The world of tax continues to move at a rapid pace. We’ve got 10 important VAT updates from around the world to share – all from the last two weeks!
How many of these is your tax team already aware of?
1) Reduced rate on accommodation in Turkey to continue
A presidential decision in Turkey means the country’s VAT rate on the supply of overnight accommodation will remain at a reduced rate of 1% (down from the standard 8%) until at least 30th June 2021.
2) France extends 0% rate on Covid vaccines
The 0% VAT rate for Covid vaccines and tests will continue in France until at least 31st December 2022.
3) Arkansas rules out sales tax on cloud-based software
The Department of Finance and Administration has declared that access to and use of software over the internet in the US state of Arkansas is not a taxable service. It means Arkansas sales and use tax will not apply to cloud-based software.
4) Spain to continue 0% VAT on sanitary products
The 0% VAT rate on sanitary products in Spain will continue until at least 31st December 2021.
5) Extension of reduced rate in Norway
Norway’s government has proposed that the reduced VAT rate on passenger transport, overnight accommodation, public broadcasting and access to cinemas, museums, amusement parks and sporting events should remain in place until 30th September 2021.
6) Belgium announces second temporary VAT rate for restaurants
Belgian authorities have confirmed a second temporary 6% reduced VAT rate for restaurant and catering services. It is part of a package of measures designed to support the industry following the Covid restrictions.
7) Irish government mulling over tourism VAT rate
An extension of the 9% VAT rate for the tourism sector in Ireland – as well as an ongoing waiver of commercial rates – is being considered by the country’s government.
8) Czech digital services tax moves closer
A digital services tax in the Czech Republic passed another crucial stage on 12th May when the bill covering the prospective levy passed its second reading in the Chamber of Deputies. MPs are currently debating what the tax should apply to and what rate to set, with anything from 2% to 7% under consideration.
9) Afghanistan set to implement world’s newest VAT regime
A new VAT regime will go live in Afghanistan on 22nd December 2021, with a standard rate of 10% in place.
10) Netherlands confirms reduced rate on gels
The supply of gel pads and gel strips will be subject to a reduced VAT rate of 9%.