VAT News

St Lucia

St Lucia cuts VAT to 12.5%

February 18th, 2017

The Eastern Caribbean island of St Lucia this week announced a reduction in Value Added Tax from 15% to 12.5%. VAT was introduced to St Lucia in 2012 at 15%, a relatively high rate for the region.  Hotel and accommodation services are charged at 10%.


South Sudan

South Sudan 18% Sales Tax

February 17th, 2017

South Sudan has confirmed that Sales Tax will rise from 15% to 18%.  A proposal to raise the consumption tax to 20% was rejected. Sales Tax applies to domestically produced goods, hotel and accommodation services and imports.


Asia

Gulf VAT challenges

February 16th, 2017

Governments and companies in the six Gulf states are getting ready for the implementation of Value Added Tax from 1 January 2018.  The new consumption tax has been set at 5% across the region, with agreement on harmonised rules to boost trade. There remain several obstacles ahead for businesses, including: A lack of local expertise …


Worldwide

Avalara VAT Reporting content updates 15-02-2017

February 15th, 2017

France: The Tax Authority has just announced changes in the 2017 VAT return; therefore, in this release we have updated the mapping within VAT Reporting in order to reflect these changes. Since France was no longer a blocked country, clients should redeliver their data starting 1/1/2017. This is effective for transactions linked to distance sales …


France

France raises VAT registration threshold

February 14th, 2017

France has increased the annual VAT registration threshold to €33,200 from €32,600 per annum.  The new threshold applies from 1 January 2017. This applies only to resident companies.  Non-resident companies have a nil threshold, and must register, if required, as soon as they make taxable supplies.  The exception to this is distance selling, whereby B2C …


Norway

Norway bitcoin VAT exempt

February 12th, 2017

Norway’s Tax Administration has reversed its position on taxing bitcoin sales by making it VAT exempt.  The move brings it into line with the European Union which made the trading of digital currencies exempt from Value Added Tax last year following a European Court of Justice ruling. In 2013, Norway had made crypto-currency trading subject …


Belgium

Belgium scraps quarterly prepayments

February 11th, 2017

Belgium is to withdraw the obligation on quarterly VAT filers to pay prepayments on their VAT liability. Small businesses may at present opt to file only quarterly in Belgium as opposed to the regular monthly filing requirements.  However, they are required to make regular advance payments against their liabilities.  This is calculated as one third …


Europe

ECJ VIES not required on nil rating

February 10th, 2017

The European Court of Justice has ruled that a customer is not required to have a VIES registered VAT number as a condition for a seller to zero-rate an intra-community supply. The ruling in Euro Tyre BV (Case C-21/16) concerned a Polish customer which presented a valid Polish VAT number which was not listed on …


Iran

Iran replaces VAT with Consumption Tax

February 9th, 2017

A new Consumption Tax, only payable at the final point of sale to a consumer, has been proposed in Iran. It would replace the existing VAT regime which is vulnerable to fraud in the supply chain.  VAT was introduced into Iran in 2009, and is currently set at 9%.


Italy

Italy VAT fraud measures

February 8th, 2017

Italy has proposed a new round of anti-VAT fraud measures.  Italy has the largest VAT Gap – the difference between expected VAT collections and actuals – in the European Union.  It accounts for almost 25% of all missing EU VAT. The measures include: Extension of Split Payments The extension of split payments, whereby customers pay …