BDO Indirect Tax News

Introduction

The global trade landscape has undergone significant changes following the announcement by the US administration on 2 April regarding the imposition of tariffs on many of the US's trading partners. Some nations have expressed interest in negotiating the tariffs, while others (e.g., China, the EU) responded with—or have considered—countermeasures on imported US goods. Financial markets globally have experienced dramatic swings in response with many fearing a global trade war while the US’s and other nations’ positions continue to evolve.

 In other news, the VAT in the digital age package, which will bring widespread changes in the EU, has been formally adopted and new EU rules are in effect to harmonise procedures and reduce the administrative burden on SMEs conducting VATable activities throughout the bloc. Foreign companies operating in Switzerland should be aware of situations—such as the supply of goods accompanied by the installation of equipment and B2C services provided to Swiss customers—that could have adverse and costly VAT consequences.

 Compliance continues to be a priority focus for governments, as outlined in several articles:

• Belgium’s VAT compliance rules have become stricter, with the result that the VAT administration will likely focus on ensuring compliance with VAT obligations and conducting more intensive VAT audits in cases of noncompliance. 
• In upholding the denial of a VAT credit refund, a court in France has reaffirmed the strict evidentiary requirements that must be met to claim a VAT deduction on real estate investments. 
• Indonesia is introducing a centralised platform for domestic taxpayers to fulfil their tax obligations in an effort to modernise the tax framework and enhance efficiency and transparency.
• A 12% VAT applies to digital services provided by resident and nonresident digital service providers where the services are consumed in the Philippines. 
• As from 1 July 2025, all VAT-registered persons in Slovenia must prepare and submit VAT ledgers to the tax administration along with their VAT returns. 
• Using automated solutions can help streamline compliance for any indirect taxes. 

 Read about these developments and more in the April 2025 issue of Indirect Tax News.