More countries have raised their VAT rate (please refer to our earlier updates for previous increases of standard VAT rates in some VAT countries).
Effective July 1, 2010 the following standard VAT rates will change:
- Spain increasing from 16 % to 18 %
- Portugal increasing from 20 % to 21 %
- Greece increasing from 21 % to 23 %
- Finland increasing from 22 % to 23 %
- Iceland increasing from 24.5 % to 25 %
Lithuania already increased their standard VAT rate from 21% to 23% effective March 1, 2010.
Canada will merge the federal GST (VAT) of 5% with the provincial sales taxes of 7% or 8% in three or more provinces to a combined Harmonized Sales Tax (HST) of 12% or 13% effective July 1, 2010.
The numbers clearly show that VAT recovery and VAT refund claims are very important for any company doing business abroad. Your foreign business expenses and your export and trade show budgets could benefit substantially.