From basmati rice to electric vehicles, we’ve got it all covered in our latest round-up of indirect tax snippets from across the globe.
A proposal to reduce the standard VAT rate by 2% to 8% has been made by Minister of Finance Ho Duc Phoc on behalf of the government. The National Assembly will consider whether to approve it as soon as possible.
Plans to introduce a tax on online marketplaces from 2025 have been revealed. Should the legislation – which is now being consulted on by the tax authorities – be approved, digital marketplaces will be required to account and remit VAT on all supplies of imported goods.
Tax authorities in Portugal have been forced to clarify whether the VAT exemption applies to certain products. There had been persistent confusion over a number of items in recent months; such as basmati and jasmine rice, which it has been confirmed are not liable for VAT.
Businesses with turnover in excess of ₹5 crore will be mandated to prepare and submit e-invoices from 1st August.
The €150 threshold for VAT reporting on imports will be scrapped as part of a proposed reform of the Customs Union. Digital transformation will ensure even those goods valued below this figure – which currently are exempt from checks – will be scrutinised.
The 5% VAT rate for clothing with a medical purpose will remain in place.
President Ruto has confirmed the country has chosen to increase VAT by 8% as running multiple rates was contributing to a potential lack of integrity. As part of the process, the 3.5% levy for road development and 8% VAT on has have been removed.
Ohio’s General Assembly is taking steps to remove Sales Tax from baby products – and another bill introduced recently could see it become the first state to strip the levy from sales of guns and ammunition.
VAT at a rate of 15% will be imposed on the import of software if a new proposal by Finance Minister AHM Mustafa Kamal is implemented.
A new free trade agreement between the UK, Australia and New Zealand has come into effect, meaning the trade of goods and services between any of the countries should become more efficient than ever before.
The Oman Tax Authority has confirmed electric or zero-emission vehicles are subject to 0% VAT upon import.
A single-use plastics tax will be introduced in Germany from 2024, with an additional levy on certain fireworks coming into effect in 2027.
A waiver on penalties covering indirect tax offences has been indefinitely postponed. The Inland Revenue Board of Malaysia previously announced the 100% waiver would become 50%, but it has now pushed it back until an unannounced future date.
Google has announced it will impose a 14% VAT on all its services in Egypt from 1st July, in accordance with new Egyptian laws. It means all Google users in the country will be required to submit their tax identification number so that tax obligations can be tracked and recorded.
Following a recent decision to zero-rate key items including bread, eggs, milk and nappies, Cyprus is reportedly in discussions over the next list of products it will apply or zero or reduced rate to.