In Germany, the much discussed fiscal stimulus package has been approved by the Federal Cabinet, paving the way for a reduction in the standard rate of value-added tax from 19 to 16 percent from July 1 to December 31, 2020, with the reduced seven percent rate also cut, to five percent, during the same period.
Bulgaria has followed Germany’s – previously unveiled – VAT reduction for the catering sector, with the Bulgarian Parliament had approved legislation temporarily reducing the rate of value-added tax in this area.
Under the measures, food served in catering outlets will be taxed at the nine percent reduced rate of VAT. However, alcoholic beverages served in restaurants will continue to be taxed at the 20 percent standard rate. This temporary regime will apply from July 1, 2020, until December 31, 2021.
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The US Internal Revenue Service has reminded overseas taxpayers living and working abroad that they have an extra month to file their 2019 federal income tax return and pay any tax due. This includes Americans who live and work abroad, non-resident aliens and foreign entities with a US filing and payment requirement.
The deadline for these taxpayers is normally June 15. However, it has been extended to July 15 as part of the various COVID-19-related tax relief measures announced by the Treasury Department and the IRS in April 2020.
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Digital tax matters were on the table for the European Commission, which has published an economic recovery plan (as part of its response to the coronavirus pandemic), which includes a possible digital tax, a crackdown on tax fraud, in addition to revisiting its proposals for a common consolidated corporate tax base.
The Commission intends to borrow EUR750bn on the financial markets to fund the package. To repay these funds, the Commission will propose a number of new “own resources.”
According to the EC plan, options for reform could include a new digital tax on companies with global annual turnover over EUR750bn, which could raise an estimated EUR1.3bn per year, and a Carbon Border Adjustment Mechanism, which could take the form of a tax on imports to the European Union that do not face environmental levies equal to the EU’s in their country … Read More »