Aleksandra Bal

Many e-commerce traders find it challenging to grasp how VAT applies to cross-border sales of goods into the EU. The confusion often arises from the fact that VAT may be due both on the sale and upon importation. My latest Forbes article offers a clear and straightforward explanation of how VAT is applied to e-commerce sales of goods shipped to buyers in the EU from outside the EU.

The platform economy needs better VAT regulations. However, are the ViDA proposals the right solution? Even if approved, they will still leave some questions unanswered.

As the digital economy flourishes, governments are introducing mechanisms to capture tax revenue from this growing sector. These mechanisms include various taxes targeting remote sellers, such as value added tax (VAT) or goods and services tax (GST) on digital services, digital service tax (DST), and withholding tax. Each tax type has its own scope, requirements and objectives. For businesses venturing into the global marketplace, understanding these taxes and determining which ones apply to… Meer weergeven

As the digital economy flourishes, governments are introducing mechanisms to capture tax revenue from this growing sector. These mechanisms include various taxes targeting remote sellers, such as value added tax (VAT) or goods and services tax (GST) on digital services, digital service tax (DST), and withholding tax. Each tax type has its own scope, requirements and objectives. For businesses venturing into the global marketplace, understanding these taxes and determining which ones apply to their operations is crucial. Minder weergeven

The European Commission has recently released the revised proposals for the ‘VAT in the Digital Age’ (ViDA) reform, which are slated to be discussed by the Economic and Financial Affairs Council (ECOFIN) on May 14, 2024. Should there be a consensus among member states, these reforms will be formally endorsed and implemented between 2024 and 2030.

Effective January 1, 2025, the European Union will implement new VAT rules for small businesses aimed at easing the VAT compliance burden.

Die Einhaltung der US-amerikanischen Sales Tax-Vorschriften ist für ausländische Unternehmen aufgrund von etwa 11.000 Steuergebieten eine komplexe und zeitaufwändige Aufgabe. Sie müssen sich in jedem Bundesstaat und ggf. auch in den örtlichen Gebietskörperschaften registrieren lassen und die Steuerbarkeit ihrer Produkte sowie den jeweiligen Steuersatz ermitteln. Dieser Aufsatz bietet einen Überblick über die Sales Tax-Systeme der US-Bundesstaaten und beleuchtet die Herausforderungen, denen… Meer weergeven

Die Einhaltung der US-amerikanischen Sales Tax-Vorschriften ist für ausländische Unternehmen aufgrund von etwa 11.000 Steuergebieten eine komplexe und zeitaufwändige Aufgabe. Sie müssen sich in jedem Bundesstaat und ggf. auch in den örtlichen Gebietskörperschaften registrieren lassen und die Steuerbarkeit ihrer Produkte sowie den jeweiligen Steuersatz ermitteln. Dieser Aufsatz bietet einen Überblick über die Sales Tax-Systeme der US-Bundesstaaten und beleuchtet die Herausforderungen, denen ausländische Unternehmer gegenüberstehen, um die Sales Tax in den USA korrekt zu erheben. Minder weergeven

The move to make e-invoicing mandatory in Germany reflects a global trend towards digitalizing tax processes and tax administration systems. While Germany is embracing this trend, it's doing so in its own unique manner.

Brazilian consumption taxes are highly complex. Different levels of government have the authority to levy taxes on consumption, leading to the coexistence of multiple taxes, each governed by distinct rules. This complexity creates numerous challenges, such as tax competition between states and conflicts of jurisdiction among different tiers of government. Despite doubts about the possibility of tax reform in Brazil, the long-awaited simplification of the tax system has finally been enacted… Meer weergeven

Brazilian consumption taxes are highly complex. Different levels of government have the authority to levy taxes on consumption, leading to the coexistence of multiple taxes, each governed by distinct rules. This complexity creates numerous challenges, such as tax competition between states and conflicts of jurisdiction among different tiers of government. Despite doubts about the possibility of tax reform in Brazil, the long-awaited simplification of the tax system has finally been enacted after nearly four decades of discussions and several unsuccessful attempts. Minder weergeven

The rapid growth of the creator economy has prompted tax administrations to pay closer attention to activities within this space.

Die Globalisierung hat zu einem Anstieg grenzüberschreitender Transaktionen geführt. Doch die Umsatzsteuervorschriften der unterschiedlichen Ländern knüpfen ein komplexes Geflecht von Compliance-Anforderungen, die die manuelle Verwaltung schnell überfordern.

Many countries are implementing tax collection obligations for intermediaries described as "platforms", "marketplaces" or "electronic interfaces". However, these terms lack clear definitions, leading to important questions: is a platform the same as a marketplace, or are they different? What happens when multiple platforms or marketplaces are involved in a sale? How do we determine which one is responsible for collecting taxes?

Despite the trend of numerous countries delaying the implementation of mandatory e-invoicing, Poland's decision to postpone the July 2024 deadline came as a surprise.

The EU Customs Union reform will subject e-commerce platform operators to new compliance obligations, making them responsible for the collection of customs duties.

Online marketplaces serve as crucial intermediaries in global commerce, handling tax obligations and easing compliance for sellers. Both the EU and the US established distinct frameworks for tax collection by these platforms, differing in scopes and obligations.

