Russia lowers VAT low value consignment reliefCategory:

China

China VAT lotto takes on rampant fraud

April 12th, 2018

China’s Shanghai trials with a weekly anti-tax fraud cash prize draw for VAT invoices has been declared a success. Since the start of 2018, Shoppers can upload barcodes on their VAT invoices to a phone app for a potential immediate €12.50 (equivalent)  prize. Their invoices are also entered into a weekly draw with a top …


Iceland

Iceland scraps e-book VAT 2019

April 10th, 2018

Iceland’s Ministry of Finance and Economic Affairs is to reclassify electronic books as zero-rated for Value Added Tax from 1 January 2019. E-books are currently subject to the reduced VAT rate of 11%. Iceland is a member of the EEA, and not a member of the European Union where countries are obliged to charge the …


China

China cuts VAT rates 1 May 2018

March 29th, 2018

China is to lower a range of its VAT rates from 1 May 2018, costing €53billion per annum. The VAT rate on manufacturing supplies will be cut from 17% to 16%. The rate on construction, voice telecoms and transportation will be reduced from 11% to 10%. Further reforms will consolidate the existing 13% rate on agriculture into …


Thailand

Thailand levies VAT on bitcoin

March 20th, 2018

Thailand’s Cabinet has moved to levy 7% VAT on digital currency (e.g. bitcoin) transactions. This is aimed at curbing money laundering and tax evasion. The Council of State will have to ratify the widening of the tax net. Over the past three years, the EU, South Korea and Japan have exempted from such consumption taxes. Trading …


United Arab Emirates

UAE pre-VAT contracts

March 13th, 2018

The United Arab Emirates’ Federal Tax Authority has issued guidance on 3 March on the VAT liabilities for parties in contracts spanning the 1 January 2018 introduction of VAT. Where a contract does not make clear which party will be liable for VAT, and quotes only a VAT exclusive price, then it automatically falls to …


Qatar

Qatar aims for 1 Jan 2019 VAT

March 4th, 2018

Qatar is aiming to introduce VAT on 1 January 2019. It is a member of the 6 Gulf Cooperation Council states that committed to launch a harmonised VAT regime. To date, only Saudi Arabia and UAE have launched the 5% indirect tax system. The Qatari Tax Office is to shortly release guidance on the treatment …


Ethiopia

Ethiopia raises VAT registration threshold

March 2nd, 2018

Ethiopia raised its VAT registration threshold from 20 February 2018. The new level is ETB 1million – previously ETB 0.5m.  VAT is currently levied at 15%. Non-residents must also register if providing services. Otherwise, they are only liable to register if they have a permanent establishment in the country.


South Africa

South Africa updates e-services VAT

February 28th, 2018

South Africa has issued a draft update of the definition of digital services for VAT purposes. Since June 2014, non-resident providers of electronic services have been liable to register and charge South African VAT on B2C and B2B transactions. The latter is unusual – most countries do not require a registration for business-to-business supplies; instead …