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Currently, no VAT/GST is applicable in Afghanistan
The standard rate of VAT (tatimi mbi vleren e shtuar; TVSH) is
20 percent. There is a reduced rate of 0 percent applicable to
`the exports of goods, supply of services and goods connected
to maritime commercial or industrial activities, and supplies
related to international transport. The export of services and the
supplies of certain goods and services are exempt from VAT,
for example lease and sale of land (under certain conditions
subject to 20 percent VAT), sale of real estate, financial
services, and certain supplies in connection with oil exploration.
Starting from April 2014, the supply of drugs and medical services offered by private or
public health institutions shall be exempt from VAT.
The normal rate Value Added Tax is 17%, the reduced rate applicable to a restrictive list of products and services is 7 % and 0% for exempted goods and activities.
There is no VAT system in Angola at this time. However,
there is a consumption tax which to some extent
substitutes VAT. Consumption tax is levied on: importation
of goods, local production of goods and a range of services
(e.g. consultancy services, tourism services). The rate
for goods varies from 2 percent to 30 percent with the
general rate being 10 percent. The rate for services is either
5 percent or 10 percent.
The standard rate of VAT (impuesto al valor agregado; IVA) is
21 percent applicable to goods and services. There is a reduced rate of 10.5 percent for certain goods and services, including, sales or imports of cattle, imports of certain capital goods included in the tariffs list of the Common Nomenclature of Mercosur (Southern Cone
Common Market), interest on loans from foreign banks located in a country where the central bank has adopted the international supervision standards of the base Banks Committee. There is an increased rate of 27 percent for certain services.
The standard rate of VAT is 20 percent. There is also a 0 percent
rate which applies to, for example, the export of goods from Armenia, the provision of services, the place of supply for which is outside Armenia, the maintenance of aircraft serving international flights, and the sale of goods in duty free shops in airports. Certain supplies of goods and services are exempt
from VAT, for example the sale of magazines and newspapers,
scientific research work, the provision of most types of financial
services, insurance, and reinsurance activity.
The standard rate of turnover tax (Belasting op Bedrijfsomzetten; BBO) is 1.5 percent.
No changes to the GST rate of 10 percent
The standard rate of VAT is 20 percent. VAT reduced rates of
10 percent and 12 percent are applicable on some supplies.
• Currently there are no indirect taxes such as VAT, GST etc.
levied in The Bahamas. However the Government of The Bahamas has proposed that VAT will come into effect on 1 July 2014 at a rate of 15 percent.
• There are significant import duties and excise taxes on goods brought into the country. Such import duties and excise taxes range from 0 percent on certain essential items up to 85 percent on certain luxury vehicles.
• Stamp duty is applicable to certain commercial transactions including conveyances of realty or personalty at rates ranging from 4 percent to 10 percent based on the value of consideration. The stamp duty for registration of a debenture or mortgage is 1 percent and the sale of a business insofar as it consists of personalty (chattels or moveable assets) exclusive of cash is 6 percent.
• Business Licence tax is payable by businesses operating in The Bahamas at rates ranging from a flat rate of USD100 to 3 percent of turnover.
• In addition there are payroll, real property, vehicle and other taxes and fees which should be taken into account.
There is no indirect tax in Bahrain. Bahrain follows the GCC Unified Customs Duty law and imposes 5 percent on most
lThe standard rate of VAT is 15 percent. There are reduced rates of 10 percent, 9 Percent, 7.5 percent, 6 percent, 5.5 percent, 5 percent, 4.5 percent, 4 percent, 2.25 percent, 1.5 percent, and 0 percent which apply to, for example
certain categories of air conditioned bus, launch and railway services (10 percent); rental premises (9 percent) sponsorship services (7.5 percent), restaurants (without air
conditioning, furniture distributors - manufacturing stage) (6 percent), construction firms (5.5 percent), electricity distributors, seller of own branded ready-made garments sellers (5 percent), motor vehicle garages and workshops, producers of film or photo studio/shops, dockyards, carriers without petroleum, immigration advisers, English medium schools and Information Technology Enabled Services
(ITES) (4.5 percent); supplies of goods and services through
participation in a tender/quotation and buyers of auctioned goods, furniture distributors at distribution stage (4 percent); petroleum carriers (2.25 percent); goldsmith or silversmith (2 percent); and Land developers,
construction of apartments (1.5 percent). Exempt from VAT are certain food items (such as meat, fish, potatoes, vegetable, and fruits); raw jute; social welfare, culture, training, and rehabilitation services; and agricultural development.
The standard rate of VAT is 17.5 percent. It was announced in the 2013 Budgetary Proposals that effective 1 October 2013, the VAT rate on accommodation in the hotel sector and on direct tourism services will be reduced to 7.5 percent. Zero-rated supplies include exports of goods and services, basic food items, printed matter, certain agricultural machinery, and international transport of passengers and freight, as well as importations by approved educational institutions and companies in the international financial services sector, among others. Exempt supplies include
certain financial services, health and educational services, and specific supplies of real property. Companies in the international business sector are not required to register for VAT and any VAT which they suffer may be refunded on
application to the VAT Division on the prescribed form.
The standard VAT rate is 20 percent. Reduced rates are 10 percent (applied for clothes for children and some social products, such as grain, milk, butter, fish, flesh and other products included in a list approved by the president), and 0 percent (exports). Some goods and services are exempt
from VAT application, such as medical equipment, medicines
and other goods and services indicated in the Tax Code.
The standard rate of VAT (taxe sur la valeur ajoutée: TVA/ belasting over de toegevoegde waarde: BTW) is 21 percent. There are reduced rates of 12 percent, 6 percent and
0 percent. The 12 percent rate applies to, for example social housing (as from 1 January 2007, 6 percent in certain circumstances), restaurant and catering services (not drinks), agrochemicals, margarine. Most food and drinks, books, pharmaceuticals, hotel and camping accommodations,
passenger transportation, refurbishment works to private
dwellings (under certain conditions) and agricultural services are charged at a 6 percent rate. Newspapers and periodicals published (under certain conditions) are charged with 0 percent. Suppliers of certain goods and services are exempt from VAT, for example financial services, letting of
immovable property, hospital services, medical care and cultural activities.
There is no indirect tax.
The standard rate of VAT (Impuesto al Valor Agregado; IVA) is 13 percent of the total price of the service rendered (effective rate of 14.943 percent). Exports of goods are zero-rated. Other activities exempts of VAT: financing transactions generating interest income, purchase and sales of shares, debentures, securities and credit title transactions, sales or transfers resulting from companies’ reorganizations, capital contributions, imports made by country-accredited diplomats.
The tax rate for the rendering of services is 6 percent (as of
October 2011) and for the supply/import of goods, 8 percent.
The tax rate for services related to insurances is 7 percent
(as of October 2011).
The standard rate of VAT (porez na dodanu vrijednost; PDV) is 17 percent. There is a reduced rate of 0 percent which applies to, for example, exports of goods and certain related services. Supplies of certain goods and services are
exempt from VAT, for example, financial services, insurance
and reinsurance services, education, health care, rent
of residential property for a period longer than 60 days, certain supplies of immovable property, dealing in shares, management of investment funds and stamps.
The standard VAT rate is 12 percent. There is a reduced rate
of 0 percent which applies to exports of goods and services,
international transport services, disposal of businesses as
going concerns, certain food products not mixed with other
products, some pesticides, fertilizers, farming tractors,
supplies to the head of state etc. Certain supplies of goods
and services are exempt from VAT, for example prescription
drugs, residential accommodations, education at approved
institutions, public medical facilities and services, non-fee
based financial services, and passenger transportation
(excluding the transportation of tourists).
There are two types of VAT in Brazil: a state sales tax
(imposto sobre circulação de mercadorias e serviços;
ICMS) and a federal excise tax (imposto sobre produtos
industrializados; IPI). There are other taxes on supplies of
goods or services: a services tax (imposto sobre serviços;
ISS), a social contribution for social security financing
(contribuição para o financiamento da seguridade social;
COFINS) and an employees’ profit participation program
(programa de integração social; PIS).
The standard rate of ICMS is 17 percent (in São Paulo, Minas
Gerais, and Paraná; the standard rate is 18 percent and in
Rio de Janeiro it is 19 percent). IPI is normally charged at
an ad valorem (value) rate according to the classification
of the product based upon the international Harmonized
Commodity Description and Coding System, administered
by the World Customs Organization in Brussels. Rates
range from 0 percent to a maximum of 330 percent and
average about 10 percent. The standard rate of ISS ranges
from 2 percent to 5 percent. The standard rates of PIS and
COFINS under the so-called non-cumulative regime are
1.65 percent and 7.6 percent, respectively. There are reduced
rates of 7 percent and 12 percent ICMS which apply to
inter-state supplies within Brazil depending on the region
into which goods are sold and to certain intra-state supplies,
for example to diesel oil and hydrated ethyl alcohol fuel,
motor vehicles and transport services (12 percent), products
that are part of the basic food basket and products from
the electronic data processing industry (7 percent). Certain
supplies are exempt from ICMS, for example supplies of
books, newspapers, periodicals, and the paper consumed
in the printing of such products, sale of fixed assets, fruits,
vegetables, and farm and garden produce and preservatives.