In allen US-Bundesstaaten, in denen die Sales Tax erhoben wird, sind Marketplace-Facilitator-Gesetze in Kraft. Diese Gesetze verpflichten Plattformbetreiber, sowohl inländische als auch ausländische Marktplätze, die bestimmte Voraussetzungen erfüllen, dazu, im Namen der Einzelhändler, die ihre Produkte über diese Plattformen verkaufen, eine Sales Tax zu erheben und abzuführen. Dieser Artikel bietet einen Überblick über die steuerlichen Verpflichtungen und Trends, die für Marketplace… Meer weergeven

In allen US-Bundesstaaten, in denen die Sales Tax erhoben wird, sind Marketplace-Facilitator-Gesetze in Kraft. Diese Gesetze verpflichten Plattformbetreiber, sowohl inländische als auch ausländische Marktplätze, die bestimmte Voraussetzungen erfüllen, dazu, im Namen der Einzelhändler, die ihre Produkte über diese Plattformen verkaufen, eine Sales Tax zu erheben und abzuführen. Dieser Artikel bietet einen Überblick über die steuerlichen Verpflichtungen und Trends, die für Marketplace Facilitators relevant sind. Minder weergeven

Digitale Plattformen als Vermittler zwischen Anbietern und Verbrauchern sind ein zentraler Baustein im globalen Handel. Neben vielen Chancen bergen sie allerdings umsatzsteuerliche Herausforderungen - ein nicht zu unterschätzender Kostenfaktor.

Die Vereinigten Staaten unterscheiden sich von anderen Ländern dadurch, dass sie keine federale Umsatzsteuer haben und jeder Bundesstaat seine eigene Sales Tax festsetzen kann. Dieser Artikel bietet einen Überblick über die US-amerikanischen Sales Tax Systeme der US-Bundesstaaten und geht auf die Komplexitäten ein, mit denen ausländische Verkäufer konfrontiert sind, wenn sie die Sales Tax in den USA korrekt erheben wollen. Darüber hinaus wird die Rolle der Automatisierung als tragfähige Lösung… Meer weergeven

Die Vereinigten Staaten unterscheiden sich von anderen Ländern dadurch, dass sie keine federale Umsatzsteuer haben und jeder Bundesstaat seine eigene Sales Tax festsetzen kann. Dieser Artikel bietet einen Überblick über die US-amerikanischen Sales Tax Systeme der US-Bundesstaaten und geht auf die Komplexitäten ein, mit denen ausländische Verkäufer konfrontiert sind, wenn sie die Sales Tax in den USA korrekt erheben wollen. Darüber hinaus wird die Rolle der Automatisierung als tragfähige Lösung zur effektiven Bewältigung der logistischen Herausforderungen bei der Sales Tax Berechnung und Erhebung hervorgehoben. Minder weergeven

Understanding the current state, clarifying decision-making roles, and managing scope changes are key steps to improve the odds of project success.

For foreign e-commerce sellers venturing into Canada, it's essential to understand the nuances of the Canadian tax system, consisting of federal and provincial taxes.

SMEs are the driving force behind the EU economy, playing a crucial role in job creation, innovation, and regional development. Therefore, it is vital that major tax reforms like the ViDA package avoid substantially increasing compliance costs for SMEs and strive to minimize disruptions to their commercial practices.

The adoption of electric vehicles is on the rise, yet the VAT treatment of transactions in the e-mobility sector still remains uncertain.

The European Union is planning to introduce new rules that will substantially broaden tax and customs compliance obligations for e-commerce platforms.

"Free" online services are not genuinely free as the service provider receives non-monetary remuneration from the user in the form of personal or location data.

Influencer marketing campaigns have become part of key advertising strategy for businesses. This article explains how this may trigger value-added tax obligations for both influencers and the companies that engage them.

Price reductions come in different shapes and sizes. Although they all allow customers to pay less, each type may have different value-added tax implications for the retailer.

As we celebrate 50 years of VAT in the U.K., it's worth reflecting on some of the most memorable developments in the history of the tax. There is no better source of VAT idiosyncrasies than the VAT rate system as interpreted in numerous court judgments and rulings.

Digital platforms have caused massive disruption across multiple industries. Although many countries involve platforms in the tax collection process, there is no uniform approach to taxing the platform economy. Inconsistent and ambiguous rules are a major problem for global platform operators.

We’re now in an age where XaaS has become the most accessible and universally accepted software model in the industry. However, indirect taxes may have fallen short of supporting these software-enabled economy shifts. First, in some countries, the tax treatment of XaaS is much more complex than that of traditional business models. Second, double taxation may occur if countries disagree on where XaaS is taxable. Third, some countries are discussing applying import duties to digital transmissions.

Influencer-Marketing kann sowohl für Influencer als auch für die Auftraggeber, die sie engagieren, umsatzsteuerliche Pflichten nach sich ziehen. Während Auftraggeber in der Regel die geltenden Steuergesetze kennen und über die notwendigen Ressourcen verfügen, um die Steuervorschriften einzuhalten, verfügen Influencer nicht über das gleiche Maß an steuerlichem Fachwissen. Da es nur wenige offizielle Steuerrichtlinien zu den steuerlichen Pflichten von Influencern gibt, kann es passieren, dass… Meer weergeven

Influencer-Marketing kann sowohl für Influencer als auch für die Auftraggeber, die sie engagieren, umsatzsteuerliche Pflichten nach sich ziehen. Während Auftraggeber in der Regel die geltenden Steuergesetze kennen und über die notwendigen Ressourcen verfügen, um die Steuervorschriften einzuhalten, verfügen Influencer nicht über das gleiche Maß an steuerlichem Fachwissen. Da es nur wenige offizielle Steuerrichtlinien zu den steuerlichen Pflichten von Influencern gibt, kann es passieren, dass Influencerinnen unbeabsichtigt gegen Steuergesetze verstoßen und Strafen fürchten müssen. Dieser Artikel soll einige Fragen zu den umsatzsteuerlichen Folgen von Influencer-Marketing-Kampagnen in der EU beantworten. Minder weergeven

Erroneous tax data spreads like a contagious virus throughout the organisation, moving from database to database and ultimately ending up in tax returns. It often resides in the accounting system until it becomes visible during tax inspections when it’s often too late to make any corrections.

