VAT News

United Kingdom

UK VAT rises ruled out ahead of elections

April 30th, 2017

Both the governing Conservatives and main opposition Labour party today ruled out future rises in VAT ahead of June’s election. The UK has enjoyed a dwindling government deficit since the 10%+ of the financial crises, but still faces a challenge to balance the books.  The 2015 elections pledge of the Conservatives not to raise VAT, …

GCC publishes VAT Treaty

April 29th, 2017

The Gulf Co-operation Council, which incorporates six Arab Gulf States, last week published its VAT Treaty, outlining the proposed January 2018 common VAT regime.  The six GCC states are: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. This framework agreement outlines the structure of the harmonized VAT regime across the six states, and will …

United Kingdom

UK 35,000+ micro-businesses drawn into Brexit EU VAT net

April 27th, 2017

An estimated 35,755* UK micro-business selling over the internet into Europe face being drawn into the EU VAT net for the first-time following Brexit.  Costs to meet this new requirement could reach €216,000pa. UK e-commerce businesses benefit from EU VAT exemption The UK’s membership of the EU includes allowing UK-based small businesses to sell goods …

United Arab Emirates

Gulf zero-rated VAT supplies

April 23rd, 2017

The six members of the Gulf Cooperation Council have confirmed the supplies which will be zero-rated for VAT purposes.  This means they will be charged without VAT, but suppliers can reclaim any input VAT incurred. The list includes: Education Oil & gas Domestic transportation Health services Real estate Basic foodstuff (with central approval) The GCC …


Australia marketplaces question new GST rules

April 22nd, 2017

As Australia prepares for the July 2017 imposition of 10% GST on consumer purchases below AUS$1,000 from foreign e-retailers, a number of major marketplaces have raised concerns about the new regime. They believe GST should be collected by the postal services instead of the planned obligation for foreign retailers to register for GST and make regular filings and …


Bulgaria VAT update

April 21st, 2017

Bulgaria has updated its VAT Act, including the following changes: New rules on apply VAT credits on partial use assets The VAT treatment of prepaid telephone cards is to be harmonised with regular telephone services New proof of international status of transport services is required to enjoy zero rating The measures above come into affect …


Argentina exempts foreigners from hotel VAT

April 20th, 2017

Argentina has exempted non-resident visitors from VAT on hotel and related accommodation services. This tax subsidy is extended to breakfast services provided as part of any overnight stays. The VAT liability will be immediately re-credited to foreigners via their paying credit card if they can provide proof of their non-resident status.


India GST July launch doubts

April 19th, 2017

The current launch date of 1 July for Indian Goods and Services Tax is looking increasingly at risk. The risk of a delay till 1 September is now being publicly discussed. Approved GST legislation leave outstanding issues The key four GST legislative Bills have now been approved by the President on 12 April. GST guidelines …


OECD International VAT/GST Guidelines

April 16th, 2017

The OECD VAT/GST Guidelines received further endorsement this week at the 4th OECD Global Forum on VAT. The guidelines provide a comprehensive framework of standards and principles for countries around the world to follow in the development of coherent and consistant indirect tax guidelines.  In addition, they aim to provide for clarity and harmony on the treatment of cross-border transactions, …


Italy extends VAT split payments

April 15th, 2017

Italy has been granted approval by the European Commission to continue the use of anti VAT fraud split payments regime with state organisations, and to extend the measures to state-owned companies and stock market quoted companies. VAT split payments Where an EU member state believes, there is significant evidence of VAT fraud, it may apply …