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.


  • MEXICO: The Federal Government of Mexico is preparing a substantial VAT reform for 2014 with a law submitted to their House on Sept. 8. 2013 !

    You know that their standard IVA (VAT) rate is 16 % - but they have a reduced rate of 11 % in the border zone to the States where a lot of companies are located.

    This reduced rate will be increased to 16 % to have one IVA level nationwide.

    VAT/IVA for "exports" from Mexico to the border zone companies will no longer be zero rated or exempt.

  • CROATIA: Croatia has entered the European Community as 28th member state effective July 1, 2013. They have a standard VAT rate of 25 % (twenty five %) !!

    Contracts with suppliers and clients in Croatia should be reviewed and VAT REFUND CLAIMS for business expenses in Croatia should be considered if applicable.


     

  • FRANCE: France is the next EURO country which increased their Standard VAT (they call it TVA) rate from 19.6 % to 21.2 % effective beginning of Oct. 2012 !


     

  • NETHERLANDS: Effective October 1, 2012 the Netherlands decided to increase their standard VAT (they call it BTW) rate from 19 % to 21 % !


     

  • CANADA: The Province/State of Quebec increased their Provincial Sales Tax from 8.5 % to 9.5 %!- effective Jan. 1, 2012 !Keep in mind that is on top of the Canadian Federal Sales Tax in Quebec (5 % GST).

    CYPRUS: Increased their VAT rate from 15 to 17 % effective March 1, 2012 !

    CZECH Rep.: Will harmonize their Standard VAT rate of 20 % and their Reduced VAT rate of 10 % to a new Standard VAT rate of 17.5 % effective Jan. 1,2013 !

  • New VAT Rates

  • NEW ZEALAND VAT (GST)

    Effective October 1, 2010 the VAT (GST) rate will go up from 12.5 % to 15 % !

    You may want to check your NZ VAT/GST invoices for correct date, GST rate and time and place of supply for goods and services delivered.

    CONGO (Dem. Republic)

    VAT has been introduced at the rate of 16 % with effect from the second half of 2010.

  • United Kingdom

    The standard VAT rate in the UK .....

    • was 15 % in 2009
    • is 17.5 % in 2010
    • and will be 20 % effective January 4, 2011

    You may want to check your UK VAT invoices for correct date, VAT rate and time and place of supply for goods and services delivered.

    Swiss

    Switzerland will increase the standard VAT rate from 7.6 % to 8 % effective January 1, 2011.

    Romania

  • 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.

  • If your company is registered for VAT in the EC or has EC based affiliated operations or VAT registered legal entities take note:

    • All 27 European member countries changed the place of supply for services for EC VAT registered companies effective Jan. 1, 2010
    • Check for changes on your foreign supplier invoices or contracts
    • Look into changes in formalities and handling of your VAT

    Important change for EC registered businesses ONLY: