case C-2/08 Amministrazione 

dell’economia e delle Finanze and 

Agenzia delle Entrate v. Fallimento 

Olimpiclub Srl 527 

– Case C-7/08 Har Vaessen Douane 

Service BV v. Staatssecretaris van 

Financiën 387 


European Communities v. Republic of 

Finland 248 

– Case C-37/08 RCI Europe v. Her 

Majesty’s Commissioners of Revenue 

and Customs 528 

– Case C-74/08 PARAT Automotive 

Cabrio Textiltetõket Gyártó Kft. v. Adó- és 

Pénzügyi Ellenõrzési Hivatal Hatósági 

Fõosztály Észak-magyarországi 

Kihelyezett Hatósági Osztály 249 

– Case C-102/08 Finanzamt 

Düsseldorf-Süd v. SALIX Grundstücks- 

Vermietungsgesellschaft mbH & Co. 

Objekt Offenbach KG 346 

– Case C-242/08 Swiss Re Germany 

Holding GmbH v. Finanzamt München 

für Körperschaften 529 


European Communities v. Italian 

Republic 388 

– Case C-267/08 SPÖ 

Landesorganisation Kärnten v. 

Finanzamt Klagenfurt 530 

– Case C-377/08 EGN B.V. - Filiale 

Italiana v. Agenzia delle Entrate 388 

Court’s Orders 

– Case C-119/08 UAB Mechel Nemunas 

v. Valstybinė mokesčių inspekcija prie 

Lietuvos Respublikos finansų 

ministerijos 347 

– Case C-151/08 N.N. Renta SA v. 

Tribunal Económico-Administrativo 

Regional de Cataluña (TEARC) 168 

– Case C-156/08 Monika Vollkommer v. 

Finanzamt Hannover-Land I 168 

Opinions 

– Case C-302/07 J. Wetherspoon PLC v. 



– Case C-357/07 TNT Post UK Ltd v. 

The Commissioners of Her Majesty’s 


– Case C-460/07 Sandra Puffer v. 

Unabhängiger Finanzsenat, Außenstelle 

Linz 89 

– Case C-515/07 Vereniging Noordelijke 

Land- en Tuinbouw Organisatie v. 

Staatssecretaris van Financiën 89 


Financiën v. Stadeco BV 250 

– Case C-572/07 RLRE Tellmer Property 

s.r.o. v. Finanèní reditelství v Ústí nad 

Labem 89 

– Case C-2/08 Amministrazione 

dell’economia e delle Finanze and 

Agenzia delle Entrate v. Fallimento 

Olimpiclub Srl, in liquidation 251 

– Case C-7/08 Har Vaessen Douane 

Service BV v. Staatssecretaris van 


– Case C-29/08 Skatteverket v. AB SKF 169 

– Case C-37/08 RCI Europe v. Her 

Majesty’s Commissioners of Revenue 

and Customs 251 

– Case C-174/08 NCC Construction 

Danmark A/S v. Skatteministeriet 349 

– Case C-230/08 Dansk Transport og 

Logistik (DTL) v. Skatteministeriet 530 

– Case C-242/08 Swiss Re Germany 

Holding GmbH v. Finanzamt München 

für Körperschaften 350 



Finland 389 

– Case C-262/08 CopyGene A/S v. 

Skatteministeriet 531 

– Case C-267/08 SPÖ 

Landesorganisation Kärnten v. 

Finanzamt Klagenfurt 390 

President’s Orders 

– Joined Cases C-53/09 Her Majesty’s 

Revenue and Customs v. Loyalty 

Management UK Limited and C-55/09 

Her Majesty’s Revenue and Customs v. 

Baxi Group Limited 351 

New Cases 

– Case C-433/08 Yaesu Europe BV v. 

Bundeszentralamt für Steuern 90 

– Case C-461/08 Don Bosco Onroerend 

Goed BV v. Staatssecretaris van 


– Case C-472/08 Alstom Power Hydro v. 

Valsts ieņēmumu dienests 90 

– Case C-473/08 Ingenieurbüro Eulitz 

GbR Thomas and Marion Eulitz v. 

Finanzamt Dresden I 169 

– Case C-483/08 Régie Communale 

Autonome du Stade Luc Varenne v. 

Belgian State – SPF Finances 90 


European Communities v. French 

Republic 91 


Financiën v. X 170 

– Case C-538/08 X Holding BV v. 

Minister van Financiën 170 


Financiën v. Facet BV/Facet Trading BV 170 

– Case C-581/08 EMI Group Ltd v. 




European Communities v. United 

Kingdom of Great Britain and 

Northern Ireland 253 

– Case C-3/09 Erotic Center BVBA v. 

Belgian State 253 

– Case C-33/09 Oracle Nederland BV v. 

Inspecteur der Belastingdienst 

Utrecht-Gooi/kantoor Utrecht 253 

– Case C-40/09 Astra Zeneca UK 

Limited v. Commissioners for Her 

Majesty’s Revenue and Customs 254 


European Communities v. Kingdom of 

the Netherlands 351 



Poland 254 


– Case C-53/09 Commissioners for Her 

Majesty’s Revenue and Customs v. 

Loyalty Management UK Limited 255 

– Case C-55/09 Commissioners for Her 

Majesty’s Revenue and Customs v. Baxi 

Group Limited 255 

– Case C-58/09 Leo-Libera GmbH v. 

Finanzamt Buchholz in der Nordheide 352 


European Communities v. Kingdom of 

the Netherlands 352 

– Case C-84/09 X v. Skatteverket 255 

– Case C-86/09 Future Health 

Technologies Ltd v. Her Majesty’s 

Commissioners of Revenue and 

Customs 256 

– Case C-88/09 Graphic Procédé v. 

Ministère du budget, des comptes 

publics et de la fonction publique 352 


European Communities v. French 

Republic 352 

– Case C-97/09 Ingrid Schmelz v. 

Finanzamt Waldviertel 353 

– Case C-103/09 The Commissioners 

for Her Majesty’s Revenue and 

Customs v. Weald Leasing Limited 354 

– Case C-156/09 Finanzamt 

Leverkusen v. Verigen Transplantation 

Service International AG 393 

– Case C-175/09 Her Majesty’s 

Commissioners of Revenue and 

Customs v. Axa UK plc 354 


European Communities v. Hellenic 

Republic 394 

– Case C-188/09 Dyrektor Izby 

Skarbowej w Białymstoku v. 'Profaktor' 

Kulesza, Frankowski, Trzaska spółka 

jawna w Białymstoku 394 

– Case C-222/09 Kronospan Mielec sp. 

z o. o. v. Dyrektor Izby Skarbowej w 

Rzeszowie 532 



Poland 532 

– Case C-237/09 Etat Belge v. Nathalie 

De Fruytier 533 


– Case C-248/09 SIA Pakora Pluss v. 

Valsts ieņēmumu dienests 533 

– Case C-270/09 Macdonald Resorts 

Limited v. The Commissioners for Her 

Majesty’s Revenue and Customs 533 

– Case C-276/09 T-Mobile (UK) Ltd v. 



– Case C-277/09 The Commissioners for 

Her Majesty’s Revenue and Customs v. 

RBS Deutschland Holdings GmbH 534 

– Case C-285/09 Criminal proceedings 

against R 535 

– Case C-292/09 Isabella Calestani v. 

Agenzia delle Entrate Ufficio di Parma 535 

– Case C-293/09 Paolo Lunardi v. 

Agenzia delle Entrate Ufficio di Parma 535 



Poland 535 


11

International VAT Monitor Index 2009 - empcom.gov.in

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