Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”)
effective April 1, 2016, for state tax purposes.
The SUT will continue to be in place for municipal tax purposes after April 1, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the restaurant industry.
Puerto Rico: Value Added Tax - Impact on Wholesale and Retail IndustriesAlex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”) effective April 1, 2016, for state tax purposes. The SUT will continue to be in place for municipal tax purposes after
March3 1, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the wholesale and retail industries.
Puerto Rico: Value Added Tax - Impact on the Manufacturing IndustryAlex Baulf
This document summarizes the impact of Puerto Rico's upcoming value added tax (VAT) on manufacturing businesses. It provides details on exemptions and credits available to manufacturers under the new VAT system. Specifically, it notes that manufacturing plants will be able to import or acquire raw materials for manufacturing free of VAT. It also explains that manufacturers can claim a credit for VAT paid on taxable goods and services purchased, and only need to deposit the net VAT amount after credits with the Puerto Rico Treasury Department. This ensures manufacturers are not double-taxed on the value added at each stage of production.
Puerto Rico: Value Added Tax - Impact on the Services IndustryAlex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”) effective April 1, 2016, for state tax purposes.The SUT will continue to be in place for municipal tax purposes after March 31, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the services industry.
Puerto Rico: How the proposed Value Added Tax will impact the Renewable (Gree...Alex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”)
effective April 1, 2016, for state tax purposes.
The SUT will continue to be in place for municipal tax purposes after April 1, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the renewable green energy industry.
Puerto Rico: Value Added Tax - Impact on the Hotel and Tourism IndustriesAlex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”)effective April 1, 2016, for state tax purposes. The SUT will continue to be in place for municipal tax purposes after March 31, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the impact on the hotel and tourism industries.
Puerto Rico: Value Added Tax - Impact to Educational services & Non-profit or...Alex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”) effective April 1, 2016, for state tax purposes. The SUT will continue to be in place for municipal tax purposes after
March3 1, 2016.
This guidance issued by Kevane Grant Thornton LLP specifically relates to educational services and non-profit organizations.
Puerto Rico: How the proposed Value Added Tax will impact the Construction In...Alex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”)
effective April 1, 2016, for state tax purposes.
The SUT will continue to be in place for municipal tax purposes after April 1, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the construction industry.
Puerto Rico recently enacted laws that phase out its sales and use tax and implement a value added tax. The laws also amend the island's income tax provisions. Specifically, Act 72-2015 increased the sales tax rate, imposed a new tax on certain business services, and introduced a value added tax to take effect in April 2016. Act 159-2015 later clarified and expanded some of the sales tax transition rules. The article discusses the key changes to Puerto Rico's sales tax and the implementation of the new value added tax, noting it is a major shift that will impact the economy.
Puerto Rico: Value Added Tax - Impact on Wholesale and Retail IndustriesAlex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”) effective April 1, 2016, for state tax purposes. The SUT will continue to be in place for municipal tax purposes after
March3 1, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the wholesale and retail industries.
Puerto Rico: Value Added Tax - Impact on the Manufacturing IndustryAlex Baulf
This document summarizes the impact of Puerto Rico's upcoming value added tax (VAT) on manufacturing businesses. It provides details on exemptions and credits available to manufacturers under the new VAT system. Specifically, it notes that manufacturing plants will be able to import or acquire raw materials for manufacturing free of VAT. It also explains that manufacturers can claim a credit for VAT paid on taxable goods and services purchased, and only need to deposit the net VAT amount after credits with the Puerto Rico Treasury Department. This ensures manufacturers are not double-taxed on the value added at each stage of production.
Puerto Rico: Value Added Tax - Impact on the Services IndustryAlex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”) effective April 1, 2016, for state tax purposes.The SUT will continue to be in place for municipal tax purposes after March 31, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the services industry.
Puerto Rico: How the proposed Value Added Tax will impact the Renewable (Gree...Alex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”)
effective April 1, 2016, for state tax purposes.
The SUT will continue to be in place for municipal tax purposes after April 1, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the renewable green energy industry.
Puerto Rico: Value Added Tax - Impact on the Hotel and Tourism IndustriesAlex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”)effective April 1, 2016, for state tax purposes. The SUT will continue to be in place for municipal tax purposes after March 31, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the impact on the hotel and tourism industries.
Puerto Rico: Value Added Tax - Impact to Educational services & Non-profit or...Alex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”) effective April 1, 2016, for state tax purposes. The SUT will continue to be in place for municipal tax purposes after
March3 1, 2016.
This guidance issued by Kevane Grant Thornton LLP specifically relates to educational services and non-profit organizations.
Puerto Rico: How the proposed Value Added Tax will impact the Construction In...Alex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”)
effective April 1, 2016, for state tax purposes.
The SUT will continue to be in place for municipal tax purposes after April 1, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the construction industry.
Puerto Rico recently enacted laws that phase out its sales and use tax and implement a value added tax. The laws also amend the island's income tax provisions. Specifically, Act 72-2015 increased the sales tax rate, imposed a new tax on certain business services, and introduced a value added tax to take effect in April 2016. Act 159-2015 later clarified and expanded some of the sales tax transition rules. The article discusses the key changes to Puerto Rico's sales tax and the implementation of the new value added tax, noting it is a major shift that will impact the economy.
Puerto Rico: Summarized guidelines and provisions for transition into VATAlex Baulf
On February 26, 2016, the Puerto Rico Treasury Department (PRTD) issued Administrative Determination 16-01: “Transition to the Value Added Tax (IVA). Both PICO and SURI will be available to process transactions, filings and
requests. The following table summarizes the guidelines and provisions as to what transactions will be processed in which system.
VIETNAM TAX ISSUES – OUTLOOK ON THE EUROPEAN UNION VIETNAM FREE TRADE AGREEME...Dr. Oliver Massmann
The document discusses several issues related to Vietnam's tax system and opportunities under the EU-Vietnam Free Trade Agreement (EVFTA). It notes inconsistencies in how local tax departments apply tax incentives for businesses and calls for clearer guidance. It also points out complexities for enterprises in complying with the declarations and incentives across different documents. Additionally, it raises concerns about discrimination in value-added tax refunds for businesses with output VAT at 5% compared to exporters. Overall, it advocates for simplifying regulations and ensuring fair and consistent treatment of businesses under Vietnam's tax system.