In the early days of blockchain technology, there was a lot of excitement about its potential to transform the tax system and the way tax is collected. In a 2015 survey by the World Economic Forum, 73% of respondents (over 800 business leaders) predicted governments would be collecting taxes via blockchain by 2023. Well, that year has arrived, and the prediction has failed to materialise. Why?

As there are several types of metaverses, the question “how to tax metaverse sales” can’t be answered in a one-fits-all manner—it requires a case-by-case analysis. Official guidance is still scarce but would be very much welcomed, especially in jurisdictions with a narrowly defined tax base where a wrong decision about the non-taxability of metaverse sales may have the largest financial impact.

Building sustainable supply chains at scale requires not only new technological infrastructure but also a new approach to managing your tax affairs. Businesses switching to circular business models should be aware that from a tax perspective, service-based delivery models are more complex than traditional sales.

In a two-part article, Aleksandra Bal of Stripe reviews the sweeping and ambitious changes proposed in the VAT reform package released by the European Commission, and assesses their impact for businesses.

In a two-part article, Aleksandra Bal of Stripe reviews the sweeping and ambitious changes proposed in the VAT reform package released by the European Commission, and assesses their impact for businesses.

With a tightening economy, cash flow is increasingly important while minimising VAT bills is critical, explains Aleksandra Bal, indirect tax technology lead, Stripe.

This article considers the VAT registration and compliance challenges facing social media influencers who receive remuneration or merchandise from brands.

Der Beitrag erläutert die umsatzsteuerliche Behandlung von digitalen Dienstleistungen, die an kanadische Kunden von ausländischen Verkäufern erbracht werden. Da das kanadische Umsatzsteuersystem aus einer Kombination von Bundes- und Provinzsteuern besteht, ist es weitaus komplexer als das der EU.

Many European sellers are looking to the Asia-Pacific countries to expand their customer base. In the second part of a two-part article, This article explains the value-added tax/goods and services tax obligations when selling digital services to Malaysia, Singapore, South Korea, and Taiwan.

Many European sellers are looking to the Asia-Pacific countries to expand their customer base. This article explains the value-added tax and goods and services tax obligations when selling digital services to APAC countries. The first part of this two-part article focuses on how to be tax compliant in India, Indonesia, and Japan.

When bitcoin was invented in 2009, one of the main goals it sought to achieve was to allow online payments to be sent directly from one party to another without going through an intermediary. Although virtual currency and other cryptoassets can be traded without reliance on traditional intermediaries, like banks and other financial institutions, the crypto sector has created a new type of powerful intermediaries—crypto exchange platforms. This article clarifies some of the confusion concerning… Meer weergeven

When bitcoin was invented in 2009, one of the main goals it sought to achieve was to allow online payments to be sent directly from one party to another without going through an intermediary. Although virtual currency and other cryptoassets can be traded without reliance on traditional intermediaries, like banks and other financial institutions, the crypto sector has created a new type of powerful intermediaries—crypto exchange platforms. This article clarifies some of the confusion concerning the VAT treatment of services provided by crypto exchange platforms. Minder weergeven

More and more tax administrations are using algorithms and automated decision-making systems for taxpayer profiling and risk assessment. While both provide benefits in terms of better resource allocation and cost-efficiency, their use is not free from legal concerns from the perspective of EU data protection and human rights legislation.

This article examines the indirect tax obligations facing European providers of digital services in Canada and suggests some practical advice for navigating the federal and provincial registration and collection requirements.

Digital products are easy to distribute and never out of stock. Once they are created, they can be sold to customers all over the world without worrying about transport and customs formalities. However, there is one thing that makes digital trade quite complicated and it is the fact that sales of digital products often result in sales tax compliance obligations outside the seller’s home state.

This article looks at the VAT treatment of non-fungible tokens and hopes for some much-needed clarity from legislators and tax authorities.

This article discusses a recent German case which considered whether the renting out of land in a virtual space to users’ avatars constituted a taxable digital service and was therefore subject to VAT.

The European Union currently applies the same VAT rules to both physical and virtual events. This creates a lot of complexity for organizers of virtual events as there are some substantial differences between the physical and digital world. To resolve this problem, the European Union enacted new rules that will take effect in 2025.

This article looks at the requirements for complying with e-invoicing in the EU for businesses with cross-border operations, and at what changes we may expect to see over the next few years.

As the metaverse grows in popularity, more events will shift to virtual reality. This article explains the EU VAT consequences for events taking place entirely in the metaverse.

Implemented in Italy already in 2019, the invoice clearance model is slowly gaining popularity in Europe. France and Poland have already taken the first steps to introduce a mandatory e-invoicing system modeled after the Italian one and e-invoicing discussions have also recently begun in the German Parliament.

