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10 top tax updates this April

As the new tax year dawns, a number of countries have made changes to VAT and GST rates, rules and regulations. Here’s our quick guide to the top 10 updates announced so far this month:

1) Belgium

Belgium’s reduced rate of VAT (6%) will apply to the supply and installation of solar panels, solar water heaters and heat pumps in homes that are less than 10 years old. This rule came into effect on 1st April and will remain in place until 31st December 2023.

2) Indonesia

VAT and income tax will be applied to crypto assets in Indonesia from May. The number of crypto asset holders in the country stood at 11 million at the end of 2021.

3) India

A new ruling has stated that GST at 18% will now be applied to ‘ready to eat’ popcorn sold in retail packaging.

4) Kuwait

Kuwait is reportedly set to delay the process of considering the adoption of VAT in the country. The delay is a response to the increase in international fuel prices.

5) UK

VAT for the tourism and hospitality industries returned to its pre-pandemic rate of 20% from 1st April. It marks the end of the government’s Covid-19 support for businesses in affected sectors.

6) Cambodia

Following a three-month delay, VAT on e-commerce was officially implemented in Cambodia on 1st April.

7) Spain

A royal decree has extended the reduced VAT rate of 10% and the reduced special tax rate of 0.5% on electricity until 30th June due to the ongoing war in Ukraine.

8) Czech Republic

The GFD has confirmed that the sale of contact lenses is subject to a 15% VAT rate due to their classification as a medical device under customs nomenclature code CN 90. It means the item can not fall under any reimbursement group.

9) Latvia

The Latvian parliament has revealed it is currently considering a bill to reduce the VAT rate of petroleum to 12% until the end of the year.

10) China

China has announced a temporary VAT exemption for small-scale taxpayers. Those smaller entities that normally pay VAT at 3% are exempt from 1st April until 31st December 2022.