The Finance Bill of 2018 was published on June 12th and aims to alter taxes and duties to increase government revenue and promote economic growth. Key proposed changes include reducing the corporate tax rate for new pharmaceutical and leather industry investors, increasing gaming tax rates, and exempting VAT on capital goods for various industries. The bill also proposes increasing the non-resident income tax rate and granting the finance minister authority to exempt government projects financed by non-concessional loans from income tax.
05.16.16 tax update vat eligible merchant certificate application procedures ...Maria de los A Rivera
The document provides guidance on applying for an Eligible Merchant Certificate in Puerto Rico, which allows merchants to claim refunds on excess VAT payments over $10,000 per month. To qualify for the Certificate, merchants must have $500,000 in average annual sales that are taxed at 0% over a three-year period. The Treasury Department details the application process and documents needed by May 31, 2016. Approved merchants can obtain the Certificate and claim refunds starting with the month of issuance. The guidance also notes that Puerto Rico's legislature approved eliminating the VAT effective June 1, 2016, but the Governor may veto the bill.
Peru 2016 - Corporate and Tax Highlights by Gianmauro NigrettiGianmauro Nigretti
This document summarizes key information about doing business in Peru, including:
- Common forms of business organization are corporations and closed corporations. Corporations require a minimum of 25% of capital stock be paid and forbid contribution of services.
- Corporate income tax is currently 28% but will decrease to 26% by 2019. Resident companies pay tax on worldwide income.
- Individuals are taxed progressively up to 30% on income exceeding 45 times the annual tax unit. Domiciled individuals pay tax on global income while non-domiciled pay only on Peruvian source income.
- Peru has signed numerous double taxation treaties and is negotiating more. VAT of 18% applies to most goods
The document discusses various types of prohibited goods including counterfeits, substandard goods, contraband goods, and goods involved in illicit trade. It provides examples of each category and explains how prohibited goods threaten communities, society, and economic stability by reducing tax revenues and legitimate employment. The last part lists other specific goods that are prohibited such as fake currency, pornographic materials, hazardous chemicals in drinks, narcotics, hazardous waste, and products containing mercury or used tires.
Value Added Tax (VAT) is an indirect tax. It is a type of general consumption tax that is collected incrementally, based on the value added, at each stage of production or distribution/sales. It is usually implemented as a destination-based tax. It is also known as goods and services tax (GST) in some countries
Government has tentatively decided to introduce VAT in UAE by 01 January, 2018. The proposed rate of VAT in UAE will be up to 5%.
The document provides an overview of VAT (value added tax) that is expected to be implemented in GCC (Gulf Cooperation Council) states. It discusses that VAT is an indirect tax on consumption applied to most goods and services. It also notes that VAT will be levied on business transactions at each stage of production and distribution and ultimately paid by the end consumer. The document summarizes preparation steps businesses should take for VAT implementation including understanding the impact, identifying a strategy and timeline, and assessing system capabilities.
Presentation on updates of VAT in UAE is in line with the various advisories issued by Ministry of Finance along with the expert views. VAT is being implemented in the UAE wef 1st January 2018. Presentation has impact of VAT/ Steps to follow to become VAT compliant/ thresholds for VAT registration with process to be followed.
This document provides frequently asked questions about VAT implementation in GCC countries. It discusses what VAT is, how it is calculated and applied, preparations businesses need to make for compliance, and expectations of tax authorities. It also addresses questions related to SAP solutions for VAT computation, legal reporting, timelines, and how customers can stay updated on releases. SAP plans to support VAT compliance through country templates, a tax calculation service, legal reporting tools in S/4HANA and SAP Cloud Platform, and will update solutions once VAT laws are declared.
UAE: MOF confirm that the UAE will implement VAT at 5% from January 2018Alex Baulf
It has been confirmed that the UAE will implement value added tax (VAT) at the rate of five per cent from 1 January 2018.
Obaid Humaid Al Tayer, Minister of State for Financial Affairs, said that “GCC countries have from 1 January 2018 to 1 January 2019 to implement VAT.” He confirmed that each country represented in the GCC can implement VAT within that time period and continued that “a lot of ground work needs to be done before implementing VAT”. He continued that the GCC countries are currently working on a framework, which he expects to be agreed upon and made public in June of this year.
The document analyzes the new corporate income tax rates under the Inland Revenue Act of 2017. It outlines three main tax tiers - 14%, 28%, and 40% - and provides concessions. Small and medium enterprises with under Rs. 500M in annual turnover are taxed at 14%. Companies predominantly exporting, in agriculture, education, tourism or IT are also taxed at 14% if these activities make up 80% of their income. Income from betting, gaming, liquor or tobacco is taxed at 40% unless incidental to other business. The document also notes various issues with interpreting and applying the new rules.
Lawyer in Vietnam Dr. Oliver Massmann UNNECESSARY TAX AND CUSTOMS RELATED BUR...Dr. Oliver Massmann
The document discusses several issues faced by investors in Vietnam related to unnecessary tax and customs burdens imposed by state authorities. Some of the key issues mentioned include retrospective collection of taxes despite tax incentives provided, inconsistencies in applying HS codes for imported goods which results in higher tax rates and penalties, misinterpretation of guidance on tax declarations leading to wrongful penalties, and rejection of VAT refunds due to administrative errors. The document calls for Vietnamese state authorities to implement policies consistently and protect lawful rights and interests of enterprises to support the country's socioeconomic development goals.
The document discusses recent shifts in the UAE banking sector from a borrowers' market to a lenders' market. Specifically:
- Banks have seen declining deposits due to lower oil prices, resulting in tighter lending policies.
- Banks are now more conservative lenders, screening borrowers stringently to avoid credit losses.
- Interest rates may rise as bank liquidity decreases with fewer deposits.
- While economic headwinds are growing, UAE banks are well-positioned from experience during the 2008 financial crisis. The shift to a non-oil economy may help banks regain lending momentum as liquidity increases.
Good and Service Tax (GST) implementation around in the corner, are you ready? How would you furnish yourself with the most updated GST information? Don't worry follow our step by step guide on how to deal with GST. Explore yourself.
