VAT on Goods – Translate Company Wed, 20 Oct 2021 14:48:44 +0000 en-US hourly 1 VAT on Goods – Translate Company 32 32 Keep up to date with eFPS tax return updates Wed, 20 Oct 2021 12:25:07 +0000

In the past four years, two major tax reform measures – the TRAIN law and the CREATE law – have been enacted. TRAIN entered into law in December 2017 and CREATE in March 2021. The reforms reduced personal and corporate tax rates.

How prepared are we to implement the reforms as soon as they come into effect?

One of the important reforms of the CREATE law is the retroactive reduction of the corporate tax rate from 30% to 25% or 20%, depending on the company’s net taxable income and the total assets for the company. taxation year. Taxpayers needed guidance on how the retroactive mid-year reduction should be implemented, given that the CREATE law was passed near the 2020 Annual Tax Return (AITR) filing deadline. of the taxpayers of the calendar year. Additionally, for the new tax rates to be applied, income tax returns must be updated by the Bureau of Internal Revenue (BIR).

On April 8, 2021, a few days before the April 15 filing deadline, the BIR issued Tax Circular (RMC) 50-2021, setting guidelines for the filing and payment of AITR by non-taxpayers. – natural or legal persons. for the tax year ending July 31, 2020 to June 30, 2021, which were affected by the passage of the CREATE law. RMC confirmed the lower / transitional income tax rates that would apply. In addition, the BIR has done a good job in making the statements more concise. Unfortunately, feedback was not available on the eFPS installation. Thus, non-individual taxpayers (whether or not they are registered in the BIR electronic declaration and payment system) were invited to use the eBIRForms offline version 7.9 or eBIRForms package to file their AITR. The eBIRForms package includes the updated BIR forms 1702RT, 1702MX and 1702EX, with a function of editing the applicable rates according to the transitional tax rates applicable to the taxpayer.

For eFPS filers, the payment process was slightly different. After submitting the returns using the eBIR forms, they had to fill in the BIR 0605 form in the eFPS and then proceed to electronic payment. In a regular deposit and payment scenario, eFPS filers click the “Proceed to Payment” button after online filing of returns. Convenient, isn’t it? Unfortunately, at the time of this writing, updated AITRs are still not available in eFPS. Indeed, apart from the AITRs, the latest versions of the revised withholding tax returns, the percentage tax and the documentary stamp duty are still not available in the eFPS: 1602Q, 1603Q, 1604-C, 1604- F, 1604-E, 2000, and 2551Q. This is rather disappointing given that these became available in eBIRForms as early as 2018 and 2019 as part of the implementation of the TRAIN law.

This begs the question: what is causing the delay in updating the returns in eFPS? Specifically, for the AITR, can we expect the BIR to update them in the eFPS for taxpayers filing for the fiscal year July 30, 2021 and beyond, or will the BIR issue another RMC, asking taxpayers to also use eBIR forms?

Going back to the implementation of the TRAIN Act, the BIR has also issued RMC 36-2021, prescribing guidelines for filing Value Added Tax (VAT) returns / returns (BIR forms 2550M and 2550Q ) in connection with the transition from the final version to the final version. credible system on VAT withheld on government sales from January 1, 2021. Due to this change, new versions of VAT returns / returns need to be developed. However, the BIR has not yet published them on the eFPS and eBIRForms platforms.

In addition, the updating of VAT returns / returns should also take into account the expiration of the input VAT depreciation requirement on capital goods exceeding 1 million pesos. As of January 1, 2022, any unamortized input VAT must be fully recognized and can be claimed as an input tax credit against the output tax. I expect the BIR to want to have a separate row to reflect this change to facilitate verification during tax audits.

One of the reasons some taxpayers voluntarily choose to enroll in eFPS is the convenience and speed of payment with a single click after completing the return, thus eliminating the need to physically pay at a bank of authorized agent (AAB) or use other payment methods. outside of eFPS which require separate fund accounts.

Considering that the BIR is still catching up in terms of updating declarations, it should, at a minimum, consider authorizing the same payment process for the other declarations it authorized under RMC 50-2021 i.e. pay in eFPS using Form BIR 0605 after submitting the corresponding declaration via eBIRForms.

