Cyprus VAT Rise From March 1st.
VAT in Cyprus will increase from 15% to 17% from March 1st this year.
The increase, part of the governments efforts to fill state coffers and combat the economic crisis, will not affect products and services where VAT is set at a reduced rate of 5% or 8%.
The Finance Ministry’s VAT Service calls on those businesses that will be affected by the increase in the standard VAT rate to make an inventory of their stocks at the close of the day before the increase will go into effect.
The results of the inventory are to be…
Mobile Phone Companies Incorrectly Charge VAT On Charity Texts.
Finance Minister Michael Noonan has announced that mobile phone providers have been incorrectly charging VAT on charitable donations made via text message.
Mr Noonan made the revelation in the Dail in response to a parliamentary question made by Fianna Fail TD Eamon O’ Cuiv.
Charitable donations are not subject to Irish VAT.
The Finance Minister said the phone companies are working to resolve the issue in the near future.
France To Raise VAT.
French President Nicolas Sarkozy has said he will finance a reduction in payroll taxes in part with an increase in VAT. Sarkozy announced that the top VAT rate will increase to 21.2% from 19.6% on October 1st.
Mr Sarkozy said there is no risk of inflation from a VAT increase as there is so much competition.
UK Brewers Push For Massive VAT Cut.
A number of the UK’s leading pub chains have banded together in a call for a reduction in VAT which, they hope, will boost the country’s hospitality industry.
They have joined together to support French hospitality lobbyist Jaques Borel in his campaign to have VAT reduced from 20% to 5% on food, drink and accommodation.
Borel has previously successfully lobbied for the VAT cut in France, leading to the creation of thousands more jobs in the leisure industry.
VAT Increase Sends Fuel To A Record High
Ireland’s latest VAT hike has sent fuel prices to a record high.
Petrol costs are up to 154.9c per litre, a jump of 7c in just a month while diesel is also at a record high of 153.1c per litre, an increase of 6.2c since last month.
While most of the increase is due to the government VAT increase (from 21% to 23%) the remainder is due to the value of the Euro weakening against the dollar, and increases in wholesale prices.
Top Stores Refuse VAT Hike.
Good news for shoppers in 2012 as top stores Aldi, Lidl, Marks & Spencer and Tesco have announced that they will not ask customers to pay the new top rate VAT of 23%.
The rate hike, 23% from 21%, was announced by finance minister michael Noonan in last weeks budget.
Tesco have said that it will not pass on the new rate to food or clothing, but the 23% rate will apply to non-food groceries such as household goods.
New Review On VAT Exemptions Expected.
A new EU report is expected to recommend limiting countries VAT exemptions. This move could affect the price of a diverse range of products.
The review by Algirdas Semeta, the European taxation and customs commissioner, will look at the possibility of setting rules for member states which will allow exemptions.
The review is expected to argue that removing exemptions and limiting VAT reductions could raise more money or allow overall VAT rules to be reduced.
Irish VAT Hike Confirmed
Michael Noonan has confirmed that a 2% VAT increase, as included in leaked proposals will come into effect.
The Irish minister for finance has said that some of his proposals for the December budget were released early.
Kenny Defends Proposed 2% VAT Increase
Taoiseach Enda Kenny has defended the proposed 2% VAT hike in the December budget.
Mr Kenny said the Government has to make unpalatable choices to rebuild the economy.
Speaking in Co Limerick, the Taoiseach said that while the government has not made a decision on the issue, the minister for finance has said he will propose a 2% increase in VAT to 23%.
HMRC Successfully Prosecute Largest Ever VAT Fraud Of Over £300 Million.
A former south Yorkshire policeman has been jailed for 10 years and 3 months for his part in an attempted £330 million VAT fraud.
Nigel Cranswick 47 of Dinning, South Yorkshire and five others were caught by HMRC investigators after they claimed their new business had sold more than six million mobile phones, and had a turnover of more than £2.4 billion in less than a year.
Using details from fictitious companies, the gang produced thousands of invoices for sales of mobile phones and computer software.
Cranswick claimed that in the first six weeks of trading his…
HM Revenue & Customs Hit Jackpot On Slot Machines
HMRC will try to recoup an estimated £100m in VAT rebates that it payed out to bingo hall and pub operators over alleged unfair tax treatments on slot machine takings.
