5 tax updates you may have missed this week
It’s been another hectic week in the world of tax, with dozens of countries updating their VAT systems and tax regulations in the run-up to Christmas.
We’ve rounded up five of the most important pieces of news from the last seven days:
1) New levy introduced on digital services in Portugal
The Portuguese government has announced it is introducing a new 4% tax on the price paid for audiovisual commercial communications included in video-sharing platforms. There will also be an annual 1% levy on the income registered by providers of subscription video-on-demand services.
2) UAE clarifies VAT obligations for real estate companies
The UAE’s Federal Tax Authority has cleared up several significant uncertainties surrounding VAT in the real estate industry. New guidance issued this week confirms management entities must register for VAT; a declaration that marks a shift in the VAT responsibility away from Dubai Owner’s Associations to management bodies.
3) Netherlands extends five VAT measures
The Dutch government has extended a number of VAT measures until 1st April 2021 as it tackles the economic impact of the Covid-19 pandemic. These include continuing the 0% VAT rate on Covid-19 vaccines and test kits, as well as exempting the storage for stock and adjustment costs from income and corporation tax.
4) Iraq considering new sales tax
The Iraqi government is reportedly investigating the possibility of imposing a new sales tax on businesses and people in the country. With Iraq’s economy struggling during the pandemic, the state may seek to generate additional revenue through a new tax.
5) VAT relief available to construction and real estate firms in Bahrain
Construction and real estate businesses in Bahrain have been urged to take advantage of the VAT relief available to them. While supplies related to the construction of new buildings have been zero-rated, the supply of ‘bare land’ (whether by sale, rental or lease) is now exempt. Companies operating in construction and/or real estate should look at the rules in more detail as they contain numerous exceptions and conditions.
With rates, rules and regulations changing on a daily basis, get in touch with us today to find out how our solution can help your business stay on top of all the latest developments and achieve compliance with every relevant law.