Currently, the various payment options provided under a previous issue (RMC 4-2021) do not include the eFPS payment option under RMC 50-2021. According to RMC 4-2021, in case of newly created tax returns that are not available in the eFPS function but already accessible in eBIRForms, the taxpayer must file these returns using the eBIRForms program. Payment must be made through one of the following channels: 1) OTC payment to AABs; 2) revenue collectors (RCOs) in areas where there is no AAB; 3) electronic payment to selected banks, which will require the taxpayer to open an account; or 4) mobile payment channels like GCash or PayMaya.

Tax reform programs aim to make the tax system simpler, fairer and more efficient. While the policy changes introduced by the new legislation achieve this goal, the delay in updates to the eFPS, for me, takes away from the full realization of the benefits of these reforms. I hope the government will stop catching up soon enough.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only and should not be used as a substitute to specific advice.

Christian Grimaldo is Director of the Tax Services Group of Isla Lipana & Co., the Philippine company that is a member of the PwC network.

+63 (2) 845-2728


]]> 0 A guide for business owners Mon, 18 Oct 2021 17:59:32 +0000

“VAT” on heaps of coins

Value Added Taxes (VAT), which are a type of consumption tax, are major sources of revenue for the countries of the Organization for Economic Co-operation and Development (OECD), among other regions. According to the Tax Foundation, VAT actually contributed one-third of tax revenues in OECD countries in 2019. In contrast, the United States is more dependent on property taxes and personal income taxes, with only about 17.6% of revenue from consumption taxes. Here’s what you need to know about VAT.

A financial advisor can help you with taxes and any other financial issues you may have.

How a VAT works

VAT is a consumption tax because it is based primarily on money spent rather than gain. It is levied on services and goods at every step of the supply chain.

The VAT tax system is popular in many countries, but it is more common in some parts of the world. For example, all European countries charge VAT, according to the Tax Foundation. However, the United States does not have such a system in place. Instead, it uses local or state sales taxes.

When a business sells the raw materials of a product to a factory, tax is added. Likewise, VAT is added each time the good or service gains value and exchanges hands. So, from factory to wholesaler, from wholesaler to retailer and from retailer to consumer, VAT is applied at every step of the process.

VAT is generally expressed as a percentage. For example, suppose a consumer buys a good for $ 50 with 10% VAT from the retailer. The consumer pays $ 55 in total and the retailer keeps $ 50. The rest goes to the government.

It is understandable for many people to think that VAT and sales tax are the same thing. But the VAT system sets up a tax at each level of production. Thus, anyone who engages in the creation of the product or service pays VAT. In contrast, a sales tax is only implemented at the last stage, when the consumer purchases the product.

Special considerations for business owners

The VAT system likely results in higher costs for business owners, and not just at the manufacturer or retailer level. It impacts each owner throughout the production chain. Indeed, each level of production must calculate the taxes required at its stage of the chain. This translates into more paperwork and bookkeeping.

VAT can also be difficult for businesses that work beyond a national scale. Indeed, global companies must take into account the tax regimes of each country through the supply chain.

However, in countries that use it, companies can usually reclaim VAT for tax-deductible business expenses.

Example of VAT

Sign for VAT refund

Sign for VAT refund

You can calculate the VAT paid at each stage of the production of an item by subtracting the previously invoiced VAT from the VAT of the most recent stage. For example, Britain’s standard VAT rate is 20% for most goods and services. Suppose there is a UK based jewelry maker. The group must buy raw materials, such as precious metals, from a reseller. As the seller during the trade-in, the dealer charges the manufacturer $ 5, including 20% ​​VAT. The dealer collects the payment and sends the VAT amount to the government.

After the maker creates the components for the jewelry, they sell the parts to an assembler for $ 10, including a $ 2 VAT. But the manufacturer only sends $ 1 to the government because it keeps the amount of VAT it has already paid to the seller of raw materials. Because manufacturing paid the seller of raw materials $ 1, it only pays the government $ 1 ($ 2 to $ 1) VAT, also known as incremental VAT.

