Global Indirect Tax News
Monthly newsletter covering VAT, goods and services tax, sales tax issues, and global trade issues around the globe.
Bahrain: Further guidance on VAT issued
Following the implementation of VAT in Bahrain as from 1 January 2019, the National Bureau for Revenue has released additional guidance and clarifications to help businesses better understand the application of the VAT legislation, including a real estate guide and guidance on the VAT treatment of medicines and health products.
Canada: Federal carbon "backstop" may apply to provinces/territories
Pricing carbon is one of the strategies by which Canada plans to achieve a low-carbon economy. Provinces and territories that have not designed their own carbon pricing system or have put systems in place that do not meet the benchmarks set by the federal government will be subject to the federal "backstop" scheme.
China: VAT rates to be reduced as from 1 April 2019
Further to Chinese Premier Li Keqiang’s announcement on 5 March 2019 to reduce the VAT rates, a press release of the State Council's executive meeting on 20 March provides additional details about the package of VAT policy changes. The changes, which include a reduction in the 16%/10% VAT rates to 13%/9%, will apply as from 1 April 2019.
European Union: Effect of no-deal Brexit on UK-registered EORI numbers
Should the UK leave the EU without any agreement with the bloc on the future UK-EU relationship, UK-registered Economic Operators Registration and Identification (EORI) numbers would become invalid in the remaining EU member states. Only after Brexit may a "new" EU EORI number be granted to companies that currently hold an EORI number that is obtained/registered in the UK.
European Union: ECOFIN agrees implementing rules on VAT regime for ecommerce
At a meeting held on 12 March 2019, EU finance ministers agreed on two proposals published by the European Commission on 11 December 2018, namely, a proposal to amend the VAT Directive and Implementing Regulation 282/2011. The aim is to ensure a smooth transition to the new VAT rules for e-commerce that will become effective on 1 January 2021.
United Kingdom: Brexit: Announcements on UK tariffs, Irish border controls in event of "no deal"
The UK government has announced a temporary import tariff schedule that will apply if the UK were to leave the EU without a deal. The government also has announced a unilateral, temporary approach to checks, processes and tariffs in Northern Ireland if the UK were to leave the EU without a deal.
- Austria: VAT treatment of roaming services provided by foreign telecom companies
- Bahrain: NBR reveals VAT return format
- Bahrain: NBR publishes imports and exports VAT guide
- Belgium: VAT remains payable on tenant compensation for own fit-out works
- Brazil: State of Sao Paulo introduces VAT incentive for automakers
- Canada: 2019-2020 Manitoba budget highlights, including retail sales tax reduction
- Colombia: Announcement on VAT on cloud computing, sales of goods from free trade zones
- Denmark: VAT exemption for conference fees
- Finland: VAT treatment of server room services referred to CJEU
- Guatemala: Mandatory electronic invoicing introduced for certain government suppliers
- India: Reduction recommended in GST rates for residential properties under construction
- India: GST Council clarifies reduced tax rates on residential housing
- Ireland: Proposed VAT amendments post-Brexit
- Ireland: Proposed VAT amendments in event of no-deal Brexit
- Ireland: New implementation date for Revenue guidance on VAT treatment of food supplements
- Italy: Guidelines issued on post-Brexit treatment of cross-border movement of goods
- Italy: First successful results of implementation of e-invoicing announced
- Italy: New tax return form approved for quarterly VAT refund claims
- Japan: Consumption tax rates – Special considerations for food and beverages
- Luxembourg: Draft budget law for 2019 released, including VAT announcements
- Oman: Excise law published
- Oman: Update on introduction of VAT
- Portugal: Deadlines for compliance with new invoice processing and storage rules postponed
- Qatar: First excise tax returns due
- Saudi Arabia: More VAT guidelines translated into English
- Saudi Arabia: GAZT publishes VAT guide on Islamic Finance
- Ukraine: 0% VAT rate proposed for international telecommunications services
- United Arab Emirates: FTA releases additional clarification of VAT, excise tax issues
- United Arab Emirates: FTA publishes financial services VAT guide
- United Arab Emirates: Duty rates on rebar and steel coil increase to 10%
- United Kingdom: VAT on electronically supplied services, imported goods in no-deal Brexit explained
- United Kingdom: VAT recovery on specified EU supplies in no-deal Brexit explained
- United Kingdom: VAT on hire purchase contracts