VAT News

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 …


Ireland

Ireland raises tourism VAT to 13.5%

October 9th, 2018

In today’s 2019 Budget, Ireland announced that it will raise the VAT rate on tourism services from 9% to 13.5%. This will happen on 1 January 2019. The Minister for Finance, Pachal Donohoe, stated that the 9% rate, set in 2011 during the financial crises, ‘had done its job’. It is anticipated this increase will …


Angola

Angola delays VAT launch to Jul 2019

October 8th, 2018

Angola has delayed the introduction of VAT until 1 July 2019. VAT was to be introduced on 1 January 2019, replacing the exiting consumption tax of 10%. The latter was a non-deductible tax charged throughout the production chain, resulting in a compounding of the tax levy and discouraging internal manufacturing development. The delay is due the …


Bahrain

Bahrain 1 Jan 2019 VAT Bill passes

October 7th, 2018

Updated 8th Oct: the parliaments Upper House has passed the Bill tonight. Royal Assent is now a formality within the next week. Bahrain’s parliament lower house has passed today the implementation of a 5% VAT regime from 1 January 2019. The House of Representatives approved a Gulf Arab agreement to introduce VAT after a royal …


Singapore

Singapore GST changes

October 6th, 2018

The Ministry of Finance in Singapore is to update its proposals to reform its Goods and Services regime following a recent public consultation. The reforms include: Imposition of split GST payments on B2G supplies to limit fraud A 2020 requirement on non-resident providers to change GST on B2C digital supplies with an annual threshold of SGD100,000; …