Indirect Tax Compliance Workshop

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Indirect Tax Compliance Workshop

• Lucia Servus
• Indirect Tax Manager
• IEEE Meetings and Conferences

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Summary

• Part I Indirect Tax Overview
• Indirect Taxes
• IEEE International LLC
• European VAT
• Global Indirect Tax Compliance
• (countries outside the US and Europe)
• Part II Examples
• Decision Making
• Budgeting for VAT
• Compliance through IEEE International LLC
• Compliance through non IEEE entity

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Part I Indirect Tax Overview
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Indirect Taxes

• Value Added Tax (VAT), Goods and Services Tax
  (GST)
• are indirect taxes on the consumption of goods
  and services overseas.
• Conferences need to pay VAT/GST on purchases
• VAT/GST has to be charged by the conference and
  paid to the local tax authorities, unless entity
  managing VAT is exempt
• VAT/GST exemptions are granted by the tax
  authorities IEEE has not been reviewed nor
  recognized as VAT/GST exempt
• Each country sets its own regulations

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IEEE International LLC

• IEEE International LLC was the entity created for
  VAT compliance in Europe
• IEEE International LLC is owned by IEEE and
  established in the US
• All conferences must comply with the VAT in
  Europe according to the local requirements
• Any IEEE organizational unit
• can handle VAT through IEEE
• International LLC

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European VAT Options for compliance

• VAT Compliance is compulsory
• Only one entity can be managing VAT
• Three options for VAT compliance
• IEEE International LLC (process in place)
• Financial Co-sponsor (MOU needed)
• Third Party (MOU needed)

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European VAT Handling scenarios 2009 (Jan May)
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Global Indirect Tax Compliance

• Expansion of the project outside Europe to take
  place later this year
• Assessment will be performed based on the
  conference volume and conferences needs
• Australia, Brazil, Japan will be among the
  first countries to be assessed
• Conference Organizers will be contacted by
  Indirect Tax Office individually

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Part II Examples
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Decision Making

• Questions to ask
• Is IEEE financial or technical sponsor?
• Who will handle finances?
• Who will handle registration?
• Which entity will be most likely responsible for
  indirect tax?
• Contact the responsible entity and work with them
  assuring that they can provide required documents
  to IEEE.

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• Please request a copy of VAT decision tree at
  conference-tax_at_ieee.org

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Budgeting for VAT

• Conference needs to budget for indirect taxes if
  entity which takes responsibility for compliance
  is not VAT exempt.
• If entity is VAT exempt
• Conference will be paying VAT on expenses and not
  recovering it. Expenses should be inclusive of
  VAT.
• Conference will not be charging VAT on revenue.

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Budgeting for VAT

• If VAT is handled by IEEE International LLC or
  other non exempt entity
• Standard rate for registrations applies
• Follow VAT Manual or other entitys instructions
  for other revenue rates
• Follow VAT Manual or other entitys instructions
  for expense rates
• If not in the Manual, please contact Indirect Tax
  Office

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Budgeting for VATVAT rates
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Budgeting for VAT

• On average, calculate 15 of revenue to be paid
  to the tax authorities.
• For detailed calculation
• Calculate VAT owed to the tax authorities
  (revenue)
• Calculate VAT recoverable from tax authorities
  (expenses)
• Calculate VAT liability amount
• Contact Indirect Tax Office with the questions

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Budgeting for VAT Calculation example (1/2)
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Budgeting for VAT Calculation example (2/2)
Revenue and Expenses should include
VAT. Financial statement should include VAT
liability expense amount VAT Liability VAT
owed VAT recoverable VAT Liability 14.4
4.9 9.5
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Compliance through IEEE International LLC

• Manual is emailed to the person responsible for
  VAT compliance upon confirmation
• Sales invoices need to be issued for revenue
  according to the requirements in VAT manual
• Purchase invoice need to be issued by supplier
  for expenses to IEEE International LLC
• VAT Ledgers need to be submitted to Online
  Database on monthly/quarterly basis
• Indirect Tax Office will contact you with the VAT
  payment/refund amount based on the ledgers
• After conference takes place, original invoices
  to be sent to fiscal representative according to
  the manual

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Compliance through IEEE International LLC
Invoice Template (Excel spreadsheet)

• Please request a copy of invoice template at
  conference-tax_at_ieee.org

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Compliance through IEEE International LLCLedger
Template (Excel spreadsheet)

• Please request a copy of ledger template at
  conference-tax_at_ieee.org

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Compliance through IEEE International
LLCDemonstrations

• Various demonstrations will show the compliance
  process and the use of templates.

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Compliance through non IEEE entity

• If you handle the VAT through a non-IEEE entity,
  IEEE needs a written statement from VAT handling
  entity with VAT number or VAT exemption
  certificate.
• Fiscal Agent and Sponsorship MOU templates
  contain suggested wording for this statement.

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Questions
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Contact Details

• Lucia Servus
• Tel. [phone]
• Email conference-tax_at_ieee.org
• Please email me to request templates.