The Russian Ministry of Finance has proposed lowering the VAT-free threshold for goods imported into the country – ‘low value consignment relief’. From 1 July 2018, the threshold will be cut from €1,000 to €500 per import. It will be further dropped to €200 on 1 January 2019. Many other countries are reducing or scrapping …
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’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 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 …
Following the re-election of Russian President Putin, a number of changes to the VAT regime are being proposed to help meet election healthcare and infrastructure commitments. The possible changes include: Dropping the planned cut in foodstuffs and medicines VAT rate to 10% Introduction of a turnover tax of 4% A rise in the 13% income tax …
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 …
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 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 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 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 …