The new law set to give high discretionary power to VAT officials. Recently government announce plan to change single VAT rate of 15 percent to different rate for different segments of business. The discretionary power, different rate of VAT and so-called turnover VAT will turn the new VAT similar to existing law. The proposed law will introduce IT based compliance and reporting system, which will make the law more complicated for SMEs.
GST and SST are different types of taxes implemented in Malaysia. SST is a single-stage tax paid by the manufacturer and again by the retailer, resulting in a total tax of 16% for the consumer. In contrast, GST is a multi-stage tax where each step in the supply chain pays 6%, resulting in a total tax of 12% for the consumer. Under GST, businesses can claim input tax credits for tax paid on purchases, whereas under SST businesses could only recover tax as a business cost. However, whether businesses will actually lower prices due to these input tax credits remains uncertain, as it depends on whether they choose to pass on the savings to consumers.
This is the proposed VAT Law in Dubai, the act is yet to come and then i will present one more presentation with the actual law. Kindly note that this is just for the overview and please don't make decisions on the basis of the same.
The document summarizes key highlights from India's 2011-2012 budget related to indirect taxes, direct taxes, income tax rates and slabs, corporate tax rates, and deductions and exemptions. Some highlights include:
- Service tax remained at 10% and was expanded to new services. Penalties for delayed filing or payment were adjusted.
- Basic income tax exemption limits were increased for individuals and HUF. Rates remained 10-30% with adjustments for senior citizens.
- Corporate tax rate remained at 30% with adjustments to MAT, surcharge rates, and tax treatment of foreign dividends.
- Deductions were allowed for long-term infrastructure bonds and weighted deductions for scientific research were increased
The document summarizes key highlights from India's 2011-2012 budget related to indirect taxes, direct taxes, income tax rates and slabs, corporate tax rates, and deductions and exemptions. Some highlights include:
- Service tax remained at 10% and was expanded to new services. Penalties for delayed filing or payment were adjusted.
- Basic income tax exemption limits were increased for individuals and HUF. Rates remained 10-30% with adjustments for senior citizens.
- Corporate tax rate remained at 30% with adjustments to MAT, surcharge rates, and tax treatment of foreign dividends.
- Deductions were allowed for long-term infrastructure bonds and weighted deductions for scientific research were increased
VAT was introduced in Nepal in 1997 to replace several taxes including sales tax. It is a broad-based tax applied at each stage of production and distribution. Businesses with over 2 million NPR in annual taxable sales must register for VAT and can claim input tax credits for VAT paid on purchases. They must collect VAT on sales and remit the difference between input and output tax to the government. Certain essential goods and services are VAT exempt.
10.04.16 tax alert suris implementation to commence during october 2016Maria de los A Rivera
The Puerto Rico Treasury Department is implementing a new Unified Internal Revenue System (SURI) to streamline tax administration. SURI will manage all sales and use tax (IVU) transactions starting October 15, 2016. By October 31st, all IVU transactions must be processed through SURI. Merchants must update their Merchant Registration Certificates in SURI by November 20th. Former online IVU platforms will cease operating in late October. SURI implementation will transition taxes over three phases, with sales and use taxes transitioning by October 2016, business taxes by December 2017, and individual/withholding taxes by December 2018.
Puerto Rico: Summarized guidelines and provisions for transition into VATAlex Baulf
On February 26, 2016, the Puerto Rico Treasury Department (PRTD) issued Administrative Determination 16-01: “Transition to the Value Added Tax (IVA). Both PICO and SURI will be available to process transactions, filings and
requests. The following table summarizes the guidelines and provisions as to what transactions will be processed in which system.
VIETNAM TAX ISSUES – OUTLOOK ON THE EUROPEAN UNION VIETNAM FREE TRADE AGREEME...Dr. Oliver Massmann
The document discusses several issues related to Vietnam's tax system and opportunities under the EU-Vietnam Free Trade Agreement (EVFTA). It notes inconsistencies in how local tax departments apply tax incentives for businesses and calls for clearer guidance. It also points out complexities for enterprises in complying with the declarations and incentives across different documents. Additionally, it raises concerns about discrimination in value-added tax refunds for businesses with output VAT at 5% compared to exporters. Overall, it advocates for simplifying regulations and ensuring fair and consistent treatment of businesses under Vietnam's tax system.
The Finance Bill of 2018 was published on June 12th and aims to alter taxes and duties to increase government revenue and promote economic growth. Key proposed changes include reducing the corporate tax rate for new pharmaceutical and leather industry investors, increasing gaming tax rates, and exempting VAT on capital goods for various industries. The bill also proposes increasing the non-resident income tax rate and granting the finance minister authority to exempt government projects financed by non-concessional loans from income tax.
05.16.16 tax update vat eligible merchant certificate application procedures ...Maria de los A Rivera
The document provides guidance on applying for an Eligible Merchant Certificate in Puerto Rico, which allows merchants to claim refunds on excess VAT payments over $10,000 per month. To qualify for the Certificate, merchants must have $500,000 in average annual sales that are taxed at 0% over a three-year period. The Treasury Department details the application process and documents needed by May 31, 2016. Approved merchants can obtain the Certificate and claim refunds starting with the month of issuance. The guidance also notes that Puerto Rico's legislature approved eliminating the VAT effective June 1, 2016, but the Governor may veto the bill.
Peru 2016 - Corporate and Tax Highlights by Gianmauro NigrettiGianmauro Nigretti
This document summarizes key information about doing business in Peru, including:
- Common forms of business organization are corporations and closed corporations. Corporations require a minimum of 25% of capital stock be paid and forbid contribution of services.
- Corporate income tax is currently 28% but will decrease to 26% by 2019. Resident companies pay tax on worldwide income.
- Individuals are taxed progressively up to 30% on income exceeding 45 times the annual tax unit. Domiciled individuals pay tax on global income while non-domiciled pay only on Peruvian source income.
- Peru has signed numerous double taxation treaties and is negotiating more. VAT of 18% applies to most goods
The document discusses various types of prohibited goods including counterfeits, substandard goods, contraband goods, and goods involved in illicit trade. It provides examples of each category and explains how prohibited goods threaten communities, society, and economic stability by reducing tax revenues and legitimate employment. The last part lists other specific goods that are prohibited such as fake currency, pornographic materials, hazardous chemicals in drinks, narcotics, hazardous waste, and products containing mercury or used tires.
