Uruguay has extended its reduced Value Added Tax rate for tourism services as the economic effects of the coronavirus continue. VAT on hospitality services is normally 22%. This was cut to 13% in November 2020. It has now been extended until 30 April 2022. To
The Mediterranean island of Malta is to introduce VAT group regime from 1 June 2018. This would enable connected companies to be registered as a single VAT payer, and reduce VAT cash flow payments. VAT group requirements Two or more companies may apply to consolidate
The Baltic state of Lithuania is to temporarily cut its Value Added Tax rate from 21% to 9% until 31 December 2022 on the following services: Restaurants and cafes (excluding alcoholic drinks) Catering services Sports events and activities Cultural attractions accommodation The tax cut will
European Finance Minister meeting at ECOFIN on 18th June failed to agree on a compromise to enable more reduced rate setting freedoms for member states. Countries such as Germany, France and Sweden were not in agreement around environmental protections rules being proposed by the Portuguese
The French Constitutional Council has ruled that France may no longer levy a disproportionate fine for missed VAT invoices. The current (Art. 1737, I, 3. of the CGI) French tax code allows for a 50% fine based on the VAT due on the invoice. The
The European group of finance ministers, Economic and Financial Affairs Council (ECOFIN), reported to the European Council on progress of various EU VAT reforms. This came on 3 June 2021. Follow all the European Union’s completed and planned reforms via VAT Calc’s EU VAT reform
The rules for the liabilities on e-commerce sales for non-resident sellers via ‘distribution platforms’ change from 1 July 2021. If the foreign seller only sales its Canadian-located stocks to consumer via a distribution platform, then the platform takes on the federal Goods and Services (GST)
The Portuguese Autoridade Tributária e Aduaneira tax office has extended the application of the Value Added Tax domestic reverse charge for non-resident businesses and B2B supplies of goods or services. This significantly reduces the use cases where foreign suppliers have to charge Portuguese VAT –
The Brazilian National Congress is to progress the merger of its PIS and COFINS federal taxes under Bill No. 3,887/2020, National Congress. This seeks to introduce the first major simplification of possible the world’s most complex indirect tax regime. UPDATE 2022: Brazil VAT reform gets
The Brazilian Supreme Court has confirmed the exclusion of ICMS tax from PIS and COFINS calculations. The Court confirmed that the state ICMS should be excluded from the tax base for calculating the federal PIS and COFIN on invoices. The ruling has made clear taxpayers
