7 tax updates from around the world in the last 7 days
The world of tax moves at a frantic pace – and never more so than during a global pandemic!
As governments continue to make changes to VAT rates and rules and further measures are introduced to combat the economic impact of Covid-19, we aim to bring you all the latest regulations your tax team needs to know about.
Here’s our latest round-up:
1) Malta extends VAT registration threshold
The EU has approved Malta’s request to extend its increased VAT registration threshold for a number of service suppliers. The country will continue to hold a threshold of €37,000 if the taxpayer’s economic activity is primarily in the supply of goods, €24,300 if in services with low value added and €14,600 in other cases.
2) Cyprus announces VAT concessions for businesses impacted by Covid-19
The Cyprus tax agency has confirmed that businesses in the country financially affected by Covid-19 will be able to benefit from VAT concessions. It had already announced companies could delay payments for April, May and June this year. Cyprus had also waived interest and penalties for organisations that paid their VAT by 10th November. It has now offered businesses the chance to pay VAT in six equal instalments between November 2020 and April 2021.
3) France expands Covid-19 business support
Small businesses in tourism, catering, sport, culture, aviation and events in France will soon be exempt from covering social security contributions for employees. Finance Minister Bruno Le Maire also revealed a tax credit will be offered to landlords of commercial property who agree to waive rent for one month over the winter.
4) 9% VAT reduction in Uruguay
A temporary 9% reduction in VAT on gastronomic services provided by restaurants, bars, cafes, hotels and similar venues has been announced by the government in Uruguay. The lower VAT rate also applies for certain other activities, including vehicle rentals.
5) Custom duty applicable on re-exports in Madras
Goods that are imported and re-exported within 12 months are liable for custom duty, the Madras High Court in India has ruled. It had been presiding over a case looking at whether goods re-imported for repair or reconditioning should attract duty when subsequently re-imported once again.
6) New Irish VAT rules for eCommerce set for July 2021
Irish Revenue has published a new brief that provides an overview of the new VAT for eCommerce rules that will be introduced in July 2021.
7) Norway extends VAT reduction to combat Covid-19
Norway’s government has agreed to extend its reduced rate of VAT on passenger transport, accommodation, broadcasting and entry to cinemas, museums and sporting events. The lower rate of 6% (down from 12%) was originally due to expire on 31st October but will now stand until at least 1st July 2021.
We expect hundreds of new regulations to be announced by countries across the globe over the coming months.
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