VAT news tagged as "Banking"

India

India 18% GST on banking & insurance

May 23rd, 2017

India has confirmed plans to bring banking and insurance services within the net of the new Goods and Services Tax (GST), due to be implemented on 1 July 2017.  This will increase taxes on financial transactions, which are currently subject to VAT. Financial services are VATable today at about 15%.  New GST rates published last …


France

France VAT software & electronic payments

October 6th, 2015

The French VAT authorities are stepping up measures to improve VAT compliance and collections. Compulsory French VAT software As part of the latest French Budget for 2016, all VAT registered entrepreneurs will be required to use officially recognised accounting software. In particular with regard to recording sales. This new requirement will be phased in by …


United Kingdom

UK closes £100m banking & insurance VAT loophole in budget

March 22nd, 2015

The UK is to close a tax loophole costing almost £100m per annum relating to the recovery of VAT by banks and insurers with foreign branches. The closing of the loophole follows a European Court of Justice VAT ruling on Credit Lyonnais in 2013. Generally, banking and insurance (Financial Services) is VAT exempt. But if …


Europe

EU adds VAT on banking and insurance financial services group charges

September 17th, 2014

The European Court of Justice (ECJ) ruled on 17 September 2014 in the Skandia America Corporation vs Swedish tax authorities case that recharges of bought-in costs or provided by financial services group companies to their branches and subsidiaries in other EU countries will be liable to a VAT charge.  Until this ruling, foreign subsidiaries were …


Poland

Poland blocks financial services VAT recovery on outsourced activities

September 4th, 2014

Poland will no longer allow local subsidiaries of international financial services groups to reclaim input VAT on their Polish activities if directly linked to the parent’s VAT exempt services. A ruling by the Supreme Court this summer held that a Polish IT company which undertook outsourced administrative processes for its banking parent, from Slovakia, could …


South Korea

Korean VAT on financial services proposal

August 20th, 2014

Korea is proposing to introduce VAT on financial services at 10% from July 2015. This will include banking, insurance, credit and factoring-related services. Few countries around the rest of the world attempt to levy VAT on financial services because of the practical difficulties of determining the value added through the chain of supply. EU Financial …


Sweden

Sweden proposes levying VAT on banking and insurance

May 26th, 2014

The first draft discussions of the Swedish 2015 budget issued last week contains a controversial proposal to withdraw the Swedish VAT exemption on financial services. Currently, all other 27 EU member states do not charge VAT on this sector. This move would challenge a proposal by other 11 other EU member states looking to introduce …