VAT News

India

India GST one year on

August 20th, 2018

It is now one year since the overhaul of India’s complex and overlapping indirect tax regime, and the introduction of a Goods and Services Tax (GST). The new unified indirect tax was designed to simplify compliance, and end large-scale double and compounding tax for business which was stifling the manufacturing sector. Good start; more progress …


Luxembourg

Luxembourg VAT Groups

August 19th, 2018

From 31 July 2018, Luxembourg has introduced VAT Groups which permit closely bound, but legally independent, tax payers to file a single, combined VAT return. This enables them to minimise VAT payments and potential losses. This is based on Article 11 of the EU VAT Directive, and follows the ECJ Commission v Luxembourg C-274/15 judgement. …


Switzerland

Swiss scrap VAT exemption on foreign e-commerce 2019

August 17th, 2018

On 15 August, Switzerland’s Federal Council confirmed that it will scrap the low value VAT exemption on imports of goods bought from foreign e-commerce providers. The current threshold is CHF 62.50 for goods with a standard rating of 7.7% Swiss VAT. The threshold on books is CHF 200 since they attract only 2.5% VAT in Switzerland. The dropping …


Croatia

Croatia delays 1% VAT cut till 2020

August 15th, 2018

The Croatian Prime Minister, Andrej Plenković, has said that the proposed cut in the standard VAT rate from 25% to 24% may be delayed from 1 Jan 2019 to 1 Jan 2020. A VAT rate cut had been committed to in the 2016 elections by the ruling Croatian Democratic Union (HDZ) party. The proposed cut …


Japan

Japan on track for 10% Consumption Tax 2019

August 13th, 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 …