Important VAT news - International

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.

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.

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.

Feb. 2008

European Community

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

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.

Jan. 2008

United Kingdom

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

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.

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%.

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!

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