RECENT CHANGES – ICMS (started in 2013): The interstate
sale of imported goods (not submitted to any kind
of industrialization), without similar in Brazil, is subject
to the ICMS rate of 4 percent. Also, the inter-state sale
of industrialized goods with imported content greater
than 40 percent is subject to the ICMS rate of 4 percent.
Exemptions: goods industrialized under the Basic Production
The reduced IPI rate of 0 percent applies to, for example
live animals and animal products, plant products, chemical
products, textile products, and shoes. Certain supplies are
exempt from IPI, for example supplies of vessels (except
sporting or pleasure boats), exports, books, newspapers,
periodicals, and paper consumed in the printing of such
products, electric energy, petroleum products, fuel, and
minerals belonging to the country.
There are reduced rates of ISS which vary from one
municipality to another. Certain supplies are exempt
from ISS, for example exports of services, amounts
intermediated in the bonds and securities market, the
amount of bank deposits, the capital, interests, and default
interests regarding credit operations performed by financial
Reduced rates of 0.65 percent PIS and 3 percent COFINS
apply under a so-called cumulative regime. Unlike the noncumulative
regime there is no recognition of any tax credits
under the cumulative regime. Certain supplies are exempt
from PIS and COFINS, for example the exportation of goods,
the exportation of services with payment in convertible
currency, sales of products to a commercial export company
for export purpose specifically and sales of fixed assets.
RECENT CHANGES – Rate increase – Cofins on
Importation (Started in 2012): According to the new
disposals brought by MP 563/2012, Cofins on Importation
rate has now been increased to 1 percent which will
correspond to a total of 8.6 percent, regarding import
operations with the products listed at the appendix to
Law nº 12.546 of 2011, which includes plastics, rubber
made products, leather, textiles, several mechanical
instruments and appliances, boats and floating structures,
electrical equipments, among others.
The standard rate of VAT, which applies to most taxable
supplies, is 20 percent. A reduced rate of 9 percent applies
to accommodation in hotels, sheltered housing and other
places for accommodation.
Zero rate – exported goods and services, and certain charges in relation to international transportation of people and goods.
Exempt supplies include - public postal services; certain medical and dental goods and services; wholly state owned public transportation services; insurance services; primary financial services; importation of articles for personal use that are exempt from customs duties; and non-profit activities in the public interest recognised by the Ministry of Economy and Finance.
The standard rate of the federal GST is 5 percent. There
is a reduced rate of 0 percent which applies to zero-rated
supplies, for example exports of certain goods and services,
prescription drugs, and basic groceries. Also, certain goods and
services are exempt from GST, for example some supplies of
residential property, financial services, educational services,
and health care services. In addition, all provinces, except for
Alberta, impose a value-added tax or a retail sales tax on the
sales of taxable goods and services. The provinces of Ontario,
New Brunswick, Nova Scotia, Newfoundland and Labrador,
and Prince Edward Island apply a harmonized value-added
tax known as the harmonized sales tax (HST). The rates of
the HST vary from 13 percent to 15 percent which include a
federal component of 5 percent and a provincial component
(8 percent to 10 percent). There is a reduced rate of 0 percent
which applies to zero-rated supplies. The HST applies to the
same base of goods and services as the GST. The province of
Quebec applies its own value-added tax, the Quebec sales tax
(QST), at a rate of 9.975 percent or 0 percent to generally the
same base of goods and services as the GST. The provinces of
Saskatchewan, Manitoba, and British Columbia levy retail sales
taxes in their respective jurisdictions. The retail sales tax rates
vary from 5 percent to 8 percent. British Columbia transitioned
from an HST to the 5 percent GST and a 7 percent PST on
1 April 2013. Prince Edward Island harmonized its retail sales tax
with the GST to create a new 14 percent HST on 1 April 2013.
There is no VAT or GST in the Cayman Islands.
There is import duty on many goods with the rates ranging
depending on the type of good being imported.
The standard rate of VAT (impuesto al valor agregado; IVA) is 19%. Locally registered taxpayers can deduct Input VAT as a credit against output VAT. Exports of goods are zero-rated. However exporters can recover the input VAT in cash. Exempt supplies include capital goods imported by foreign investors or companies receiving foreign investment that have subscribed an investment agreement with state of Chile under Decree Law 600; international transportation of cargo or people; certain types of insurance premiums; payments for services provided by persons who are neither domiciled non-resident in Chile and who are subject to income withholding tax and have effectively paid it; interests on financial and credit transactions and instruments; services provided to persons neither domiciled nor resident in Chile and which are qualified as export services by the National Customs Service; educational establishments and universities on educational activities, among others. Consulting, advisory and professional services in general are not subject to VAT.
There are three types of indirect taxes in China: VAT, business tax, and consumption tax.
The standard rate of VAT is 17 percent which applies to the sale and importation of goods, and the provision of repair, replacement and processing services in China. VAT also applies at the rate of 17 percent for the leasing of non-real
estate assets, 11 percent for transportation services and 6 percent for ‘modern services’ which are subject to the VAT pilot program. Modern services includes research and development and technical services, information technology services, cultural and creative services, logistics and ancillary services and certification and consulting services. Reduced rates of VAT of 13 percent and 0 percent apply to, for example, basic necessities, agricultural products, utility services (13 percent), and exports of goods and certain
services (0 percent). Exports of various goods are not wholly
zero-rated and all the associated input tax is not always
refundable in full to the exporters.
Small scale taxpayers, being those without sophisticated business, accounting and auditing systems, and whose turnover is below certain thresholds (ranging from RMB
500,000 to RMB 800,000 of annual turnover in the majority of
provinces in China, and RMB 5,000,000 for businesses which
are subject to the VAT pilot program) pay VAT at the rate of
3 percent and are ineligible for input VAT credits on purchases. The VAT pilot program currently applies to the transportation and modern services industries across mainland China. It is anticipated that the VAT pilot program will be expanded to other services during the course of 2014. The VAT pilot program seeks to replace business tax with VAT, eventually resulting in VAT applying to all goods and services in China.
Business tax applies to all services in cities/provinces in China which have not yet adopted the VAT pilot program, and to those services which are not yet subject to the VAT
pilot program (including, telecommunications, construction and real estate, finance and insurance, and entertainment services). The rate of business tax is 3 percent for each of transportation, construction, post and telecommunication, cultural activities, and sports; and 5 percent for finance and insurance services, hotels, restaurants, catering, tourist,
rental, leasing, advertising, the sale of intangible assets and transfer of immovable property. Entertainment services are taxed at rates between 5 percent and 20 percent. Business tax is a turnover tax in the sense that it is not creditable in business-to-business transactions.
There are 14 categories of goods that are subject to consumption tax, including tobacco, liquor, cosmetics,
jewellers, firecrackers, refined oil, motor vehicle tires, motorcycles, motor vehicles, golf balls and clubs, luxury watches, yachts, disposable wooden chopsticks, and wooden floor panels. Normally, consumption tax is charged at an ad valorem (value) rate that ranges from 1 percent to 56 percent, while exports are zero-rated. Some goods such
as refined oil are levied on a quantum (unit/volume) basis.
As for tobacco and some types of liquor, compound rate calculations, at both an ad valorem and quantum rate are applied.
The standard rate of VAT (impuesto sobre las ventas) is 16 percent.
Effective 1 January 2013 the reduced rate of 5 percent applies to certain supplies of goods such as coffee, some cereals, sugar, pasta, flour, some engines and agricultural
machinery, and certain supplies of services such as storage of agricultural products, fees related to trading of agricultural products traded, and agricultural insurance.
Zero-rated supplies (referred to as exempt supplies in Colombia) include exports of goods and services or tourist services provided to non-residents. Effective 1 January 2013, a new consumption tax was introduced and applies on a range of supplies of goods and
services, at the rates of 16 percent, 8 percent and 4 percent.
The sale of electricity for residential use is subject to a 5 percent rate, and sale of wood is subject to a 10 percent rate. Exports and the sale of several goods specificied in the
law are zero rated. Services in general are not subject to VAT.
The standard rate of VAT (Porez na dodanu vrijednost; PDV) is 25 percent. There are reduced rates of 13 percent and 5 percent.
The reduced rate of 13 percent applies to:
- tourist accommodation,
- full or half board services and the rent of campsites,
- certain newspapers and magazines except for newspapers subject to the reduced rate of 5 percent,
- edible oils and fats,
- baby food,
- supply of water (except bottled or otherwise packaged drinking water),
- refined (white) sugar,
- tickets for concerts,
- services of preparation and serving of food, non-alcoholic drinks, wine and beer in registered hospitality facilities.
The reduced rate of 5 percent applies to:
- all kinds of bread,
- all kinds of milk,
- books (either printed or published on any other media – CDs, DVDs) of a professional, scientific, artistic, cultural, or educational character,
- certain medicines,
- certain medical implants and orthopedic devices,
- scientific magazines,
- certain daily newspapers,
- cinema tickets.
Certain supplies of goods and services are exempt from VAT, for example:
- financial and insurance services,
- health and welfare services,
- education services,
- deliveries by charitable organizations,
- deliveries by cultural institutions and cultural services,
- betting and gambling,
- rent of residential property, etc.
