Regulatory Analysis
Pursuant to the Service Tax (Rate of Tax) (Amendment) Order 2024, effective 1 March 2024, the service tax rate is increased from 6% to 8% on all taxable services except for food and beverage preparation, telecommunications, parking provision services, and logistics, which will remain at the 6% rate. The order can be found here (in […]
Alongside the developments of the CTC e-invoice reporting mandate in Malaysia, the Malaysia Digital Economy Corporation (MDEC) has become the Peppol Authority in the country. MDEC is implementing the Peppol framework in Malaysia and it will be available for the exchange of e-invoices, complementing the e-invoice reporting mandate, which will not handle the delivery of […]
The Royal Malaysian Customs Department announced that cross-border sales of goods valued at MYR500 or less are subject to 10% sales tax when sold to businesses and consumers in Malaysia effective January 1, 2024. The low value goods regulations can be found here.
Pursuant to Decree 94/2023/ND-CP as published on December 28, 2023, supplies of goods and services subject to the standard 10% VAT rate will continue to apply the temporary 8% standard VAT rate until June 30, 2024. The 2% VAT rate reduction, which was previously set to expire on December 31, 2023, has been extended by […]
Following the recent developments in China regarding the Pilot Program for e-Invoicing, whereby the program has been expanded to new provinces and cities in November 2023, the last province of Tibet has now been added to the Pilot Program for issuing fully digitalized electronic invoices (e-fapiao) among selected taxpayers. Therefore, from December 1, 2023, the […]
The National Bureau for Revenue (NBR) released an updated edition of the Value Added Tax (VAT) General Guide in November 2023. A VAT-registered individual or entity is now authorized to issue, retain, and manage VAT invoices, along with credit and debit notes, in an electronic format without NBR’s prior approval. Previously, the NBR had announced […]
Pursuant to Goods and Services Tax (Amendment) Bill No. 30/2022, the standard GST rate in Singapore is increasing to 9% effective January 1, 2024. The Bill can be found here.
The Saudi Arabian Tax and Customs Authority, ZATCA, announced the ninth wave of Phase 2 of e-invoicing. The ninth wave covers taxpayers with at least SAR 30 million (app. USD 8 million) revenue subject to VAT for 2021 or 2022. Taxpayers within this group are expected to integrate as of 1 June 2024. Phase 2 […]
The Pilot Program for issuing fully digitized electronic invoices (e-fapiao) has been expanded to the new provinces and cities: Anhui, Beijing, Guizhou, Hunan, Ningxia, Qinghai and Shandong. According to the announcements published by the tax authorities in October 2023, selected taxpayers in these provinces and cities, will be able to issue fully digitized e-fapiao. In […]
In the Forum of Tax Administration held in October 2023 in Singapore, the government confirmed they will adopt InvoiceNow, the national e-invoicing framework based on the Peppol network as the mandatory framework for B2G transactions in the country. Recently, testing of a 5-corner instead of the existing 4-corner model as the InvoiceNow Peppol exchange model […]
Israel is implementing a Continuous Transaction Controls (CTC) regime which was initially scheduled to roll out on January 1, 2024. On October 23, 2023, the Israeli Tax Authority (ITA) announced that the timeline has been extended to offer businesses more time to complete their technological development. According to the announcement, the ITA will allow deduction […]
Sultanate of Oman Tax Authority has announced the launch of a VAT e-invoicing system within 2024. The e-invoicing system will be rolled out voluntarily in April 2024 and is scheduled to become mandatory for large entities operating within the country starting in October 2024. While official communication detailing the features of the e-invoicing system is […]
The Malaysia Inland Revenue Board has published updated e-invoicing guidelines, which are now on version 2.0. The update includes details on new topics, namely transactions with buyers, disbursement and reimbursement, API overview, cybersecurity, currency exchange rate, cross-border transactions, self-billing, and others. Additional documentation was also published, namely an e-invoicing Data Catalogue, which provides for the […]
September 13, 2023 The Thailand Department of Revenue recently published P.C.S 32.2023. The memo provides the Thailand Cabinet passed a resolution on September 13, 2023, approving an extension of the reduced 7% VAT rate until September 30, 2024. Further information may be found here.
As of October 1, 2023, Laos will impose VAT registration requirements on foreign providers of digital goods, digital services, and digital platform services. According to the most recent guidelines from the Ministry of Finance, both business-to-business (B2B) and business-to-consumer (B2C) transactions are within the scope of these requirements. “Digital platform services” refer to e-commerce transactions […]
As announced in Fiji’s National Budget for 2023-2024 by the Fiji Revenue and Customs Service, the standard VAT rate increased from 9% to 15% for all non-zero-rated items beginning on August 1, 2023. The budget announcement can be found here.
Saudi Arabian Tax and Customs Authority, ZATCA, extended the “Cancellation of Fines and Exemption of Penalties Initiative” until December 31, 2023. This initiative covers fines regarding late registration in all tax systems, late payment, late filing of returns fines in all tax systems, and fines to correct VAT returns, as well as fines for violations […]
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 […]