The news comes after the European court of justice issued a series of clarifications over the complex legal position on VAT for slot machine and bingo games.
VAT Hikes Expected (Ireland)
The forthcoming budget looks set to bring VAT hikes, excise duties and carbon taxes in a massive €3.8bn savings package.
Finance minister Michael Noonan has also suggested that VAT may also rise from 21% to 23%.
Changes To Portuguese VAT
Tax authorities in Portugal have announced VAT changes as part of their budget 2012. They have announced exclusions from the reduced rate of 6% for soft drinks, bottled waters, juices and concentrates as well as artistic and sporting events.
Bulgaria Urged To Amend Its VAT Rules
An official request has been made to Bulgaria by the European Commission to amend its VAT legislation. The EC have said that Bulgarian VAT laws discriminate against persons involved in intra-community transactions. “the commission considers that these rules, which distinguish between taxable persons operating only with Bulgaria and those carrying out transactions with other EU member states, are incompatible with the VAT directive and with the principle of proportionality” the statement said.
SEAT offers VAT incentive
Seat motors is re-launching its “pay no VAT” incentive on certain models in a bid to attract customers.
Concerned models are the Ibiza 1.4 5 door SE Copa Supermini and the Leon 1.6 TDI S.
The VAT discount will lead to savings between £2100 & £2900.
2010 VAT Deadline
The 2010 VAT claims deadline is only 9 days away. Get all unclaimed VAT invoices in today!!!
Hungarian Parliament Adopts VAT Refund Rules.
Hungary’s parliament has passed a bill under which companies can submit VAT refund claims based on a European court of justice ruling before October 20th, or obtain a refund later in their VAT returns.
The European court ruled late in July that Hungary’s VAT regulations were incompatible with EU law, and the state must refund payments amounting to 250 billion forints (€860 million).
Lobby Group Calls For Osbourne To Reverse VAT Hike.
A leading business lobby group has called on George Osbourne to lower VAT in an effort to restore confidence and boost growth.
The federation of small businesses, have said its quarterly survey showed a dramatic decline in business confidence in the three months to the end of june. They believe Januarys VAT rise to 20% is killing hard hit industries that have yet to recover from the recession.
Possible UK VAT Hike To Come.
British consumers face a fresh VAT hike as EU chiefs are planning a tax grab to fund projects.
Currently 0.3% of VAT in every pound spent goes directly towards EU funding. Now EU chiefs are planning to raise the levy to 1.3% - and the cost will almost certainly be passed on to the consumer.
HM Revenue & Customs To Reduce Penalties To VAT Dodgers.
British companies who have failed to register for VAT are being given the chance to come forward in a new initiative by the HMRC.
Some businesses may not have realised that their turnover was above the threshold, while others may have been avoiding paying the tax.
Now the HMRC has said it will give reduced penalties to those who declare before september 30th.
The move follows a series of HMRC campaigns on income tax.
Builders Call For VAT Reduction On Home Improvements
Scottish builders have called for VAT to be slashed in the construction sector. The call follows an industry survey which said 2 in 5 firms thought a targeted VAT cut would be the most effective way of boosting the industry. Companies have called on the Scottish Government to apply preasure on westminster to cut VAT from 20% to 5%.
New Irish VAT Rate Comes Into Effect
A new VAT rate has been introduced today, covering a range of services connected to the tourism and hospitality sectors.The new rate of 9% is a result of the government jobs initiative. It applies to restaurant & catering services and hotel and holiday accomodation. The new rate will apply until December 2013, when it will be reviewed.
Dutch Government Looks To Increase VAT Rate.
Dutch state secretary of finance has published plans for a “more simple, more solid and fraud proof tax system”, which includes a possible rise in the reduced VAT rate from 6% to 8%.
The possible increase in VAT rate could cause changes in the pattern of spending of consumers. Rate changes may also mean systems changes for businesses.
HMRC Urged To Provide Clarity On VAT Notes
HM Revenue & Customs have been urged to provide a set of clear, difinitive VAT notes setting out when financial advice is liable for VAT. The Association of British Insurers and HMRC jointly published guidance last August, explaining tha VAT is payable on advice but not on product sales.