The following were introduced 1 May 2013:
– 6 percent: general rate
– 0 percent: exemptions
– 7 percent: insurances and (as of 1 January 2014) the
provision of accommodation in immovable property or by
means of timeshare to short-term tourists on the island
– 9 percent: for luxury and/or unhealthy goods and services.
Effective 13 January 2014, the standard rate of VAT (Foros prostithemenis axias; FPA) is 19 percent. There are reduced rates of 5 percent and 9 percent, as well as 0 percent. For example, effective from 13 January 2014, 9 percent (up to 12/1/14 8%) applies to passenger transportation services within Cyprus; hotel accommodation; restaurant and similar catering services. 5 percent is applied to bottled and non-bottled water; books; newspapers; magazines and
similar publications; gas; aids to disabled persons; animal feeds; fertilizers and insecticides; waste disposal. Since 1 January 2011, 5 percent is also applied to drugs and
medicines; food items for human consumption. Export of goods is zero-rated. Supplies of certain goods and services are exempt from VAT, for example: certain financial services; insurance; postal services; education, health care
and welfare services; cultural services provided by public
bodies or other non-profit organizations.
The standard rate of VAT (dan z pridané hodnoty; DPH) is 21 percent (effective 1 January 2013). There is a reduced rate of 15 percent which applies to, for example, food products, books, brochures, newspapers and magazines, public transport services, social residential housing construction, and transfer of social residential houses unless exempt. Exports and intra community supplies of goods, international transport of goods relating to exports or imports of goods are zero-rated. Certain supplies of goods and services are exempt from VAT, for example insurance and financial services; postal services; education; health and welfare services; transfer and financial leasing of immovable property in certain conditions; and renting transfer of immovable property (under certain conditions).
The standard rate of VAT (merværdiafgift; MOMS)
is 25 percent. There is a reduced rate of 0 percent which applies to, for example exports of goods, newspapers, sale and leasing of ships and sale and leasing of aircrafts used by airlines predominantly operating internationally. Supplies of certain goods and services are exempt from VAT, for example health and welfare services, education, certain sport and cultural activities, land, financial and insurance services,
postal services by Post Denmark, passenger transport services (excluding transport of tourists by bus).
The standard rate of VAT (impuesto sobre transferencia de bienes industrializados y servicios; ITBIS) is 18 percent. Exports of goods and services are zero-rated. Exempt
supplies include basic consumption items, educational materials, medicines, health services, utilities, nonconventional or renewable energy equipment and supply,
and inland transportation of individuals and cargo. Certain basic consumption goods are also levied at a rate of 11%.
The standard rates of VAT (impuesto al valor agregado –
IVA) are 12 percent and 0 percent. The following items are charged with 0 percent of VAT: natural food such as: milk, bread, butter, sugar, salt, noodles, etc; seeds; bulbs; plants; live roots; fertilizers; insecticides; pesticides; herbicides;
veterinarian products; tractors with tires up to 200 HP and other agricultural implements; medicines and drugs for human use; bond paper and books; exports; electric
energy; aircraft, light aircraft and helicopters for commercial
passenger transport, freight and services. The following services are charged with 0 percent of VAT:
Local transportation: by land, sea transport of passengers and cargo; international transportation of cargo; national transportation of cargo from and to Galapagos province; transportation of oil and natural gas by pipeline; services
of medicines manufacturing; lease of housing; utilities; exportation services; inbound tour packages; crop-dusting; services provided by craftsmen; insurance and life and health reinsurance, healthcare and medical assistance.
The standard rate of general sales tax (GST) is 10 percent. There are other rates that vary from 0 percent to 45 percent. The reduced rates apply to, for example coffee; all products made of flour, soap, fertilizers, gypsum, (5 percent); iron bars (8 percent) and exports of goods (0 percent). The increased rates apply to, for example national and international telecommunication services using mobile phones (15%) ; motor vehicles of a cylinder capacity less than 1600 cc (15 percent); some electrical appliances, perfumery (25 percent); motor vehicles of a cylinder capacity of 1600 cc up to 2000 cc; motor vehicles for the transport of goods and persons; jeep motor vehicles; camping trailers (30 percent); motor vehicles of a capacity of more than 2000 cc; and
vehicles for trips and camping (45 percent).
The standard rate of VAT is 13 percent. There are no
applicable reduced rates. A zero rate is applicable on exports.
The standard rate of VAT (käibemaks) is 20 percent. There are reduced rates of 9 percent and 0 percent which apply to, for example, books; certain printed periodicals; medicines; accommodations (9 percent); international and passenger transport; exports of goods; supply of aircraft and provision thereof used by air-carriers operating mostly on international routes; supply of sea-going vessels for
navigation on high seas; services on board of such vessels or aircrafts; and goods placed in free zone, free warehouse, or VAT warehouse, (0 percent). Supplies of certain goods
and services are exempt from VAT, for example immovable property, financial and insurance services, postal services, education, and health and welfare.
The standard rate is 15 percent.
The standard rate of VAT (arvonlisävero (ALV)) is 24 percent.
The reduced rate of 14 percent is applicable, for example to food and animal feed and restaurant and catering services. The reduced rate of 10 percent applies, for example to accommodations, books, pharmaceuticals, passenger transport, cultural and sporting services and newspaper and magazines sold by subscription. The rate of 0 percent applies for example to the sale and hire of certain vessels and exports of goods.
Hotel accommodation is subject to the 10 percent VAT rate. Passengers transport is also subject to the 10 percent VAT rate as are supplies by restaurants. Food (with few exceptions) and beverages (except alcohol beverages) are subject to the 5.5 percent VAT rate. Many other specific goods and services could be subject to reduced VAT rates, depending on their exact nature. Moreover, there are several other specific VAT rates applicable in Corsica and the overseas territories.
The following new VAT rates are expected be applicable in France as of 1 January 2014:
•The standard 19.6 percent VAT rate is raised to 20 percent.
•The intermediary 7 percent VAT rate will be raised to 10 percent.
•The reduced 5.5 percent VAT rate has not been impacted by the reform and thus remains applicable.
•The 8 percent rate applicable in Corsica (construction work, etc.) will be raised to 10 percent.
The timing of the implementation of these new rates will be as follows:
•The new 10 percent and 20 percent rates will be applicable to transactions for which the chargeable event occurs on or after 1 January 2014.
•As regards supplies of goods, the “taxable event” occurs at the time of the “delivery” of the good within the meaning of VAT, i.e. at the time of the transfer of the right to dispose of the tangible property as owner. In practice, the taxable event should thus match with the date of the physical delivery of the goods to the clients, no matter when the effective payment occurs. The new VAT rate of 20% should thus apply to all sales of goods which will be delivered as from 1 January 2014, even if the payments for such sales are received in 2013.
•As regards supplies of services, the “taxable event” occurs at the time the service is performed. Consequently, services performed in 2014 should be subject to the new VAT rate, unless for part of the price paid before 2014 (i.e. tax point on supplies of services is the payment, so the new law has addressed this exception).
•Specific rules could apply to particular operations so a case-by-case analysis should be performed, in the light of the effective operations performed by a given client.
Finally, with effect as from 1 January 2014, some specific operations have seen their applicable VAT rate decreasing to 5,5% such as sales of movie tickets, some specific works on immovable property (such as thermic improvement or building or improvement of social housing), intra-EU acquisition or import of works of art.
The standard rate of VAT is 18 percent which applies to all
transactions except for: exempted transactions with the right
to offset input VAT (i.e. similar to zero rated transactions),
exempted transactions without the right to offset input VAT
and transactions not carried out in the territory of Georgia.
The standard rate of VAT (Umsatzsteuer (USt)) is 19 percent.
Reduced rates apply to certain items; 7 percent (e.g. food, plants, animals, books/newspapers, short term accommodation including certain connected services and
short distance passenger transport) and 0 percent (e.g. cross-border air passenger transport, financial services to non-EU recipients, exports, and certain transactions
involving ships and aircrafts). Special rates (5.5 percent and
10.7 percent) apply under the farmers’ flat-rate scheme. VAT exempt transactions include financial services to EU recipients, insurance services, certain supplies of land, health, welfare, education, specific public postal services,
and supplies within the Real Estate Acquisition Law.
The 17.5% rate is made up of VAT of 15% and a National Health Insurance Levy of 2.5%. Please note that the rate of 15% was introduced by the VAT Act 2013 which received Presidential Assent on 30th December 2013. Previously the standard rate of VAT was 12.5% (plus the NHI levy). While there are no reduced rates per se, Ghana does exempt certain supplies from VAT (Schedule I of VAT Code), zero rate certain supplies (Schedule II of the VAT Code) and also provides reliefs in respect of certain supplies listed in Schedule III of the VAT code.
There is no VAT or equivalent tax in Gibraltar.
