Important VAT news - International

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 %

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.

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.

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.

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.

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.