Regulatory Analysis
On June 30, 2023, the Vietnamese government issued Decree 44/2023/ND-CP on the 2% VAT rate reduction from 10% to 8% lasting from July 1, 2023, until December 31, 2023. The 2% VAT reduction does not apply to various goods and services from the following sectors: telecommunications, financial activities, banking, insurance, real estate trading, metals and […]
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 […]
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 […]
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.
Palau is implementing a VAT style tax known as the Palau Goods and Services Tax (PGST). The PGST will be imposed at a rate of 10% and will come into effect on 1 January 2023. Businesses with an average annual taxable supply of more than $300,000 in Palau are required to register for PGST. Mandatory […]
Effective 1 January 2023, Singapore will be extending GST to B2C imported non-digital services and goods imported via air or post that are valued up to (and including) the current GST import relief threshold of S$400. Non-resident providers of non-digital services and imported low-value goods can register under the Overseas Vendor Registration regime which is […]
Pursuant to Decree No. 15/2022/ND-CP, the standard VAT rate in Vietnam is increasing to 10% from the temporary 8% rate effective 1 January 2023. The decree can be found here.
Singapore’s Parliament passed a bill increasing the goods and services tax by 1 percent. The standard GST rate will be increasing to 8% from 7% effective January 1, 2023. The amendment bill can be found here.
The Uzbekistan State Tax Committee issued a Press Release on September 19, 2022, regarding changes in the VAT rates as per the head of state. The standard VAT rate will be decreasing to 12% from 15% effective January 1, 2023. The press release can be found here.
On November 22, 2022, the Deputy Commissioner General of Taxation published Circular 220-TD/CIR/2022/04 increasing the general goods and services tax rate from 6% to 8%. This rate change will be effective from 1 January 2023. The Circular can be found here.
In South Korea, e-invoicing has been mandatory for all corporate businesses since 2011. From 2012, individual businesses (entrepreneurs) have also been required to comply with e-invoicing obligations if they meet the threshold limits which have been updated a couple of times over the years. Currently, an individual business whose aggregate supply value (including transactions that […]
The Chinese e-invoicing pilot program, which has gradually been expanded in its new form since January 2021, has now welcomed a new batch of cities into the program. The updated version of the Chinese CTC e-invoicing pilot program, which is intended to allow businesses to issue e-invoices as well as to receive and verify them […]
A new timeline for the go-live of the Philippine e-invoicing system (EIS) was announced at the webinar held by BIR today on the 12th October. The launch of the pilot program for e-invoicing (which targets the country’s 100 largest taxpayers) has been postponed with six months, from 1 January to 1 July 2022. As part […]
Ever since the introduction of mandatory e-invoicing in India, B2C transactions have been excluded from the scope of mandatory e-invoicing. For these transactions specifically, there is a separate requirement: taxpayers with an annual threshold of 500 Cr. rupees or more must include a self-generated dynamic QR code on B2C invoices. Even though this requirement was […]
Russia is introducing a new system for traceability of certain goods that will come into effect on 1 July 2021. Federal Law No. 371-FZ will amend the Russian Tax Code to introduce the new procedure for the traceability system, which will bring with it the introduction of mandatory e-invoicing for taxpayers dealing with traceable goods. […]
The Indian authorities have recently announced two significant changes related to its e-invoicing framework: While invoices relating to B2C transactions are not within the scope of mandatory e-invoicing in India, it is mandatory to include a self-generated QR code on B2C invoices. The Central Board of Indirect Taxes and Customs (CBIC) has now extended the […]
Afghanistan has delayed plans to implement Value Added Tax to 21 December 2021. A 10% VAT is expected to replace the country’s current business receipt tax (BRT). The Afghanistan Revenue Department is also contemplating amendments to the proposed VAT system so to create a simplified tax scheme for those businesses below the VAT threshold. Once […]