The standard rate of VAT is 23 percent (from 15 March until
30 June 2010 the standard VAT rate was 21 percent). There are reduced rates of 13 percent and 6.5 percent.
For the Aegean islands all VAT rates are further reduced by 30 percent (i.e. from 23 percent to 16 percent, from 13 percent to 9 percent and from 6.5 percent to 5 percent)
provided that certain conditions are cumulatively met. This reduction does not apply for supplies of tobacco products and means of transportation. VAT exemptions apply, inter alia, to (a) intracommunity supplies and exportations of goods, (b) the majority of services provided to foreign persons subject to VAT, (c) international transports, (d) supplies made in connection with qualifying vessels and aircraft, including the VAT-exempted release of imported
goods for free circulation in Greece when they are placed in a VAT warehouse before being delivered to qualifying vessels and aircrafts and (e) services provided by the educational, medical, insurance and financial sectors.
The standard rate of VAT (Impuesto al Valor Agregado (IVA) is 12 percent. Exports are zero-rated. Exempt supplies include certain imports, certain medicines, specified financial services, and specified supplies of real property.
Guernsey does not levy VAT or any similar indirect tax.
The standard rate of sales tax (impuesto sobre ventas (ISV)) is 15 percent. An increased rate of 18 percent applies to imports and national supplies of alcoholic beverages and tobacco products also the airplane tickets in first
class and executive class are taxed with an 18 percent rate and telecommunication services will be taxed with a 15 percent rate, also the excess consumption of 750 kw/h of electricity the tax establish is of a 15 percent. The goods and services exported abroad are subject to 0 percent. Exempt supplies include basic food items for human consumption; livestock and certain agricultural goods, and machinery;
pharmaceutical products for humans and animals; books, magazines, newspapers, and school supplies; most financial services; educational services; the supply of water and
electricity; professional and sports services; and terrestrial transportation of passengers.
There is no VAT or GST in Hong Kong.
The standard rate of VAT is 27 percent (since 1 January 2012).
There are reduced rates of 18 percent and 5 percent. 18 percent relates to hotels and basic food, such goods as milk, certain dairy products, bread and other bakery products and to the admission to short-term open-air events. There is a reduced rate of 5 percent for the sale of most medicines, medical instruments, certain medical aids
with 90 and 98 percent social security subsidy, books,
newspapers, and magazines. Books and music notes on non-paper based but on a different type of device are subject to the reduced 5 percent rate unless electronic services are required to enlist them. Central (‘distance’) heating is also
subject to the reduced 5 percent rate. Live performances among certain conditions are also subject to the reduced 5 percent rate (in restaurants, in the course of family events, in the course of other events where no admission fee is
payable for the performance itself, etc.).
The standard rate of VAT (virdisaukaskattur (VSK)) is 25.5 percent. There are reduced rates of 7 percent and 0 percent. The 7 percent rate applies to, for example accommodations, books and periodicals, licenses to use radio and television broadcasting services, and certain food intended for human consumption. The 0 percent rate applies to, for example exports of goods and services; international transportation; fuel and equipment delivered for use in ships and aircraft engaged in international traffic; sales and rentals of ships and aircraft; and repairs and maintenance services rendered to ships and aircraft. Certain supplies of goods and services are exempt from VAT, for example real estate and parking space leases, health services, social services, educational and sport activities, passenger transport, postal services, financial services, and services of travel agencies.
The average standard rate of VAT is currently 13 percent. India has a federal structure with both federal and statespecific indirect taxes. Intra-state sale of goods is subject to VAT and sale of goods occasioning movement across states is subject to Central Sales Tax (CST). The standard VAT slab
rates across States ranges from 12.5 percent to 15 percent. There are reduced rates of 4 percent to 5 percent, 1 percent, and 0 percent which apply to, for example IT products, intangible goods (such as patents and copyrights), capital
goods, chemical fertilizers, cotton, drugs and medicines, iron and steel, industrial inputs, sports goods, tractors (4 percent to 5 percent); gold, silver, precious stones (for
example diamonds), articles or ornaments made of the aforementioned (1 percent); and exports of goods (zero rated). There are increased rates of 20 percent and above, applicable to petroleum products (such as diesel, petrol, lubricants, and aviation turbine fuel), natural and other
gases used as fuel, liquor and beer. Certain supplies of goods are exempt from VAT, for example books, periodicals and journals, electric energy, milk, fresh plants, flowers, vegetables and fruits, meat, fish, prawn, rice, and wheat.
CST is charged at the rate of 2 percent or alternatively at the
VAT rate applicable in the originating state. In addition, there is another indirect tax on provision of services known as Service tax, which is ordinarily discharged by the
service provider. The standard rate of Service tax with effect from 1 April 2013 is 12.36 percent. In terms of the Service tax law, all services other than those mentioned under the Negative List of services or specifically exempted under a Notification, would be liable to Service tax at of 12.36 percent. While any services exported out of India would be zero rated, any services received in India from outside India (‘import’) would be liable to Service tax in the hands of the recipient of such service
under ‘reverse charge mechanism’. Whether a service would qualify as ‘export’/ ‘import’ would be determined by the Place of
Provision of Service Rules, 2012, which prescribe for specified rules for different type of services.
The standard rate of VAT (pajak pertambahan Nilai (PPN)) is 10 percent. There are two types of indirect tax in Indonesia: a VAT (pajak pertambahan Nilai (PPN)) and a sales tax on luxury goods (pajak penjualan atas barang mewah (PPnBM)). The rates of PPnBM range from 10 percent to 200 percent. The reduced PPN and PPnBM rates of 0 percent apply to
exports of goods. Certain supplies of goods and services are exempt from PPN, for example unprocessed minerals, agricultural products, basic necessities, banking and insuranceservices, finance leasing, hotel and restaurant activities, employment and manpower services, various social services, and the certain supply of electric power and potable water.
There is currently no VAT/GST regime in Iraq
The standard rate of Irish VAT is 23 percent. There are also reduced rates of 13.5 percent, 9 percent, 4.8 percent, and 0 percent. The main reduced rate of 13.5 percent applies to, for example immovable goods, building services and repair, and
maintenance services. The second reduced rate of 9 percent applies to certain goods and services in the tourism sector such as hotels accommodation and restaurant meals. Changes were recently announced with respect to the reduced rate (9%) which will also apply to (a) the supply of live horses other than those intended to be used for foodstuffs/agricultural production only, (b) greyhounds and (c) the hire of horses. These changes will come into force upon implementation of a Ministerial Order which has yet to be announced. The 4.8% rate will continue to apply to other livestock and horses intended for use as foodstuffs/agricultural production only. The export of goods, basic foodstuffs, oral medicines, medical equipment, and appliances are liable to the 0 percent rate. There is a special farmer’s flat rate addition of 5 percent (with effect from 1 January 2014 - previously 4.8%) which applies to certain sales by unregistered farmers. In addition, supplies of certain goods and services are exempt from VAT, such as financial, insurance, passenger transport, education, and health and welfare services.
The rate of VAT follows that of the United Kingdom.
The standard rate of VAT is 18 percent effective 2 June 2013. The historical VAT rates are as follows: From 1 March 2004 to 1 September 2005 - 17 percent. From 1 September 2005 to 1 July 2006 - 16.5 percent; From 1 July 2006 to 1 July 2009 - 15.5 percent; From 1 July 2009 to 1 January 2010 - 16.5 percent; From 1 January 2010 to 1 September 2012 - 16 percent; From
1 September 2012 through 2 June 2013 - 17 percent; From 2 June 2013 to today - 18 percent
The standard rate of Italian VAT is 22 percent for transactions with tax points arising after 1 October 2013. Reduced rates of VAT of 10 percent, 4 percent and 0 percent also can
apply in Italy. Examples of items subject to the 10 percent rate include certain domestic supplies of fuel, hotel, accommodation, water and social housing. Examples of
supplies qualifying for the 4 percent rate include basic foodstuffs, books and periodicals. Examples of zero rated supplies include intra community supplies, exports and
certain services supplied in relation to qualifying international vessels and aircraft. A number of transaction types may also qualify for VAT Exemption in Italy such as certain financial services, insurance and real estate transactions.
The standard rate of GCT (our local Value Added Tax) is 16.5 percent. The rate of 10 percent applies to certain tourism services. The supply of electricity services for commercial use is at the rate of 16.5 percent. The rate of 25 percent applies to the supply of certain telecommunication services and instruments. The telecommunication providers attract
Telephone Calls Taxes at rates of J$0.05, J$0.40 and USD0.075 per minute, on certain calls. Commercial importers pay an Advanced GCT Payment of 5 percent on the importation of certain goods in addition to the
standard GCT rate applicable on imports. Zero rated supplies include exports, certain agricultural equipment and material, certain books, certain health supplies and medications and goods purchased by or services rendered to government entities. Exempt supplies include certain medical supplies and equipment, certain books and educational supplies, energy-saving devices and
miscellaneous services including construction, health, public utilities and financial services.
The standard rate of consumption tax is 5 percent.
The rate will be raised to 8 percent on 1 April 2014. Furthermore, the rate is slated to increase and to 10 percent on 1 October 2015.
There is a reduced rate of 0 percent, which applies to, for example, sales or leasing of goods as export transactions; sales or leasing of foreign cargoes; international transportation services; and services provided to non-residents (except for transport or storage of assets in Japan; provision of accommodations and food in Japan; and provision of services of a similar nature in Japan). Supplies of certain goods and services are exempt from consumption tax, for example, sale leasing of land; rental of housing; sales of securities, and similar instruments; medical treatment under public medical insurance laws; social welfare activities; school tuition; and examination services.
