Regulatory Analysis

Posted January 17, 2023 by Stephanie Melhem
China Small-Scale Taxpayers Rate Reduced

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. […]

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Posted January 13, 2023 by Stephanie Melhem
China Extends Small Business VAT Exemption

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 […]

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Posted January 13, 2023 by Stephanie Melhem
Ghana Standard VAT Rate Increase effective 1 January 2023

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.

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Posted January 10, 2023 by Stephanie Melhem
Zimbabwe Standard VAT Rate Increase Effective 1 January 2023

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.

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Posted January 6, 2023 by Robert Pelletier
Italy: Reduced VAT Rates on Feminine Hygiene Products, Baby Products, and Face Masks from 1 January 2023

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 […]

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Posted January 6, 2023 by Robert Pelletier
Spain: Reduced VAT Rates on Face Masks and Electricity Extended and Zero Rate on Basic Foods

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 […]

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Posted January 6, 2023 by Stephanie Melhem
China’s Exemption for Small Business Taxpayers was set to expire on 31 December 2022

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.

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Posted January 4, 2023 by Robert Pelletier
Bulgaria Extends Temporary Reduced VAT Rate Due to COVID-19 to 31 December 2023

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% […]

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Posted December 22, 2022 by Robert Pelletier
Norway Extends VAT Obligation to Sales of Remotely Delivered Services effective 1 January 2023

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 […]

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Posted December 19, 2022 by Andrew Decker
Ireland Extends Zero VAT Rate to Newspapers among other VAT Changes

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 […]

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Posted December 19, 2022 by Robert Pelletier
Mozambique Standard VAT Rate Decrease Effective 1 January 2023

As approved by the Mozambique parliament on 30 November 2022, the standard VAT rate will be reduced from 17% to 16% with effect from 1 January 2023.

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Posted December 19, 2022 by Stephanie Melhem
Belgium Immovable Property Reverse Charge effective 1 January 2023

On November 10, 2022, Belgium published amendments to its reverse charge mechanism for immoveable property. Previously, the reverse charge mechanism applied only when the foreign taxable customer was identified for VAT purposes in Belgium via a fiscal representative. From 1 January 2023, when a Belgian established company performs construction supplies on immovable property, reverse charge […]

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Posted December 19, 2022 by Robert Pelletier
Finland: Zero Rated Passenger Transport Services effective 1 January 2023

Effective 1 January 2023 and until 30 April 2023, the domestic supply of passenger transport services are temporarily zero-rated under Law No. 870/2022. The law can be found here (in Finnish).

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Posted December 16, 2022 by Stephanie Melhem
Slovakia: Temporary VAT Reduction for Certain Facilities and Restaurant and Catering Services effective 1 January 2023

The Parliament of Slovak Republic approved an amendment of the VAT law temporarily reducing the VAT rate on the transportation of people by ski lifts, sports facilities, swimming pools, and for restaurant and catering services. These supplies will apply a reduced VAT rate of 10% effective 1 January 2023. This is a temporary rate reduction […]

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Posted December 7, 2022 by Andrew Decker
Washington’s Emergency 988 Fee Increases

12/7/2022 Washington’s Statewide 988 behavioral health crisis response & suicide prevention line tax is scheduled to increase from $0.24 to $0.40 beginning January 1. The tax applies on every retail sale of a prepaid wireless service. The tax also applies on every switched access (wireline) line, radio access (wireless) line, and Voice over Internet Protocol […]

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Posted December 7, 2022 by Robert Pelletier
Palau GST Implementation effective 1 January 2023

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 […]

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Posted December 7, 2022 by Stephanie Melhem
Singapore is extending GST to imported Non-Digital Services and Low-Value Goods effective 1 January 2023

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 […]

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Posted December 7, 2022 by Robert Pelletier
Vietnam Standard VAT Rate Increase effective 1 January 2023

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.

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