Slovak Republic: Proposal for VAT due on payment from customer
A pending proposal regarding the time when the VAT is to be remitted would revise in Slovak Republic. So VAT would be due at the time of customer payment received. It would affect when an input VAT deduction claim could be made. It is expected that
See MoreIndonesia: Plans to Introduce VAT on E-Commerce
The Finance Minister of Indonesia has confirmed their plan to introduce value-added tax (VAT) on e-commerce. In order to implement this plan, the Ministry of Communications and Information Technology has been asked to prepare regulations to tax
See MoreIMF Comments on Senegal’s Economic Plans
The IMF Country Report No 15/2 issued in January 2015 concerned the annual bilateral discussions with Senegal and includes a staff report by the IMF team and a debt sustainability analysis. The IMF notes that Senegal is committed to implementing the
See MoreECJ rules in case concerning VAT on letting of immovable property
The European Court of Justice (ECJ) ruled on 22 January 2015 in the case of Regie Communal Autonome du Stade Luc Varenne v Etat Belge. A preliminary question had been put to the ECJ concerning VAT on leasing of immovable property. This case
See MoreEuropean Commission Proposals for the Future of VAT in the EU
The European Commission issued a paper on 30 October 2014 outlining ideas on creating a more effective VAT system that is more in line with the objectives of the single market in the EU. The intention is to create the definitive VAT regime that will
See MoreSpain Launches New Deferral Import Regime for 2015
Spain is set to launch an important import VAT postponement regime which will offer importers major cash-flow incentives. The new scheme should come into force from 2015. According to this regime, which is totally new in Spain, certain VAT taxpayers
See MoreEuropean Union adds VAT on banking and insurance financial services group charges
On 17 September 2014, the European Court of Justice (ECJ) ruled 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
See MoreSlovak Republic: Amendments to the VAT Act
The VAT act amendments would generally apply with effect from January 1, 2015. The main changes are given below: The place of supply of telecommunication, broadcasting and electronic services provides to non-taxable persons. The special scheme
See MoreRomania: Under pressure on VAT recovery process
Romania has formally requested by the European Commission to improve its Value Added Tax (VAT) recovery process. The caused for opinion from the European Commission, the step before proceedings at the European Court of Justice, states that the
See MoreTurkey: Improves VAT compliance procedures
Turkey is to make a number of changes aimed at improving the value added tax (VAT) compliance regime. These changes include the possibility for large taxable persons to receive VAT refunds faster. the VAT legislation is to be consolidated into a
See MoreMexico – VAT certification by maquiladoras
The maquiladora regime provides some favorable tax provisions but caution is needed with administrative procedures in respect of VAT. As a result of changes introduced in the 2014 tax reform maquiladoras must take certain actions to ensure they are
See MoreTurkey: threatens 38% VAT on Twitter ads
Turkey’s Finance Ministry suggests that VAT on domestic advertising should be doubled from 18% to 36%. This would recover some local tax revenues from non-resident social networking sites that otherwise pay little tax in the country. Other
See MoreSwitzerland – New VAT registration requirements on foreign companies
Switzerland is planning to require non-resident companies that provide services in Switzerland to charge Swiss VAT on the services at a rate of 8%. There is a need for all foreign service providers to comply with this requirement so that Swiss
See MorePoland – Reduction of VAT by 2017
In Poland the government intends to raise the standard rate of VAT again by 2017. The standard rate has already been raised to 23% from January 2011 as a consequence of the financial crisis. Although Poland did not undergo a recession after the
See MorePhilippines May Exempt Humanitarian Relief from VAT
Bill 4054 in the Philippines would provide for a VAT exemption for medical and educational goods that are imported into the country as a result of donations from abroad, and would also introduce a similar VAT exemption for goods donated from abroad
See MoreChinese exporters gain VAT refund
The Chinese State Administration of Taxation (SAT) has given more time to exporters to make an application for a VAT refund. Enterprises that export goods from China may apply for permission to make input tax reclaims to obtain a VAT refund. An
See MoreEU Parliament Considers Change to EU Funding
The members of the European Parliament have given their support to planned measures to lower the share of VAT receipts of member states that go towards the funding of EU projects. According to plans adopted on 16 April 2014, the amount of funds
See MoreSpanish Tax Cuts to Favor Low Income Workers
The Spanish government has emphasized its intention to lower the personal income tax for all individuals and in particular for lower income groups. The Spanish government is to raise the tax incentives in respect of savings and investment and will
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