3 Major VAT rate updates in Africa in August 2022

• Botswana MOF Announces Temporary VAT Reductions from Aug. 1, 2022, through Jan. 31, 2023
  • Reduction of the standard VAT rate from 14% to 12% for six months between August 1, 2022 and January 31, 2023
  • Zero-rating cooking oil and liquified petroleum gas
• Mozambique plans to cut VAT from 17% to 16%
  • Draft – No details available on timings
• Uganda removes VAT on imported rice from Tanzania
  • Effective July 27, 2022

 

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Newsitems on VAT rate changes in August

ALBANIA

• VAT implementation delayed till Jan 1, 2024, Turnover tax will increase by 1/1.5% on Jan 1, 2023

BANGLADESH

• VAT rates simplification

BARBADOS

• Barbados Extends Value-Added Tax Reliefs For Fuels
• Barbados Provides Guidance on Reduced VAT on Electricity Supplies
• VAT on supply of electricity will be reduced from 17.5% to 7.5% on the first 250-kilowatt hours used by households

BELGIUM

• VAT rate painting works
• Providing furnished accommodation: additional conditions to determine the VAT regime
• Green Party want to drop VAT on fruit and greens

BOSNIA AND HERZEGOVINA

• Bosnia cuts VAT on essential foodstuffs as inflation soars
• Botswana MOF Announces Temporary VAT Reductions from Aug. 1, 2022, through Jan. 31, 2023
• Guidance on transitional rules for reduction in VAT rate issued
• Botswana Guidance on Temporary VAT Rate Reduction
• Guidance note on the VAT transitional rules (rate change)
• Transition rules for temporary reduction in VAT rates
• Temporary reduction in VAT rates and other economic measures announced
• Botswana Temporarily Reduces VAT Rate
• Temporary reductions in VAT rates

BULGARIA

• Parliamentary group calls to check all heating companies if they applied the reduced rate correctly
• Amendments in the VAT Act for 2022

CABO VERDE

• Government approves reduced special consumption tax rates for gasoline and diesel due to ongoing Russia-Ukraine conflict

CHAD

• Significant developments in Chad – Exemption & Rate of refuelling operations

CHILE

• Construction companies may deduct 0.325 from the VAT determined for general construction contracts signed with beneficiaries of housing subsidies

CHINA

• 3% partial exemption on taxable sales for SME and monthly refunds of incremental VAT credits for manufacturers, small and micro enterprises, and six other…

COLOMBIA

• Abolition of 3-day VAT holiday

CROATIA

• Croatia Tax Agency Clarifies VAT Place of Supply Rules for Charging Electric Cars
• Croatia to abolish VAT on solar panels
• Due to lower VAT, wood prices here are almost the same as last year

CYPRUS

• Cyprus: Government announces VAT Exemption on petroleum goods and fuel costs until the end of 2022
• Petrides warns opposition on VAT: don’t make comparisons with Germany

EUROPEAN UNION

• VAT cuts on energy & food as inflation hits record 8.9% in July 2022
• Reduced VAT rate for supplies of wood only if EU principle of neutrality is observed
• The EU VAT Rate Reform 2022 from an Environmental Policy Perspective

FINLAND

• Finland considers electricity VAT cut
• Lintilä calls for VAT cut to lower electricity prices
• Lintilä recognizes VAT reduction as the best way to curb rising electricity prices

GERMANY

• BFH: Significance of the principal of neutrality for VAT rate reductions
• BMF: Reduced VAT rate for supplies of a charitable organization
• Germany considers cutting VAT on Gas Levy
• Germany lowers VAT on gas to relieve consumers
• Germany slashes VAT on gas to 7% following EU block
• Temporarily Cutting VAT Rate on Natural Gas
• The reduced VAT rate for restaurants and the catering industry ends in 2023
• VAT reduction not provided for in the coalition agreement

GUYANA

• VAT Policy 26 – VAT on Computers, Mobile Phones & Internet Service (Revised August 19, 2022)

