VAT News

Japan

Japan on track for 10% Consumption Tax 2019

August 12th, 2018

Japan’s latest growth rates mean the planned rise in its Consumption Tax from 8% to 10% in October 2019 will still go ahead. The rise had previously been delayed twice because of stagnant growth. The indirect tax was originally raised from 5% to 8% in 2014 to help fund the spiralling social costs of an ageing …


South Africa

South Africa bitcoin VAT exemption

August 10th, 2018

The South African Revenue Service, SARS, has issued draft legislation covering the direct and indirect taxation of digital currencies such as bitcoin. SARS is proposing to follow the European-model on indirect tax, and not make trades subject to VAT. Other countries which have followed this route include Japan, Singapore, and, latterly, Australia. SARS is considering treating cryptocurrencies …


Belgium

Belgium revises VAT penalties

August 9th, 2018

Belgium has overhauled its VAT penalty regime to make it less onerous for overdue filings. Its new regime was implemented from 1 August 2018, and has been applied retrospectively to 1 Jan. The old regime imposed a fine on late VAT return filings of €100 per filing per month. Plus interest charge on any VAT …


Kuwait

Kuwait readies VAT legislation

August 7th, 2018

The Kuwaiti government is reported to be reading draft VAT implementation legislation for the national assembly to review in October 2018. This could lead to implementation in 2019. The opposition in parliament is likely to be high. Earlier reports in the summer had suggested a 2021 or even 2022 launch date. In 2017, Kuwait and the five …


Ghana

Ghana VAT rate restructured to 12.5% Aug 2018

August 6th, 2018

Ghana has split out the 2.5% National Health Levy from the combined current VAT rate. This means the new VAT rate will be 12.5% instead of the current consolidated 15%. VAT is charged on all taxable suppliers, as well as imports. The 2.5% National Health Levy will now be combined with the Education Trust Fund …


South Korea

South Korea extends VAT to foreign cloud computing

August 5th, 2018

The Republic of Korea (South Korea) has extended the scope of VAT to non-resident B2C providers of cloud computer services. This new liability will come into force on 1 July 2019. South Korea made non-resident providers of streaming media, video, music, games etc. liable to VAT in July 2015. This mirrored changes in Japan and …


Romania

Romania abandons 2019 VAT cut

August 3rd, 2018

Romania is considering postponing cutting its 19% VAT rate to 18%, as planned for January 2019. The decrease is in jeopardy as the country is struggling to reduce its deficit to 3% of Gross Domestic Product. Romania originally raised VAT from 19% to 24% in 2010 during the European financial crisis. But has since cut …


Malaysia

Malaysia launches Sales and Service Tax Sep 2018

August 2nd, 2018

Malaysia has tabled at Parliament the implementation bill for its Sales and Service Tax (SST), which comes into force on 1 September 2018. It is replacing the 6% Goods and Services Tax, suspended on 1 June 2018. The switch is expected to cost the country an estimated at RM25 billion in lost revenues as only …