Tax authorities around the world continue to make amendments to VAT rates and rules, while others consider the introduction of new taxes, as they look to achieve key economic objectives.
We’ve rounded up 10 of the biggest announcements from around the globe over the last 10 days:
A new 14% VAT has been imposed on all online delivery services provided by restaurants and shops in Egypt. The executive amendment to the VAT Act was announced by Minister Mohamed Maait.
Foreign companies will be required to pay digital tax in Russia under new proposals being drawn up by authorities. The plan would see businesses (including online marketplaces) pay a 3% tax on all income received from Russian consumers.
VAT could be cut from 10% to 5% to support businesses and allow them to lower the price of goods under proposals made by Ho Chi Minh City’s Department of Planning and Investment.
A court ruling means nitrous oxide will now be liable for a reduced rate of VAT. Hof Arnhem-Leeuwarden oversaw the case of X and found that nitrous oxide is fully or partly integrated into X’s final product – CO2 cartridges – and it should therefore attract the lower VAT rate, placing it in the same category as whipped cream and espuma.
The Indonesian government plans to increase its standard VAT rate from 10% to 12%. It will also impose VAT on additional goods and services, including rice, cereals, eggs, milk, vegetables, fruit, spices and sugar.
Portugal’s IVAucher programme has been published in the Official Gazette, moving its implementation one step closer. The scheme will allow consumers to accumulate an amount corresponding to total VAT on consumption in accommodation, culture and restaurants in one quarter and use this amount in the following quarter.
Electronic invoicing - widely referred to as e-invoicing - is the exchange of a digital document between a supplier and a buyer. E-invoices are issued, transmitted and received in a structured data format that enabled automatic and electronic processing. They contain data in a machine-readable format so that an AP system can read an invoice without manual data entry, leading to faster and more efficient invoicing. will become mandatory for all Commonwealth government agencies in Australia by 1st July 2022. The Australian Taxation Office has estimated this will save the economy $28 billion over ten years.
The VAT bill – which includes legislation to tax supplies of foreign digital businesses from January 2022 – has passed its second reading in Ukraine’s parliament.
9) Turks and Caicos Islands
Premier Washington Misick has revealed his government is prioritising the introduction of a new goods and services tax in the country over increasing the rates of existing taxes.
Transactions that were previously zero-rated will now incur a 12% VAT following a ruling by the Bureau of Internal Revenue.