INDIA

• CBIC issued clarifications regarding applicable GST rates & exemptions on certain services
• Clarifications issued by the Central Board of Indirect Tax & Customs (CBIC)
• Group of Ministers (GoM) weighs scrapping 12% GST slab
• GST Council likely to meet in September to consider 28% GST on casinos and online gaming
• GST rates on certain goods and services: 4 Myths cleared
• GST to be levied on cancellation of confirmed train ticket: Finance ministry
• IGST on ocean freight likely to be scrapped
• India Customs Agency Clarifies GST Rates, Exemptions on Various Services
• More GST rate changes likely to address inverted duty, exemptions
• No GST on residential premises if rented out for personal use: Govt
• Preserved Fruit classifiable under Tariff Heading 2008, 12% GST leviable on Ber Berry: AAR
• Sale of Robinson Barley and Purity Barley Taxable @12% under Orissa Sales Tax Act: Orissa HC
• State has no Obligation to indicate HSN Code and GST Rates in Public Tender: Supreme Court

IRELAND

• Further extension of 9% tourism VAT rate not expected
• Increasing VAT ‘may have a negative impact on economy’

ITALY

• 10% VAT for the construction of the municipal archive
• Administration of meals to employees via app with a VAT rate of 10%
• Election campaign with 4% VAT rate
• Government Reduces VAT rate on natural gas and electricity sectors
• Italy extends again gas VAT cut to 5% until 31 December 2022
• Italy Extends Energy Support Measures: Reduced VAT rate applicable till end Sept/Dec 2022, ….
• The prerequisites for the reduced VAT rate must be demonstrated
• VAT concessions also for tourist and recreational transport
• VAT treatment of wheeled ultrasound equipment sales due to COVID-19

JAMAICA

• Guide: Reduction in Standard GCT Rate – Issues impacting time of supply when there is a change to the standard rate

KOSOVO

• Kosovo women seek end to ‘Period Poverty’

LATVIA

• Latvia to cut basic foods VAT to 5% as inflation hits new records in July
• Reduction of the VAT rate applicable to meat, newspaper and bread

LITHUANIA

• Lithuania heating VAT cut to 5% proposal

MOZAMBIQUE

• Mozambique plans to cut VAT from 17% to 16%
• Mozambique to cut VAT to 17%

NETHERLANDS

• Call to extend inflationary excise and VAT cuts
• Court not competent by decision of the Tax Authorities on request for an official reduction
• Dutch legislative process for introducing equal treatment delivery of e-books not unreasonably long
• Government Clarifies VAT Refund Provision for Discounts in Connection to VAT reduced rate to Energy
• Magic mushrooms (Sclerotica) are not a food, so 21% VAT applies
• Magic Mushrooms for mind-altering effect or hallucinatory effect, so normal VAT rate
• Magic truffles are not a food: low VAT rate does not apply
• Magic truffles no food no reduced VAT rate
• Netherlands Court Case: No reduced VAT rate for supplies of e-books in 2019
• Netherlands Court Case: No reduced VAT rate on self-care products
• PLUS supermarket in Rozenburg does not charge VAT on fruit and vegetables for a week
• Reduced VAT rate electronic download e-books not already in 2019
• Sclerotia are not foodstuffs subject to the reduced rate
• Standard VAT rate applicable on delivery of self-care products
• The (reduced) VAT rate on self-care products keeps people busy
• VAT rate of 21% for e-book sales was allowed

NIGERIA

• Discordant tunes over 5% excise duty in telecoms sector
• VAT increase may assuage Nigeria’s fiscal position

NORTH MACEDONIA

• Updated Strategy for the Reform of the Tax System (2021-2025)

NORWAY

• Norway to replace electric car VAT exemption with special subsidy
• Norway: VAT rates for charitable and benevolent organisations

OMAN

• List of VAT zero-rated medical equipment

PARAGUAY

• Decree extending reduced VAT rate for transport sector
• Government announces VAT cut of 10% for Transport Services

PERU

• Peru Providing Temporary 8% VAT Rate for Tourism and Hospitality Sectors
• VAT reduced to 8% to promote reactivation of hotels, restaurants and accommodation

PHILIPPINES

• Sworn declaration for VAT-zero rating of local purchases of registered business enterprises

