As digitalization disrupts the way businesses operate and rapidly changes the tax landscape, new tax requirements (both indirect and direct) seek to ensure that tax is collected at the point of consumption.
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OECD consultation on a “unified approach” to taxing the digital economy
Following a meeting on October 1, 2019 of the OECD Task Force on the Digital Economy (TFDE), the OECD Secretariat published a public consultation document on October 9, 2019 that sets out a proposal for a unified approach to the nexus and profit allocation challenges arising from digitalization. The OECD invites comments from the public with a view to discussing the results during a public consultation on November 20 and 21, 2019. Interested parties are invited to send their comments by email to the OECD no later than 12pm (Paris time) on Tuesday, November 12, 2019, using the email address TFDE@oecd.org.
Nieuwe publicatie van grensoverschrijdende btw-rulings
Op 15 juli 2019 publiceerde de Europese Commissie op haar website de recentste update van grensoverschrijdende btw-rulings. Daarmee maakt de Europese Commissie een inhaalbeweging, omdat de vorige publicatie al dateerde van mei 2017 (zie; https://ec.europa.eu/taxation_customs/business/vat_en). Hieronder een korte samenvatting van recente btw-rulings waarin ook het standpunt van de Belgische btw-administratie werd gevraagd.
Nouvelle publication de rulings TVA transfrontaliers
Le 15 juillet 2019, la Commission européenne a publié sur son site web la dernière mise à jour des rulings TVA transfrontaliers. Ce faisant, la Commission européenne amorce une manœuvre de rattrapage puisque sa précédente publication remonte à mai 2017 (voy. https://ec.europa.eu/taxation_customs/business/vat_en). Vous trouverez ci-dessous un bref résumé des derniers rulings TVA dans le cadre desquels le point de vue de l'Administration TVA belge a également été sollicité.
Prefiling requests regarding transfer pricing or innovation income deduction must be filed by 31/01/2020
The ruling commission has communicated that prefiling requests or ruling requests (without prefiling) regarding the innovation (or patent) income deduction or transfer pricing with impact on the corporate tax return to be filed by the end of September 2020 must be introduced on 31 January 2020 at the latest. For companies that are not closing their annual accounts on a calenda ...
General Court examines the compatibility of rulings granted by Ireland, Luxembourg and the Netherlands with EU State aid rules
Following multiple State aid investigations launched by the European Commission, the General Court of the European Union was asked to examine whether the advance transfer pricing agreements granted by Ireland, Luxembourg and the Netherlands were compatible with EU law. In the case involving Netherlands, the Court ruled on September 24, 2019 that the Commission’s decision should be annulled, but upheld the Commission’s findings in the case involving Luxembourg. As regards the Irish case, during a hearing that took place on September 17 and 18, 2019 the Court requested the Commission, Ireland and the taxpayer concerned to clarify their arguments.
INSIGHT: Advance Pricing Arrangement Series—Europe
In the years following the introduction of the Organization for Economic Cooperation and Development (OECD) action plan on Base Erosion and Profit Shifting (BEPS), KPMG is expecting a significant increase in transfer pricing controversy. This rise of transfer pricing controversy is fueled by an increase in exchange of information between tax authorities, the number and qualification of tax auditors, tax authority aggressiveness, tax authorities’ use of technology to identify transfer pricing risks and inconsistencies, developing tax laws and regulations, and public pressure on governments to increase revenues generated from corporate income taxes.
Tax authorities have been fighting tax evasion and aggressive tax avoidance through increased transparency. The importance of providing greater tax certainty to taxpayers to support trade, investment and economic growth remain an important focus area for both taxpayers and governments. At the same time, the European economy is encountering the debt crisis, Brexit, trade wars, and tariff discussions. Against this background, multinationals have an increasing demand for legal and planning certainty. Thus, KPMG has seen an increase of Advance Pricing Arrangement (APA) applications covering countries in Europe. This article analyzes these programs in Belgium, Denmark, Germany, Italy, the Netherlands, Poland, Portugal, Spain, Sweden, Switzerland, Ukraine, and the UK.
European Commission investigation into individual Belgian “excess profit” tax rulings
On September 16, 2019, the European Commission launched an investigation into whether the “excess profit” tax rulings granted to 39 companies by Belgium constitute State aid within the meaning of EU law (See the European Commission’s press release).This investigation is a response to the General Court's decision in case T-131/16 annulling the Commission's initial decision that these rulings formed part of a Belgian aid scheme that was incompatible with EU law (see Euro Tax Flash 395).
A no-deal Brexit and warehousing
How could a no-deal Brexit impact my supply chain? - Does this question ring a bell? Maybe you’ve come across it during a Management meeting or one of your clients asked you this recently? I think it’s fairly safe to assume that, regardless which direction the negotiations take, there will be a significant impact on warehousing both in the UK and in the EU as businesses start stockpiling goods.
Pack your bags; we’re going on a trip!
Whereas a couple months ago the fate of the future relationship between the UK and the EU was uncertain, given recent developments, the chances of a no-deal Brexit are getting higher and higher as the days go by.
When it comes to immigration, or simply the migration of people, the prospect of EU citizens being treated as third- country nationals, under a no-deal scenario, makes me a little nervous.
So, given my state of unease, business leaders must also be feeling uncomfortable. How do I know? Well, I’m regularly contacted by companies regarding how to handle their impacted employees. Here are just a couple of the typical questions I receive: How easily will my employees be able to cross borders? What about social security costs and legal benefits?