Ultimately, all VAT is passed on to consumers, who pay the full amount of VAT, which previous buyers paid throughout the production process – but without the refund these previous buyers received. In the case of jewelry, let’s say the consumer bought a ring for $ 40. The VAT rate is still 20%, so the consumer pays VAT of $ 8 and a total of $ 48 for the ring.

Advantages and disadvantages of VAT

The pros and cons depend on who you talk to. For example, some advocates see a huge advantage for consumers when it comes to VAT. A VAT is generally considered a regressive tax system because the VAT percentage is the same for rich or poor, large companies or small startups. Unlike a progressive tax, like US income tax, VAT is a fixed rate. Thus, low wages technically pay more, in proportion to their income, than high wages. In effect, this makes goods and services more expensive and therefore less accessible to low-income groups. As a result, critics claim that the VAT system would lead to lower purchasing power for consumers.

However, supporters see the fixed percentage of a VAT as an incentive for consumers to work towards higher wages. The incentive, some argue, would increase overall gross domestic product (GDP). Supporters also say that since a VAT is part of the purchase. This means that the government increases revenue by minimizing tax evasion.

Takeaway meals

Asian business owner

Asian business owner

A value added tax is a flat tax levied on goods and services throughout the production process. Each buyer in this process pays the tax, but ultimately the consumer is responsible for the full amount of the tax because they do not receive a refund like everyone else in the production chain. Although the United States does not currently use VAT, some believe it could be advantageous, arguing that the flat rate could incentivize workers and increase government revenue. However, others say its costs would fall disproportionately on working poor. They would pay it more proportionately than their higher income counterparts.

Tax advice

  • While the United States does not have VAT, there are plenty more that the future retiree needs to worry about. A financial advisor can help you develop a tax strategy that protects your retirement income. Help is right at your fingertips with SmartAsset’s free matching tool. In five minutes, the program connects you with qualified local counselors. If you’re ready to work with a financial advisor, get started now.

  • Income in America is taxed by the federal government, most state governments, and many local governments. The federal income tax system is progressive, so the tax rate increases as income increases. Use this free calculator to get a good estimate of what your federal income tax will be.

  • The amount you pay in taxes depends in part on your state’s retirement facility. If your state uses stricter rules, consider moving to another with lower taxes, which could impact you as a retiree. However, if your condition is favorable for retirement, you may just have to move onto the streets. Downsizing to a smaller home can help minimize housing costs and associated property taxes.

Photo credit: © / pcess609, © / Stephen Barnes, © / AsiaVision

The article Value Added Tax (VAT): A Guide for Business Owners first appeared on the SmartAsset blog.

]]> 0
JMC on Mandatory Elderly / Disabled Online Prepared Discounts – Manila Newsletter Sun, 17 Oct 2021 11:30:00 +0000

Online purchases and phone call / SMS orders of seniors (SC) and people with disabilities (PWD) must benefit from the mandatory discounts provided by law, according to two Joint Circulars (JMC) prepared by government agencies led by the Department of Trade and Industry (DTI).


The last proposed JMC was dated September 20, 2021 and provided guidelines on the mandatory and statutory benefits and privileges for seniors and people with disabilities was drafted by the DTI. At the same time, a technical working group led by the Department of Social Protection and Development (DSWD) also prepared another JMC draft, which provides more detailed guidance.

As part of the TWG JMC, it specifically stipulated the granting of mandatory benefits to the elderly and disabled on their purchases through e-commerce, phone calls and short message services (SMS) or text messages. .

Consumer advocate Victorio Mario Dimagiba, president of Laban Konsyumer Inc., said he was in favor of TWG’s JMC project because it was the subject of a public comment. It also spells out the details, limiting implementation issues.

However, DTI JMC’s latest project lacks teeth. “The DTI project is motherhood. It also provides a trigger for traders’ discretion, ”Dimagiba said.

Dimagiba said that the DTI JMC version contains general provisions that will most likely trigger traders’ discretion, unlike DSWD TWG’s draft where the details of the guidelines are spelled out. For example, he pointed out that the DTI version provides for “voluntary compliance by traders”.

DSWD TWG’s draft clarified the privileges (discount rates) and goods and services to which the elderly and disabled are entitled under the law and which must also be granted on their purchases made through e-commerce platforms or phone calls / SMS.

