South Africa bitcoin VAT exemptionCategory:

South Africa

South Africa bitcoin VAT exemption

August 10th, 2018

The South African Revenue Service, SARS, has issued draft legislation covering the direct and indirect taxation of digital currencies such as bitcoin. SARS is proposing to follow the European-model on indirect tax, and not make trades subject to VAT. Other countries which have followed this route include Japan, Singapore, and, latterly, Australia. SARS is considering treating cryptocurrencies …


Kuwait

Kuwait readies VAT legislation

August 7th, 2018

The Kuwaiti government is reported to be reading draft VAT implementation legislation for the national assembly to review in October 2018. This could lead to implementation in 2019. The opposition in parliament is likely to be high. Earlier reports in the summer had suggested a 2021 or even 2022 launch date. In 2017, Kuwait and the five …


Ghana

Ghana VAT rate restructured to 12.5% Aug 2018

August 6th, 2018

Ghana has split out the 2.5% National Health Levy from the combined current VAT rate. This means the new VAT rate will be 12.5% instead of the current consolidated 15%. VAT is charged on all taxable suppliers, as well as imports. The 2.5% National Health Levy will now be combined with the Education Trust Fund …


South Korea

South Korea extends VAT to foreign cloud computing

August 5th, 2018

The Republic of Korea (South Korea) has extended the scope of VAT to non-resident B2C providers of cloud computer services. This new liability will come into force on 1 July 2019. South Korea made non-resident providers of streaming media, video, music, games etc. liable to VAT in July 2015. This mirrored changes in Japan and …


Ireland

Ireland Finance Ministry questions tourism VAT subsidy

August 1st, 2018

Ireland’s reduced 9% VAT rate on tourism services has been challenged by the Finance Ministry as a ‘deadweight’ on the economy’s finances. The department has claimed this week the rate reduction is no longer relevant given the buoyant visitor numbers. The rate was temporarily cut from 13.5% in 2011 at the height of the financial crisis as …


Ghana

Ghana abandons VAT rise

July 30th, 2018

Ghana has confirmed that it will not go ahead with the previously proposed VAT rise. It had been announced in February that it would rise from 15% to 17%. This includes a proposal to reintroduce VAT on financial services. The rate was last increased from 12.5% to the current 15% in  January 2014. Last year, the …


Moldova

Moldova cuts hotel VAT

July 29th, 2018

Moldova has proposed recategorising the VAT rate on hotel and restaurant services from the standard 20% rate to the reduced rate of 10%. The new rate will apply form October 2018. Tourism tax subsidy Few countries in the EU charge full VAT on such hospitality services.  Countries such as Ireland and Germany have long provided …


India

India cuts e-book VAT to 5%

July 28th, 2018

On 21 July, India’s Central Board of Indirect Taxes & Customs approved a reclassification of the e-books VAT from the standard rate to 18% to the lower rate of 5%. One condition for the application of the lower rate is that a paper-version of the publication must also be available.


Uruguay

Uruguay VAT on foreign digital services

July 26th, 2018

Uruguay has clarified the liabilities to VAT for non-resident providers of digital or electronic services. The current VAT rate in Uruguay is 22%. In Decree 144/018, supplies of streaming media, games and related electronic services over the internet by non-resident providers to Uruguayan resident consumers was confirmed as liable to local VAT. Typically, residency within …


China

China VAT cuts boost exports to US despite tariff wars

July 12th, 2018

China’s lowering of VAT in May on aluminium exports to the US and rest of the world has helped contribute to a 37% growth sales (source: Chinese Customs, June 2018). This comes despite the US imposing heavy tariffs on aluminium in March, and a spiralling trade war with China and the European Union. Since May …