Regulatory Analysis
South Korea’s latest Tax Reform proposal has recently been approved, and introduces several new measures for the year 2023, among which is the possibility of issuance of self-billing VAT invoices. The tax reform amended article 71-2 of current South Korean VAT law in order to allow the issuance of invoices for the supply of goods […]
The AFIP published the Resolution No. 5329/2023 on February 13, 2023, which among other topics set a new VAT collection regime on the sale of food products for human consumption, beverages, personal hygiene and cleaning articles. The amount of the charge will be determined by applying, on the net price of the operation resulting from […]
Argentina: General Resolution No. 5323/2023 issued by the AFIP anticipates to February 23 and 24, 2023 the due dates for compliance with the obligations of determination and / or payment of Value Added Tax which original term was February 27 and 28 of this year. This change is according to the termination of the Unique […]
From the 10th of February 2023, the Italian Revenue Agency will make available a pre-filled annual VAT return concerning the tax year of 2022. The Italian Revenue Agency will use the data of domestic electronic invoices and cross-border reports communicated to the SDI to prepare the draft VAT returns. The returns will be available on […]
The French authorities published the updated version of the ‘External specifications file for electronic invoicing’. The new specifications introduced additional mandatory e-invoicing data, new and modified cases of use, amended frequency for e-reporting, retention of invoices by the public billing portal and other new explanations as well as examples for XML files.
On 18 January 2023, the Botswana Ministry of Finance issued a public notice that the temporary reduced standard VAT rate of 12% is extended to 31 March 2023. The public notice can be found here.
Pursuant to Decree Law 15/2022, the zero-rate VAT rate that temporarily applied to supplies of face masks and gloves in the Canary Islands is extended until June 30, 2023. The decree can be found here (in Spanish).
Effective 1 January 2023, Ghana has removed the VAT exemption from imported textbooks, imported newspapers, architectural plans and similar plans, drawings, scientific and technical works, periodicals, magazines, trade catalogues, price lists, greeting cards, almanacs, calendars, diaries and stationery and other printed matter. The Value Added Tax Amendment Act, 2022 can be found here.
China announced the 3% VAT rate normally applied for small-scale VAT taxpayers will be reduced to 1% from January 1, 2023 to December 31, 2023. This rate reduction is in addition to the announcement of the exemption for taxpayers with a monthly turnover of less than 100,000 yuan which was previously reported on by Sovos. […]
On January 9, 2023 China announced an extension to the small business exemption from VAT. From January 1, 2023 to December 31, 2023, small-scale VAT taxpayers with monthly sales of less than 100,000 yuan (including the amount) will be exempted from VAT. The announcement can be found here. Please note that the exemption for small-scale […]
The Ghana Revenue Authority (GRA) announced the standard Value Added Tax (VAT) will increase by 2.5 percent. The standard VAT rate will be increasing to 15% from 12.5% effective 1 January 2023. The VAT amendment can be found here.
The Zimbabwe Revenue Authority announced the standard Value Added Tax (VAT) will increase by 0.5 percent. The standard VAT rate increased to 15% from 14.5% effective January 1, 2023. The public notice can be found here.
Pursuant to the 2023 Italian Budget through Senate Bill n. 442, effective 1 January 2023 the 5% reduced VAT applies to feminine hygiene and baby products. Baby products that will apply the 5% rate consist of baby diapers, child seats to be installed in motor vehicles, as well as powdered milk and food products for […]
As announced by the Spanish Ministry of Finance on 27 December 2022 and pursuant to Royal Decree-Law 20/2022, the reduced VAT rates applied to supplies of face masks and electricity have been extended. Surgical face masks will maintain the 4% VAT rate until 30 June 2023, and electricity will maintain the 5% VAT rate until […]
China previously announced from 1 April 2022 to 31 December 2022, small-scale VAT taxpayers would be exempt from VAT on taxable sales income subject to a 3% levy rate. The exemption was set to expire on 31 December 2022. The original announcement can be found here.
Bulgaria has extended the temporary reduced VAT rate in Bulgaria due to Covid-19 through Decree No. 304 as published on 23 December 2022. The 9% reduced VAT rate has been temporarily extended until 31 December 2023 on restaurant and catering services consisting in the delivery of prepared or unprepared food. The reduced rate of 9% […]
Norway has approved amendments to the Norwegian VAT law regarding cross-border business to consumer sales of remotely delivered services. Effective 1 January 2023, non-resident suppliers of remote services (non-digital) to Norway who make supplies to non-registered persons are required to collect and remit VAT. This law change is an extension of Norway’s current VAT compliance […]
Ireland’s Finance Act of 2022 introduces several important VAT changes for the new year. The Act imposes a zero-rate of VAT on newspapers, which were previously subject to a reduced rate of 9%, provided the papers are not predominantly devoted to advertising. This rate reduction includes electronic newspapers as well as physical newspapers. The Act […]