Value Added Tax (VAT) is an indirect tax. It is a type of general consumption tax that is collected incrementally, based on the value added, at each stage of production or distribution/sales. It is usually implemented as a destination-based tax. It is also known as goods and services tax (GST) in some countries
Government has tentatively decided to introduce VAT in UAE by 01 January, 2018. The proposed rate of VAT in UAE will be up to 5%.
The document provides an overview of VAT (value added tax) that is expected to be implemented in GCC (Gulf Cooperation Council) states. It discusses that VAT is an indirect tax on consumption applied to most goods and services. It also notes that VAT will be levied on business transactions at each stage of production and distribution and ultimately paid by the end consumer. The document summarizes preparation steps businesses should take for VAT implementation including understanding the impact, identifying a strategy and timeline, and assessing system capabilities.
Presentation on updates of VAT in UAE is in line with the various advisories issued by Ministry of Finance along with the expert views. VAT is being implemented in the UAE wef 1st January 2018. Presentation has impact of VAT/ Steps to follow to become VAT compliant/ thresholds for VAT registration with process to be followed.
This document provides frequently asked questions about VAT implementation in GCC countries. It discusses what VAT is, how it is calculated and applied, preparations businesses need to make for compliance, and expectations of tax authorities. It also addresses questions related to SAP solutions for VAT computation, legal reporting, timelines, and how customers can stay updated on releases. SAP plans to support VAT compliance through country templates, a tax calculation service, legal reporting tools in S/4HANA and SAP Cloud Platform, and will update solutions once VAT laws are declared.
UAE: MOF confirm that the UAE will implement VAT at 5% from January 2018Alex Baulf
It has been confirmed that the UAE will implement value added tax (VAT) at the rate of five per cent from 1 January 2018.
Obaid Humaid Al Tayer, Minister of State for Financial Affairs, said that “GCC countries have from 1 January 2018 to 1 January 2019 to implement VAT.” He confirmed that each country represented in the GCC can implement VAT within that time period and continued that “a lot of ground work needs to be done before implementing VAT”. He continued that the GCC countries are currently working on a framework, which he expects to be agreed upon and made public in June of this year.
The document analyzes the new corporate income tax rates under the Inland Revenue Act of 2017. It outlines three main tax tiers - 14%, 28%, and 40% - and provides concessions. Small and medium enterprises with under Rs. 500M in annual turnover are taxed at 14%. Companies predominantly exporting, in agriculture, education, tourism or IT are also taxed at 14% if these activities make up 80% of their income. Income from betting, gaming, liquor or tobacco is taxed at 40% unless incidental to other business. The document also notes various issues with interpreting and applying the new rules.
Lawyer in Vietnam Dr. Oliver Massmann UNNECESSARY TAX AND CUSTOMS RELATED BUR...Dr. Oliver Massmann
The document discusses several issues faced by investors in Vietnam related to unnecessary tax and customs burdens imposed by state authorities. Some of the key issues mentioned include retrospective collection of taxes despite tax incentives provided, inconsistencies in applying HS codes for imported goods which results in higher tax rates and penalties, misinterpretation of guidance on tax declarations leading to wrongful penalties, and rejection of VAT refunds due to administrative errors. The document calls for Vietnamese state authorities to implement policies consistently and protect lawful rights and interests of enterprises to support the country's socioeconomic development goals.
The document discusses recent shifts in the UAE banking sector from a borrowers' market to a lenders' market. Specifically:
- Banks have seen declining deposits due to lower oil prices, resulting in tighter lending policies.
- Banks are now more conservative lenders, screening borrowers stringently to avoid credit losses.
- Interest rates may rise as bank liquidity decreases with fewer deposits.
- While economic headwinds are growing, UAE banks are well-positioned from experience during the 2008 financial crisis. The shift to a non-oil economy may help banks regain lending momentum as liquidity increases.
Good and Service Tax (GST) implementation around in the corner, are you ready? How would you furnish yourself with the most updated GST information? Don't worry follow our step by step guide on how to deal with GST. Explore yourself.
The new law set to give high discretionary power to VAT officials. Recently government announce plan to change single VAT rate of 15 percent to different rate for different segments of business. The discretionary power, different rate of VAT and so-called turnover VAT will turn the new VAT similar to existing law. The proposed law will introduce IT based compliance and reporting system, which will make the law more complicated for SMEs.
GST and SST are different types of taxes implemented in Malaysia. SST is a single-stage tax paid by the manufacturer and again by the retailer, resulting in a total tax of 16% for the consumer. In contrast, GST is a multi-stage tax where each step in the supply chain pays 6%, resulting in a total tax of 12% for the consumer. Under GST, businesses can claim input tax credits for tax paid on purchases, whereas under SST businesses could only recover tax as a business cost. However, whether businesses will actually lower prices due to these input tax credits remains uncertain, as it depends on whether they choose to pass on the savings to consumers.
This is the proposed VAT Law in Dubai, the act is yet to come and then i will present one more presentation with the actual law. Kindly note that this is just for the overview and please don't make decisions on the basis of the same.
The document summarizes key highlights from India's 2011-2012 budget related to indirect taxes, direct taxes, income tax rates and slabs, corporate tax rates, and deductions and exemptions. Some highlights include:
- Service tax remained at 10% and was expanded to new services. Penalties for delayed filing or payment were adjusted.
- Basic income tax exemption limits were increased for individuals and HUF. Rates remained 10-30% with adjustments for senior citizens.
- Corporate tax rate remained at 30% with adjustments to MAT, surcharge rates, and tax treatment of foreign dividends.
- Deductions were allowed for long-term infrastructure bonds and weighted deductions for scientific research were increased
The document summarizes key highlights from India's 2011-2012 budget related to indirect taxes, direct taxes, income tax rates and slabs, corporate tax rates, and deductions and exemptions. Some highlights include:
- Service tax remained at 10% and was expanded to new services. Penalties for delayed filing or payment were adjusted.