Mitsubishi Calls For VAT Suspension On Electric Vehicles
Mitsubishi Motors is supporting calls for the UK Government to suspend VAT on all electric vehicles. They believe removing Vat on EV’s would bridge the gap between the cost of an EV and that of a conventional vehicle.
UK Government Urged To Drop VAT On Electric Cars
Motoring journalist Quentin Wilson has teamed up with the RAC, to urge the UK government to suspend VAT on electric cars. They hope this move will stimulate consumer demand, and encourage investment in the UKs green automotive industry.
HMRC Pay Virgin Media £81.5 m VAT Refund
Virgin Media have been granted an £81.5 million VAT refund by HM Revenue and Customs. The refund covers the period 2003 - 2011. The settlement ends a long-running dispute with the tax authority. Virgin have remained tight-lipped on why the money had been overpayed.
2010 Claims Deadline For Non-EU Companies Is Fast Approaching
Non-EU Companies take note! The deadline for 2010 claims is fast approaching. VAT claims not submitted before June 30th 2011 will be lost so get those invoices in to Global Tax Reclaim Ltd today!
VAT Loophole Closure Leads To Downturn In Private Jet Sales.
An extra £1bn was spent on private jets in the final quarter of 2010 as Britains richest bid to beat Januarys VAT increase.
The government raised VAT on private jets, which had been previously zero-rated.
Several MPs were said to be shocked that the zero-rating had slipped under the treasury radar, allowing Britains most wealthy to enjoy the benefit of a massive tax loophole for decades.
UK VAT Cheats Targeted By HMRC
HM Revenue have launched a new initiative to catch VAT cheats. The initiative intends to target businesses that have not yet registered for VAT, but are trading above the VAT threshold. Interested parties will assist the HMRC before the schemes launch later this year.
Possible Action Against The UK & Ireland On VAT Grouping
An application has been published by the European Commission to the ECJ on the inclusion of non-taxable persons in VAT groups.
As the commission considers that the UK & Irelands national legislation is incompatible with EU legislation, it has now taken the matter to the ECJ. They have requested that the ECJ find that the UK & Ireland have not complied with their obligations.
Minister For Finance Introduces Second Reduced VAT Rate
A second reduced VAT rate of 9% has been announced by the minister for finance. The new rate will be introduced in respect to certain goods and services mainly related to tourism. The 9% rate will apply to hotel and holiday accommodation, restaurant services and admission to leisure & entertainment facilities.
Irish Revenue Commissioner Clarifies VAT Treatment Of Text Donations
The revenue commissioner has released a brief clarifying the correct VAT treatment with regard to charitable donations made via text message. The revenue has stated that charitable donations are outside the scope of VAT (currently 21% standard) because they are not deemed to be consideration for the supply of a service.
Lithuanian VAT Authorities Update Guidance On VAT Law
VAT authorities have updated guidance on a number of areas of VAT law, including transport services, business transfers and filing of VAT returns.
Hungary: Cost-Sharing Groups To Be Of Benefit
introduced in January 2011, the cost-sharing group strycture, looks set to boost the financial sector in Hungary. These measures will boost VAT saving opportunities as certain outsourced functions may take VAT exempt status.
Greek VAT & Customs Ammendments
New legislation has changed tax systems in Greece. These changes concern the areas of corporate income tax, tax on capital, VAT, individual tax, tax dispute and tax audit. The new legislation (published March 2011) also includes measures to tackle tax evasion.
Belgian And Dutch Retroactivity
Don’t forget Belgium will accept eligible invoices from the past three years, the Netherlands will accept eligible invoices from the past five years, cash in on those old invoices now. contact Global Tax Reclaim today!!
Czech Government To Scrap 10% VAT Rate
Authorities in the Czech Republic have revealed plans to implement a unified VAT rate of 20% from 10% on goods and services. Basic foodstuffs however will remain at 10%
HMRC set to release guidelines on new EU/South Korea Free Trade Agreement
The HMRC is set to release new guidelines on the EU/South Korea Free Trade Agreement. The agreement will launch provisionally on 1 July 2011.
Firms support import VAT system changes.
A summary report has been published by the European Commission on its findings on the simplification of VAT collection procedures, with relation to centralized customs clearance.
The summary report highlights the majority of companies were happy with changes to the rules for centralized clearance, using a centralized model and calculating customs duties together with VAT.