This article examines the VAT obligations associated with electronic sales of goods into the EU and the United Kingdom, considering the changes resulting from Brexit and the U.K. VAT reform as well as the changes to come when the EU e-commerce VAT package takes effect on 1 July 2021.

This article examines the European Commission’s plans to reform the VAT system by January 2025. Experts across the political spectrum agree that changes to the EU VAT legislation are very much needed. The system is plagued by multiple problems and inefficiencies, including its growing complexity, rising compliance costs, and a high level of fraud. The COVID-19 crisis is further
evidence that the VAT gap must be closed, and this must happen soon, because the cash-strapped
member states… Meer weergeven

This article examines the European Commission’s plans to reform the VAT system by January 2025. Experts across the political spectrum agree that changes to the EU VAT legislation are very much needed. The system is plagued by multiple problems and inefficiencies, including its growing complexity, rising compliance costs, and a high level of fraud. The COVID-19 crisis is further
evidence that the VAT gap must be closed, and this must happen soon, because the cash-strapped
member states need extra revenue to finance massive stimulus programs. Compliance must also be made simpler. Businesses that are cutting costs to survive the aftermath of the pandemic can
hardly afford the growing expense of frequently changing and country-specific VAT reporting
requirements.
Minder weergeven

This article explains new VAT rules for e-commerce transactions that will take effect in the European Union on January 1, 2021, and their impact on non-EU businesses shipping goods ordered online directly to EU final consumers or using a fulfillment business model.

In this article, the author considers blockchain’s potential to solve many of the problems in the EU’s existing VAT systems as well as the potential roadblocks to implementing a blockchain-based VAT in the EU, ultimately concluding that there are serious limitations that will prevent the widespread adoption of blockchain technology in the EU VAT system now and in the foreseeable future.

This article discusses new EU reporting obligations for payment service providers that are meant to provide EU states with payment data that will help them detect non-compliant foreign sellers.

When managing value-added tax (VAT) and purchase transactions, it’s important to heed the advice of US President Ronald Reagan: “Trust, but verify.” Companies frequently underestimate the importance of considering VAT when validating purchase transactions – the consequences can be disastrous.

This article evaluates the use of “black box” models as part of EU data protection and human rights legislation, focusing on a new Polish algorithm-supported system (STIR) to detect VAT fraud.

This article considers several changes to the EU VAT system that will take effect in 2020. These changes (commonly referred to as “quick fixes”) will affect businesses engaged in intra-EU trade. Although the quick fixes seek to simplify and harmonize the EU VAT rules, it is doubtful whether the intended objectives will be attained.

Call-off stock arrangements are a common procurement practice in Europe. Currently, the VAT treatment of call-off contracts varies per EU Member State. In 2020, new rules that seek to harmonize and simplify the VAT consequences of call-off stock arrangements across the European Union will take effect. This article critically evaluates the proposed measures.

In the coming years, the tax policy landscape will undergo a major transformation. While much remains uncertain, CEOs must take proactive steps to prepare their businesses wherever possible

This article discusses the importance of processes in indirect tax compliance and considers how taxpayers can use technology — specifically, robotic process automation and process mining — to improve the operation of their indirect tax functions.

One of the challenges that platform operators face is the complexity of the legal rules that they must comply with. In the near future, this complexity is going to increase, at least in the area of VAT. Last year, the European Union adopted the Digital VAT Package that features two new provisions establishing the liability of online platforms that facilitate certain transactions. The relevant provisions will take effect on 1 January 2021. Some EU Member States did not want to wait until an… Meer weergeven

One of the challenges that platform operators face is the complexity of the legal rules that they must comply with. In the near future, this complexity is going to increase, at least in the area of VAT. Last year, the European Union adopted the Digital VAT Package that features two new provisions establishing the liability of online platforms that facilitate certain transactions. The relevant provisions will take effect on 1 January 2021. Some EU Member States did not want to wait until an EU-wide solution is implemented and enacted their own domestic rules. In the United Kingdom (which will soon to become a former Member State), Finance Act 2016 established joint and several liability of online platforms for unpaid VAT of overseas businesses, and Finance Act 2018 extended this liability to unpaid VAT of domestic businesses. In Germany, special rules on liability and record-keeping obligations of online platforms will apply as from 2019. This article first briefly reviews the rules adopted in the European Union and in the United Kingdom, and then describes in detail and evaluates the new German legislation. Minder weergeven

In this article, the author examines the push to digitalize VAT compliance and the shift toward real-time invoice submission by looking at the status of these movements in several European countries and commenting on the progress thus far.