POLAND

• Advance payment: No possibility of extending the deadline for applying the 0% rate
• Extension of the anti-inflationary shield until the end of the year (reductions excise tax on electricity, fuels and VAT rate food)
• Government amends Reduced VAT Rate on Certain Goods effective July 16
• Poland to stick on 23% VAT to support defence spending
• Poland: Government amends reduced VAT Rate on certain goods effective July 16, 2022
• The Senate wants VAT cuts on heating oil, pellets and LPG
• Increase in the VAT rate applicable to certain goods and services

ROMANIA

• Romania increases VAT rates in 2023
• Romania proposes VAT rate increases on sparkling drinks, hotels, and catering supplies
• VAT Rate changes per January 1, 2023
• VAT rate increases to 9% (from 5%) for hotel accommodation, restaurant and catering services as of Jan 1, 2023
• VAT rates are increasing next year, with implications in the food and real estate sectors

RUSSIA

• Deputy Speaker of the State Duma proposed to temporarily abolish VAT on school goods
• For the 0% rate of 0%, the hotel must be included in a special register
• Russia Proposes Zero VAT Rate for Companies Assisting Donbass Region
• Russia Tax Agency Announces Zero VAT Rate on Certain Sales of Natural Diamonds

SAUDI ARABIA

• IMF recommends Saudi NOT to reduce the VAT rate
• IMF recommends that Saudi Arabia maintains the current VAT rate

SINGAPORE

• Singapore Updates Guidance on Preparing for GST Rate Change
• Updated e-tax guide for 2023 GST Rate Change: A Guide for GST-registered Businesses
• Updated e-tax guide for GST: Clarification on “Directly in Connection With” and “Directly Benefit”

SLOVENIA

• Act on urgent measures in the field of value added tax to mitigate the rise in energy prices (ZNUDDVE)
• Parliament Passes Law Reducing VAT on Energy
• Reduction in VAT rates for energy products
• Slovenia Tax Agency issues guidance on VAT rates, exemptions and input VAT deduction
• Temporary VAT cut of 9.5% on Energy Consumption

SOUTH AFRICA

• Call for South Africa to overhaul its tax system, including a VAT hike
• OECD Economic Survey of South Africa Includes Tax Recommendations

SPAIN

• New case law in Spain: VAT on amateur sports events

SURINAME

• Proposed VAT rate reduced to 10%

TRINIDAD AND TOBAGO

• Trinidad And Tobago Sales Tax Rate – VAT

UGANDA

• Key Amendment to exempt supplies and zero-rated supplies

UGANDA

• Uganda removes VAT on imported rice from Tanzania

UKRAINE

• Parliament considers bill to extend VAT exemption on supply of software products
• When is the zero VAT rate applied to the supply of goods for the Armed Forces?

UNITED KINGDOM

• Experts warn Liz Truss’s VAT plans ‘inappropriate’ and risk exacerbating inflation
• FTT Spectrum Community Health CIC – Taxpayer argues it makes separate zero rated and reduced rate supplies and should be VAT registered
• HMRC Guidance: Guidance Food products (VAT Notice 701/14)
• Truss considers cutting VAT to 15% to ease UK crisis
• VAT and food supplies

UNITED STATES

• 2022 Mid-Year Rates and Rules Podcast
• Alaska: Ketchikan City Seasonal Sales Tax Rate Changes
• First six months of 2022 sales tax rules and rates update: Rate increases flourish at city level
• Sales tax holidays for the rest of the year
• Sales Tax Rules and Rates Update Part 2: Inflation and a Narrowing Base Pose Limits
• South Dakota: 2022 Municipal Tax Guide Issued
• States With Highest and Lowest Sales Tax Rates
• Vertex Inc. 2022 Mid-Year Sales Tax Rates and Rules Report

UZBEKISTAN

• Uzbekistan Confirms Three Percentage Point VAT Cut
• Uzbekistan confirms VAT rate cut to 12% on 1 January 2023

VIETNAM

• Tax system reform strategy up to 2030 approved

WORLD

• Major global Value Added Tax and Goods and Services Tax changes as of August 1, 2022