The Finnish Government has issued on Monday 17 September 2012 an official proposal to increase the current VAT rates by 1% in Finland. It is foreseen to increase the standard VAT rate from 23% to 24% and the two reduced VAT rates from 9% to 10% and from 13% to 14%.
If passed by Parliament, the increase will take effect from 1 January 2013.
The VAT rate will be increased from 18% to 20%. Final confirmation is pending.
Decree Law no. 197/2012 dated 24 of August brings changes in area of invoicing. The concept of “equivalent document” will be replaced by an obligation to issue invoices. At the same time simplified invoicing will be allowed replacing the current regime of invoice exemption and issuing of sales receipts. New rules in area of e-invoicing will make the implementation more business friendly.
Based on the Investment Law no. 8 of 1997 there is a system of free trade zones in Egypt which allows to store imported goods without tax consequences within the free zone (no GST or custom duty will be due on sales within the free trade zone). Egypt has a general sales tax system which works similar as known VAT systems in Europe. When the goods are imported from the free zone into the country GST and custom will apply. Importation for trade purposes into Egypt is only allowed for companies which are 100% owned by Egyptian shareholders. Egyptian free zone companies are not subject to corporate income tax on the activities approved and licensed by the General Authority for Investment (“GAFI”). These companies are also exempt from GST for this type of activities.
Based on bill.no T/7028 taxpayers will have to submit a domestic recapitulative statement (comparable to EC Sales and Purchase Lists) together with their VAT returns for all transactions where the VAT amount is equal/greater than HUF 2’000’000 as of 1 of January 2013. This obligation does not apply to reverse-charge transactions.Read More »
The Spanish VAT authorities have recently published some public rulings concerning different questions related to the interpretation of the criteria for creating a permanent establishment for VAT purposes (hereinafter: ‘‘p/e’’) in Spain. The new interpretation seems to be a complete change from the previous Spanish legal position.
Link to the article:
Changes in Spain of VAT permanent establishment
Section 5, §3 of Belgian Royal Decree no. 7 provides the opportunity that the payment of VAT due on importation of goods can be shifted to the periodic VAT return. Instead of payment of the VAT to the Customs Authorities only declaration is done. Read More »
The VAT warehouse is a simplification regime provided for by art. 50-bis of Law Decree n. 331/1993, implementing art. 157 to 160 of Directive 2006/112/EC. In order to benefit from the VAT warehousing simplification regime, goods have to be physically introduced into the warehouse, a “virtual” storage of goods is not allowed Read More »
The Russian Duma has adopted changes to the VAT Chapter of the Russian Tax Code. The amendments should come into force as from 1 January 2013.
This means that VAT exemptions will become significantly wider. Under the current legislation VAT exemptions are quite limited to the trade with securities and core banking and insurance services.Read More »
Earlier today China time, the State Council of the PRC announced that the VAT Pilot Program would be implemented in another 10 provinces and cities in China (namely Beijing, Tianjin, Jiangsu, Zhejiang, Anhui, Fujian, Hubei, Guangdong, Xiamen and Shenzhen) over the period from 1st of August through the end of 2012. It is not explicit from today’s announcement when the program will be specifically implemented in Read More »
PwC Switzerland ITX
Michaela Merz 