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Global VAT news December 2011

Wednesday, December 7, 2011

by Nick Ryan

There is a lot to cover in this issue with news of increases in VAT rates across the EU. Here is a summary of some of the key changes:
EU VAT reform plans to be published in December 2011: following the EU VAT green paper on VAT reform it is envisaged that the White paper outlining the proposal is for reform is to be issued this month. The key proposals cover:
• A move towards a single, harmonised EU VAT rate across all 27 Member States.
• A uniformed and consistent set of rules covering VAT registration and VAT returns in all territories.
• Standard VAT invoice format and reporting requirements.
France: plans were announced to increase the reduced rate from 5.5% to 7% from January 2012 for a range of goods including restaurants, books, public transport and repairs to residential property. Consideration is also been given to an increase in the current higher rate of 19.6%.
Italy to consider a further increase in its standard rate from 21% to 23% with an implementation date of September 2012 expected. There will then be a further rise to 23.5% in January 2014.
Lithuania also propose a increase in its standard rate to 23% in 2012.
Portugal announce increase VAT on restaurant meals from 10% to 23% in 2012.
Belgium increase VAT rates for legal services and television services to 21%.
India likely to miss the planned deadline of April 2012 for the implementation of unified GST system to replace VAT and other taxes.
China publishes details of the Shanghai 2012 pilot for the consolidation of VAT and Business tax.
For more information on these changes then please contact us.