HMRC draft entertainment legislation
HMRC have published a draft legislation which will enable businesses to recover VAT incurred on entertaining overseas customers to whom they supply goods or services.
Change to Bulgarian accommodation VAT rate
VAT rates for accommodation in Bulgaria are set to increase (from 7% to 9%) from April 1st 2011.
HRMC makes a decision on sports team’s fees
HMRC has today confirmed that fees paid by sports teams for administration and match fees should be charged at the standard VAT rate.
20% UK VAT ON BUSINESS JETS
As on from January 2011 there is a charge of 20% VAT on the hire of business jets in the United Kingdom.
2009 8th Directive Deadline Approaching
The 2009 deadline is nearly upon us. If you wish to reclaim any VAT incurred in 2009 then time is running out.
The deadline as you may know is typically six months after the calendar year end but with the introduction of the new VAT reclaim procedures in January 2010 and subject to some difficulties incurred with the new system the deadline was postponed till September 2010. This was then further delayed to March 2011.
This will be your last chance to secure the refund so act fast.
Portugal VAT rate Increased to 23%
As from January 1st 2011 the standard VAT rate in Portugal is now 23%. As part of the Portugese 2011 state Budget it was decided to increase the VAT rate by 2%.
Also the standard VAT rate in Madeira and the Azores has also increased from 15% to 16%.
Accommodation in Malta rises to 7%
From January 1st 2011 the VAT rate on acommodation charges in Malta increased to 7% from 5%. This change comes as part of the Governments 2011 budget.
CHANGE TO GERMAN USE & ENJOYMENT RULES
From 1st January 2011 a number of additional services are to be treated as outside the scope of German VAT if used in non-EU countries.
Areas affected are:
•Supplies procured by a taxable entity applying the tour operator’s margin scheme.
•Telecom services, business to consumer.
•Valuation / Work on moveable tangible property if supplied to a taxable organization.
•Transport services of goods if supplied to a taxable entity.
The use and enjoyment provisions under these new rules will be extended on the above supplies when the use of the supply is outside the EU.
Standard VAT rate to stay at Minimum of 15% until December 2015
The european Commission has decided that the standard VAT rate across the Member States will remain at a minimum of 15% and maximum of 25% until 31st December 2015.
However a revision of the legislation can be undertaken before the 2015 date based on the findings and outcome of the work being done is a new strategy within the EU Commission.
Below is actual statement from the council:
“Member States undertake - as far as can be foreseen today - that from 1 January 2011 to 31 December 2015 they will make every effort to avoid widening the current…
UK VAT 20%
As from Saturday January 1st the VAT rate in the United Kingdom has risen by 2.5%. This means the standard VAT rate is now 20%.
This change to the VAT rate does not effect the VAT reclaim procedure. The United Kingdom is not the first country to increase their VAT rate over the last two years Czech Republic, Finland, Greece, Portugal and Spain have all increased their VAT rates.
Irish VAT rate to rise
It has been announced that in 2013 the Irish government plans to increase the standard VAT rate from 21% to 22%, This will then rise to 23% in 2014.
Ireland last increased the standard VAT rate in December 2008 to 21.5% but in January 2010 decided to return the rate to 21% due to lost of trade to Nothern Ireland.
2009 deadline for VAT Refund delayed
The EU Commission today announced that the deadline for any EU companies that have incurred VAT in 2009 has being extended from September 2010 until March 2011. This delay reflects the great confusion in all 27 EU member states regarding the new VAT online refund claim process which was introduced in January 2010.
Starting in January 2010 all EU member states would not accept any claims that are submitted by an EU company under the old system. Each country was given the task of building an online portal for claims to be submitted electronically. This was to speed up…
VAT Rate in UK to Change
Today the UK government announced they are to increase their VAT rate from 17.5% to 20% from 4th January 2011 as part of the new conservative government’s Emergency Budget.
In December 2008, the VAT rate was reduced from 17.5% to 15% till 31 December 2009. This action was taken to encourage consumers to spend more. Now in less than 18 months they have increased the VAT by 5%.
Here are some examples on how to treat transactions that span the date VAT is increased:
Sales
VAT will be chargeable at 20% where completion takes place on or after 4…