IMF working paper addressing VAT regressivity and reform The International Monetary Fund has published a Working Paper by Artur Swistak and Rita de la Feria with consideration to improving the fairness and efficacy of national VAT regimes on the back of advances in digital reporting
New avoidance rules on tax registration threshold requirements The new Japanese 2024 Tax Reform Bill passed on 28 March, including a measures to prevent non-resident businesses taking advantage of the current Consumption Tax registration threshold to avoid indirect tax obligations. Currently, the annual sales threshold
2025 Tax Reform Package: Consumption Tax calculation and collection obligations for online platforms Japan has become the latest country to impose the obligations for online digital platforms to charge and remit Consumption Tax for digital services transactions by non-resident providers on their marketplaces. In the
VAT on digital services to be extended to non-resident providers Bolivia’s Servicio de impuestos nacionales (SIN) is to relaunch plans to extend VAT obligations to non-resident providers of digital services. This is likely to start again on 1 July 2024. Key obligations proposed include: Taxable
VAT rise from 7% to 10% decree signed by President The southeast Asia state of Laos is committing increase its standard VAT rate from 7% to 10% . This would reverse the cut of January 2022 (see below). On 19 March, the President signed a
200-transaction per annum threshold removed; $100k threshold remains Indiana joins most other US states in withdrawing its transaction threshold for non-resident sellers. This had been 200 or more sales per annum, and applied to out-of-state – sellers without a presence or nexus in the state.
Nightly charge for stays in hotels, B&B, Airbnb and similar The Icelandic Directorate of Internal Revenue has reintroduced its Accommodation Tax from 1 January 2024. And providers of eligible accommodation should be registered with the Agency by 5 April. The charge is as follows: Hotels:
Government confirms VAT on food will return to 5% from 0% Poland has confirmed on 12 March 2024 that the 2-year long cut in VAT on food from the reduced rate of 5% to 0% will end. The rate was first cut in February 2022
Ministry of Finance updates guidance for non-resident providers of B2C digital services The Laos authorities have updated the compliance obligations on foreign providers of digital or electronic services to local consumers. The obligation for such non-residents to charge Value Added Tax was imposed in February
1 March 2% rise in Service Tax Malaysia raised its Service Tax rate from 6% to 8% on 1 March 2024. However, some services remained at the old 6% rate. The separate Sales Tax on most goods rate remains at 10%. Rise implementation guidance The