- Basic income tax exemption limits were increased for individuals and HUF. Rates remained 10-30% with adjustments for senior citizens.
- Corporate tax rate remained at 30% with adjustments to MAT, surcharge rates, and tax treatment of foreign dividends.
- Deductions were allowed for long-term infrastructure bonds and weighted deductions for scientific research were increased
VAT was introduced in Nepal in 1997 to replace several taxes including sales tax. It is a broad-based tax applied at each stage of production and distribution. Businesses with over 2 million NPR in annual taxable sales must register for VAT and can claim input tax credits for VAT paid on purchases. They must collect VAT on sales and remit the difference between input and output tax to the government. Certain essential goods and services are VAT exempt.
10.04.16 tax alert suris implementation to commence during october 2016Maria de los A Rivera
The Puerto Rico Treasury Department is implementing a new Unified Internal Revenue System (SURI) to streamline tax administration. SURI will manage all sales and use tax (IVU) transactions starting October 15, 2016. By October 31st, all IVU transactions must be processed through SURI. Merchants must update their Merchant Registration Certificates in SURI by November 20th. Former online IVU platforms will cease operating in late October. SURI implementation will transition taxes over three phases, with sales and use taxes transitioning by October 2016, business taxes by December 2017, and individual/withholding taxes by December 2018.
"Puerto Rico Tax Reform Process Act 72 - A Dynamic Shift to a Value Added TaxMaria de los A Rivera
Puerto Rico is transitioning from a sales and use tax (SUT) to a value added tax (VAT) in three phases over the next year due to budget deficits. Phase I increases SUT rates on July 1. Phase II expands the SUT base and introduces professional service and business-to-business taxes on October 1. Phase III fully transitions to a VAT of 10.5% on most goods and services beginning April 1, 2016. Puerto Rican businesses need to prepare now for changes to invoicing, tax automation, and training personnel as the new taxes take effect. A commission will review the tax reform and may propose alternate legislation.
The document summarizes changes to Puerto Rico's tax system enacted by Act 72-2015, including:
- Increasing individual and corporate income tax rates and limiting deductions/credits.
- Implementing an Alternative Minimum Tax for corporations with rates based on purchase amounts from related parties.
- Raising the sales and use tax rate to 10.5% from July 1, 2015 and imposing a 4% tax on certain business services.
Taiwan: Compulsory VAT registration for Foreign E-Commerce OperatorsAlex Baulf
Effective May 1, 2017, Taiwan implemented new rules for compulsory VAT registration of foreign e-commerce operators. Under the new rules, foreign e-commerce operators with no permanent establishment in Taiwan must register for VAT if their annual Taiwan sales exceed TWD 480,000 (approximately USD 15,500). To register, foreign e-commerce operators must provide information such as company name, responsible person's name, business description, and banking details. This change aims to close a loophole where some foreign e-commerce operators were not paying taxes in Taiwan. Failure to register can result in penalties from TWD 3,000 to TWD 30,000.
What are the new VAT administrative penaltiesAhmedTalaat127
The Federal Tax Authority (FTA) shared a public clarification on 28th April 2021 about the amendments for provisions under the Cabinet Decision No 40 of 2017 for administrative penalties. VAT penalties include administrative penalties, which mean the monetary fines imposed on a person or an entity by the FTA for breaching the provisions in the Tax Law of UAE. Penalties can easily be avoided by taking the necessary precautions for non-compliance while filing the VAT report. Businesses have more time to review their data and submit an accurate VAT filing and can benefit from up to 70% waiver for their unpaid penalties if they meet the criteria.
vat implementing regulations for public consultationSwamy Nlnj
The Saudi Arabian Tax Authority has released draft VAT implementing regulations for public consultation, with VAT to be implemented on January 1, 2018. The standard VAT rate will be wide in scope with few exemptions. Key provisions in the draft regulations include registration requirements, VAT grouping rules, taxable financial services, exemptions for residential leasing and medical supplies, rules for government entities, and documentation requirements for invoices, returns, and record keeping. Businesses should assess the VAT impact and prepare compliance plans across key areas like finance, supply chain, and IT systems.
What are the new VAT administrative penaltiesAhmedTalaat127
The Federal Tax Authority (FTA) shared a public clarification on 28th April 2021 about the amendments for provisions under the Cabinet Decision No 40 of 2017 for administrative penalties. VAT penalties include administrative penalties, which mean the monetary fines imposed on a person or an entity by the FTA for breaching the provisions in the Tax Law of UAE. Penalties can easily be avoided by taking the necessary precautions for non-compliance while filing the VAT report. Businesses have more time to review their data and submit an accurate VAT filing and can benefit from up to 70% waiver for their unpaid penalties if they meet the criteria.
The document provides an analysis of key changes in the Union Budget 2013 related to direct taxes, indirect taxes, and service tax. Regarding direct taxes, key changes include deferring GAAR implementation, revising withholding tax rates on royalties and FTS, and imposing surcharges on various incomes above certain thresholds. For indirect taxes, notable changes involve hiking and lowering customs duty rates on certain products. Under service tax, changes include modifying the negative and exemption lists as well as reducing abatement rates for certain services.
The document discusses various tax obligations in Kenya including income tax, VAT, corporation tax, and presumptive tax. It provides details on tax rates, eligibility requirements, and return filing deadlines for each obligation. Penalties for late filing of tax returns are also outlined.
Income tax is the most significant form of taxation in Australia and is collected by the federal government. Individuals are taxed on personal income like wages at progressive rates from 0-45% plus a 2% Medicare levy. Companies pay a flat tax rate of either 30% or 27.5% depending on annual turnover. Tax returns are generally due by October 31 each year and can be filed online, with a tax agent, or using a paper form.
- Act 72 transforms Puerto Rico's tax system, increasing the sales and use tax rate to 10.5% effective July 1, 2015.
- Beginning October 1, 2015, certain business to business services and designated professional services will be subject to a special 4% tax rate.
- Excluded from the 4% rate are many services provided by the government, educational services, financial services, health services, and services between controlled groups.
