9 crucial snippets from the world of tax this week
It’s been another busy week in the world of tax, with countries around the globe continuing to change rates and rules as they seek to mitigate the impact of the pandemic as well as start to plot a route back to normality.
Here are nine important updates we think every tax professional needs to know:
1) Communications tax rate increased in Turkey
Turkey has announced the rate of the special communications tax for electronic communication services will rise from 7.5% to 10%. The move is part of the publication of presidential decree 3469.
2) Reduced VAT rate for German restaurants until 2022
Restaurants and bars in Germany will benefit from a continued lower rate of VAT on meals purchased by customers until the end of 2022. The rate will remain at its current reduced rate of 7%.
3) China permits e-invoices to reduce paper usage
From 21st January, businesses in China have been permitted to use e-invoices as the country looks to reduce paper usage. Until this date, large and medium companies had machines to print invoices that would be couriered to customers, while smaller firms would often dispatch staff to the local tax authority to collect documents. But with ‘special’ VAT e-invoices now allowed, businesses can choose between using in-house e-invoicing platforms and specialist third-party solutions.
4) Botswana reveals VAT hike
The standard VAT rate in Botswana has been increased from 12% to 14%. The country’s government has made the move in an attempt to protect revenues as it battles the economic impact of the Covid-19 pandemic.
5) VAT registration in Oman to begin
The Oman Tax Authority has this week issued a notice that VAT registration is now open for businesses in the country. Ahead of the implementation of the country’s VAT system in April, organisations with annual supplies in excess of (or expected to exceed) OMR 1 million must now register.
6) New environmental tax introduced in the Netherlands
The Netherlands has recently introduced a new environmental tax on international flights. As part of a package of changes approved for 2021, authorities confirmed a duty of €7.845 must be paid for each passenger departing from a Dutch airport.
7) Poland insists on fiscal representation for UK businesses
Poland has become the latest country to impose fiscal representation requirements on UK businesses following Brexit. It means UK firms with VAT registrations must appoint a local fiscal representative who is jointly and severally liable for the VAT of UK taxpayers.
8) VAT suspension for closed businesses in Turkey
Businesses in Turkey that have been forced to close – including cafes, Turkish baths and sports facilities – have been granted a suspension of VAT payments.
9) Norway offers VAT deferrals
Businesses in Norway have been offered the option of deferring VAT payments between 28th February and 12th April. However, the deferral comes at a cost, with the government imposing an 8% interest charge.
We know better than anybody how fast the world of tax moves, especially during these unprecedented times. If you’d like to talk to our team about how our automated tax solution can ensure your business complies with all the latest rate changes and much more, get in touch today.