Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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Aduanas en Latam: Cómo evitar multas de stock
This article addresses customs compliance in Latin America, focusing on how importers can avoid stock-related penalties from customs authorities. It likely covers proper inventory declaration, customs valuation rules, and regulatory requirements that, if not followed, can result in fines or sanctions. The customs and trade dimension is central, as Latin American customs agencies impose strict controls on inventory records for imported goods. Companies operating across multiple LatAm jurisdictions face complex cross-border compliance obligations, making accurate stock tracking essential to avoid customs penalties and ensure proper duty calculations.
Landed Cost: La Guía Definitiva para sus Importaciones ERP
This article provides a definitive guide to calculating landed cost within ERP systems for imports into Latin America. Landed cost encompasses all expenses incurred to bring goods to their destination, including customs duties, tariffs, freight, insurance, and handling fees. Accurate landed cost calculation is critical for customs valuation compliance and proper duty assessment. The article likely explores how ERP platforms can automate the allocation of these import-related costs, ensuring businesses correctly account for customs and trade obligations while maintaining accurate financial records for cross-border inventory management.
Failing to Renew the USMCA Would Increase Tariff Uncertainty and Harm Americans
The article examines the consequences of failing to renew the United States-Mexico-Canada Agreement (USMCA), arguing that non-renewal would significantly increase tariff uncertainty and harm American consumers, businesses, and the broader economy. The USMCA governs trade relationships between the three North American nations, and its expiration without renewal would revert trade conditions to less favorable terms, raising effective tariff rates on goods crossing borders. The piece highlights how increased tariffs function as a tax burden on Americans, disrupting supply chains, raising consumer prices, and undermining business investment planning across key industries reliant on North American trade flows.
EU Small Parcel Levy and National Handling Fees
The EU is introducing a small parcel levy targeting low-value goods imported from outside the EU, particularly affecting e-commerce shipments from platforms like Temu and Shein. The levy aims to address the removal of the €22 VAT exemption and create a fairer playing field for EU retailers. Member states may also impose national handling fees on top of the EU-wide charge. The changes have significant implications for cross-border e-commerce businesses, customs compliance, and VAT obligations on low-value consignments entering the EU single market.
Government backs high street with acceleration of cheap import reforms and crackdown on dodgy online sellers
The UK government has announced plans to accelerate reforms targeting cheap imports and online marketplace sellers, addressing concerns about unfair competition with domestic high street retailers. Key measures include closing the de minimis customs threshold loophole that allows low-value imports to enter the UK without duties, and cracking down on non-compliant overseas sellers on online platforms. The reforms aim to level the playing field by ensuring overseas sellers collect and remit VAT and comply with product safety rules, with online marketplaces facing greater liability for seller compliance.
UK Seeks Input On Potential Customs Updates
The UK government is consulting on potential updates to its customs framework, inviting industry and stakeholder input on possible reforms. The review covers areas such as customs procedures, import and export rules, and simplification of existing trade processes following Brexit. HMRC and HM Treasury are assessing whether current customs legislation adequately supports modern trade flows and business needs. The consultation could lead to legislative changes affecting importers, exporters, and supply chain operators, with implications for customs duty liabilities, compliance obligations, and the broader UK trade environment.
Introduction of Mandatory Registration for Customs Intermediaries
The UK government is consulting on introducing mandatory registration for customs intermediaries, such as customs agents and brokers who submit declarations on behalf of importers and exporters. The proposal aims to improve standards, accountability, and compliance within the customs intermediary sector. By requiring registration, HMRC and Border Force seek to ensure intermediaries meet minimum competency and conduct standards, reducing errors in customs declarations and improving revenue protection. The consultation examines registration criteria, governance, and the impact on the customs intermediary market and trade facilitation.
Customs Modernisation
The UK government has issued a call for evidence on customs modernisation, seeking views on how the UK's customs regime can be simplified, streamlined, and made fit for purpose post-Brexit. The exercise covers potential reforms to customs processes, IT systems, declaration requirements, and facilitations for traders. It explores how technology and data can reduce administrative burdens while maintaining border security and revenue compliance. Responses will inform future legislative and operational changes to the UK customs framework, with implications for importers, exporters, agents, and logistics operators.
Guidance: Excise movement and control system: service availability and issues
HMRC provides ongoing guidance on the Excise Movement and Control System (EMCS), a UK government digital platform used to monitor the movement of duty-suspended excise goods such as alcohol, tobacco, and energy products. The guidance covers service availability, known issues, and system updates relevant to businesses and traders operating under excise duty regimes. EMCS is a critical compliance tool ensuring that excise movements are tracked and duties properly accounted for. Any downtime or technical issues with the system can directly affect traders' ability to meet their excise reporting and movement obligations under UK tax law.
Guidance: Customs Declaration Service error codes
HMRC publishes guidance on error codes within the Customs Declaration Service (CDS), the UK's primary customs IT platform used by importers and exporters to submit customs declarations. The document helps traders, agents, and freight forwarders diagnose and resolve declaration errors that arise during the import and export process. Accurate customs declarations are essential for correct tariff and duty calculations, VAT at importation, and trade compliance. Understanding and correcting CDS error codes is a practical necessity for businesses engaged in cross-border trade under the UK's post-Brexit customs framework.
