Sales Tax


UK To Require Digital VAT Filing

Posted on January 14th, by Global Tax Weekly in Sales Tax. No Comments

In the UK, HM Revenue and Customs has called on UK VAT-registered businesses to sign up for Making Tax Digital (MTD) for VAT before April 1, 2022.

Since April 2019, businesses with a taxable turnover above GBP85,000 have already been required to follow Making Tax Digital, including keeping digital records and filing VAT returns using MTD-compatible software.

All VAT-registered businesses, including those who have voluntarily registered, must follow MTD rules from April 2022.

For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look


Bahamas Announce VAT Cut

Posted on January 7th, by Global Tax Weekly in Sales Tax. No Comments

In the Bahamas, the VAT rate cut from 12 percent to 10 percent was implemented as of January 1, with the Government issuing guidance on potential complications arising from the change.

The guidance provides that where there is an ongoing service contract, where the initial VAT rate charged was 12 percent, there will be a reduction in the VAT rate to 10 percent for services that have not been rendered by December 31, 2021. The guidelines further explain that where the service has been rendered prior to January 1, 2022, but payment has not been made, the 12 percent rate still applies.

The Bahamian authorities also explained that VAT on goods remains at 12 percent if an order was placed before January 1, 2022, even if the goods arrive after that date. The new rate of 10 percent is required to be … Read More »


Vietnam announces VAT cuts

Posted on November 24th, by Global Tax Weekly in Sales Tax. No Comments

In Vietnam, VAT rate cuts on various goods and services recently come into force, effective until the end of this year.

A 30 percent reduction is in place from November 1 in relation to the VAT chargeable on:

• all forms of transportation;
• accommodation services;
• food and beverage services;
• travel agency and tour operator services, and support services related to the promotion and organization of tours;
• publishing products and services;
• audiovisual entertainment;
• artwork;
• cultural activities; and
• sports and entertainment services (excluding digitally traded services, including software).

For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look


Guernsey Considering GST

Posted on October 12th, by Global Tax Weekly in Sales Tax. No Comments

In Guernsey, where the introduction of a goods and services tax is under consideration, the Policy and Resources Committee warned – ahead of a debate on the proposed tax – that rejecting proposals for the introduction of goods and services tax would result in new levies being required on workers.

The Committee has put forward three options to close the current budget deficit: the introduction of a GST with either a five or eight percent rate, or a three percent “health tax”, levied through the social security system. In a statement released ahead of a parliamentary debate, Deputy Peter Ferbrache, President of the Policy and Resources Committee, observed that:

“We know that many States Members are reluctant to adopt a GST as part of the solution to the funding shortfalls we’ll face if we are to maintain reasonable public services that meet … Read More »


European Council Announce VAT Exemption

Posted on September 27th, by Global Tax Weekly in Sales Tax. No Comments

The European Council announced that it had adopted an amendment to the VAT Directive to introduce a temporary VAT exemption on importations and on certain supplies in response to the COVID-19 pandemic.

The “buy and donate” directive, which applies retroactively from January 1, 2021, will make it easier for the Commission and EU agencies to buy goods and services to distribute them free of charge to member states in the context of the ongoing public health crisis.

Through this update, purchases of goods and services by an EU body on behalf of member states to respond to the emergency posed by the COVID-19 pandemic are temporarily added to the list of exempted transactions in the VAT Directive. The new exemption will allow for more donations to member states and their institutions, as it will relieve the EU bodies of the budgetary and … Read More »


Canada Announces GST/HST Changes

Posted on July 9th, by Global Tax Weekly in Sales Tax. No Comments

New goods and services tax and harmonized sales tax (GST/HST) obligations were introduced on Canada, on July 1, for overseas providers of digital goods and services, who are now required to collect and remit GST/HST on:

video or music streaming services;
platform-based short-term accommodation, like homestays or vacation rentals; and
goods supplied through fulfillment warehouses in Canada.

Affected businesses are required to register for, charge, collect, and remit GST/HST on these products and services. Once registered, businesses are to be listed on an online registry, available on the Canadian Government’s website.

For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look


IMF Encourages Dutch Caribbean Islands to Introduce VAT

Posted on July 5th, by Global Tax Weekly in Sales Tax. No Comments

The IMF has urged Dutch Caribbean territories, Curacao and Sint Maarten to look to value added taxes to secure their financial futures, in its annual tax policy report on their economies.

For Curacao, the IMF said while the turnover tax planned by the new government in Curacao will be a step towards a value-added tax, significant deviations persist. The IMF suggested that, while Curacao must broaden the tax base and streamline the tax system and make it growth friendly, “Curacao would benefit from moving to a full-fledged VAT with parameters calibrated to increase government revenue.”

On tax reform in Sint Maarten, the IMF observed that: “The planned tax policy reforms would benefit from more specificity and incorporating the advice from recent IMF technical assistance.” It stated that: “The turnover tax ought to be maintained unless [the southern, Dutch side of the island] … Read More »


Austria Amend Rules For Online Goods

Posted on June 25th, by Global Tax Weekly in Sales Tax. No Comments

Austria’s Ministry of Finance released a statement for taxpayers on the upcoming changes to the country’s value-added tax regime for e-commerce.

The changes are being introduced across the European Union from July 1, 2021. They are intended to simplify VAT rules for goods sold online and introduce new obligations on online marketplaces to require them to contribute in the fight against tax fraud.

In its June 14, 2021, statement, the Ministry said Austrian authorities are ready to implement the changes. It noted a doubling in the volume of packages reaching Austrian borders between 2019 and 2021. This, it said, demonstrates the need for action to ensure fairness for domestic brick and mortar stores, which it hoped would be supported by the removal of the VAT exemption for low value consignments of under EUR22.

“From July 1, 2021, the implementation of new EU customs … Read More »


Cyprus Announces Waiver Of Penalties

Posted on May 13th, by Global Tax Weekly in Sales Tax. No Comments

In Cyprus, the Government has announced plans to introduce legislation in parliament to waive penalties for certain taxpayers with overdue value-added tax liabilities.

The Ministry of Finance explained that: “As part of measures to support companies facing liquidity problems due to the COVID-19 pandemic, the Ministry of Finance announces that it intends to immediately submit a bill to the House of Representatives, which will include arrangements for not imposing any penalties or interest on taxable persons for VAT payable on May 10, June 10, and July 10, 2021.”

These amounts would be payable instead on August 10, September 10, and October 10, respectively, it said.

To benefit from the concessions, monthly value-added tax returns must be filed by the existing deadlines, and the measure will cover only those entities engaged in economic activities most impacted by the COVID-19 pandemic and related restrictions.

For more … Read More »


China Announces VAT Refunds

Posted on May 7th, by Global Tax Weekly in Sales Tax. No Comments

In China, the authorities unveiled plans to boost the manufacturing sector, by expediting VAT refunds for advanced manufacturing ventures with a good history of compliance that have accumulated input tax credits.

The policy, announced in Announcement No. 15 of 2021 in Chinese, applies with effect from April 1, 2021, and enables taxpayers engaged in specified activities to receive a VAT refund in May 2021 to the extent they have accumulated excess input tax credits compared with the value of such credits as at March 31, 2019.

The policy is designed to benefit producers and retailers of non-metallic mineral products; specialist equipment, including railway, ship, and aerospace businesses; high-tech electronic equipment; medicines; and chemical fibres, among others.

For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look





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