VAT news tagged as "Reform"


EU ministers agree VAT e-commerce reforms

December 5th, 2017

At today’s meeting of EU Finance Ministers (ECOFIN) agreement was reached on a serious of e-commerce VAT reforms.  The proposals are aimed at facilitating the collection of VAT when consumers buy goods and services online. In addition, they will help combat an estimated €5billion in distance selling VAT fraud. The reforms include: 2019 – simplifications for sales …


China VAT reform stirs global risks

May 11th, 2016

On 1 May 2016, China completed a four-year program to overhaul its antiquated VAT regime and replace its existing Business Tax on services. But the $77 billion tax cut is creating wider economic undercurrents nationally and globally. The new VAT system will give a major boost to the country’s economic ambition to pivot away from …


China VAT completes May 2016

March 8th, 2016

China has confirmed that it will complete the reform of its Value Added Tax regime by May 2016. The reforms include the introduction of an OECD-model VAT system which allows for the recovery of input VAT by businesses. VAT will replace the current Business Tax, and the old VAT levy. The reforms were commenced in 2012 …


China to complete VAT reform by July 2016

December 18th, 2015

China has confirmed this week that the reform of its Value Added Tax regime will be completed before July 2016. The Chinese VAT reforms will remove Business Tax from a range of sectors, including retail, real estate, construction and financial services. Most other sectors have seen the introduction of a OECD-style VAT since the reforms …


India GST reform threat

November 14th, 2015

Growing political uncertainty looks set to undermine the progress of the implementation of the new Indian Goods & Services Tax to replace the antiquated VAT regime. This will undermine India’s ambitions to match China’s rise as a manufacturing superpower. Prime Minster Modi’s BJP party has suffered a series of local election defeats which means it …

South Africa

BRICS in trouble

September 24th, 2015

As emerging markets endure ongoing economic uncertainties, and the threat of a US interest rate rise which would redirect investment, VAT reforms have fallen out of favour.  The ‘BRICS’ (Brazil, Russia, India, China and South Africa) countries are enduring their own versions of this. Brazil revives controversial indirect taxes Brazil’s retreat into recession this last quarter …


China VAT update

September 18th, 2015

Whilst China pauses on its VAT reform, businesses continue to update their accounting and ERP’s to the already processed changes. These include switching sectors such as transport, Many of the changes have impacted the service sector, with improved recover of Chinese VAT for importers and exporters of services. This includes: software; outsourced business process services; …


India GST on services

September 17th, 2015

As India continues to debate its implementation of a Goods & Services Tax (GST) to replace its VAT regime, guidance has been provided on the place of supply rules for services. The place of supply refers to where a taxable supply is subject to VAT. When goods or services are provided across state of country …


Egypt VAT Bill imminent

September 15th, 2015

Egypt is expected to issue a Bill for the implementation of VAT by October. Value Added Tax will replace the existing Sales Tax regime, which is currently levied at 10% for most supplies. There is limited opportunity to recover any Sales Tax incurred by manufacturers through he production chain, which is a major disinvestment to …