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Important VAT news - International

VAT changes are important for your cost of doing business abroad.

It may be helpful to share that VAT information with your staff members in A/P, A/R, Sales and colleagues who handle long term contracts (suppliers and clients) for your company.

Read the latest VAT info and contact us at (905) 332-4777 (or use this form) for more information.


November 2013

INDIA: is developing their new GST (VAT) and had to change their laws for that. It is a mix of Federal GST on the PRODUCTION of goods and the PROVISION of services with the States adding a sales tax on some services and the sale of goods. Especially in the transition period you may want to review A/P and A/R, Invoices contracts with suppliers and clients

ITALY: has finally adjusted there Standard VAT (IVA) rate from 21 % to 22 % effective October 1, 2013.

RUSSIA: For the upcoming OLYMPICS and PARALYMPICS in Sochi the 18 % VAT is subject to some relief rules for non-resident organizers , sponsors etc.

Please Contact us for more information.

September 2013

MEXICO: The Federal Government of Mexico is preparing a substantial VAT reform for 2014 with a law submitted to their House on Sept. 8. 2013 !

You know that their standard IVA (VAT) rate is 16 % - but they have a reduced rate of 11 % in the border zone to the States where a lot of companies are located.

This reduced rate will be increased to 16 % to have one IVA level nationwide.

VAT/IVA for "exports" from Mexico to the border zone companies will no longer be zero rated or exempt.

Temporary imports from the border zone or bonded warehouses into Mexico will no longer be exempt.

A number of other IVA items will be subject to change in the automobile, hospitality and tourism industry.

Substantial changes like that may need attention concerning price developments, calculation, contracts, invoicing and accounting etc.

Please Contact us for more information.

October 2013

JAPAN: Japan has just announced that they will increase their VAT rate for the first time since 1997.

The new VAT (consumption tax) rate will increase from 5 % to 8 % effective April 1, 2014

Please Contact us for more information.

July 2013

CROATIA: Croatia has entered the European Community as 28th member state effective July 1, 2013. They have a standard VAT rate of 25 % (twenty five %) !!

Contracts with suppliers and clients in Croatia should be reviewed and VAT REFUND CLAIMS for business expenses in Croatia should be considered if applicable.

Please Contact us for more information.

October 2012

FRANCE: France is the next EURO country which increased their Standard VAT (they call it TVA) rate from 19.6 % to 21.2 % effective beginning of Oct. 2012 !

Please Contact us for more information.

August 2012

NETHERLANDS: Effective October 1, 2012 the Netherlands decided to increase their standard VAT (they call it BTW) rate from 19 % to 21 % !

Please Contact us for more information.

March 2012

CANADA: The Province/State of Quebec increased their Provincial Sales Tax from 8.5 % to 9.5 %!- effective Jan. 1, 2012 !Keep in mind that is on top of the Canadian Federal Sales Tax in Quebec (5 % GST).

CYPRUS: Increased their VAT rate from 15 to 17 % effective March 1, 2012 !

CZECH Rep.: Will harmonize their Standard VAT rate of 20 % and their Reduced VAT rate of 10 % to a new Standard VAT rate of 17.5 % effective Jan. 1,2013 !

FRANCE: Will increase their reduced rate on restaurant services from 5.5 % to 7 % effective April 1, 2012; their standard VAT/TVA rate stays at 19.6 % !

HUNGARY: Has increased their standard VAT rate from 25 % to 27 % effective Jan. 1,2012 !

IRELAND: Has increased their standard VAT rate from 21 % to 23 % effective Jan. 1, 2012 !

LEBANON: Has increased their standard VAT rate from 10 % to 12 % effective Jan. 1, 2012 !

LITHUANIA: Has increased their VAT rate on hotel accommodation from 9 to 21 % effective Jan. 1, 2012 !

MALDIVES: Has increased their VAT rate from 3.5 % to 6 % in 2012 and will increase it to 8 % in 2013 !

SEYCHELLES: Will start a VAT of 15 % effective July 1, 2012 !

SWEDEN: Has reduced their VAT rate of 25 % (standard) to their reduced rate of 12 % for accomodation effective Jan. 1, 2012 (alcohol remains at 25 % of their VAT/MOMS) !

JAPAN: Has a VAT/Consumption Tax rate of 5 % for a long time and was discussing increases for a long time. They plan to increase it to 8 % effective April 2014 and to 10 % effective Oct. 2015 ?

Please Contact us for more information.