For example, the TWG draft specifies that the elderly and the disabled are entitled by law to a 20% discount (excluding VAT) on purchases of drugs and medical supplies, professional fees of doctors attending in all hospitals, transport costs (land, sea, air), entrance fees to theaters, cinemas, concerts, leisure and entertainment facilities; food, drinks, desserts and other consumer goods; and funeral / burial services.

Elderly and disabled people are also entitled to a special discount rate of 5% on basic necessities and premium products. These elements were also identified in the JMC draft of the TWG.

To benefit from these reductions, seniors and people with disabilities must provide all the necessary identification and documents. Those who can not provide the documents ordered delivered items, the senior or PWD is required to pay the full amount of the goods / orders or service.

Article 9 of the JMC also provides that any covered person or business who refuses to grant the discount on the online / phone / mobile purchase of the eligible elderly and disabled will be subject to penalties in accordance with RA No. 9994. and 7277, as amended, including their rules and regulations.

The JMC also states that “it is illegal for people to falsely present themselves as elderly or disabled”.

DSWD TWG JMC must be signed between government agencies – DTI, DSWD, National Commission for the Elderly (NCSC), National Council for Disability Affairs (NCDA), Department of Health (DOH), Bureau of Internal Revenue (BIR), Department of Interior and Local Government (DILG).

The DTI version includes the Department of Agriculture, Department of Energy, DSWD, BIR, NCSC, NCDA, DOH, and DILG.



]]> 0
Food prices are in the hands of the seller | Letters to the Editor Fri, 15 Oct 2021 23:44:00 +0000

The price of anything sold in any establishment is in the hands of the owner. You can remove VAT and all other charges on a commodity, but it’s now up to the owner of that business to adjust their prices.
No one can order him to. (As far as I know, this is how it works. If I am wrong, I am corrected.) We depend on the honesty and fairness of the business owner.
With the state of our economy right now and the losses that many have had to endure due to the pandemic, I wonder how much of our groceries etc are going to come down in price.
This is the bottom line (profits) being as huge as possible. This is what motivates many human beings: they want to live as “high” as possible. Who can blame them? It may sound difficult, but it is a reality. Someone will have to foot the bill, we the consumers. This is called business.
Just give it a few months and there will be another reason other assets will have to increase – and the cycle continues.
There will be clamors for a while, but citizens will have to dig deeper into their pockets, as usual, in order to live.
The late Calypsonian The Mighty Shadow (Winston Bailey) put it beautifully: poverty is hell, and there are many in T&T who can attest to that.
The cost of living plunges them further into poverty.
But where there is a will, there is also a way. Stay positive, keep the faith.
Arnold gopeesingh
San Juan

]]> 0
Higher costs on goods are here to stay, SAIT Thu, 14 Oct 2021 13:04:00 +0000

Market analysts do not see any improvement in the cost of goods in the next period and until the first half of 2022. In fact, Cyprus is one of the most affected countries compared to other countries, due to its strong dependence on imports of products and raw materials, 95% of which arrive in Cyprus by sea. Thus, increases in containerized freight rates had an early impact on product prices, mainly in the construction sector.

Considering that prices will increase on average by 15-20%, this means that consumers either have to increase their income or reduce their spending by 15-20%.

This is an imported problem, the regulation of which does not depend on Cyprus, according to the director of economic development and economy Antonis Fragoudis who confided in “K”. So, since this is an import issue, little can be done to limit the impact on the market. However, he points out, some reductions in VAT on products or perhaps some actions included in the Stimulus and Sustainability Fund could be taken on a budgetary basis.

Cause and effects

So what caused the price increases? The source was the rising cost of energy and the chain effects on transport costs, which were already burdened by the balance of supply and demand during the pandemic. To all this is added climate change with its effects on the production of raw materials. It is therefore a mixture of unfavorable developments which inevitably leads to a crisis in the world market.