This article reviews virtual currency regulations in five selected countries (Australia, Germany, the Netherlands, the United States and the Unites Kingdom), develops a methodology for creating an effective regulatory framework for the taxation of virtual currencies, and makes recommendations
for the improvement of certain characteristics of the existing income tax systems that currently struggle with the enforcement of tax compliance obligations regarding transactions in virtual currencies.… Meer weergeven

This article reviews virtual currency regulations in five selected countries (Australia, Germany, the Netherlands, the United States and the Unites Kingdom), develops a methodology for creating an effective regulatory framework for the taxation of virtual currencies, and makes recommendations
for the improvement of certain characteristics of the existing income tax systems that currently struggle with the enforcement of tax compliance obligations regarding transactions in virtual currencies. The author advocates the use of legislation to clarify the fundamental aspects of virtual
currency transactions together with more detailed non-binding interpretative guidance that can be quickly adapted to changing circumstances. Enforcement and monitoring measures by tax authorities should not target an infinitely large number of unidentified individuals but a much smaller number of operators providing exchange services and wallet providers. A third-party reporting regime for virtual currency intermediaries should be aligned with the existing reporting obligations for anti-money laundering purposes. Minder weergeven

In this article, the author discusses the EU’s efforts to revamp the VAT system as envisaged by the 2016 VAT action plan and evaluates its progress on removing obstacles to e-commerce, implementing the definitive VAT system for intra-EU trade, simplifying the VAT compliance obligations for small and medium-size enterprises, and modernizing the VAT rate policy.

This article describes and evaluates the measures proposed by the Digital VAT Package and the Definitive VAT System.

This book provides an in-depth and comprehensive analysis of tax implications that result from activities such as exchange of goods and services for virtual currency, exchange of legal currency for virtual currency, exchange of virtual currency for another virtual currency, currency mining and possession of virtual currency that appreciates in value. The emergence of convertible decentralized virtual currency schemes confronts tax authorities with unprecedented questions. Among them are the… Meer weergeven

This book provides an in-depth and comprehensive analysis of tax implications that result from activities such as exchange of goods and services for virtual currency, exchange of legal currency for virtual currency, exchange of virtual currency for another virtual currency, currency mining and possession of virtual currency that appreciates in value. The emergence of convertible decentralized virtual currency schemes confronts tax authorities with unprecedented questions. Among them are the status of virtual currency for tax purposes, which virtual transactions may benefit from a VAT exemption and determining the most optimal method of tax regulation. This book is about traditional tax definitions which are embedded in the law and their ability (or inability) to encompass income generated by new types of economic activity in a manner that maintains both their theoretical justification and their practical implementation.

Seeking to ascertain whether virtual currency requires additional regulation or whether the law as it stands is adequate to administer its usage, the analysis not only thoroughly explains the nature of the underlying blockchain technology and its regulatory and judicial treatment so far but also identifies best practices for virtual currency transactions and makes recommendations for the improvement of the existing tax systems. Among the aspects of the phenomenon covered are the following:
- particular aspects of virtual currency use such as smart contracts and initial coin offerings;
comparative review of income tax consequences of virtual currency transactions in Germany, the Netherlands, the United Kingdom and the United States;
- VAT/sales tax treatment of transactions involving virtual currency in the European Union and the United States;
- methodology for creating an effective regulatory framework for the taxation of virtual currency; and
- the future of blockchain.
Minder weergeven

In this article, the author provides a critical evaluation of the current OECD and EU attempts to tax the digital economy, focusing on the concept of value creation and the role of users and data in creating value.

This article describes the current cryptocurrency regulatory landscape in the United States. It focuses on the following areas: anti-money laundering, securities trading and taxation.

On 21 June 2018, the US Supreme Court issued its highly anticipated decision in South Dakota v. Wayfair. The case was called the "tax case of the millennium" given its huge impact on the sales taxation of electronic commerce in the United States. This paper describes the Supreme Court's decision, explains its impact on non-US businesses and puts the decision in the context of the current debate on the taxation of the digital economy.

Initial coin offerings (ICOs, also referred to as token sales) are a new means of raising capital where new cryptocurrencies (tokens) are sold for other cryptocurrencies or legal money. In this article, the author examines the VAT treatment of ICOs and investigates whether the principles established by the Court of Justice of the European Union and the VAT Committee in relation to Bitcoin transactions can be transposed to token sales.

Blockchain is frequently praised as a technological innovation that can be the panacea for all of the world's problems. In this paper, the author critically examines the usefulness of blockchain technology in the tax sector.

Tax rulings have held an important position in the practice of tax law. While it is generally recognized that they are a useful tool for both tax authorities and taxpayers, providing certainty and thus avoiding tax disputes, there have also been concerns over the transparency of ruling regimes. The aim of this chapter is to explain the concept of and outline recent developments in relation to tax rulings in direct tax matters.

On 16 March 2018, the OECD presented its long-awaited interim report of the tax challenges arising from digitalization. The OECD stated that there is no consensus among countries on whether and to what extent changes to the current tax regime are needed; however, an agreement should be reached by 2020. In this White Paper, the author provides some comments on the recently issued interim report.

The popularity of the platform business model is on the rise. Six of the ten most valuable companies in the world derive much of their value from their multisided platforms. This article examines platforms as business models and outlines some of the major indirect tax risks which platform operators are exposed to in the European Union.

In this article, the author discusses several developments in the virtual currency sector (Ethereum, smart contracts, initial coin offerings), investigates potential applications of blockchain technology and summarizes some of the recently issued opinions of tax and regulatory bodies on virtual currency.

This White Paper summarizes some of the major tax developments of 2017. The authors discuss, among others, the US tax reform, the Brexit progress, the Paradise Papers, the Multilateral Instrument and the EU blacklist of non-cooperative jurisdictions.

Taking into account the rapid expansion of VAT, its reputation for revenue generation and President Trump’s concerns about fair trade policy, the question arises why the United States does not have and does not intend to implement a VAT. In this article, the author summarizes and comments on President Trump’s and House Republicans’ positions on VAT and border tax.

