VAT News

Poland

Poland delays VAT cut to reform reduced rates

October 22nd, 2018

Poland’s Ministry of Finance has announced that it will recategorise many supplies to within the current reduced VAT rate category. However, this will mean Poland will not go ahead with the return of the standard VAT rate to 22% from 23%. The standard VAT rate was raised to 23% in January 2011, including a rise of the reduced …


India

India extends Sept GST return deadline

October 21st, 2018

India has extended by 5 days the deadline for the filing of September’s Goods and Services Tax return. The new filing deadline for the GSTR-3B return and the Input Tax Credit is 25th October 2018. The regular GSTR-3B filing deadline is the 20th of the month following the reporting month. It is required of all …


New Zealand

New Zealand scraps low value consignment GST Oct 2019

October 19th, 2018

New Zealand has proposed scrapping the Goods and Services Tax (GST) and customs duty low-value consignment relief of NZD 1,000. It will be requiring foreign e-commerce traders selling goods to local consumers to VAT register once their annual sales crossed a NZD 600,000 threshold. Supplies to businesses will remain zero-rated. Marketplaces may also be held liable …


United Kingdom

UK MTD pilot goes public; Oct 2019 groups & non-resident delay

October 16th, 2018

HMRC announced today that it is opening the test pilot for its Making Tax Digital for VAT programme to the public.  However, HMRC also announced that it is deferring the MTD obligations for group VAT returns, non-residents and certain other use cases until October 2019. MTD will require digital transactional recording and filing of UK VAT …


Italy

Italy Esterometro replacing the Spesometro Jan 2019

October 15th, 2018

On 1 January 2019, Italy will withdraw the requirement for resident and non-resident Italian tax payers to complete the Spesometro quarterly / bi-annual sales and purchase invoice listing. This is part of the extension of SdI live invoice reporting to all B2B and B2C transactions. The Spesometro will be replaced by a new monthly filing, the …


Japan

Japan confirms 2019 Consumption Tax hike

October 14th, 2018

Japan is to confirm this week its plan to complete the second rise in its Consumption Tax, from 8% to 10% in October 2019.  The first hike, in 2014 from 5% to 8% was blamed for a sharp rise in inflation and tipping the world’s third largest economy into recession. This latest rise has already …


Bahrain

Bahrain VAT transition rules

October 13th, 2018

Bahrain is to introduce a 5% VAT from 1 January 2019. The following rules will apply to supplies contracted and supplied over the introductory period. Where invoices were issued, or payments made, prior to 1 January 2019 for post-implementation supplies, then VAT is still due. In this case, a debit note for the original invoice should be issued …


United States

US, Mexico & Canada e-commerce sales tax & duty thresholds

October 12th, 2018

As part of the NAFTA renegotiation completed on 1 Oct 2018, the US has secured a rise in the duty-free threshold for e-commerce sales from US marketplaces to consumers in Mexico and Canada. The new NAFTA replacement deal is known as United States-Mexico-Canada Agreement (USMCA). Currently, US online sellers, including eBay and Amazon, shipping to …


Norway

Norway scraps e-book VAT July 2019

October 11th, 2018

Norway is to set the VAT rate on electronic books and new journals at zero percent from 1 July 2019. The measure is contained within the 2019 Budget now in parliament. Supplies of e-books and electronic publications are today subject to standard 25% Norwegian VAT, although paper books and specific publications on paper have been subject …