January 2012

New VAT Rates

  • ...China starts a new VAT pilot programme in Shanghai with VAT rates of 17, 11, 6 and 0 %
  • ...France which has a standard VAT rate of 19.6 % has increased their preferred VAT rate from 5.5 % to 7 %
  • ...Italy has increased their standard VAT rate from 21 % to 23 % and their reduced VAT rate from 10 % to 12 %
  • ...Sweden has reduced their standard VAT rate of 25 % to 12 % for restaurant services
  • ...Hungary has increased their standard VAT rate form 25 % to 27 %!
  • ...Norway which has a standard VAT rate of 25 % has increased their reduced rate for food from 14 % to 15 %
Please Contact us for more information.

September 2010

NEW ZEALAND VAT (GST)

Effective October 1, 2010 the VAT (GST) rate will go up from 12.5 % to 15 % !

You may want to check your NZ VAT/GST invoices for correct date, GST rate and time and place of supply for goods and services delivered.

CONGO (Dem. Republic)

VAT has been introduced at the rate of 16 % with effect from the second half of 2010.

The VAT will apply to all supplies of goods and services and importation of goods and services. (This VAT will replace the current sales tax with rates of up to 30 %).

You may want to check your Congo VAT invoices from suppliers for correct date, VAT rate and time of supply for goods and services delivered.

CANADA

You know that Canada has merged the Federal VAT (GST = Goods and Services Tax with the rate of 5 %) with the provincial sales tax (PST) in most of the provinces/states to the HST (Harmonized Sales Tax) = 5 % GST plus PST (often about 7 or 8 %) to an HST of about 12 to 13 % for all goods and services delivered and imports.

Only three Canadian provinces/states do not YET have HST (they still have the Federal GST and their own provincial sales tax/PST).

The federal Canadian Government has now increased the HST rate for the province of Nova Scotia from 13 % to 15 % effective July 1, 2010.

Call us toll free at 1-866-332-4777, and check our website regularly for upcoming VAT changes.

Please Contact us for more information.

August 2010

United Kingdom

The standard VAT rate in the UK .....

  • was 15 % in 2009
  • is 17.5 % in 2010
  • and will be 20 % effective January 4, 2011

You may want to check your UK VAT invoices for correct date, VAT rate and time and place of supply for goods and services delivered.

Swiss

Switzerland will increase the standard VAT rate from 7.6 % to 8 % effective January 1, 2011.

Romania

Romania has increased the standard VAT rate from 19 % to 24 % effective July 1, 2010.

Call us toll free at 1-866-332-4777, and check our website regularly for upcoming VAT changes.

Please Contact us for more information.

June 2010

More countries have raised their VAT rate (please refer to our earlier updates for previous increases of standard VAT rates in some VAT countries).

Effective July 1, 2010 the following standard VAT rates will change:

  • Spain increasing from 16 % to 18 %
  • Portugal increasing from 20 % to 21 %
  • Greece increasing from 21 % to 23 %
  • Finland increasing from 22 % to 23 %
  • Iceland increasing from 24.5 % to 25 %

Lithuania already increased their standard VAT rate from 21% to 23% effective March 1, 2010.

Canada will merge the federal GST (VAT) of 5% with the provincial sales taxes of 7% or 8% in three or more provinces to a combined Harmonized Sales Tax (HST) of 12% or 13% effective July 1, 2010.

The numbers clearly show that VAT recovery and VAT refund claims are very important for any company doing business abroad. Your foreign business expenses and your export and trade show budgets could benefit substantially.

Call us toll free at 1-866-332-4777, and check our website regularly for upcoming VAT changes.

Please Contact us for more information.

Significant VAT changes for 2010

If your company is registered for VAT in the EC or has EC based affiliated operations or VAT registered legal entities take note:

  • All 27 European member countries changed the place of supply for services for EC VAT registered companies effective Jan. 1, 2010
  • Check for changes on your foreign supplier invoices or contracts
  • Look into changes in formalities and handling of your VAT

Important change for EC registered businesses ONLY:

  • New VAT refund claim filing deadline and rules for on-line filing

Increases in standard VAT rates:

  • United Kingdom-17.5% ( from 15%) effective January 1, 2010
  • Croatia-up from 22% to 23%
  • Czech Republic-up from 19% to 20%
  • Latvia-up from 21% to 23%
  • Mexico-a Consumption Tax of 2% has been added to the regular VAT (IVA) rate

A review of invoices, contracts and agreements with suppliers and clients in VAT countries may be necessary.

Call us toll free at 1-866-332-4777, and check our website regularly for upcoming VAT changes in Germany, Spain, Finland and Hungary.

Please Contact us for more information.

November 2009

UNITED KINGDOM

Effective January 1, 2010 the VAT rate will go back up from 15 % to 17.5 %.