The Supreme Court Ruling and the Potential for Tariff Refunds: Their Impact on Transfer PricingA view from transfer pricing practitioners
This article examines the intersection of tariff refunds stemming from a Supreme Court ruling and transfer pricing, written from a practitioner perspective. It explores how potential tariff refunds could affect intercompany pricing arrangements, particularly where customs values and transfer prices are closely linked. The piece considers whether refunds trigger adjustments to cost bases, profit margins, or arm's-length outcomes in related-party transactions. Practitioners must assess whether refunded duties alter the comparability of benchmarking data and whether retroactive transfer pricing adjustments are required, raising compliance and documentation challenges for multinationals operating cross-border supply chains.
US Fields Questions On Temporary Global Tariff At WTO
The United States faced questions at the World Trade Organization regarding its temporary global tariff measures. WTO members sought clarification on the scope, legal basis, and duration of the tariffs, which have significant implications for international trade and customs policy. The discussions reflect broader tensions around unilateral trade measures and their compatibility with WTO rules. The temporary tariff regime has raised concerns among trading partners about potential disruptions to global supply chains and market access, prompting formal consultations within the WTO framework to assess compliance and seek transparency from Washington on its trade policy intentions.
Trump’s New U.S. Tariff Wall Shakes Up Winners, Losers Lineup
Trump's new tariff measures are reshaping the competitive landscape across U.S. industries, creating distinct winners and losers. The tariff wall introduces significant customs and trade implications, affecting import costs, supply chains, and pricing strategies for businesses operating in or trading with the United States. Companies reliant on imported goods face higher costs, while domestic producers may gain a competitive edge. The article examines sector-by-sector impacts, highlighting how businesses are adjusting sourcing and pricing in response to the elevated trade barriers, with broader economic consequences for U.S. consumers and trading partners.
FBR confirms no increase in customs duty on imported smartphones from July 1, 2026
Pakistan's Federal Board of Revenue (FBR) has confirmed there will be no increase in customs duty on imported smartphones effective July 1, 2026. The announcement provides regulatory clarity for importers and the mobile phone industry, maintaining existing duty structures on handsets entering Pakistan. This decision is significant given the large volume of smartphone imports and the sector's sensitivity to duty changes, which directly affect retail prices and consumer access to mobile technology across the country.
Statutory guidance: Special Directions made under section 30 of the Customs and Excise Management Act 1979
This statutory guidance covers Special Directions issued under section 30 of the Customs and Excise Management Act 1979, which grants HMRC authority to direct how certain goods are treated for customs and excise purposes. Special Directions can modify standard customs procedures for specific goods, traders, or circumstances, providing legal flexibility in customs administration. The guidance is relevant to importers, exporters, and customs practitioners in the UK who need to understand exceptional procedural arrangements that may affect duty liability, customs entry requirements, and compliance obligations.
GCC VAT Overhaul to Tighten Cross-Border Trade and Compliance
The GCC is undertaking a significant VAT overhaul aimed at tightening cross-border trade rules and strengthening compliance across member states. The reforms are expected to address gaps in the existing VAT framework, particularly around transactions between GCC countries, and introduce stricter enforcement mechanisms. The changes reflect growing efforts by Gulf Cooperation Council nations to align their VAT regimes more closely and reduce revenue leakage. Businesses operating across the GCC will need to reassess their cross-border supply chains and compliance processes to adapt to the updated rules, which represent a meaningful evolution of the regional VAT framework since its initial rollout.
Pakistan to Cut Taxes on Imported Smartphones Next Fiscal Year
Pakistan plans to reduce taxes on imported smartphones in the upcoming fiscal year as part of a broader effort to make mobile devices more affordable and boost digital inclusion. The proposed cuts target customs duties and related levies currently applied to smartphone imports, which have contributed to high retail prices. The policy shift reflects government recognition that excessive import taxation has hampered smartphone penetration rates. The move is expected to stimulate demand, potentially increase overall tax revenues through higher volumes, and support Pakistan's broader digital economy ambitions.
European Commission Clarifies VAT Treatment of the New EUR 3 Customs Duty for Low-Value Imports
The European Commission has issued clarification on the VAT treatment of the newly proposed EUR 3 customs duty applied to low-value imports entering the EU. This guidance addresses how the flat-fee customs charge interacts with existing VAT obligations on e-commerce parcels, particularly those previously exempt under the now-abolished EUR 22 VAT threshold. The clarification is significant for online marketplaces, customs authorities, and sellers shipping low-value goods into the EU, helping determine the correct tax base and compliance obligations where both the new customs duty and VAT apply simultaneously to the same consignment.
Taxation and Electric Vehicles in South Africa
This article examines the taxation framework surrounding electric vehicles (EVs) in South Africa, exploring how the tax system intersects with the country's EV adoption goals. It likely covers incentives such as tax rebates or deductions available to EV purchasers, import duties on electric vehicles, and potentially VAT implications. South Africa's efforts to encourage cleaner transportation through fiscal policy measures are discussed, alongside any corporate tax considerations for EV manufacturers or fleet operators. The piece reflects broader South African tax policy debates around balancing revenue needs with environmental and economic development objectives in the emerging EV market.
FBR notifies updated customs duty on import of hybrid vehicles
Pakistan's Federal Board of Revenue (FBR) has issued an updated notification revising customs duty rates applicable to the import of hybrid vehicles. The updated duty structure reflects the government's efforts to balance revenue collection with incentivizing environmentally friendly vehicle adoption. Hybrid vehicles have been subject to concessionary duty treatment compared to conventional combustion engine cars, and the revised rates will directly impact import costs, pricing in the local auto market, and consumer demand for hybrid models in Pakistan.
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