Important VAT News
VAT changes are important for your cost of doing business abroad.
It may be helpful to share that VAT information with your staff members in A/P, A/R, Sales and colleagues who handle long term contracts (suppliers and clients) for your company.
Call us toll-free at 1-866-332-4777 (Canada/USA) or use this form for more information.
VAT rates ---UP --- UP ---- and NOT away???
CANADA has a mix of Federal and Provincial VAT (Sales Tax systems). The Federal VAT is called GST (Goods and Services Tax) and charged at the rate of 5 % --- plus the Provincial Sales Tax of about 8 % in most provinces/territories results often to a Harmonized Sales Tax (HST) of about 13 %.
Three of the ten provinces changed the provincial part of the HST now --- and it is going UP:
VAT in NORTH AMERICA???
(Canada, USA, Mexico)
THERE IS NO VAT in The States!!! WRONG!
YOU MAY WANT TO LOOK AT -----PUERTO RICO in 2015 -------
VAT is the sales tax in about 150 countries. Now Puerto Rico is replacing their sales tax with a modern VAT (they call it IVA in the Spanish Language) in 2015.
Their standard VAT/IVA rate will be 16% replacing their 7% Sales Tax.
VAT is called IVA in most Spanish language countries
(Value Added Tax = Impuesto al Valor Agregado)
If you do business in the southern countries of the Americas you should make sure that the IVA (VAT) on Travel Expenses, Trade Shows, Events and other business related expenses should be taken care of in the best possible way.
VAT is the VERY FORMAL Sales tax in about 150 countries.
Mistakes can result in loss of VAT OR Import VAT refunds which will reduce your profit margins for activities abroad (exports, trade shows, events etc.)
Here is your VAT checklist for talking to INSATAX (toll free 1-866-332-4777).
Look at your VAT and import VAT in Asia.
Travel expenses, trade shows, services and other business expenses are subject to VAT (GST, consumption tax etc.) in many Asian countries. The standard VAT and import VAT rates in the most economically important countries in Asia are:
VAT rates have changed again for 2015 in some of the 150 VAT countries…
LUXUMBOURG: This nation is one of the 28 member countries of the European community. For 2015, their standard Value Added Tax rate will increase from 15% to 17%.
ICELAND: Iceland will reduce their standard VAT rate from 25.5% to 24% this year.
ITALY: This Mediterranean country will be increasing their standard VAT rates incrementally over the next few years with the goal of 25.5% in 2018. Coming into effect soon there will be increases…
EUROPEAN Event Registration: Do you need to register your foreign event in advance in some European VAT countries? Your company or your event clients may lose foreign VAT or Import VAT refunds which are often from 15 to 25 percent of the total cost.
VAT is not going away if you are Exporting or Doing Business Abroad ---- it is going UP and UP.
JAPAN is the 3rd largest economy in the world. They had already increased their VAT rate from 5 % to 8 % effective April 1, 2014 (which is actually a 60 % rate increase).
JAPAN has now announced another rate increase from 8 % to 10 % is planned for October 1, 2015 !!! This will double their VAT from 5 % to 10 % within 18 months.
VAT is now the sales tax in more than 150 countries with different names and different rules.
INDIA: is developing their new GST (VAT) and had to change their laws for that. It is a mix of Federal GST on the PRODUCTION of goods and the PROVISION of services with the States adding a sales tax on some services and the sale of goods. Especially in the transition period you may want to review A/P and A/R, Invoices contracts with suppliers and clients
ITALY: has finally adjusted there Standard VAT (IVA) rate from 21 % to 22 % effective October 1, 2013.
JAPAN: Japan has just announced that they will increase their VAT rate for the first time since 1997.
The new VAT (consumption tax) rate will increase from 5 % to 8 % effective April 1, 2014