“The increases have occurred against the backdrop of the pandemic,” says economist Andreas Hatzis. He estimates that the upward trend will continue for next year and continue into early 2022. And it will be a chain effect – inflationary trends in the market will negatively affect the purchasing power of consumers, with all that. that this implies in economic, social and working conditions. “Considering that prices will increase on average by 15-20%, that means consumers either have to increase their income or reduce their spending by 15-20%. “It will inevitably have an impact on the market. . “

Container prices are four times higher

Under Secretary for Navigation Vassilis Dimitriadis spoke of the soaring container prices, explaining that the phenomenon was initially due to blockages, causing huge demand for products and reducing the supply of containers, which pushed prices up to new heights.
It is indicative that shipping a container costs about $ 15,000 today, compared to about $ 2.5,000 just a year ago. The phenomenon will normalize but it will take some time, he noted.

“We will be entering a process of supply and demand normalization but I wouldn’t say this will be fixed overnight, it will take some time. Market forces will gradually normalize as demand decreases. and that the supply of containers increases. ” At the shipping level, an effort is being made to reduce transportation costs, however, he says, even if there is a drop in container prices, they may not return to pre-Covid levels.

]]> 0
A Party Budget Commentary | Local company Wed, 13 Oct 2021 00:38:00 +0000

The Minister of Finance has spent an inordinate amount of time talking about the impact of Covid-19 on society and the economy. Finance Minister Colm Imbert suggested, without saying so, that with the fall in prices and output in the energy sector and the resulting reduction in retained foreign currencies, the economy has been in recession since 2016. with deficit budgets and increasing debt.
He highlighted the effect of the disruption of global supply value chains and the collapse of part of the demand and consumer supply chains at the local level, resulting in the closure of businesses. , downsizing of operations and hiring of employees. These circumstances demanded a response from the government and coupled with declining revenues from the energy sector, support for businesses, the unemployed and the hungry has forced further deficit financing and increased debt. Therefore, the government, even in times of recession, had no choice but to maintain its level of spending. However, with good credit ratings and the support of multilateral agencies, especially the US $ 644 million in special SDRs from the IMF, the economy has maintained a semblance of stability.
The locally projected recovery in upstream gas and oil production and the price increases for these and downstream petrochemicals, particularly in the EU and Asia, signaled to the Minister a possible turnaround in the near future. energy sector, although the budget with an expected oil price of US $ 65 / bbl and US $ 3.75 / mmBtu for gas, still projected a deficit of $ 9 billion. In addition, the intention is to sell certain assets, shares of FCB, although the government remains the main shareholder.
With the disruption of global supply value chains, the cost of transporting goods has increased dramatically, which has contributed to local inflation. In response to the impact on food prices, the minister abolished VAT on certain imported items. Although the intention is still to remove the “subsidies” on electricity, water and fuel, Mr. Imbert says there will be discounts on electric bills which are $ 300 and under and cards will be distributed to these consumers which can be used in financing water and fuel bills. The discount on electricity bills was introduced some time ago by T & TEC and is also a practice in, say, Australia.
Yet the intention is, and rightly so, to proceed with property tax and the formation of the T&T Revenue Authority to improve the government’s tax revenues, in recognition now, with its legacy of budget deficits over the years. In recent years that increased government revenue is a bonus.
However, the budget included support for businesses with the intention of improving economic activity, given both the destructive impact of Covid-19 and the intention to diversify / transform the economy, including by encouraging and creating export businesses, because as a small open economy we have to import, earn forex to survive. Thus, tax breaks of 5 percent for large exporters of local products, loans to companies with annual gross income between $ 500,000 and $ 15 million with government guarantees of the entire loan with a repayment of seven. years ; loans for the purchase of company assets, financing of SMEs to manage records and data.
Also a 5% tax reduction and other benefits for SMEs with technological solutions and skills in digitization and manufacturing of such projects; R&D allowance for companies; full tax exemption for new SMEs on the local stock exchange; tax relief to encourage foreign companies to invest locally.
With the completion of Phoenix Park, Chinese companies will have a platform to expand into the Latin American market. It is hoped that all of these initiatives will continue to reduce the decline of the economy (for example, the decline in 2020 from 7.4% to 1.4% in 2021) and possibly lead to a strong recovery in 2022.
The support given to SMEs and the encouragement of foreign investors aim to diversify / rebuild the economy over time.
Again, this echoes the government’s view that the private sector is the engine of economic growth and in particular the development of non-energy export businesses, when the role of government is to facilitate this effort. In other words, the government intends, through financial incentives, tax breaks and subsidies, to encourage a private sector with very little export history, plus annuity seekers who take advantage of rents from the sector. energy, to change color and become higher risk takers. and build globally competitive businesses.
Moreover, the hope is still that foreign investment will also trigger this diversification and the building of a sustainable economy on land. Let’s not forget that foreign investments in both upstream oil and gas and downstream petrochemicals have failed to provide us with a long-term sustainable economy – the curse of a resource-based economy.
Many are enthusiastic about digitization, digitization and other 4IR technologies. However, these are only tools, as the chain saw is for the craftsman. They can improve the efficiency with which we do certain things (as our government is trying to do in its digital / digitization project) but their use does not confer a competitive advantage.
The key to diversification is what we do with those tools, ideas and innovations that can produce globally competitive goods and services. I have always said that this happy approach by our government, hoping that some members of the population have ‘ah ha’ moments, especially those who have these digital skills, and thus produce the exports we need, has failed and will continue to do so.
Today, research and development (R&D) and innovation are the engines of global competitiveness and successful companies are all allied with R&D institutions or have their own research departments; for example, Samsung, the leading manufacturer of mobile phones, employs over 1,000 people in R&D. Our man in the streets with his hopeful ‘ah ha’ moments is out of the league as a world player. Our expenditure of 0.05% of GDP in R&D shows that our private sector is not interested in R&D, in innovation to generate competitiveness.
Until, like Singapore, Taiwan or Ireland, we create a national innovation system, private sector integration (or a new one), R&D institutions and government, we will remain an economy of seekers of rent while the oil resource dissipates. Although these three actors exist locally, there is no system or institution that can integrate them into a national innovation vehicle.

