Indirect Tax News - December 2020

In this edition of BDO Indirect Tax News, you can read about such measures in countries such as Italy, India and Japan. Developments on rules on levying VAT/GST on digital supplies have not taken a halt either. Significant changes in the field of VAT and B2C e-commerce will take place in the UK on 1 January 2021 and in the EU on 1 July 2021. There are also developments in Canada and Mexico in this area and we have included articles about these developments in this edition. I also invite you to read and compare the articles from our German colleagues and Belgian colleagues on VAT deduction in the situation where a third party benefits from costs incurred. Case law of the Court of Justice of the EU offers possibilities to deduct VAT in such situations.

Last but not least the UK’s departure from the European Union will take final effect as of 1 January 2021 and, at the time of writing, it remains unclear if a free trade agreement with the European Union will be agreed. Nevertheless, with or without a deal, there will be a number of fundamental changes in processes required for businesses in the UK and in the European Union because of the requirement to have full customs entry and exit processes in place, and delays should be taken into account and preparations made to mitigate against the impacts. 

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For more information: 

David Hirsch
[email protected]

Andréa Lopes
[email protected]