VAT news tagged as "VAT rates"

Vanuatu

Vanuatu hikes VAT to 15%

January 4th, 2018

The South Pacific island nation of Vanuatu has raised VAT from 12.5% to 15% from 1 January 2018. VAT was introduced in 1998 at 25%, and is administered by the Customs and Revenue Service.  It is modelled on the New Zealand GST regime, which has similarly increased its consumption tax to 15%.


Switzerland

Swiss VAT drops to 7.7% 2018

September 24th, 2017

On 24 September 2017, the Swiss population rejected a proposal to raise VAT to 8.3% from the current 8%. This proposal was in support of a pension reform package, including more flexibility around the retirement age, with increased contributions from employers and employees. As a result of this vote – 53% of voters rejected the …


Peru

Peru abandons VAT cut

July 18th, 2017

Peru abandoned plans to cut its VAT rate from 18% to 17% on 1 July 2017. The country’s fiscal deficit has widened recently, leading to an abandonment of the 3-year reduction plan to 15%.


Belarus

Belarus 18% VAT 2020

May 22nd, 2017

Belarus plans to lower its standard VAT rate from 20% to 18% from the start of 2020. The reduction will be subject to Russia’s plans to raise its VAT rate to 22% to cut labour taxes, which would amount to a competitive devaluation by Russia.


China

China VAT rate simplifications

May 6th, 2017

China’s tax authorities have confirmed to proposals to reduce the number of VAT rates from 4 to 3.  Goods such as farm produce, water, coal and gas will be reclassified from 13% to 11%. The new three-rate band – 17%, 11% and 6% – will come into effect on 1 July 2017. The annual VAT …


United Kingdom

UK VAT rises ruled out ahead of elections

April 30th, 2017

Both the governing Conservatives and main opposition Labour party today ruled out future rises in VAT ahead of June’s election. The UK has enjoyed a dwindling government deficit since the 10%+ of the financial crises, but still faces a challenge to balance the books.  The 2015 elections pledge of the Conservatives not to raise VAT, …


Russian Federation

Russia studies 22% VAT

March 26th, 2017

Russia is considering raising VAT from 18% to 22%. The rise in indirect tax would help fund a cut in employer social security levies from 30% to 22% to help reduce black economy employment.  The change would be implemented in 2019.  However, it appears that the VAT rise would fail to cover the hole left …


Ireland

Ireland faces EU VAT rate questions

February 21st, 2017

The European Commission has challenged Ireland’s extensive use of reduced VAT rates. In the EC’s latest economic and tax review of the country, it pointed to the low rates on hotels and tourism-related services as undermining the tax base.  Ireland introduced a 9% VAT rate on these services over five years ago to bolster its …