]]> 0
FTA calls on Expo 2020 Dubai attendees to benefit from VAT refund program Mon, 11 Oct 2021 13:54:20 +0000

The FTA has established a daily direct communication channel with the Expo 2020 Dubai International Participants Office to improve coordination and ensure timely processing of participant requests, whether they are VAT registration requests. by participating countries, or processing reimbursement requests, as well as responding quickly to their requests, he added.

Al Bustani said that the FTA provides a telephone service to facilitate and expedite the VAT registration procedures for international participants in Expo 2020 Dubai. The service offers participants clear instructions and details on registration requirements, provided by the FTA registration service. Priority is given to VAT registration applications from international participants.

He clarified that the FTA has already completed the VAT registration processes for several participating countries and that the FTA is processing claims submitted through the electronic system of the VAT Refund Scheme for Expo-related goods and services. 2020 Dubai. The AFC also processes special VAT refund requests, submitted through the office of the integrated platform, dedicated to receiving and processing requests from non-registered VAT participants.

“The FTA applies the refund mechanism for VAT paid on goods and services related to Expo 2020 Dubai through transparent, precise and facilitated procedures in accordance with best practices,” said Al Bustani. This is part of its contribution to the intensive efforts of all relevant bodies in the UAE to ensure the success of this international event, which kicked off on October 1, 2021 with the participation of 192 countries.

“Expo 2020 Dubai is an important international platform for the UAE as it brings the world together for six months and embodies its vision of international cooperation,” he added.

The FTA has published a comprehensive guide for official attendees of Expo 2020 Dubai, which addresses five categories of taxes that can be refunded. The first category is the VAT incurred by official participants on goods and services directly related to the construction, installation, transformation, decoration and dismantling of their exhibition space.

The second category is the VAT incurred by official participants on goods and services directly related to the works and activities of organizing and operating the exhibition space of the official participant, as well as all presentations and events taking place. taking place on the Expo 2020 site.

The guide highlights a third category, which is the VAT incurred by the official participant on goods and services related to the actual operations of the official participant, provided that the value of each product or service claimed is not less than AED 200.

The fourth category is the VAT incurred by the official participant in connection with all operations, services and activities provided for the purpose of participating in Expo 2020 Dubai, whether located inside or outside the limits of the Expo site. The fifth category is the VAT incurred on the import of goods for personal use of the section commissioner general of the official participant, section staff and beneficiaries.

