BAHRAIN introduces online portal for tax registrations +++ BRAZIL plans to introduce a standardized VAT system +++ INDIA extends the applicability of the reduced tax rate +++ CROATIA abolishes the local reverse charge mechanism for companies which are VAT registered +++ AUSTRIA plans to make operators of online market places liable for tax deficits +++ POLAND shortens deadline for classification of bad debt in order to reduce the tax base +++ PORTUGAL introduces reduced VAT rate for the supply of e-books +++ CZECH REPUBLIC plans to introduce a general reverse charge mechanism for all supplies +++ UK pushes “Making Tax Digital” initiative +++ USA extends obligation for online sellers to register for tax purposes.

In its judgment in the legal case Morgan Stanley (C-165/17), the ECJ commented on the calculation of the deductible proportion from general costs. The decision is interesting for reasons beyond the financial services sector, as the ECJ makes generally applicable statements. It concerns the deductible proportion of an establishment rendering taxable output transactions in a Member State; this establishment also uses input supplies for internal supplies to its principal establishment located in another Member State. The principal establishment itself renders taxed and VAT-exempt output transactions.