Weekly Round-Up: The Relevance of the E.U.’s New VAT Approach for U.S. Sales Tax Systems


In 2015, the European Union's new approach for administration and sourcing of value-added tax on business to consumer sales of telecommunications, broadcasting and electronic services begins, Annette Nellen, a tax professor with San Jose State University in San Jose, California, explains in this week’s issue of the Bloomberg BNA Weekly State Tax Report.

This approach will be a significant change for vendors and countries because it requires destination sourcing for all vendors for these sales, Nellen writes. Additionally, E.U. sourcing and the “mini One Stop Shop” (MOSS) compliance option for electronic services may offer ideas for simplified and improved compliance for sales and use taxes in the U.S.  

In her article, which can be read in its entirety here, Nellen provides an overview of the E.U.'s new approach for assessment and collection of VAT with a focus on “electronic services” and the MOSS option for non-E.U. vendors. Nellen also discusses the relevance of the system for multistate sales tax administration in the U.S.   

Some notable developments from the State Tax Developments Tracker – Bloomberg BNA’s new tool for monitoring important developments in all the states:

Arizona DOR Issues Notice on Changes to the Prime Contracting Classification for Arizona TPT

New York State Department of Taxation and Finance Announces That Voluntary Disclosure and Compliance Program Reaches $530 Million in Collections

Washington Department of Revenue Provides Guidance on Tax Reporting for Consignment Sales

For more information about this and other state tax issues, sign up for a free trial of the Bloomberg BNA Premier State Tax Library. 

In other developments… 

Bradley Arant Boult Cummings LLP Issues State and Local Tax Alert on New Tennessee Tax Department Letter Rulings 

Texas Comptroller Finds Software Licensed to Texas Customers Created Nexus for Sales and Use Tax Purposes, by PwC

California FTB to Consider Revisions to Combination Regulations for Mixed Financial and Non-Financial Reporting Groups, by Morrison & Foerster

Compiled by Priya D. Nair

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