The guide specifies that in order to be able to claim the reimbursement of VAT for expenses falling under the first and second category (or expenses relating to several categories, including the first and second category), the official participant must be in possession of a certificate of entitlement issued by Expo 2020 Dubai, which is established under Decree No. (30) of 2014 issued by the Ruler of Dubai.

However, when the expenses are not related to the first and second category but are included in the third, fourth or fifth category, the official participant will not need to obtain a certificate of entitlement to claim reimbursement. VAT.

The guide – which is available on the FTA website – clarifies the reimbursement mechanism, the recoverable VAT and the special case of the right to import certificate, the eligibility criteria for the certificate. law, how to apply for the law certificate, the law certificate request form, its supporting documents, the processing of the law certificate request by Expo 2020 Dubai, how to make a refund request, the procedures for the offices of the official participants registered for VAT, the procedures for the offices of the officials Participants not registered for the VAT, supporting documents for the refund request, processing of the refund request by Ex[p2020Dubaïffrequencedelademandederemboursementetpaiementdelataxelouraventedesmarchandisesimportées[p2020Dubaïfréquencedelademandederemboursementetpaiementdelataxelorsdelaventedesmarchandisesimportées[p2020Dubaithefrequencyoftherefundapplicationandpaymentofthetaxuponsaleofimportedgoods

© Copyright Emirates News Agency (WAM) 2021.

]]> 0
An Post now sees firsthand the Brexit pressure on UK businesses Sun, 10 Oct 2021 01:30:00 +0000 A recent Royal Mail business update gives us some very interesting insight into the situation for UK small businesses with Brexit.

In the five months to August 2019, the Royal Mail recorded 111 million international parcels. (In total, the UK Postal Service handled 520 million packages, but 409 million of them were domestic mail.)

Parcel traffic increased last year as e-commerce peaked in foreclosure. But this year, Royal Mail’s international parcel business fell to 70 million in the same five-month period.

]]> 0
A Canadian Tax Expert’s Perspective on GST / HST and Fictitious Importers – Tax Fri, 08 Oct 2021 12:12:39 +0000

GST Taxation on Imports and Input Tax Credits

Anyone required to pay a duty on the importation of goods into Canada under the Customs Act or who would be liable to pay duty if the goods were subject to duty is liable to pay Goods and Services Tax (“GST”) on those goods. A person includes an individual or a corporation.

The GST is Canada’s federal value added tax that is imposed at a rate of 5% of the value of goods sold. In Ontario and the four Maritime provinces, the provincial sales tax was combined with the GST to create the Harmonized Sales Tax or HST, the HST applies at a rate of 15% in the four Maritime provinces and 13% in Ontario. The GST is structured as a tax on the end consumer. When a person who provides goods or services to end consumers pays GST in the course of their commercial activities, they will normally be able to deduct input tax credits (“ITCs”), which are the GST paid on purchases or inputs, to offset the GST that must be collected and remitted to their customers. For example, Computer Manufacture Inc. paid GST to acquire the parts needed to build a computer for Susan (or Susan Corporation Inc.), the end consumer. When Computer Manufacture Inc. charges GST on its sale of the computer to Susan, it will offset the amount of that GST it remits to the Canada Revenue Agency (“CRA”) against the amount of GST paid for it. acquire computer parts. To apply this compensation, Computer Manufacture Inc. will claim ITCs on its GST return for the amount of GST paid on the purchase of computer parts (as well as GST paid on other inputs such as electricity or the rent).

Likewise, an ITC may be claimed on the GST paid on imported goods. Only one person can claim this ITC for each property. However, determining who is entitled to claim the ITC for the GST paid on the importation of goods can be a complicated matter depending on the circumstances and may require the advice of a GST expert. The general rule, under subsection 169 (1) of the Excise Tax Act, is that a GST registrant is entitled to claim an ITC for the GST paid on the importation of the goods if he / she imported the goods for his own consumption, use or supply in the course of his commercial activities. This registrant is known as “de facto“importer. The relevant factors in determining who is the de facto importer include the place of supply of the goods.

