Is your team keeping up with all the latest VAT changes announced by countries around the world?
August has been another busy month so far with dozens of new rates and rules confirmed, so put your internal processes to the test by checking how many of our top 11 snippets you were on top of.
Finland is considering cutting VAT on electricity as inflation soars to 7.8%. The nation’s Economics Minister has proposed reducing the standard rate from its current level of 24%.
Indonesian tax authorities have updated regulations to ensure support measures designed to help the country through the Covid pandemic are extended. It means certain activities – such as importing key goods – will remain exempt from VAT for qualifying persons, organisations and hospitals.
A court in The Hague has ruled that sclerotica – better known as magic mushrooms – is not a food item and VAT is therefore applicable at the standard rate of 21%.
VAT on basic foodstuffs could soon be cut from 21% to 5% for a period of two years to help the country deal with rising inflation.
5) South Sudan
From 18th July, excise tax on telecommunication services will be at a rate of 20% – up from 15%.
President Filipe Nyusi has announced plans to cut the VAT rate from 17% to 16% to stimulate economic growth.
Non-resident providers of digital, electronic or broadcast services must register for VAT and charge local customers at the standard rate of 13%.
The national parliament is currently considering a bill that would see the supply of software products qualify for an extended period of exemption from VAT.
A new referendum will be held to determine if the country is to raise its standard VAT rate to fund pensions for the ‘baby boomer’ generation. If it chooses to do so, rates will increase from January 2024.
Temporary measures have been announced that include reducing the standard VAT rate from 14% to 12% for six months from 3rd August 2022 and zero-rating cooking oil and liquified petroleum gas.
New requirements relating to the withholding of VAT have been confirmed, meaning specified agents must withhold 40% of the tax due on certain goods and services.