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Global VAT News, September 2011

Thursday, September 29, 2011

by Nick Ryan

The current global issue of austerity has resulted in VAT rises being announced throughout the world. Here are some of the changes:
– EU has supported Hungary’s 2% increase in the higher rate to 27%.
– Italy has increased its higher rate by 1% as part of its austerity package.
– Greece, under its austerity measures, has shifted the VAT liability of supplies of food and soft drinks (including water) to the higher rate of 23% with effect from 1 September 2011.
– Portugal is to consider a further increase of 2% of its higher rate to 23%.

Other news includes;
– UK HMRC has announced its consultation process to implement an EU VAT cost sharing exemption which would follow similar lines as VAT group registration.
– Germany: the Tax Court has ruled that 13th Directive claims can be rejected by the German tax authorities were they are incomplete.
– India has announced that the GST rate will be between 16 and 20% when GST is implemented in the next financial year.
– China has announced its proposal to tax the turnover of online retail traders.
– USA, California is following similar lines by proposing to apply sales tax to out of state online retailers.