India – Government has raised VAT processing charges
In India the fee for accepting and processing Indian VAT annual returns was previously a flat INR 800 irrespective of the values in the return. But recently the Indian central government has raised the charges for accepting and processing Indian VAT
See MoreHungary considering 35% luxury VAT rate
In connection with drafting the 2014 budget, Hungary is still considering introducing a super VAT rate of 35% on luxury goods. This would raise more money for the government without having any effect on the price of essential goods or services. A
See MoreFrance: Mandatory Online Tax Reporting Threshold
The French Finance Ministry announced on 17 October 2013 a reduction in the threshold for application of the mandatory on-line reporting obligations, for companies in France not subject to corporation tax (IS) in 2013-2014. From October 1, 2013,
See MoreBelgium: Transition regime related to VAT
A transition regime in relation to VAT is being extended by the Belgian authorities during 2014. The regime permits taxpayer an opportunity to apply new rules for deciding the point in time when VAT is chargeable on invoices issued in advance of
See MorePeru- Decree on VAT Collection System published
The Supreme Decree 243-2013-EF of Peru has been published which will enter into force on 30 October 2013. The Decree has established computational rules for the application of the VAT Collection System in relation to the importation of goods with
See MoreIndia: introducing VAT compliance with more fines
India will introduce a new range of fines to help improve the weak compliance record of many firms, following a recent increase in the number of Indian VAT audits. From 12 September 2013, India announcing an increased fine regime, including: Late
See MoreFrance -Revision to VAT rates
The government of France is planning to raise the current standard VAT rate from 19% to 20 % and to increase the intermediate rate of VAT from 7% to 10% from 2014. This will increase the fiscal burden on households in France by around EUR 6bn
See MoreChina: Clarifies VAT exempt services rules
Following the launch of the Chinese VAT pilot in 2012, the Chinese tax authorities released detailed guidance on September 2013 on the rules around the exemptions for VAT on export services. The services covered by the exemptions include transport
See MoreBulgaria- Cash Accounting in VAT
Due to recent cases in tax field Bulgaria plans to initiate some changes to the Value Added Tax regime to match its tax code with the EU VAT Directive in future. The above changes will come into effect on January 1, 2014, once approved. The changes
See MoreSpain: drops requirement to submit records with VAT returns
The VAT authorities of Spain have decided to withdraw a requirement to submit supporting VAT records with monthly VAT returns. The requirement was originally introduced in 2009. According to this requirement all Spanish VAT registered businesses
See MoreItaly: VAT rate will rise to 22% from 1 October 2013
The move to delay the Italian VAT rise to 22% until 1 January 2014 has failed. This means that the Italian VAT rate will rise to 22% from 1 October 2013. Registered businesses should therefore ensure that all necessary procedures are in place to
See MoreItaly-Introduction of daily VAT filings opportunity
To reduce the number of VAT filings, the Italian VAT authorities are set to offer Italian VAT registered businesses the choice of submitting daily VAT declarations. Companies taking this option will not have to complete additional reports such as
See MoreChina: Exemptions from VAT for exported services
Recently China’s State Administration of Taxation issued guidance on the rules for value added tax (VAT) exemptions for exported services. The guidance provided by Announcement 52 of 13 September 2013, implements the VAT exemptions for exported
See MoreItaly: Update on new VAT declaration
Italy has provided detailed requirements for the new Italian VAT declaration (Spesometro) providing detailed analysis of VAT transactions above €3,600. The Spesometro VAT return which was first proposed in 2010 is the latest effort by the Italian
See MoreItaly: VAT registration threshold has been raised for SME
Governing body of the member states’ VAT system, the EU VAT Directive has offered the scope for countries to increase the threshold of VAT registration for resident companies to up to Euro 100,000. This offers the opportunity for countries to
See MoreKenya: VAT Act 2013 now effective
The VAT Act 2013 became effective on 2 September 2013. The value added tax (VAT) is to be charged at a standard rate of 16%. A number of exemptions have been included in the VAT legislation including exemptions for medicine and vaccines, wheat,
See MoreGermany: New VAT invoice requirements
Germany has approved a new Act to implement changes to bring German VAT compliance rules into line with the EU VAT Directive and with a number of recent court cases. Under the new Act changes to German VAT invoices include: The obligation to
See MoreCanada: New exempt life insurance policy rules proposals
A number of amendments that would implement changes to the elimination test and other life insurance policy holder taxation rules have been published by the Canada’s Finance Department. Again, the proposals would amend the rules applying to the
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