Nigretti Gianmauro: Chile 2016 - Corporate and Tax HighlightsGianmauro Nigretti
Chile provides several options for foreign companies to establish a local presence, including stock corporations, limited liability companies (LLCs), and branches of foreign corporations. Stock corporations require a minimum of two shareholders, while LLCs require a minimum of two partners. Both structures allow for fully foreign ownership. Branches represent the locally registered office of a foreign corporation.
Chilean law requires companies to maintain accounting books and records. Financial statements include a balance sheet, income statement, cash flow statement, and notes. Non-monetary assets must be restated for inflation. Corporations and branches pay corporate income tax of 24% on worldwide income. Individuals pay progressive personal income tax up to 40% on worldwide income after the first
The document summarizes key highlights from India's 2010-2011 budget related to indirect taxes, direct taxes, deductions and exemptions, and tax rates. Some key points include:
- Service tax rate remained unchanged at 10% but new services were taxed, while some services were excluded.
- Income tax slabs and exemption limits for individuals remained largely unchanged. Surcharge on personal income tax was removed.
- Corporate tax rate remained at 30% for domestic companies. MAT was increased to 18% and surcharge reduced to 7.5% for companies with income over Rs. 1 Crore.
- Deductions were introduced or increased for infrastructure bonds, health insurance, and research and development expenditures.
Skp global expansion updates_ December_2017Partha Pant
The newsletter covers global tax developments including:
- Mauritius extending the deadline for asset statements and changes to RRSP contribution limits in Canada.
- Ghana proposing a paperless tax exemption system and Nigeria approving payment of outstanding foreign tax debts in local currency up to 2016.
- Proposed reductions to corporate income tax rates in Argentina and Saskatchewan.
- Changes to tax treatment of employee discounts in Canada and Mexico's updated federal revenue law for 2018.
- Introduction of GST on low value imports to Australia and signing of a double tax treaty between India and Hong Kong.
- Approval of Singapore's Income Tax Amendment Bill and CPF interest rates for 2018.
1. The document discusses Value-Added Tax (VAT) in the Philippines, including what it is, who pays it, tax rates, and invoicing/receipt requirements for VAT-registered businesses.
2. VAT is imposed on the sale, barter, exchange or lease of goods/properties and services in the Philippines at 12% of the gross selling price or gross receipts. It is also imposed on imports.
3. Businesses whose gross sales/receipts exceed 1.9 million pesos per year must register for VAT and charge VAT on sales, issue VAT invoices/receipts, and file monthly VAT returns.
China: Tax Bulletin-Latest update on VAT RegulationsAlex Baulf
Subsequent to Grant Thornton China's last update in July 2017, this VAT Alert summarizes some of the further significant changes on VAT regulations for your reference.
- Revision of the “Provisional Regulations of the People's Republic of China on Value-added Tax” (Referred to as “VAT regulation revision 2017“)
- Clarification on Input VAT Issues
- VAT regulations on specified financial products
- Changes on VAT invoices
- Simplified tax administration on registration of general VAT payers
In Issue 11 of The OHL Wire, we look at what will change on 1 July 2015 and how does divorce affect your tax and super fund. We also look at everything you need to know about taxation and deceased estates in Australia. We discuss the rules and requirements for buying property through a self-managed super fund (SMSF) in NSW. We check out upcoming events in Sydney and provide you a few ideas on how to spend your tax refund as the tax year is coming to an end.
This document provides an overview of Canada's GST/HST tax system. It explains that the GST is a value added tax applied to most goods and services in Canada, while some provinces have harmonized their provincial sales tax with the GST to implement the HST. It outlines who pays and charges the GST/HST, what types of supplies are taxable, zero-rated or exempt. It also summarizes registration requirements, how to calculate net tax, input tax credits, filing obligations and record keeping requirements.
A presentation given to the Xtraordinary Women in Business Network in Blouberg on 18 April 2013 by Chris Farquharson, Chartered Account and owner of True North Accounting.
TOPIC: Sole Proprietor vs. Pty: Legal meets Finance
So, they say – “Rome was not built in a day” and that is certainly true for any business. Most small businesses start off as sole proprietorships or even partnerships, simply in order to save costs. Some on the other hand because the other options are often widely misunderstood.
Is there really a cost saving and if there is, is cost saving really worth the risk?
An insightful morning was spent with Nicolene Schoeman and Chris Farquharson as they shared the legal and financial practical business solutions to these challenges.
Similar to Puerto Rico: Value Added Tax - Impact on the Restaurant Industry (20)
Bahrain: Phased roll out of VAT in BahrainAlex Baulf
The National Bureau of Taxation, operating under the Ministry of Finance, conducted their first VAT briefing session on 3rd December 2018 which was attended by several accounting firms. MOF presented the way forward on VAT implementation and addressed several concerns raised during the meeting. In light of this discussion, Grant Thornton Bahrain's VAT team has set out the key takeaways in the attached Alert.
UK: VAT alert - Government publicises VAT changes if there is “no-deal” on B...Alex Baulf
Not that it is expecting a ‘no-deal’ scenario – the UK Government has specifically emphasised that it fully expects the opposite - but, just in case, it has announced a number of measures relating to UK VAT should agreement between the EU and the UK not materialise.
The Government considers that it is progressing well in its negotiations with the EU on the terms of Britain’s exit. However, rightly, it recognises that it is always possible that agreement will not be reached. As a consequence, it has made announcements in relation to VAT in the event of a so-called Brexit ‘no-deal’.
UK businesses – especially those that trade with businesses in other Member States of the EU have had concerns on a number of fronts, not least how the UK VAT system will work after Brexit and what changes will be needed in relation to import and export procedures.
The announcements made by the Government should help businesses to prepare for a ‘no-deal’ Brexit with a little more certainty. In line with the Government, businesses should not assume that an agreement will be reached. Businesses should be prepared for a ‘no-deal’ scenario even though that may not come to fruition.
The Court of Appeal upheld previous rulings that an employment agency, Adecco, was liable to pay VAT on the full value of supplies of temporary staffing services to clients, not just administrative fees. Adecco argued it only exerted limited control over temporary workers and was not their employer, but the Court found the contractual arrangements and services provided to clients were effectively the same regardless of worker classification. This clarifies that employment agencies must pay VAT on total fees charged for staffing services unless workers contract directly with clients. The decision impacts how agencies structure operations and could increase costs passed to clients.