The standard rate of GST is 5 percent. The rate increased from 3 percent to 5 percent on 1 June 2011.
Under the GST Law, a taxable person is one who imports or
supplies taxable goods or services, or both.
There is no registration threshold for importers. However,
resident suppliers of goods and services are liable for
GST only if their taxable turnover exceeds the following
– JOD10,000 for manufacturers subject to the special tax;
– JOD30,000 for service industries;
– JOD60,000 for manufacturers subject to the general tax;
– JOD75,000 for traders.
GST is charged on:
– The supply of goods and/or services, unless such is nontaxable
or tax-exempt; and
– The importation of goods or services from places outside
Jordan or from the free zones, cities and duty-free shops.
Tax is computed by reference to the value of goods and
services, as stated on the invoice and declared by the taxpayer.
In the case of imported goods, the value is that which is
generally used for the assessment of customs duties. The
value of imported goods is the value for customs purposes at
the time of release from customs, plus the customs duties and
any other taxes, duties and levies thereon.
General sales tax rates applicable are as follows:
The standard rate is 16 percent and applies to products,
merchandise and transactions that are not subject to the
The zero rate (0 percent) applies to certain basic foodstuffs
listed in the law; certain pharmaceutical products; and fuel
oil, diesel oil, propane gas and butane gas.
Examples of goods exempted from sales tax are wheat,
bread, olive oil, paper money, gold and jewelry, electric
power, vehicles used locally, cellular devices, milk, coffee,
Examples of goods liable to VAT at the reduced rate of
4 percent. Certain items of food, phosphate, potash, pens
and notebooks and lead school and university, heaters,
certain agricultural equipment, ambulances, equipment and
medical supplies, school uniforms, and medicines.
Goods liable to VAT at the reduced rate of 8 percent include
Companies which are not resident in Jordan and have
no permanent establishment there, but which carry out
taxable transactions in Jordan, are subject to GST. Generally,
registration requirements for non-residents are the same as
for residents. Hence, foreign companies must register for
GST when they carry out taxable transactions in Jordan.
Companies registered with GST are liable to file GST returns
on a bimonthly basis, and has 30 days following filing
deadline to pay the GST due. Failing to do so, shall trigger
late filing penalties JOD100, in addition to late payment
penalties of 0.4 percent on the amount of GST due per each
The standard VAT rate is 12 percent. A 0 percent VAT rate applies to exports of goods and international transportation of passengers, baggage, and goods into or out of Kazakhstan, and sale of refined gold to the National Bank. Certain supplies of goods and services are exempt from VAT, including sales or lease of residential buildings and land plots; financial and insurance services by companies licensed in Kazakhstan; contributions to the charter capital of legal entities; and medical and veterinary services.
The VAT Act 2013 (effective 2 September 2013), provides for two rates applicable on VATable supplies - 16% and 0%.
The zero rate largely applies to the export of taxable goods and services and supplies made to privileged persons and institutions.
Exempt sales under the VAT Act include medical services, financial services, passenger transportation, residential accommodation, pharmaceutical products, unprocessed agricultural produce and lease of aircrafts.
All other supplies that are neither listed as exempt nor zero-rated are VATable at the standard rate of 16%.
There are currently no indirect taxes in Kuwait. Custom duty
is however charged at 5 percent of the value of the imported goods.
In addtion, we understand that the Kuwait Government has plans to introduce Value Added Tax (VAT) in the next couple years. Currently, further details on the implementation of VAT have not been announced by the Government. The effective date indicated above is arbitrary as indirect taxes such as VAT has never been introduced and custom duty as referred to above has been in effect for a substantial time.
The standard rate of VAT (pievienotas vertibas nodoklis
(PVN)) is 21 percent. There are reduced rates of 12 percent and 0 percent which apply to, for example pharmaceuticals, passenger transport, and heating for inhabitants (12 percent); supply, import, repair and maintenance of certain ships and aircraft, passenger transport by air or sea, financial transactions outside the EU and exports (0 percent). Supplies of certain goods and services are exempt from VAT, for example land and used immovable property, financial and insurance services,
education, and health and welfare services.
There are no VAT/GST in Libya.
The standard rate of VAT (Mehrwertsteuer (MWST)/taxe sur
la valeur ajoutée (TVA)/ imposta sul valore aggiunto
(IVA)) is 8 percent . There are reduced rates of 3.8 percent,
2.5 percent, and 0 percent which apply to, for example
hotel accommodations (3.8 percent); water in conduits,
medications, books, newspapers, food and non-alcoholic
beverages (2.5 percent); and exports of goods (0 percent).
Supplies of certain goods and services are exempt from
VAT, for example official postal service, health and welfare,
education, insurance, finance, and supply of certain
The standard rate of VAT (Pridetine´s vertes mokestis (PVM))
is 21 percent. The reduced rate of 9 percent is applicable for certain periodicals (e.g. newspapers) and non-periodicals (e.g. books); certain regular passenger transportation and related baggage handling services; the supply of heating for dwellings and the supply of hot water (until 31 December 2014).
A 5 percent reduced VAT rate is applicable to certain drugs and medicine; technical aids for disabled and their repair. There is a compensational rate of 6 percent for supplies of goods and services under the farmer’s flat rate scheme.
The zero-rate applies to exports of goods outside the EU; intra-Community supplies and supply, modification, modernization, and hiring of seagoing ships and aircrafts. Supplies of certain goods and services are exempt from
VAT, such as health and welfare, educational, cultural, sports, postal, financial, and insurance services; land (except for building purposes); sale of real estate (older than 24 months); and leasing of real estate.
The standard rate of VAT (taxe sur la valeur ajoutée (TVA)) is 15 percent. There are reduced rates of 12 percent, 6 percent, 3 percent, applicable for example to certain wines, safekeeping and management of securities, management of credit by persons not granting it (12 percent); electricity and gas (6 percent); food (except drinks containing alcohol),
animal feed, books (including e-books from January 2012;
infringement procedure initiated by European Commission, referred to the Court of Justice of the European Union in February 2013), newspapers and periodicals, passenger transport, hotel accommodations, certain sporting and cultural services, and certain pharmaceutical products (3 percent). Exports and intra-Community supplies of goods,
supplies of goods and services used by airlines operating for reward chiefly on international routes, and services supplied for the needs of high-seagoing vessels and international passenger transport services are VAT exempt. Luxembourg also provides other exemptions for VAT, for example for banking and financial services, management of UCITS collective investments funds, SICAR, specialized investment funds, some pension funds and securitization vehicles, insurance and reinsurance operations, supply and letting of
immovable property, postal services, education and certain
There is no value-added tax or goods and services tax in Macau.
The standard rate of VAT (danok na dodadena vrednost (DDV)) is 18 percent. The reduced rate of 5 percent applies to some supplies such as the supply of food products,
publications, seeds and planting materials, agricultural machines, pharmaceutical and medical devices, computers, thermal-sun systems, passenger transport, accommodation services provided by hotels, motels etc, software and supply of apartments used for residential purposes if performed
within five years from construction (the preferential rate is deemed to apply until 31 December 2015, after which these supplies would be taxable under the general rate
of 18 percent). Supplies of certain goods and services are exempt from VAT, for example financial and insurance services, education, health, and supplies and rental of
buildings and apartments used for residential purposes, except for their first sale if performed within five years from their construction.
The standard rate of VAT (general consumption tax) is
Exempt supplies include supplies of live animals, animal
products (meat and edible meat offal in raw form, fish and
crustaceans molluses and other acquatic invertebrates,
vegetable products in raw state, water i.e. tap or well water,
residuals and waste from the food industries, petroleum
products, miscellaneous chemical products (fungicides
and herbicides), fuel wood, printed matter – books, coin,
mechanical appliances (whether or not hand-operated)
for projecting, dispensing or spraying liquids or powders,
medical equipment, education services, banking and life
insurance services, postal services, funeral services,
medical services, transport of exports, rentals and sale of
properties used for residential purposes, ordinary bread,
vehicle ambulances, motor cycle ambulance, hessian cloth.
Zero–rated supplies include exports, fertilizers, sheath
contraceptives (condoms), exercise books, laundry
soap, salt, machinery – zero-rating covers agricultural,
horticultural, forestry machinery, e.g. ploughs, harrows,
manure spreaders, harvesting machinery, e.g. lawn mowers,
egg grading machinery, combine harvesters, haymaking
machinery, goods for use in tourism industry, military
equipment, syringes with or without needles, furnishing
articles, pharmaceutical products, sand flynet, cycle
ambulances, motor cycle ambulances. Changes are anticipated in July 2014 following Parliamentary sittings in May & June 2014.
GST has been proposed to be implemented on 1 April 2015. At the present moment, Malaysia has sales tax and service tax. Sales tax is imposed on taxable goods
manufactured locally/imported, unless exempted. The standard rate of sales tax is 10 percent. A reduced sales tax rate of 5 percent is applicable to certain items such as foodstuffs, alcoholic beverages, and tobacco products. Service tax is charged on specific types of services (taxable services) provided by taxable persons. The rate of service tax is 6 percent (effective 1 January 2011). Prior to that, the rate was 5 percent. In addition, certain taxable services provided
within a group and services relating to goods or matters outside Malaysia are not subject to service tax.
