VAT News

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 …

United Kingdom

Brexit – UK VAT and tax opportunities

April 14th, 2017

Coverage of Brexit has been dominated by concerns around the potential negatives and uncertainties facing the UK economy as it prepares to leave the European Union.  This has been compounded in recent weeks by the likelihood of a hard Brexit, with UK companies facing restricted access to the EU’s Single Market, Customs Union and immigrant …


Bulgaria VAT changes

April 13th, 2017

The Bulgarian VAT Act has been updated from 21 March 2017 for several changes.  These include: The calculation for the proportion of input VAT suffered on business assets which may be deducted by tax payers A 3-month extension for acquirers of business to apply input VAT Amendments to the rules around documents supporting the VAT …