VAT News


EU fails to agree again e-book reduced VAT

May 25th, 2018

At today’s EU meeting of finance ministers, ECOFIN, member states failed again to agree to allow the reduced or nil VAT rates on electronic books and publications. The proposal was last discussed at ECOFIN in June 2017, and no progress was made. The Czech representation again blocked the measure.  Its position was linked to other …

Sri Lanka

Sri Lanka 12.5% VAT 2020

May 25th, 2018

Sri Lanka plans to cut its Value Added Tax rate from to 12.5% from the current 15%. The plan was announced yesterday by the Finance Minister, Mangala Samaraweera. Sri Lanka agreed to raise its VAT rate from 11% to 15% in 2016.

United Kingdom

UK headed to 24% VAT rate?

May 24th, 2018

The influential Institute for Fiscal Studies has today issued a warning that the UK will face tax rises to support the expectations of continuing, or even improved, care on the National Health Service. VAT or Payroll Taxes rises? A rise from the current VAT rate of 20% to 24% would meet the current level of health …


India to levy 18% GST on bitcoin Jul 2018

May 23rd, 2018

India’s Central Board of Indirect Taxes and Customs is considering a proposal to make digital currency trading subject to Goods and Services Tax at 18%. The new liability may fall due from 1 July 2018. In this case, India would be classifying cryptocurrencies, such as bitcoin, as a physical asset rather than as a currency for …


Poland VAT fixed establishment risk

May 23rd, 2018

Poland has recently been extending the liability of foreign companies to VAT register under the fixed establishment rules for services. Under EU VAT Directive rules, where businesses have a sufficient degree of permanence of human and technical resources to allow it to receive and use the services supplied to it, is has a fixed establishment …


EU to review VAT reforms

May 22nd, 2018

The EU’s meeting of members’ finance ministers, ECOFIN, will convene 24 and 25 May. In addition to reviewing the next seven-year EU budget, the meeting will also review several VAT reforms. These will include: Proposal for an experimental anti-VAT fraud general domestic reverse charge mechanism Reduced VAT rates for e-books to match the rates for published …


Poland VAT split payments July 2018

May 21st, 2018

Poland is preparing to launch voluntary anti-fraud VAT split payments on 1 July 2018. This may be made mandatory from 2019 for certain industries. Purchasers of taxable goods or services will be given the choice to split the VAT element and pay into a special VAT Bank Account (‘r-VAT Account’) of their customer. If they …

United Kingdom

EU Customs Union: halves membership rebate for Brexit

May 19th, 2018

The European Commission has proposed that it halves the customs duties rebates to members of the EU Customs Union. The EU currently retains €20billion for its own income of the €25billion in collected common tariffs. The proposal is to raise this to €22.5billion. The extra funding will be retained by the EU as part of its …


Thailand bitcoin VAT exempt

May 18th, 2018

Thailand has made digital currencies, such as bitcoin, VAT exempt. This recognises the cryptocurrency as a ‘private money’ instead of a commodity with its own intrinsic value. This follows the treatment in the European Union and much of the rest of the world. Trading will though remain subject to capital gains or corporate income tax. At …