Constructive importer

Article 178.8 of the Excise Tax Act is intended to deal with commercial arrangements under which a person is the recipient of a supply of goods made outside Canada and imported into Canada for its consumption, use or supply where the physical importation is made and counted by another party. The person in these circumstances is known as a “constructive importer”. The other part is called the supplier.

Subsection 178.8 (2) is intended to ensure that the fictitious importer can claim the ITC on the GST paid on importation even though he or she has not physically carried out the importation of the goods and / or accounted for the importation. goods. The fictitious importer will need to obtain copies of import documents from the supplier in order to claim ITCs. The supplier is not entitled to claim the ITC on the GST paid on the importation, subject to the choice exception discussed later in this article, because the supplier – despite handling the physical importation of the products – not import the products for own consumption, use or supply.

GST532 agreement and revocation of an agreement between the supplier and the fictitious importer

The fictitious importer and the supplier may jointly elect to allow the supplier to claim the ITC on the GST paid on the importation. If the fictitious importer and supplier so choose, then the taxable supply of the goods is deemed to have taken place in Canada. The supplier must collect GST on its supply of goods to the notional importer, but may claim an ITC on the GST paid on the importation. The fictitious importer can no longer claim an ITC on the GST paid on the importation, but can instead claim an ITC on the GST paid to the supplier.

The election is made or revoked using Form GST532. The choice can be made for single or multiple transactions, for supplies within a specified period or on an ongoing basis. The choice can be made at any time. The election does not need to be filed with the CRA, but the supplier and the fictitious importer must keep a completed copy of Form GST532 for at least six years after the end of the year in which the agreement applies. Both parties are required to sign the completed form.

If the election is made after the supply of the goods, the supplier is retroactively entitled to claim the ITC and is required to collect GST as described above. If the supplier has already claimed the ITC and collected the GST as it would have been had the election been made at the time of supply, there will be no penalty or interest. The fictitious importer can no longer claim the ITC for the tax paid on the importation of goods. If the alleged importer has already claimed the ITC, the limitation period for the alleged importer’s net tax assessment or reassessment is extended by four years after the election.

Pro tax advice: import documents are relevant proof

Those who import and pay the related GST should make sure to keep all necessary copies of import documents. In the event of a CRA tax audit, these documents will be important evidence in determining which party was entitled to claim the ITC for the GST paid when importing goods. GST import rules are complex products and generally require the advice of a Canadian GST / HST expert. Although not falling within the scope of this article, there are other relevant rules such as article 180 of the Income Tax Act which is a transfer rule allowing a GST registrant in certain circumstances to claim the ITC on the GST paid on the importation of goods when the importer who pays the GST on the importation is a non-resident and unregistered . To better understand the GST rules applicable to importation, or for assistance with a tax audit, contact our experienced Canadian tax lawyers.


What is the GST?

The GST, or the goods and services tax, is the federal part of the sales tax. The current GST rate is 5%. In Ontario and the four Maritime provinces, the provincial sales tax was combined with the GST to create the Harmonized Sales Tax or HST, the HST applies at a rate of 15% in the four Maritime provinces and 13% in Ontario.

What is a constructive importer?

A deemed importer, in accordance with section 178.8 of the Excise Tax Act, is a person who is the recipient of a supply of goods made outside Canada and imported into Canada for its consumption, use or its supply when the physical importation of products is effected by and accounted for by another party.

What is Form GST532?

Form GST532 is an election form completed and signed by a supplier and a deemed importer to allow the supplier to claim the input tax credit for the GST paid on the importation of goods into Canada. If the supplier and the deemed importer complete this election, the supplier will be required to pay the GST paid on the importation of goods into Canada, and the deemed importer will instead claim an ITC on the GST paid to the supplier.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

]]> 0
Poor leadership, dysfunctional structure fueling succession turmoil – Atsegbua Thu, 07 Oct 2021 10:27:02 +0000

By Gabriel Enogholase

Lawrence Atsegbua, SAN, is Professor of Law at the University of Benin. He is also a former Dean of the University’s Faculty of Law.

In this interview, he discussed the inheritance turmoil in parts of the country and the factors that fuel them.