The standard rate of VAT (taxxa fuq il-valur miz´jud) is 18 percent. There are reduced rates of 7 percent, 5 percent and 0 percent which apply to, for example, the supply of electricity, medical accessories, printed matter, and items for the exclusive use of the disabled (5 percent); and exports of goods, international transport and ancillary services, supplies of certain qualifying vessels and aircraft, the chartering thereof and certain services provided thereto, food, and pharmaceutical goods (0 percent). Furthermore, with effect from 2011, there is a special
reduced VAT rate for the letting or provision of hotel and private accommodation (including related services up to full board basis) of 7 percent (formerly 5 percent). Supplies of certain goods and services are exempt from VAT, for example immovable property (with some exceptions); insurance services; credit, banking, and other related services; cultural, sporting and religious services; postal services; education; and health and welfare.
The standard rate of VAT is 15 percent. There is a reduced rate of 0 percent which applies to, for example exports of goods other than exempt goods, sugar, sugar cane, wheat flour, books, booklets, brochures of specific customs
headings, the supply of electricity, water, international transport of passengers and goods, certain pharmaceutical products and supplies of services to non-residents. Supplies of certain goods and services are exempt from VAT, for example rice, wheat, bread, butter, milk and cream, medical,
hospital and dental services other than cosmetic surgery services, certain medical and dental equipment, educational and training services, postal services, cargo handling, and certain residential buildings.
1. The preferential VAT rate of 11% for transactions conducted in the border region has been repealed from January 2014.
The standard rate of VAT (porez na dodatu vrijednost; PDV) is 19 percent (effective 1 July 2013). There are reduced rates which apply to, for example basic foodstuffs, medicines not listed on the Health Fund list, textbooks and teaching aids, books, monographic and serial publications, daily and periodic press (with some exceptions), hotel and other accommodations, public transportation of passengers and their personal baggage (7 percent); exports of goods, transport, and other services in relation to exports,
goods and services used in international air and maritime traffic, and medicines and medical devices listed on Health Insurance Fund list (0 percent). Supplies of certain goods and services are exempt from VAT, for example financial and banking services, insurance and reinsurance services, the supply of immovable property (except the first transfer), health and social security services, cultural, sport, and religious services.
The standard rate of VAT is 20 percent.
There are reduced rates of 14 percent, 10 percent and
- 7 percent rate applies for some goods of general
consumption, water, renting out of water and electricity
meters, pharmaceutical products, etc.
- 10 percent rate applies for bank, credit transactions and
exchange commissions except leasing, the supply of
catering services and hotel accommodations, the activities
of some liberal professions (e.g. lawyer, interpret), etc.
- 14 percent rate applies for transportation transactions,
electric energy, etc.
The standard rate of VAT (imposto sobre o valor acrescentado (IVA)) is 17 percent. There is a reduced rate of 0 percent which applies to, for example, exports of goods, services linked to exports of goods, international passenger transportation and some basic foodstuffs. Supplies of certain goods and services are exempt from VAT, for example medical and health services, goods and services linked to welfare and social security, education (with some exceptions), banking and financial transactions, insurance and reinsurance transactions, leasing of immovable property for residencial, commercial use and industries in rural zones, goods and services related to agricultural, forestry, livestock and fishing activities, and importation of certain goods approved for mining and industrial free-zone operations. Additionally, services related to drilling, research and construction of infrastructure relating to mining and oil and gas activities during the exploration and appraisal stages are exempt from VAT (according to a project of law regarding changes to the VAT Code from 2012, which has yet to be formally approved, this exemption may be withdrawn in 2014). It is therefore uncertain as to when the amendment would in fact enter in force).
Namibia levies VAT at a rate of 15% or 0% on supplies made by an enterprise. It is essential to determine which rate or rates are applicable on every supply.
For imports, the rate of tax is also 15%. However, the value of imported goods for purposes of calculating the tax is the free on board (“FOB”) value plus 10% of that FOB value. It is important to note that certain imports may be considered as exempt or zero rated if the provision of those goods or services would have been exempt or zero rated had they been supplied by a Namibian supplier.
The standard rate of VAT (omzetbelasting (BTW)) is 21 percent (as of 1 October 2012). There are reduced rates of 6 percent and 0 percent. The reduced rate of 6 percent applies to, for example, the supply of foods, drinks (excluding alcoholic beverages),
medicines, books, daily newspapers and magazines, passenger transport, some labor intensive services, sports events and since 1 July 2012, performing arts. The zero rate applies to for example exports of goods, intra-Community supplies, services regarding goods not yet imported and supplies of sea-going
vessels or aircrafts. Supplies of certain goods and services are
exempt from VAT, for example immovable property (with some
major exceptions), financial and insurance services, education, and health and welfare.
The standard rate of GST is 15 percent. The rate is reduced to 0 percent in certain situations such as the export of goods and services, the supply of a business as a going concern, the supply of land on or after 1 April 2011, and the supply
of financial services under the “business-to-business” regime. Supplies of certain goods and services are exempt from GST unless the supplies can be zero-rated. Exempt supplies include the supply of financial services, the supply by non-profit bodies of donated goods and services, the
supply of residential accommodation, and the supply of fine metals. New Zealand also operates a GST reverse charge for
Tax standard rate for indirect tax is 15 % corresponding to Value Added Tax
0% for exports of goods and services
7% power lower than 300kw/h
15% sale of goods, imports and services rendered
The VAT rate is 5 percent. Some supplies may be zero-rated or completely exempt.
The standard rate of VAT (merverdiavgift (MVA)) is 25 percent. There are reduced rates of 15 percent, 8 percent, and 0 percent which apply to, for example food (15 percent); hotel accommodations, passenger transportation, communication of such services, the right to attend
museums, cinemas etc. (8 percent); and exports of goods, certain supplies relating to ships and aircrafts as well as books, magazines and newspapers on paper (0 percent). Supplies of certain goods and services are exempt from VAT, for example financial services, real estate (with some major exceptions), education, health services, and social services.
Currently there is no VAT or GST in Oman.
The standard rate of Federal sales tax is 17 percent ad-valorem on supply of taxable goods, whereas specified services are subject to standard rate of sales tax at 16 percent ad-valorem under the Provincial laws. Indirect taxes in Pakistan include sales tax, Federal excise duty (FED) and Provincial sales tax. Zero-percent sales tax is
applicable on all exports from Pakistan, whereas the local supply of major export sectors to downstream industry is subject to the levy of sales tax at reduced rates. Certain supplies of goods and services are exempt from sales tax,
for example agricultural products, unprocessed food items, animals and their meat, fisheries, dairy products, sale to hospitals and educational non-profit organizations. FED applies to the import and manufacturing of specified goods
and provision of specified services at different rates. The rate of FED or Provincial sales tax on specified services is generally applicable at standard rate of 16 percent, however on franchise services and telecommunication services, the
applicable rates are 10 percent and 19.5 percent respectively.
The standard rate of VAT (impuesto sobre la transferencia de bienes corporales muebles y la prestacion de servicios) (ITBMS) is 7 percent. A special increased rate of 10 percent applies to the import, wholesale, and retail sales of alcoholic beverages. A special increased rate of 10 percent applies to hotel accommodation services. A special increased rate of 15 percent applies to the import, wholesale, and retail of all kinds of cigarettes, cigars and other tobacco products. Zero-rate supplies include exports and re-exports of goods and the sales of pharmaceutical and food products when certain conditions are met (that is, the taxable person is engaged exclusively in such activities and its total output is sold within Panamanian territory). Exempt supplies include (among others) the sale of food; sales of oil fuel and similar products; newspapers; magazines, educative magnetic media, notebooks, pencils, and other items for school purposes; medicines and pharmaceutical products; and interest payments (other than commissions or fees) arising from financial services and financial leasing contracts defined by law.
The standard rate of goods and services tax (GST) is
10 percent. There is a reduced rate of 0 percent which
applies to, for example exports of goods and services,
medical supplies, supplies of goods and services to
prescribed foreign aid providers, supplies of goods, and
services to a non-profit body, supplies of goods and
services to resource companies. Supplies of certain goods
and services are exempt from GST, for example financial,
medical, and educational services, public road transport,
postage stamps, and the retail supply of newspapers.
10% is the general VAT rate. A reduced (or differential) rate of 5% applies to:
- The lease and transfer of properties
- The transfer of agricultural products, fruits, horticultural products in their natural state and life animals; products obtained from the hunting and fishing, alive or not; vegetable oil virgin or crude degummed; certain products of the “family basket”: rice, noodles, mate (yerba mate), edible oils, eggs, raw (not cooked) meats, flour and iodized salt
- Interest, fees and charges of the loans granted by banking and financial entities
- The transfer of pharmaceuticals products
The standard rate of VAT (impuesto general a las ventas(IGV)) is 16 percent (since 1 March 2011). The municipal promotion tax (impuesto de promoción municipal (IPM)) of 2 percent is also added to the value of goods or services
used to determine the IGV, which results in a 18 percent sales tax overall.
The standard rate of VAT is 12 percent.
