UK: 
USA:
Here is our round-up of all the hottest tax snippets from August 2024 – featuring news of rate changes, regulatory updates and reclassifications.
United Kingdom
The UK Labour government announced on July 29, 2024, that private school fees will be subject to a 20% VAT starting January 1, 2025. These schools will also lose their charitable status, ending their Business Rates relief.
Italy
The Italian government is exploring modifications to VAT territoriality regulations specifically targeting streaming events. This potential overhaul aims to reclassify streaming events as Italian-based if the consumer is not a VAT-registered entity outside the country.
Lithuania
Lithuanian tax authorities have issued new guidelines clarifying which educational and training services are exempt from VAT. Educational institutions and vocational training centres must carefully review these rules to ensure compliance and avoid potential penalties.
Finland
Finland’s Ministry of Finance has proposed a budget for 2025 that includes several tax changes. To generate more tax revenue, the VAT registration threshold for small businesses will be lowered from €15,000 to €20,000. Additionally, the government plans to modify VAT rates for specific goods, moving some from the reduced 10% rate to the standard 14% rate.
USA – Illinois
Illinois is changing its sales tax rules for out-of-state sellers starting in 2025. These businesses will now have to collect sales tax based on the buyer’s location, not where the product is shipped from. Businesses will need to determine the correct tax rate for each sale based on the buyer’s address.
Switzerland
Switzerland will increase its VAT rate to fund a new 13th month of pension payments starting in 2026. The exact VAT increase will be determined later this year, but the government aims to avoid raising income taxes.
South Africa
South Africa is implementing a VAT on low-cost online imports starting September 2024. This change aims to level the playing field for local businesses competing with cheaper foreign products. Additionally, import duties for these goods will be introduced in November.
Peru
Peru is imposing a new VAT on digital services purchased from foreign companies starting October 1, 2024. Online businesses selling digital products or services to Peruvian customers must register with Peruvian tax authorities and collect VAT.
Poland
Poland has increased taxes on cigarettes and other tobacco products. The new tax law also includes vaping devices for the first time.
Malta
Malta has removed VAT on additional ferry routes starting August 1st. This aims to encourage more people to use ferries and reduce traffic congestion.
Czech Republic
Czech VAT is changing in 2025. Businesses will need to register for VAT sooner, pay tax on more services, and follow new rules for real estate, deductions, and car expenses.
Canada
Canada is introducing a 5% tax on online streaming services starting September 1st. This new tax will fund local news, French-language, and Indigenous content.
India
India has now removed a 2% tax on foreign digital companies. This tax applied to companies without a physical presence in India, such as online education and software providers. However, a 6% tax on online advertising remains.
Taiwan
Taiwan has imposed a 5% import VAT on consumers’ online purchases. Below the TWD 2,000 threshold, no VAT or customs duties apply. Foreign businesses generally don’t need to register for Taiwanese VAT unless they have a physical presence there and import goods exceeding TWD 80,000 annually.
Estonia
Estonia is set to increase its VAT rate from 22% to 24% on July 1, 2025, as part of a more comprehensive tax hike package announced on July 19, 2024.
