Indirect Tax (VAT or GST)

Indirect taxes include Value-Added Tax (VAT) and Good and Services Tax (GST) and are broadly based on transactions, so liability will arise regardless of profitability.

Markets in every corner of the world have indirect taxes, including the European Union, China, Mexico, Australia, Singapore, Japan, and Russia, to name a few. With ever-increasing indirect tax technical complexities and regulatory requirements, U.S. and foreign businesses need to effectively plan for and comply with each foreign jurisdiction’s indirect tax rules to avoid unnecessary costs, delays, and administrative burdens.

BPM’s indirect tax specialists provide companies with effective U.S.-based indirect tax consulting, planning and compliance support, minimizing your risks, costs, and administrative burdens. We can assist companies on indirect tax matters such as the following:

• The indirect tax consequences of entering new markets
• When and how to register for indirect tax in a foreign jurisdiction
• The “reverse charge” mechanism and when is it available
• How to reduce the costs and cash-flow burdens of indirect taxes
• Indirect tax opportunity identification and implementation
• The invoicing requirements for indirect taxes
• Securing a VAT credit or refund that has been rejected
• Determining the optimum port(s) for importing tangible goods into the EU
• Use of Mini One Stop Shop (MOSS) for supplies of electronic services in the EU
• Indirect tax dispute resolution
• Transactional consulting for indirect tax
• Business model optimization for indirect tax

When foreign support on indirect tax matters is needed, BPM’s Allinial Global network provides direct and immediate access to “home country” indirect tax expertise with over 200 member firms.

Our U.S.-based indirect tax specialists work closely with BPM’s Allinial Global network of foreign firms to develop and implement “home country” indirect tax compliance and reporting plans, including:

• Local country registrations and representations
• Preparation and submission of indirect tax reports and returns
• Preparation of and/or assistance with indirect tax credit and refund claims
• Insourcing, outsourcing, or co-sourcing of international indirect tax compliance
• Indirect tax audit support

Tax Alert

The 12-month transition period in respect of the new Goods and Services Tax (GST) and the Harmonized Sales Tax (HST) rules applicable in Canada and its respective provinces for US vendors and distribution platforms has ended as of July 1, 2022. 

New GST/HST rules came into effect in Canada on July 1, 2021. These rules generally require foreign-based vendors selling more than C$30K of digital products or services to consumers in Canada, as well as the digital marketplace platform operators that facilitate those sales, to register for, collect and remit the GST/HST on taxable sales made to Canadian consumers. The new rules also apply to goods supplied through fulfillment warehouses in Canada. 

In administering these new rules, the Canada Revenue Agency announced that it would work closely with affected non-resident suppliers and platform operators to assist them in meeting their obligations. The Agency also agreed to take a practical approach to compliance and exercise discretion in administering the new measures during a 12-month transition period. This administrative relief, therefore, ended on July 1, 2022.