The standard VAT rates are: 23 percent, 8 percent, 5 percent and 0 percent. The rates were increased on 1 January 2011. Some of the goods (mostly food products) formerly taxed with a 7 percent VAT rate are now taxed with a 5 percent VAT rate in order to minimize the impact of the increase of VAT rates on the poorest. The new increased rates were initially introduced for a period of three years. According to the adopted Amendment of Value Added Tax Act, increased VAT rates will continue to apply until the end of 2016.
Certain supplies of goods and services are exempt from VAT, for example: financial services, healthcare or education services.
In the mainland the standard rate of VAT is 23 percent, with reduced rates of 13 percent and 6 percent. Madeira island has a standard VAT rate of 22 percent, with reduced rates of 12 percent and 5 percent. Azores island has a
standard VAT rate of 18 percent with reduced rates of 10 percent and 5 percent (from 1st January 2014).
No indirect tax regime exists in Qatar. However, Qatar does follow the GCC Unified Customs Regime and applies a customs duty rate of 5 percent on most imports into Qatar.
The standard rate of VAT is 24 percent. VAT reduced rates of 5 percent and 9 percent are applicable on some supplies. Starting with 1 September 2013, the reduced rate of 9 percent also applies to supplies of bread and bakery products, flower and wheat.
The standard rate of VAT (nalog na dobavlennuyu stoimost’
(NDS)) is 18 percent. There are reduced rates of 10 percent and 0 percent which apply, for example to sale of certain food products, specific goods intended for children, certain books and periodicals, certain pharmaceutical and other
medical products (10 percent); and exports of goods, rendering of international transportation and certain types of related services, services related to transit of goods through Russia, international passenger transportation, and export of fuel for ships and aircraft (0 percent). Supplies of certain
goods and services are exempt from VAT, for example lease
of premises to foreign companies accredited in Russia, rendering of certain types of medical services and sale of certain medical products, public transportation, the sale of securities, rendering of certain types of banking services,
insurance services, the sale of residential property. There is a specific rate of 15.25 percent (effectively it is a computed rate 18/118) which is applicable to the sale of the whole enterprise (plant). There are also computed VAT rates (18/118 and 10/110) for specific cases when VAT is applicable to the
VAT inclusive amount of revenue (e.g., receipt of advance payments and other payments connected with settlements for suppliers).
The standard rate of turnover tax (Belasting op
Bedrijfsomzetten; BBO) in St. Maarten as of
11 February 2011 is 5 percent.
The standard rate of VAT is 15 percent. This rate applies
to ordinary businesses, trade and professionals, public
authorities, non profit bodies, clubs, societies and
associations.There is a reduced rate of 0 percent (and zerorated;)
for exported goods and certain exported services,
duty free goods, goods not in Samoa at the time of supply
and educational services provided by approved institutions.
Medical goods and services supplied by the hospital and
water supply provided by the Samoa Water Authority are
also zero-rated. Those supplies exempt from VAT are locally
produced raw and unprocessed food, financial services,
donated goods and services sold by non-profit bodies, bus
and taxi fares, electricity and inter-island passenger fares in
There is no VAT or GST in Saudi Arabia.
The standard rate of VAT (porez na dodatu vrednost (PDV)) is 20 percent (effective 1 October 2012). There are reduced rates of 10 percent (effective 1 January 2014) and 0 percent which apply to, for example basic foodstuffs, medicines, textbooks and daily newspapers, hotel services, gas, and first transfer of ownership on residential buildings (10 percent); and exports of goods, transport and other services in relation to export, supply, repair, maintenance, charter and lease of aircraft and river vessels predominantly operating in international traffic, and international air and river transport of passengers under a reciprocity rule (0 percent). Supplies of certain goods and services are exempt from VAT, for example financial and banking services, insurance and reinsurance services, supplies and renting of land, transfer of shares
and securities, transfer of immovable property (except
first transfer), medical and welfare services, education and professional retraining, cultural, scientific, sport, and religious services.
The standard rate of GST is 7 percent. There is a reduced rate
of 0 percent which generally applies to export of goods and international services. Supplies of certain financial services, the sale or lease of residential properties and the supply of investment-grade gold, silver and platinum are exempt from GST.
The standard rate of turnover tax (Belasting op Bedrijfsomzetten; BBO) in St. Maarten as of 11 February 2011 is 5 percent.
The standard rate of VAT(dan z pridanej hodnoty (DPH)) is 20 percent. There is a reduced rate of 10 percent which applies to medicaments; certain other medical
and pharmaceutical products; contact and spectacle lenses; certain hygienic products; books and other printed products where advertisement does not exceed 50 percent of the content of the product. International passenger
transportation, exports of goods, intra-community supply of goods, supply, rental, repair, and maintenance of sea craft and aircraft and some other supplies are VAT exempt with the entitlement for input VAT deduction. Supplies of
certain goods and services are exempt from VAT with no entitlement for input VAT deduction, for example postal services; financial and insurance services; education and training; health and welfare; cultural services, supply and rental of immovable property (under certain conditions), etc.
Until 30 June 2013 standard VAT rate amounts to 20 percent and reduced rate to 8.5 percent. As of 1 July 2013 both rates will increase:
– standard rate to 22 percent,
– reduced rate to 9.5 percent.
The standard rate of VAT is 10 percent. Each business person is entitled to credit input taxes paid, except for those in connection with entertainment expenses, nonbusiness related expenses, input VAT paid before the entity is registered under the VAT Law, etc., against output taxes collected. Under the revised VAT law, however, if in case the entity is registered within 20 days from the end of the VAT period to which the date of supply belongs, input VAT
incurred from the beginning of the VAT period to which the date of supply belongs would be creditable retrospectively. Certain taxable transactions are subject to a VAT zero-rate. The following categories of taxable transactions are zerorated:
(1) the export of goods and services, (2) services
supplied outside of Korea, (3) the supply of international transportation services by vessel or aircraft, and (4) the supply of certain goods or services in Korea where the compensation is received in foreign, non-KRW currency. The
supply of certain designated goods and services is nontaxable and therefore exempt from VAT. VAT is not collected by the supplier of these designated goods or services, so the supplier is in a position to charge his supply without VAT to
the purchaser. In turn, the supplier is not able to deduct his input VAT associated with such goods and services. The input tax is thus borne by the supplier as if he were the ultimate consumer. The following supplies of goods or services are treated as VAT exempt: unprocessed basic foodstuffs,
medical and health services, educational services, passenger
transport services, books, newspapers and magazines,
postage stamps, land and banking/insurance services etc.
The standard rate of VAT is 21 percent (effective 1 September 2012). The reduced rates are 10 percent and 4 percent.
Reduced rate of 10 percent: food and drink used for human or animal consumption (excluding tobacco and alcoholic beverages), animals, substances to be ordinarily used in
agricultural activities, pharmaceutical products for animals, prescription glasses, contact lenses, aid implements,
material and equipment for prevention, flowers, etc. Relating
to the application of the reduced rate of 10 percent to
pharmaceudical products and medical equipment please
note that according to CJEU case( C-360/11), Spain has failed
to fulfil its obligations under Article 98 EU VAT Directive . The
Spanish government has not yet changed the internal VAT Law following the case. Reduced rate of 4 percent: Newspapers, magazines and books that do not contain mainly advertisements, ordinary
bread, flour, milk, eggs, cheese, vegetables and fruit, medicines and pharmaceutical products (excluding products for hygiene purposes), etc.
The standard rate of VAT is 12 percent. There is also a reduced rate of 0 percent. The VAT rate on financial services is also 12 percent.
There is a flat rate of 17 percent VAT for all service and purchases in Sudan. However, a VAT rate of 30 percent applies to telecommunication service. These rates have applied since July 2012.
The standard rate of VAT (mervärdesskatt (MOMS)
is 25 percent. There are reduced rates of 12 percent, 6 percent, and 0 percent which apply to, for example, restaurant services (from 1 January 2012), food and hotel
accommodations (12 percent); domestic passenger transportation including ski lifts, books and newspapers, certain sporting and cultural events (6 percent); and exports of goods, fuel to aircrafts, ships and aircrafts for commercial
transport and services related to them and prescription
pharmaceuticals (0 percent). Supplies of certain goods
and services are exempt from VAT, for example health and welfare; education, financial, and insurance services; and the sale and letting of real property.
The standard rate of VAT (Mehrwertsteuer (MWST)/taxe sur
la valeur ajoutée (TVA)/imposta sul valore aggiunto (IVA)) is 8 percent. There are reduced rates of 2.5 percent (e.g. water in conduits, medications, books, newspapers, food and nonalcoholic beverages) and 3.8 percent (accomodation services only). Some transactions are VAT exempt (with credit), for
example exports of goods. Supplies of certain goods and services are not subject to VAT (without credit unless the option to tax is levied when applicable) like for example
official postal service, health and welfare, education, insurance, finance and supply of certain immovable property.
There is currently no VAT in Syria.
