China Plans to Extend VAT Pilot Scheme to Beijing in July
Sunnyvale, CA -- (SBWIRE) -- 04/23/2012 -- China’s pilot scheme for VAT which is intended to replace the current business tax in Shanghai is likely to be extended to Beijing in July, this year. Currently, VAT is being applied only to the manufacturing industry. The pilot VAT rates of 11% and 6% are mainly being introduced to support the services sector such as transportation. China commenced the VAT pilot scheme in Shanghai earlier this year with the aim to start unifying all turnover taxes into VAT and reduce the tax burden on the services sector. The pilot scheme is likely to be extended to other Chinese cities of Tianjin, Chongqing and Shenzhen, and Jiangsu Province.
Czech Republic Validates Local Reverse Charge for VAT Rules
Czech Republic confirms the treatment of local reverse charge where both the supplier and the customer are VAT payers. Previously, the rule was limited to certain situations. Confirming its prior stance on the treatment of local reverse charges, the Czech tax administration held that the customers have to acquire the supply from the suppliers for business purpose only and provide a valid tax identification number to the supplier.
Portuguese Govt Raises VAT and Excise Duty in Madeira
Portuguese government raises VAT and Excise Duty in the autonomous region of Madeira effective from April 1, 2012. The standard VAT rate has been increased from 16% to 22%, intermediary rates from 9% to 12% and reduced rate from 4% to 5%. Excise duty on electricity has been introduced and the revised excise duty will be applied on tobacco and alcoholic drinks.
EU Council Authorizes Romania to Increase VAT Registration Threshold
EU Council authorizes Romania to increase the VAT registration threshold to the national currency equivalent of €65,000 (from €35,000) on March 26, 2012.
Turkey Slashes VAT Rate on Raw Materials for Pharma to 8%
The Turkish Government has reduced the VAT rate on the supply of raw materials for pharmacy products to 8% from the previous standard rate of 18%. The new rates are effective since March 25, 2012.
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