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Here is our round-up of all the hottest tax snippets from July 2024 – featuring news of rate changes, regulatory updates and reclassifications.
Spain
The temporary zero rating of basic food items – including bread, milk, flour, cheese, fruits, vegetables and cereals – has been extended until 30th September 2024. From 1st July, olive oil has also been added to the list of goods subject to the zero rate. And from 1st October, the rate on these items will increase to 2% before rising again on 1st January 2025 to their original rates.
Vietnam
The standard rate of VAT in Vietnam will be reduced by 2% – from 10% to 8% – until the end of 2024 to stimulate business activities and contribute more to the national budget.
Saudi Arabia
Saudi Arabia’s tax amnesty initiative has been extended until 31st December by the Zakat, Tax and Customs Authority. Under the scheme, fines and penalties related to VAT and excise tax are waived for businesses that submit outstanding returns along with payment of tax liabilities.
Finland
The standard rate of VAT could rise from 24% to 25.5% on 1st September as part of plans to stabilise public finances. The potential increase is included in a draft law that is currently under a comments period.
USA
A bill has been approved by authorities in New Jersey that will phase out Sales & Use Tax exemption for zero emission vehicles. Between October 2024 and June 2025, a reduced rate of 3.3125% will apply, before the state’s standard rate of Sales & Use Tax of 6.625% is levied on electric cars from 1st July 2025.
Israel
The VAT rate has been reduced to 18% as the Israeli government seeks to reduce the national deficit.
Luxembourg
A bill that would reduce the VAT due on artworks to 8% has been approved by the government. The new rate is expected to be applicable from 1st January 2025.
Nigeria
Nigeria has introduced VAT at 7.5% on the crypto market, which is thought to be worth $57 billion in the country.
Switzerland
Having increased its standard VAT rate from 7.7% to 8.1% in January, Switzerland is considering a further rise to 8.5%.
Cyprus
The temporary zero rate on essential products has been extended until 30th September. Items covered include bread, eggs, milk, coffee, sugar and baby food.
Portugal
Portugal is to become the latest EU country to introduce the VAT group simplification option; allowing related taxpayers to join under a single VAT number for reporting and exempt intra-group invoicing. This is based on the EU VAT Directive 2006/112/EC and is already in place in 19 other member states.
Pakistan
The government of the Sindh province has increased the standard rate of Sales Tax on services from 13% to 15%. This change is effective from 1st July.
Greece
New legislation in Greece means the VAT rate for taxi services has been permanently reduced to 13%.
Philippines
The Congressional Bicameral Conference Committee has approved a revised version of a bill that will impose VAT at 12% on non-resident digital service providers.
Romania
The UniCredit bank has warned of a possible increase in the public deficit, leading to calls for Romania to increase its standard VAT rate by 2%.