Under the Taiwan Value-added and Non-value-added Business Tax Act, there are two systems of business tax, one being the VAT system and the other being the gross business receipts tax (GBRT) system. The standard VAT rate is 5 percent. GBRT applies mainly to financial institutions operating in banking, insurance, trust and investment, securities, futures, and short-term commercial papers business. The GBRT rate is generally 2 percent on revenues generated from core business. There is a reduced rate of 0 percent which applies to, for example, export sales of goods, services rendered which relate to export sales, services supplied in Taiwan but used outside of Taiwan, and goods or services supplied to a bonded area business for operational use. Supplies of certain goods and services are exempt from VAT, such as land, medical services, medicine, education services, and newspapers and magazines
The standard rate of VAT is 18 percent. Some supplies may
be zero-rated or completely exempt. Other indirect taxes
include stamp duty (1 percent to 4 percent) and levies such as skills and development levy (5 percent of payroll cost per month), payroll tax vary from 0 to 30 percent of taxable
salary and city service levy (0.3 percent of turnover).
The current rate of Thai VAT is 7 percent. Please note that this is a temporary rate, reduced from the standard rate of 10 percent introduced by a special Royal Decree valid until 30 September 2014.
The standard rate of VAT is 18 percent. There are reduced rates of 12 percent and 6 percent. The 12 percent rate is mainly applicable to supply of services, for example services rendered by hotels; services rendered by lawyers, notaries, legal and tax counsels, and other experts; catering and
IT services. The 6 percent rate applies to supplies such as services carried out by doctors, nurses, masseurs, veterinarians, and analytical laboratories; the transport of persons and agricultural products; the import, production,
and sale of fertilizers; supplies of livestock concentrate food; soy beans; fish meal; and products and articles for the pharmaceutical industry (6 percent). Supplies of certain goods and services are exempt from VAT, for example school education; imports; the production and sale of aircrafts for
public transport; services rendered by maritime transport and ship agencies; aircraft transport services; leasing of vessels and aircrafts for international maritime and air transport; the production and sale of flower, bread, pasta
(normal quality), olive oil, soy, and soy oil; and the production, refining, and conditioning of vegetable oil.
In Turkey, the following VAT rates are applied:
•standard rate: 18 percent
•reduced rates: 1 percent and 8 percent
The standard VAT rate applies to all supplies of goods or services, unless a specific measure provides for a reduced rate or exemption.
Examples of goods and services taxable at 1 percent are as follows:
•newspapers and magazines(including sale of the newspapers and magazines in electronic where this reduced rate does not cover the electronic devices, electronic tablet devices etc..)
•some foods and beverages
•used passenger cars
•Financial leasing services (with certain conditions)
Examples of goods and services taxable at 8 percent are as
•some foods and beverages
•books (including e-books)
•pharmaceuticals and medical products
•some construction equipment
•ready-wear products, garments and textile products
•admission charges for cinemas, theaters, and operas
The standard rate of VAT is 18%. There is however, a reduced rate of 0% which applies to: supply of goods or services where the goods or services are exported from Uganda as part of the supply; supply of international transport of goods or passengers and tickets for their transport; certain food products produced in Uganda; supply of drugs and medicines; supply of seeds, fertilizers, pesticides and farm implements; the supply of aircraft, parts thereof and maintenance equipment; and the supply of some hygiene products. There is another category of supplies called ;exempt supplies; which covers the supply of unprocessed agricultural products, postage stamps, insurance and financial services, un improved land, supply by way of leasing residential immovable property, supply of education services and other specified supplies. Any supply that is neither exempt or zero rated, is automatically considered standard rated.
The standard rate of VAT (podatok na dodanu vartist (PDV) is 20 percent. A reduced VAT rate of 0 percent applies to, among other things, exports of goods and related
services, servicing or processing of goods temporarily imported to Ukraine (including goods temporarily imported to Ukraine pursuant to international tolling arrangements), supplies for airplanes and ships used in international traffic, international transportation of passengers and their luggage, and servicing of airplanes engaged in international
traffic. The Tax Code became effective 1 January 2011 and had a major impact on the VAT regime in Ukraine. In practice, most previously VAT-exempt supplies of goods and services retained the VAT-exempt status. These include, for example, supplies of certain financial services, insurance
services, royalty and dividend payments, transactions with
securities and corporate rights with settlements in cash funds, subscriptions to and delivery of local newspapers, magazines and books, prescribed pharmaceuticals, certain
transfers of immovable residential property and land, charitable donations, local passenger transportation (except for taxis), education, and prescribed health and welfare. Supplies of grain and industrial crops (except for the first
supply transactions by the agricultural producers) have also
been exempted from the VAT. A sale of business as a going concern is no longer a VAT-exempt transaction. A special VAT regime is available for the designated agricultural producers. Effective 3 August 2012, a law came into effect
which envisages that for the period from 1 January 2013 to 1 January 2023, transactions on supply of software products will be VAT-exempt. Starting 1 January 2014, VAT rate will be reduced down to
There is no VAT or GST in the United Arab Emirates.
The standard rate of VAT is 20 percent (effective 4 January 2011). There are reduced rates of 5 percent and 0 percent which apply to, for example children’s car seats, certain contraceptive products, domestic fuel and power, and
renovations/conversions of residential properties (5 percent);
and food and animal feed, books and newspapers, prescription drugs and medicines, children’s clothes,
passenger transport, and exports of goods (0 percent). Supplies of certain goods and services are exempt from VAT, for example financial and insurance services; education services supplied by eligible bodies; certain cultural services; betting, gaming, and lotteries; subscriptions; and health and welfare.
While the United States does not impose a national VAT, most states and some local governments impose transaction-based taxes commonly referred to as sales and use taxes. Forty-five states and the District of Columbia impose a state-level tax on the sale or use of goods and some services. Local governments in 34 states are authorized to impose local sales taxes. There are about 7,600 jurisdictions across the country that have chosen to impose a local sales tax.
The state and local tax sales tax rate in the United States may range from 4 percent to 11 percent. As an example, the combined state and local sales tax rate in Seattle, Washington is 9.5 percent and that is made of a 6.5 percent state sales tax, a 1.2 percent county sales tax, and a 1.8 percent special purpose district tax. Which goods and services are subject to tax, and the applicable tax rates, vary according to the jurisdiction. All states and some localities with sales and use tax regimes possess broad powers to determine whether goods and services are fully taxable, taxable at a special rate, or are fully exempt.
The standard rate of VAT (impuesto al valor agregado (IVA)) is 22 percent (as from 1 July 2007). The reduced rate of 10 percent applies to specific consumer goods, lodging
services, and medicines. Moreover, the standard rate will be reduced to 20 percent when the consumer pays by debit or credit card (not in force yet); Exports are zero-rated as well
as purchases where the consumer pays with the special aid card granted by the government to low-income taxpayers. Exempt supplies include certain agricultural goods and machinery, specified fuels, commissions, interests on specific financial transactions, and transport services.
The standard rate of VAT (impuesto al valor agregado (IVA)) is 12 percent. The increased rate of 22 percent (which results from adding 10 percent to the standard rate) applies to luxury goods. Certain goods and services (such as red meat, animal oil, or local plane tickets) have a temporary rate of 8 percent. Exports are zero-rated. Exempt supplies include basic food
items, medicine, fertilizer, fuel, newspapers, books and magazines, education, intangible assets, loans, banks, and financial institutions operations except leasing, insurance
services, payroll, operations performed in specified duty free
and tourist areas, national electricity, water, and natural gas.
The standard rate of VAT (gia tri gia tang (GTGT)) is 10 percent. There are reduced rates of 5 percent and 0 percent which apply to, for example, medical equipment and instruments, fresh foodstuffs, scientific and technical services, manufacturing equipment and machinery for agriculture, sale or lease of socialized houses (5 percent); and the exports of goods and services (0 percent). It is restated in the Amended Law on VAT, effective from 1 January 2014, that export services mean those being provided directly to overseas customers/customers in non-tariff zones and being consumed outside Vietnam/in non-tariff zones respectively.
Supplies of certain goods and services are exempt from VAT, for example life insurance, financial services (other than fees for services), transfer of land use rights, health care services, computer software, printing, publishing and distribution of newspapers, magazines, and certain books.
There are also certain VAT ignorable transactions whereby the supplier is not required to charge VAT but is generally allowed to claim the input VAT associated with such transactions. These include, but are not limited to, payments of indemnities, bonuses, financial assistance or other financial receipts; specified services rendered by foreign contractors such as repair of means of transportation, advertising, brokerage services; disposal of assets owned by non VAT-registered owners; certain intercompany transfer of fixed assets; capital contributions in the form of assets, and so on.
Also according to the Amended Law on VAT, VAT rate on the sale or lease of commercial apartments (with a floor space of less than 70m2 and priced under VND15 million/m2) will be temporarily reduced to 5 percent from 10 percent for the period from 1 July 2013 to 30 June 2014.
There is a 5 percent general rate. Special rates apply to a few
categories of goods and services.
The standard rate of VAT is 16 percent. There is a reduced
rate of 0 percent which applies to export of goods, supplies to privileged persons, books, medical & building supplies, agricultural equipment & accessories etc. Exempt goods and services include water supply, educational services,
passenger transport services, selected financial services, conveyance of domestic property among other products and services. With effect from 1 January 2011, VAT appies on all non life insurance products. Previously, all insurance services were exempt from VAT.
Zero-rating and exemption is available for few specified goods and services.
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