Belgium: 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%)
See MoreGermany: VAT rates on multiple rate supplies
The German Federal Ministry of Finance has clarified the procedures for German VAT rates on a single supply where there are different VAT rates applicable. Where a supplier is offering for a single price goods with multiple VAT rates attached, the
See MoreJapan: Confirms Consumption Tax Rate Changes by 2015
From April 1, 2014 to September 30, 2015, the rate of Japanese consumption tax will be increased from the current 5% rate to a higher 8% rate. The government is also considering a further increase from 8% to 10% from October 1, 2015. Also under
See MoreLuxembourg: VAT rate will increase
The Luxembourg Prime Minister has announced that, Luxembourg is set to raise its standard rate of VAT in 2015. The standard VAT rate is currently 15% and at present it is the lowest standard rate in the EU. The Prime Minister has indicated that the
See MoreFrance: Reduced VAT rate on digital newspapers and magazines
The French government is about to propose a VAT reduction for digital newspapers and magazines. The intention behind this move is to provide a level playing field for different forms of publication. The government wants to give the digital versions
See MoreFrance – New VAT rates for 2014
With effect from 1 January 2014, the rates of value added tax (VAT) in France have been changed and are now as follows: The standard VAT rate is increased from 19.6% to 20%. The intermediary VAT rate which is applicable to the food service
See MoreSpain rejects call to raise VAT to 23%
The Spanish Finance Minister has rejected a call by an influential tax committee to increase its standard value added tax (VAT) rate to 23% to help reduce the budget deficit. Spain has already undergone some of the steepest rises in VAT. The Spanish
See MoreSpain: Further VAT Rises Unlikely
The Finance Minister has confirmed that further VAT rises will not take place in the near future. The Advisory Committee for Tax Reform had suggested increases in the headline VAT rate from 10% and 21% to 13% and 23% respectively. External advice
See MoreIndonesia: VAT registration threshold increased
Indonesia has increased its VAT registration threshold from IDR 0.6bn to IDR 4.8bn per year in taxable turnover with effect from 1 January 2014. The stated goal is to reduce the VAT compliance burden for small and medium sized businesses. The
See MoreEgypt: Reconsidering a VAT system
Egypt is considering the introduction of a value added tax (VAT) system to replace the current sales tax. It is understood that this has been identified as a priority; the likely VAT rate will be around 10% with higher rates for such items as
See MoreCyprus: VAT rates increased
Cyprus has increased the standard value added tax rate from 18% to 19%, while the 8% reduced rate was increased to 9%, from 13 January 2014. The standard rate applies to 80% of goods and services, percent, while reduced rate applies to accommodation
See MoreBelgium: Increase in resident VAT registration threshold
Belgium has proposed an increase in the resident EU VAT registration threshold. This will rise to EUR 15,000 from the current EUR €5,580 at a date in early 2014 to be confirmed. The European Commission to reduce the compliance paperwork and
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