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10 top tax updates for July

This month has seen hundreds of new changes made to VAT regimes across the world. Here is our round-up of 10 of the most notable updates:

1) Bulgaria

The threshold for registering for VAT in Bulgaria is being increased. The National Assembly has confirmed the point at which businesses pay the tax will rise from BGN 50,000 to BGN 100,000.

2) India

GST rates on dozens of items were changed this week. Pre-packed food, hospital rooms, LED lamps and solar water heaters were among a range of goods to attract a rate increase, while many more such as truck rentals, electric vehicles and air travel are now cheaper than before.

3) Lithuania

A bill has been passed in parliament that will cut the VAT rate on non-prescription drugs and medical equipment to 5%.

4) Singapore

Singapore has announced it will introduce GST on low-value goods and non-digital services provided to consumers at a rate of 8% from 1st January 2023.

5) Romania

The reverse charge has been extended to cover a new range of specific items, including various foodstuffs, the issuance of green certificates and the delivery of integrated circuit devices.

6) Spain

The introduction of new e-invoicing software requirements has been delayed following the latest public hearing phase. The rules will now come into effect in July 2024 instead of January 2024 as initially planned.

7) Netherlands

A court ruling has found that the sale of gold coins from computer games does not qualify as a VAT exemption nor does it fall under the margin scheme. It must therefore be taxed at 21%.

8) Belgium

The reduced VAT rate of 6% on electricity for residential consumers has been extended until 31st December 2022.

9) Paraguay

Paraguay has once again announced an extension to its raft of VAT relief measures to support businesses and consumers during the pandemic.

10) Italy

The reduced VAT rate on natural gas supplies has been extended to cover the third quarter of the year. It means the temporary rate of 5% on gas for domestic and industrial purposes will remain in place for another three months.