Tax Sovereignty in the BEPS Era focuses on how national tax sovereignty has been impacted by recent developments in international taxation, notably following the OECD/G-20 Base Erosion and Profit Shifting (BEPS) Project. This book helps readers navigate in these uncertain BEPS times, as well as provides insightful assessments on how countries’ tax policies might change in the near future.

On 26 April 2017, the White House unveiled the core principles of Trump’s tax reform, which is meant to be “one of the biggest tax cuts in American history” and “the most significant tax reform since 1986”. This White Paper explains and comments on the reform proposal.

On 1 December 2016, the European Commission presented several proposals to simplify the VAT rules for cross-border electronic commerce. The proposed changes include the extension of the MOSS; simplification of the VAT rules for small businesses; abolition of the exemption for low-value consignments; and the allowance of equal VAT rates for printed and digital publications. In this article, the author discusses and provides an analysis of all those proposed changes.

Innovations in the financial sector have broadened access to finance and changed the way capital is raised nowadays. One of the fastest-growing financial innovations resulting from the digital revolution is crowdfunding. Just like any other digital innovation, crowdfunding raises plenty of legal questions. For tax lawyers, the most interesting ones are those about the tax consequences of crowdfunding activities for people who participate in crowdfunding campaigns (entrepreneurs and… Meer weergeven

Innovations in the financial sector have broadened access to finance and changed the way capital is raised nowadays. One of the fastest-growing financial innovations resulting from the digital revolution is crowdfunding. Just like any other digital innovation, crowdfunding raises plenty of legal questions. For tax lawyers, the most interesting ones are those about the tax consequences of crowdfunding activities for people who participate in crowdfunding campaigns (entrepreneurs and contributors). The aim of this chapter is to examine the EU VAT treatment of crowdfunding transactions. Minder weergeven

In this article, the author discusses the landmark decision of the Spanish Supreme Court in Dell, on the creation of PEs in foreign jurisdictions, in light of the proposed Action 7 anti-BEPS measures.

The introduction of a goods and services tax (GST) in India is regarded as the most significant event in the history of Indian indirect taxation. In this article, the author describes and evaluates the main features of the proposed GST system.

Since June 2013, the European Commission has been investigating the compatibility of tax rulings granted by the Member States with EU State aid law. On 30 August 2016, it concluded that Ireland granted undue tax benefits of up to EUR 13 billion to Apple. This White Paper examines and comments on the Commission’s policy on State aid, specifically with regard to the Apple case.

Blacklists are a commonly used instrument in the fight against tax avoidance. The European Union recognized the need for a uniform EU framework for addressing tax good governance concerns with third countries and initiated the development of a common EU list of noncooperative jurisdictions. This white paper provides a brief explanation of the EU policy on combating tax avoidance by means of blacklists.

This article, which is divided into two parts, addresses the complex indirect tax treatment of the constant flow of goods that enter from, and leave the territory of the EU to third countries. In the second part of the article, the author describes the tax treatment of supplies of non-Community goods prior to importation and the intra-Community supplies of those goods, as well as importation followed by an intra-Community supply and chain transactions. The author uses Case Studies to analyse… Meer weergeven

This article, which is divided into two parts, addresses the complex indirect tax treatment of the constant flow of goods that enter from, and leave the territory of the EU to third countries. In the second part of the article, the author describes the tax treatment of supplies of non-Community goods prior to importation and the intra-Community supplies of those goods, as well as importation followed by an intra-Community supply and chain transactions. The author uses Case Studies to analyse the different tax treatments. Minder weergeven

In this article, the author highlights important aspects of the new Union Customs Code including, inter alia, the inclusion of royalties and licence fees in the customs value, the first-sale principle, customs procedures, the Binding Tariff Information, the authorized economic operator and the provision of guarantees.

This article, which is divided in two parts, addresses the complex indirect tax treatment of the constant flow of goods that come and leave the territory of the EU to third countries. In the first part of the article, the author describes the interaction between the rules of the two applicable taxes to the importation and exportation of goods, namely the VAT Directive and the Union Customs Code, and she also examines the content of the said rules, including a review of the administrative… Meer weergeven

This article, which is divided in two parts, addresses the complex indirect tax treatment of the constant flow of goods that come and leave the territory of the EU to third countries. In the first part of the article, the author describes the interaction between the rules of the two applicable taxes to the importation and exportation of goods, namely the VAT Directive and the Union Customs Code, and she also examines the content of the said rules, including a review of the administrative obligations that businesses must take into consideration when performing the said transactions. Minder weergeven

In this article, the author explains the treatment of credit card transactions for German VAT purposes. A credit card transaction involves different parties, and there is always a bank amongst them. As banks carry out mainly tax-exempt services, they are not allowed to deduct the input VAT charged to them by service providers. The author puts forward recommendations on how to increase the amount of deductible input VAT and lessen the cost burden related to these transactions.

