The UK VAT tax authorities, HMRC, have provided updated guidance on the treatment of VAT on discounts vendors provide their customers for early settlements of invoices. The latest guidance will come into effect from 1 April 2015. Where a vendor offers a discount for prompt or early settlement, HMRC has provided for two different options …
Brazil is to follow common Value Indirect Tax practise and exclude unconditionsl discounts from the calculation of indirect tax on manufacturing, Impostos sobre Produtos Industrializados (IPI). Brazilian IPI rates vary from 0% to over 300%, depending on the products. The Supreme Court of Brazil this month concluded that the Brazilian VAT / IPI calculation should …
The UK’s tax office, HMRC, has confirmed that it will continue to levy VAT on Avon agents’ transactions despite a challenge at the European Court of Justice VAT on discounts In general, VAT should be levied on the final, discounted price to consumers. Avon’s party-plan business model is to direct sell through part-time agents (party …
The European Court of Justice (ECJ) has provided guidance on situations where an intermediary provides a discount on services, and the resulting German VAT treatment. Germany VAT discounts The case in question concerned a German holiday agent (intermediary). It sold on the holiday packages of tour operators to final customers. In return, it received a …
