Russia to impose VAT on foreign B2B digital services

From 1 January 2019, Russia will amend its current VAT legislation to state that non-resident businesses selling digital services to other businesses within Russia will have to VAT register and charge VAT on their supplies. Currently non-resident providers of this type of service only have to register and charge VAT if they are providing these… Read More

UK Making Tax Digital VAT consultation

The UK tax authority (HMRC) recently released draft regulations and VAT notices that relate to the April 2019 launch of the “Making Tax Digital” legislation. A pilot of the programme for taxpayers, agents and software providers is also scheduled to begin from April 2018. As stated in our previous article, when introduced businesses with a… Read More

UPDATE: Bahrain launches 5% VAT October 2018

The Ministry of Finance in Bahrain has confirmed that it will implement Value Added Tax (VAT) at a rate of 5% from 1 October 2018, with a VAT registration threshold set for all businesses at US$ 100,000. The UAE is part of the six-country Gulf Cooperation Council (“GCC”) and all of these countries had agreed… Read More

UPDATE: Oman delays VAT until 2019

Oman has recently announced that it will delay the introduction of Value Added Tax (VAT) in the country until at least 2019. Oman is part of the six-country Gulf Cooperation Council (“GCC”) and all of these countries had agreed to implement a harmonised VAT regime of 5% by 2018. The GCC countries consist of Saudi… Read More

Lithuania reduces VAT on hotels to 9%

From 1 January 2018, Lithuania has reduced the VAT rate applicable on hotel accommodation to 9%. This new rate will only apply until the end of 2022 and brings Lithuania in line with most other European Union countries who already impose a reduced VAT rate on this type of service.

Turkey introduces VAT on foreign B2C digital services

From 1 January 2018, the Turkish Government introduced a VAT charge on all sales of e-services to consumers in Turkey. Previously, non-resident businesses providing digital services in the country did not have an obligation to charge VAT on these types of supplies.  However in an effort to remove the unfair advantage that this gives them… Read More

REMINDER: Switzerland standard rate VAT decreased to 7.7%

From the 1 January 2018, the Swiss VAT rate decreased from 8% to 7.7%. There was no change to the super reduced VAT rate that remained at 2.5%, however the special reduced VAT rate for hotel accommodation fell from 3.8% to 3.7%.