This article examines the treatment of bitcoin for VAT and financial reporting purposes, and describes some recent developments in these areas. Following a brief introduction to the topic, the focus shifts to VAT treatment. The most pivotal questions in this context are whether exchanges of bitcoins constitute taxable supplies under the VAT Directive (2006/112) and, if so, whether a VAT exemption may be applied. Next, the article examines whether the possession of bitcoins may trigger reporting… Meer weergeven

This article examines the treatment of bitcoin for VAT and financial reporting purposes, and describes some recent developments in these areas. Following a brief introduction to the topic, the focus shifts to VAT treatment. The most pivotal questions in this context are whether exchanges of bitcoins constitute taxable supplies under the VAT Directive (2006/112) and, if so, whether a VAT exemption may be applied. Next, the article examines whether the possession of bitcoins may trigger reporting obligations under the US Foreign Account Tax Compliance Act (FATCA). Finally, a summary is provided of the statements on Bitcoin made by various regulatory bodies (European Banking Authority, European Central Bank, European Securities and Markets Authority, US Financial Crimes Enforcement Network and Financial Action Task Force). Minder weergeven

The chapter describes the concept of the digital economy, its fundamental characteristics and business models. It also explains how the current tax rules apply to the digital economy and how they are used (or exploited) by taxpayers, and discusses any challenges that their application may give rise to. Finally, some (largely unsuccessful) initiatives that certain countries have undertaken to counteract the perceived base erosion caused by the use of digital technology are mentioned.

In this article, the author examines the taxation of digital goods in the European Union and United States and identifies what these countries can learn from each other. In addition to providing an overview of the consumption tax regimes applicable to digital goods in these countries, the article focuses on selected issues, such as place-of-supply (sourcing) rules, administrative obligations, cross-border/interstate transactions and best practices.

Virtual currency is a relatively new phenomenon. Its most prominent example, Bitcoin, appeared in 2009 at the height of the financial crisis, came to widespread prominence in 2013 and has been in the headlines ever since. The aim of this article is to outline the main challenges that virtual currency has created for the tax administrations and give some recommendations on how to tackle them. It also provides an overview of the diverging views of tax authorities on the taxation of virtual… Meer weergeven

Virtual currency is a relatively new phenomenon. Its most prominent example, Bitcoin, appeared in 2009 at the height of the financial crisis, came to widespread prominence in 2013 and has been in the headlines ever since. The aim of this article is to outline the main challenges that virtual currency has created for the tax administrations and give some recommendations on how to tackle them. It also provides an overview of the diverging views of tax authorities on the taxation of virtual currency. Minder weergeven

Incorporating currencies, payment methods, and protocols that computers use to talk to each other, digital currencies are poised to grow in use and importance. The Handbook of Digital Currency gives readers a way to learn about subjects outside their specialties and provides authoritative background and tools for those whose primary source of information is journal articles. Taking a cross-country perspective, its comprehensive view of the field includes history, technicality, IT, finance… Meer weergeven

Incorporating currencies, payment methods, and protocols that computers use to talk to each other, digital currencies are poised to grow in use and importance. The Handbook of Digital Currency gives readers a way to learn about subjects outside their specialties and provides authoritative background and tools for those whose primary source of information is journal articles. Taking a cross-country perspective, its comprehensive view of the field includes history, technicality, IT, finance, economics, legal, tax and regulatory environment. For those who come from different backgrounds with different questions in mind, The Handbook of Digital Currency is an essential starting point. Minder weergeven

This article compares the concept of secondary establishment for direct and indirect tax purposes, as defined in the OECD Model (2014), the UN Model (2011) and the EU VAT Directive (2006/112). It also examines recent developments regarding the interpretation of the fixed establishment concept by the ECJ and possible modifications to the permanent establishment concept stemming from current discussions on the taxation of the digital economy.

The Information Age has created a new concept of money – virtual currencies existing solely in the cyberspace in the form of intangible computer code. The most prominent virtual currency scheme, Bitcoin, grabbed the public attention as its value skyrocketed at the beginning of 2012. Whereas Bitcoin has many properties that could make it an ideal currency for mainstream consumers and merchants, one of its main drawbacks is lack of clarity regarding its legal status and tax treatment.
The… Meer weergeven

The Information Age has created a new concept of money – virtual currencies existing solely in the cyberspace in the form of intangible computer code. The most prominent virtual currency scheme, Bitcoin, grabbed the public attention as its value skyrocketed at the beginning of 2012. Whereas Bitcoin has many properties that could make it an ideal currency for mainstream consumers and merchants, one of its main drawbacks is lack of clarity regarding its legal status and tax treatment.
The European Central Bank predicts that the use of virtual currencies will increase in the future. Therefore, it is important both tax authorities and taxpayers are prepared to deal with those currencies and to incorporate them into the existing legal framework.
This book describes the phenomenon and nature of virtual currencies, and provides a detailed analysis of tax implications that result from trade in, and mining of, virtual currencies. It seeks to answer three questions: (1) how virtual currency should be taxed; (2) how it is actually treated under income and indirect tax laws of selected countries; and (3) how the current situation can be improved.
Minder weergeven

This article discusses the VAT aspects of cross-border cloud computing services on the basis of the VAT legislation of the European Union and in the framework of the OECD Base Erosion and Profit Shifting (BEPS) project.

Dit artikel verduidelijkt de toepassing van btw op cloudtransacties die plaatsvinden in één of meerdere jurisdicties op basis van de EU-wetgeving en de Nederlandse wetgeving. Omdat de 'cloud' een onderdeel vormt van de digitale economie zonder grenzen, zijn ook enkele opmerkingen gemaakt over de recente ontwikkelingen op dit terrein, in het bijzonder over het BEPS project van de OESO.

In this article, the author considers various international taxation issues arising from the continued and increasing use of cloud-based services.