The First Tier Tribunal (FTT) has released its decision in the case of The Rank Group plc (Rank). Rank operated 3 types of automated gambling machine: Fixed Odds Betting Terminals (FOBT), section 16/21 and section 31/34 machines. The issue for the FTT to consider was whether the machines were ‘similar’. If so, treating them differently for VAT purposes would offend the principle of neutrality. The CJEU had previously held that the machines in question fell within the same category (broadly referred to as slot machines). However, it was for the UK court to decide whether the machines in question were ‘similar’. If so, treating the income from such machines differently for VAT purposes would be considered to offend the principle of fiscal neutrality. The FTT determined that the correct test was to examine the betting experience from the perspective of the user. Would the user’s needs be equally met whichever machine was selected? In examining the evidence, the FTT concluded that the user experience was substantially similar and that users would select machines for a variety of reasons, often playing machines interchangeably. On the basis that such factors as machine location, atmosphere, opening hours and availability were specifically stated by the CJEU to be disregarded in this context, the FTT concluded that the machines were similar. Accordingly, the principle of fiscal neutrality was offended. Rank’s appeal allowed.
The Court of Appeal has issued a unanimous judgment in the appeal by Zipvit Ltd (Zipvit) against the judgment of the Upper Tribunal. Zipvit, like many other businesses, contracted with Royal Mail to supply delivery services. At the relevant time, these services were treated by Royal Mail, Zipvit and HMRC as being exempt from VAT under the UK’s implementation of the ‘postal services’ exemption.
However, following the Court of Justice judgment in the ‘TNT’ case in 2009 (which ruled that VAT exemption only applied to universal postal services), it became clear to all parties (including HMRC) that the mailmedia service provided by Royal Mail should have been liable to VAT at the standard rate.
On that basis, Zipvit submitted a claim for a refund of the input VAT purportedly included in the price it had paid to Royal Mail. HMRC rejected that claim and Zipvit appealed to the First-tier Tax Tribunal (FTT). The FTT dismissed the appeal as did the Upper Tribunal.
Now, the Court of Appeal has dismissed Zipvit’s appeal. The judgment issued on 30 June 2018 dismisses the appeal on the basis that Zipvit had no valid VAT invoice to support its claim. A fact regarded as a fatal flaw.
This case - a referral to the Court of Justice by the French court - delivers the judgment of the European Court with regard to the recovery of input VAT on expenditure incurred by Marle Participations SARL (‘Marle’). The company sought to recover input VAT on expenditure incurred on expenses relating to a corporate restructure. The tax authorities denied input VAT recovery on the grounds that the expenditure related to activities that were capital in nature and so fell outside the scope of VAT (thereby precluding VAT recovery). Marle argued that the letting of property by the holding company to a subsidiary amounted to ‘involvement in the management’ of the subsidiary. This involvement constituted an ‘economic activity’ so enabling VAT to be recovered on the restructuring costs.
The Court has ruled that the letting of property to its subsidiary amounted to ‘involvement in the management’ of that subsidiary. As such it constituted an ‘economic activity’ carrying the right, in principle, to input VAT recovery. Such input VAT recovery was to be regarded as general expenditure of Marle (and therefore subject to the normal rules governing VAT recovery). Providing the letting services were supplied by Marle on a continuing basis, for consideration, the services were taxable and Marl could demonstrate a direct link between those services to its subsidiary and the consideration it received, input VAT could be deducted in full.
International Indirect Tax - Global VAT/GST update (June 2018)Alex Baulf
High level slides from Grant Thornton's VAT Club seminar in London held in June 2018.
Topics covered include:
ECJ decision - C-580/16 Hans Bühler - Triangulation
Netherlands - VAT rate change
Russia - VAT rate change
Bahamas - VAT rate change
Angola - New VAT system
Liberia - New VAT system
Costa Rica - New VAT system
Costa Rica - e-invoicing requirements
Hungary - Electronic Invoicing
Italy - Mandatory e-invoicing
Australia - GST on hotel accommodation
Poland - VAT split payments
Spain - First penalties in relation to SII
Greece - SAF-T & E-Invoicing?
Argentina - VAT on digital services
Columbia VAT on digital services
Canada - Quebec: New QST obligations for non-resident suppliers of digital services
USA: Wayfair – the Decision
India - “Happy Birthday GST" - what's next
New Zealand - Low value consignment relief
Malaysia - GST to 0% and transition to SST
United Arab Emirates - Exchange Rates for VAT purposes
Kuwait - VAT postponed until 2021?
GCC - Bahrain, Oman, Qatar VAT implementation latest
The Spanish tax authorities have begun imposing penalties for non-compliance with Immediate Supply of Information (ISI) VAT reporting requirements, now that the legal framework for penalties is in place. Approximately 1,300 companies, or 2% of those required to comply, have not yet implemented ISI. Penalties include fines of 1% of annual turnover for complete non-compliance, 0.5% of invoices for late reporting, and €150 per unreported transaction. Authorities will also fine inaccurate, omitted, or false reporting by 1% of the erroneous amounts, with a minimum of €150 and maximum of €6,000.
On May 3, 2018, Georgia Governor Nathan Deal signed H.B. 61 enacting significant changes to sales and use tax laws, including imposing a bright-line nexus rule on certain sellers of tangible personal property. Effective January 1, 2019, any seller that conducts 200 or more separate retail sales of tangible personal property for Georgia delivery or obtains more than $250,000 in gross revenue from such sales is considered a dealer that must either register to collect and remit sales tax or notify customers of use tax obligations and report to the state that such requirements have been fulfilled.
U.S. Supreme Court Holds Hearing in South Dakota v. WayfairAlex Baulf
1. The US Supreme Court heard oral arguments in South Dakota v. Wayfair, a case that could overturn the physical presence standard for sales tax nexus established in Quill v. North Dakota.
2. Several Justices appeared open to eliminating the physical presence rule, while others emphasized upholding precedent or suggested having Congress address the issue.
3. The hearing reflected deep divisions and uncertainty among the Justices, with the outcome difficult to predict. The Court's decision later this year may not provide a clear consensus.