GERMANY

The newly elected German Government has announced that it plans to reduce the standard VAT rate of 19 % for hotel and restaurant invoices (ONLY) to the reduced rate of 7 % to support the hospitality industry.

Other changes in 2009:

  • CROATIA changed the standard VAT rate from 22 % to 23 %
  • ESTONIA changed the standard VAT rate from 18 % to 20 %
  • HUNGARY changed the standard VAT rate from 20 % to 25 %
  • ICELAND changed the reduced rate on some food items from 7 % to the standard rate of 24.5 %
  • ISRAEL changed the standard VAT rate from 15.5 % to 16.5 %

You may want to review long term contracts and invoices from suppliers and to clients and adjust your accounting if applicable.

Please Contact us for more information.

July 2009

European Community

  • Hungary has increased the standard VAT rate from 20 % to 25 % effective July 1, 2009!
    • Reduced VAT rates are now 18 % and 5 %.
  • Estonia has increased the standard VAT rate from 18 % to 20 % effective July 1, 2009!
  • France has a reduced VAT rate of 5.5 % for Restaurant Services effective July 1, 2009!

Please review invoices for goods and services from these countries and contracts with suppliers and customers if necessary.

Please Contact us for more information.

May 2009

European Community

Important VAT rule changes for all 27 European Community countries will become effective:

  • January 1, 2010
  • January 1, 2011
  • January 1, 2013
  • January 1, 2015

If you are doing business in Europe or with European companies or customers you have to know what to do.

Please Contact us for more information.

Jan. 2009

European Community

The Irish Government has made an unusual move compared to other countries who reduced their VAT rate to support the economy (UK from 17.5 % to 15 %) or postponed plans to increase their VAT rate from 19 % to 20 % (Netherlands) or from 5 % to 7 % (Japan).

The standard VAT rate in Ireland has been increased from 21 % to 21.5 % effective December 1, 2008 !

If you are doing business in Ireland or with suppliers or clients in Ireland you may want to check invoices, credit notes, advance payments or long term contracts etc.

Please Contact us for more information.

Nov. 2008

United Kingdom

UK VAT RATE REDUCTION to support companies in UK and foreign companies doing business in UK

The British government has decided to act swift and fast by announcing a reduction of their VAT rate from

  • 17.5 % to 15 % effective December 1, 2008

The VAT rate reduction will last until December 31, 2008 and the rate will go back to 17.5 % effective Jan. 1, 2008.

You may want to review your long term contracts or agreements with UK suppliers and clients and carefully check UK VAT and Import VAT invoices especially if a VAT refund is not applicable for certain items or industries.

Please Contact us for more information.

Feb. 2008

European Community

Portugal has changed the standard VAT (IVA) rate from 21 to 20 % effective July 1, 2008.

Please Contact us for more information.

Feb. 2008

European Community

The European government will implement new VAT rules effective January 1, 2010 for the 27 member countries:

  • Place of supply for business-to-business supplies of services (taxpoint).
  • New fully electronic filing procedure for VAT refund claims from EU based businesses.

Please Contact us for more information.

Jan. 2008

United Kingdom

The UK VAT authority will implement new online filing procedures for VAT refund claims from foreign businesses.

Please Contact us for more information.

Dec. 2007

Germany

The German VAT authority only accepts VAT refund claims from foreign businesses with claim forms signed by the CEO, CFO or Managing Partner.

Please Contact us for more information.

Jan. 2007

Europe

The European Community has two new member states bringing up the number of member states to 27:

Romania (standard VAT rate 19%) and Bulgaria (standard VAT rate 20%) both joined the EC effective January 1, 2007.

Canada

The Federal goverment has decided to cease refunds for the federal GST (Goods and Services Tax) to foreign companies for all invoices dated after March 31, 2007.

Asia

India

India has started VAT in 21 of the 28 states. VAT rates are available on request.

Singapore

Singapore has announced plans to increase the rate of their GST from 5% TO 7%.

Please Contact us for more information.

Nov. 2005

The new German government will be increasing the standard VAT rate from 16% to 19% on January 1, 2007.

Make sure your German suppliers provide you with a clear cut off date for the correct time of delivery and with invoices that have 16% VAT rate rather than the new 19% VAT rate!

Please Contact us for more information.

The British VAT authority has announced that as of January 2006, a number of new procedural changes will come into effect for foreign VAT refund claims made in United Kingdom. As the British VAT authority's rules become stricter, getting a VAT refund will become more difficult. If you would like help in filing your UK VAT refund claims under the old rules please Contact us immediately or email us at vatinfo@insatax.com