South Africa: Issues new VAT rules
The South African Revenue Service (SARS) has on 2 May 2014 issued a new regulation setting out the circumstances under which indirect exports may qualify for zero rating and explaining when a Value-Added Tax (VAT) refund may be due on the export of
See MorePortugal Discloses Tax Rates For 2015
Portugal’s medium term economic strategy includes provisions to raise the rate of value added tax (VAT) and social security contribution (TSU). The government also intends to decrease the extraordinary solidarity contribution (CES) on
See MoreThailand may face VAT rate increase
The VAT rate in Thailand may need to be increased from 7 percent to 10 percent as the economic growth slows down. The 7 percent rate was intended as a temporary measure but has continued for some time. The measure had been extended by a government
See MoreVAT rate increases in Portugal
Among a range of austerity measures introduced in Portugal is a rise in the standard rate of VAT. The rate is to increase from 23% to 23.25%. This follows earlier rises in the rate in 2008 and 2011. The new measures also include an increase in
See MoreUkraine Increases Tax and Slashes Spending
Ukraine has approved tax reforms that will allow the country to access increased financial aid from the IMF. Ukraine requires the IMF funding to ensure the stability of its finances. For this reason some planned tax cuts will not be implemented and
See MoreLuxembourg Confirms 2015 VAT rise
The Luxembourg government is to raise the rate of VAT 15% to 17% on 1 January 2015. The lower VAT rates charged on certain categories of expenditure will also rise from 12% and 6% to 14% and 8%, respectively. The third reduced VAT rate of 3%
See MoreSlovenia- VAT rise from 22% to 24%
Slovenia has increased the standard VAT rate from 22% to 24% with effect from 1 May 2014 until 31 December 2014. This is intended to contribute to dealing with the 14.7% budget deficit to GDP that has arisen due to a bailout of banks in 2013.
See MoreRomania will not reduce VAT rate yet
Romania has announced that it cannot lower the current 24% VAT rate unless economic growth of more than 3 percent continues until 2015. Like some other EU countries, Romania raised its VAT rate on a temporary basis to deal with the consequences of
See MoreFrance – VAT on house improvement rises
France has confirmed that the reduced rate of VAT on home improvements is to rise from 7 percent to 10 percent. The previous 7 percent rate will however still apply in certain situations including work that began before 1 January 2014 and cases
See MoreAustralia considers GST rise
The rate of GST in Australia is currently 10%, however the possibility of raising the rate has been under consideration for some time. An increase in the GST rate could be used to fund reductions in tax on labor and in corporation tax, helping to
See MoreFrance – VAT on hotel accommodation may be damaging the tourism sector
In the opinion of some commentators the 1 January 2014 increase in VAT on hotel accommodation may be damaging the French tourism sector. The French hotel VAT rate rose from 7% to 10% in 2014 as part of reorganization of all French VAT rates –
See MoreBelgium: VAT rate change in 2014
Belgium has suggested that it plans to raise its standard VAT rate from the current rate of 21% to fund cuts to the labour tax regime. The Finance Minister has stated that the rise would be agreed after May’s general election. The amount of the
See MoreFrance cuts VAT rate on digital news
The French government has updated the Tax Code to reduce the VAT rate on digital news and journals from the standard 20% rate to the reduced rate of 2.1%. This puts digital news on a par with printed newspapers and magazines. This change is in
See MoreChina: VAT on telecoms
China’s plans to include telecoms services in the VAT pilot are progressing. It was confirmed in the Chinese Parliament that plans are advanced, although there was no indication of the VAT rate to be applied. This rate is expected to be 11%,
See MoreUkraine: Reduces corporate income tax and Value Added Tax (VAT) rates
Ukraine has reduced corporate income tax and VAT rates from 1 January 2014. The reduced rates are: For corporate income tax: 18% from 1 January 2014 to 31 December 2014; 17% from 1 January 2015 to 31 December 2015; 16% from 1 January 2016. VAT
See MoreUK refuses to reduce tourism VAT rate
The UK Government has refused to reduce tourism VAT rate with an argument that there is no connection between tax subsidies and the number of tourist. The Members of Parliament who supported the proposal of reducing VAT on tourism have said that the
See MoreLithuania : Loss carry forward limitations, extended incentives and reduced VAT rates
Losses carry forward limitations: Beginning in 2014, the ability of corporations in Lithuania to carry forward tax losses, for corporate income tax purposes, is limited. In calculating their corporate income tax for 2014 and subsequent tax periods,
See MoreCyprus – New VAT rates in 2014
Following changes to the tax legislation, from 2014 the rates of value added tax in Cyprus are as follows: The standard VAT rate is 19% (increased from 18%) effective from 13 January 2014. Also the reduced VAT rate is 9% (increased from 8%)
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