Cloud computing, vaak gewoon aaangeduid als 'de cloud', betreft de levering van IT-middelen via het internet. Het betekent een fundamentale verandering van de wijze waarop IT diensten worden ontwikkeld, ingezet, bijgewerkt, onderhouden en betaald. In deze bijdrage worden international-belastingrechtelijke aspecten hiervaan behandeld, alsmede het wettelijk kader voor het opslaan van belasting- en boekhoudgegevens in de cloud.

Under EU VAT law, special concessions apply to the provisioning and fuelling of commercial sea-going vessels. In this article, the author discusses to what extent those concessions deviate from similar concessions for international airlines, the Commission's attempt to harmonize the VAT procedure for stores for vessels, aircraft and trains operating on international routes, and the remarkable way in which the Netherlands has transposed the concessions into national law.

Under EU law, there are various links between customs law and VAT law with regard to the liability to pay VAT on the importation of goods and on supplies of goods under customs control. In this article, the author discusses in particular the latter, optional links from the perspective of Germany and concludes that, as regards the VAT treatment of inward and outward processing, the VAT Directive has lost its consistency.

In this article, the author discusses amendments to the VAT rules on telecommunications, broadcasting and electronic services supplied by EU service providers to EU non-taxable customers, which will take effect on 1 January 2015.

Various contributions to the Leiden Law Blog:
http://leidenlawblog.nl/articles/mini-one-stop-shop-a-simplification-measure-that-may-complicate-compliance
http://leidenlawblog.nl/articles/big-data-and-taxes-the-next-big-thing-or-a-big-mistake
http://leidenlawblog.nl/articles/a-deliverable-that-fails-to-deliver-results
http://leidenlawblog.nl/articles/catch-me-if-you-can-how-to-identify-the-customers-location-under-the-new-eu
http://leidenlawblog.nl/articles/how-to-tax-bitcoin

This article examines whether, and under what circumstances, tax incentives are the right policy tool to attract economic activity.

This White Paper reviews the issues regarding the compliance of the new Member States with EU VAT law on the basis of the existing ECJ case law.

The article examines the phenomena of virtual money and distinguishes it from electronic currency. It looks at the tax consequences of virtual money in various contexts and early attempts by some states (Germany and the United States) to address this development.

Despite numerous judgments of the Court of Justice of the European Union (ECJ) on the interpretation of the EU concept of “taxable person”, that concept still appears to lack clarity. In this article, the author gives an overview of the ECJ’s decisions on this topic and then discusses two recent controversial decisions of the highest judicial authority in tax matters in Germany, the Bundesfinanzhof.

This article considers how research and development tax incentives can be designed in the most optimal way and whether or not the competition between various incentive systems may result in a “race to the bottom”. The article focuses on the European Union given its economic importance.

The article won the first prize at the Transnational Taxation Network (TTN) conference in Geneva.

In this note, the author reviews, in light of EU law, the recent decision of the Finance Court of Lower Saxony regarding the tax treatment of losses incurred by a foreign permanent establishment that is subsequently wound up. The Finance Court held that such losses are final and must be taken into account by the head office in the year in which they became final.

In this article, the authors outline basic R&D concepts and provide an overview of tax incentives available in selected European countries. In particular, the article examines the current R&D framework in Germany, which lacks tax incentives, and makes recommendations for their introduction.

In this note, the author outlines the provisions of the new EU Invoicing Directive (2010/45), in particular, the requirements for electronic invoicing and for the issuance, content and storage of invoices.

This article considers the tax challenges encountered by both cloud operators
and their customers, together with the implications of these challenges.

In this article, the author evaluates the possibilities for the cross-border enforcement of tax liabilities at both a national and a supra-national level, as well as addressing the mechanisms for the effective exchange of information.

Recently, online games and communities have experienced significant growth. This article explores the income tax consequences of virtual activities and attempts, inter alia, by considering the examples of the United States and Germany, to answer the question of whether or not earnings from online games and communities are taxable.

Construction is a complex process involving many parties with different responsibilities. Although the supplies made by all parties are closely related, the VAT treatment of all individual transactions must be assessed separately. Cross-border construction activities become even more complicated and may also give rise to fixed establishments. In this article, the author discusses the VAT aspects of construction projects under German VAT law, and gives a number of examples reflecting the VAT… Meer weergeven

Construction is a complex process involving many parties with different responsibilities. Although the supplies made by all parties are closely related, the VAT treatment of all individual transactions must be assessed separately. Cross-border construction activities become even more complicated and may also give rise to fixed establishments. In this article, the author discusses the VAT aspects of construction projects under German VAT law, and gives a number of examples reflecting the VAT issues that may arise for building contractors. Minder weergeven

EU businesses increasingly keep call-off stocks in other Member States of the European Union. In this article, the author gives an overview of the VAT treatment of consignment and call-off stocks in Poland and Germany and explains that the optional measures aimed at simplifying the VAT consequences of specific types of intra-community transactions may turn out to have costly consequences for the parties involved in cross-border call-off-stock and consignment arrangements.

In this note, the author reviews the implementation of the Marks & Spencer decision in Germany. Although it was anticipated that the impact of the decision would extend to all Member States, the German tax authorities continue to deny a deduction for tax losses incurred by non-resident EU subsidiaries. Two recent cases pending before the Federal Finance Court, however, finally address the application of the Marks & Spencer principles in Germany.

The article describes the VAT treatment of transactions between parties involved in credit card transactions and shows how relief from input VAT can be achieved.