The document summarizes new rules and guidance issued in China related to taxation. It discusses a circular that defers withholding tax on dividends paid to foreign investors if they are reinvested in China. It also summarizes new enterprise income tax return forms issued by the State Administration of Taxation and guidance clarifying value-added tax issues arising from VAT reforms. Finally, it discusses a public notice that provides further clarification on determining "beneficial ownership" in tax treaties.
International Indirect Tax - Global VAT/GST update (March 2018)Alex Baulf
These are the slides from the International Indirect Tax - Global VAT/GST update presented at Grant Thornton's VAT Club held in London on 9th March 2018.
The topics discussed include:
EU
• Bulgarian Presidency
• VAT Action Plan – proposal for a Definitive VAT System based on destination principle
• Customs: Binding Valuation Information (BVI)
• Considerations for using TP for Customs value
• Hungary: Electronic Invoicing
• Spain: SII 1.1 new version
• Italy: Simplifications to “Communications of data of invoices issued and received”
• Italy: Mandatory e-invoicing?
EMEA
• South Africa: VAT rate increase
• GCC – where are we?
• UAE: What's been released ? What's missing? Designated Zones
NOAM
• USA: Landmark sales tax nexus case to be heard in Supreme Court
APAC
• India: GST update
• China: Further VAT reform
• Malaysia: GST Compliance Assurance Program (MyGCAP)
• Singapore: Future GST rate increase / reverse charge
• Australia: Final guidance published for online retailers - GST on low value imported goods
This publication has been prepared only as a high level guide. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material in this publication.
India: Recommendations from GST Council in 25th meeting Alex Baulf
The GST council in its 25th council meeting held on 18 January 2018 in New Delhi, recommended various changes to the GST law. The changes, inter alia, include revision of rates applicable to certain goods/services, introduction of exemptions, and rationalisation of various existing exemptions etc.
Serbia: Tax Alert - Amendments of Serbian Tax Laws (Dec 2017)Alex Baulf
On 14 December 2017, the Serbian Parliament adopted amendments to the VAT Law, which were published in the Official Gazette of the Republic of Serbia No.113/2017.
The adopted amendments will go into force on January 1 2018, with exception of certain provisions for which it is particularly emphasized.
On 14 December 2017, the Serbian Parliament adopted amendments to the Corporate Income Tax Law, which were published in the Official Gazette of the Republic of Serbia No.113/2017.
The adopted amendments will go into force on January 1 2018, with exception of provisions regulating withholding taxation. The majority of provisions shall be applied starting from the filing of tax return for 2018.
Please see a high level overview of these changes in the Tax Alert from Grant Thornton Serbia.
USA: NY - New York Appellate Division Holds Certain Data Information Services...Alex Baulf
The New York Supreme Court, Appellate Division has held that the competitive price reports purchased by a supermarket retailer were considered to be information services that qualified for a statutory exclusion from sales tax. The Court concluded that the information services were excluded from sales tax because the information was personal or individual in nature and was not substantially incorporated into reports of others.
UK: Briefing Paper - Are you ready for Making Tax Digital? Alex Baulf
The UK government is going ahead with its Making Tax Digital (“MTD”) programme, starting with VAT-registered taxpayers. From 1 April 2019, businesses with a turnover above the VAT registration threshold will be required to keep specified minimum records in the VAT account and to submit the current nine- box VAT return to HMRC via Application Program Interface (“API”) software (linking either the accounting system or excel spreadsheets to the HMRC system).
The document lists the names of people working on a project from June 2017 to October 2017. It includes 3 project leaders - 包孝先, 吴江娇, and 杨颖. Other contributors were 周自吉, 张斌, and 徐瑛. The document provides an inventory of staff involved in the project during this time period but does not include any other details.
Cyprus: VAT Alert - VAT on building land, leasing of commercial immovable pro...Alex Baulf
Following much anticipation and speculation the Cyprus Parliament has enacted far reaching amendments to the Cyprus VAT Law on 3/11/2017 which impact transactions related to immovable property. The amending legislation (N157(1) of 2017) was published in the Official Gazette of the Republic of Cyprus on 13/11/2017.
• A significant part of the aforementioned changes involve the imposition of VAT on the supply of land. These amendments to the Cyprus VAT Law were a condition of Cyprus’ accession to the EU in 1/5/2004 for which a derogation was secured until 31/12/2007. Their enactment brings Cyprus in line with the obligations undertaken within this scope.
Saudi Arabia - VAT Frequently Asked QuestionsAlex Baulf
The document provides frequently asked questions about Saudi Arabia's VAT system. It discusses VAT eligibility and registration processes, including registration thresholds, group registrations, and mandatory vs voluntary registration. It also covers VAT procedures such as return filing frequencies, invoice requirements, record keeping obligations, and interactions with other governmental entities.
Germany VAT Alert: Call-Off stock - Changes in VAT treatment in GermanyAlex Baulf
The German VAT law does not contain any simplification for supplies via consignment stocks/ call-off stocks in Germany. However, due to the recent jurisdiction of the German Federal Tax Court, the German tax authorities have changed their approach in single cases in relation to call-off stocks.
5. Impact of proposed value added tax
Restaurants Industry
Imported products 52,500$
Other products 84,000
Services and other 105,000
Total VAT paid: 241,500$
*Only 10.5% VAT at the state level. Municipal remains at a 1% under SUT.
Audit · Tax · Advisory
Member firm of Grant Thornton International Ltd
Restaurant Imports :
- Unprepared food - $500,000
- Other products - $500,000
Pays 10.5% * VAT on the
other products = $52,500.
- Restaurant acquires locally un-prepared
food free of VAT $1,000,000
- Acquires locally other products subject
to VAT $800,000
- Pays 10.5%* VAT of $84,000 to the
seller.
- Customer pays the tax on the purchase
of the final product
- Not allowed to claim credits
- Restaurant prepares the food -Adds Value
- Overall sales amounted to $3,300,000
- Collects VAT of $346,500
- Takes a credit for the VAT paid for a total of
$241,500IMPACT OF PROPO
Deposits $105,000 = ($346,500-241,500)at the
PRTD after taking the credits for VAT paid.
- Restaurant buys services and supplies in the amount of
$1,000,000 and pays 10.5%* VAT of $105,000.