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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. The supply of drugs and medical services offered by private or public health institutions is subject to 10 percent VAT.
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, the processing and manufacturing of movable goods in Argentina by a third party,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.
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 1st 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-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 business insofar as it consists of sale of personalty is 6 percent (exclusive of cash). Business Licence tax is payable by businesses operating in The Bahamas at rates ranging from a flat rate of $100 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 VAT or sales tax. Bahrain follows the GCC Unified Customs Duty law and imposes 5 percent on most imports.
The 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 airconditioned bus, launch and railway services (10 percent); rental premises (9 percent) sponsorship services (7.5 percent), restaurants (without AC) (6 percent); construction firm (5.5 percent); electricity distributors, own branded readymade garments sellers(5 percent); motor vehicles garage and workshops, producers of film or photo studio/shops, dockyards, carriers without petroleum, immigration advisers, English medium schools and Information Technologhy Enabled Services (ITES) (4.5 percent); supplies of goods and services through participation in a tender/quotation and buyers of auctioned goods (4 percent); petroleum carriers (2.25 percent); goldsmith or silversmith (2 percent); Land developers, construction of apartments (1.5 percent); and exempt from VAT, for example 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. There is an 8.75 percent rate which currently applies to the provision of hotel and condo-hotel accommodations. It was announced in the 2013 Budgetary Proposals that effective October 1, 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. Supplies 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 agredado; IVA) is 13 percent of the total price of the service rendered (effective rate of 14.943 percent). Exports of goods and services are zero-rated. Exempt services include: 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 circula & ccedil;& atilde;o de mercadorias e servi & ccedil;os; 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 servi & ccedil;os; ISS) a social contribution for social security financing (contribuiç & atilde;o 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% (in São Paulo, Minas Gerais, and Paran & aacute;; the standard rate is 18% and in Rio de Janeiro it is 19%). 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% to a maximum of 330% and average about 10%. The standard rate of ISS is ranges from 2% to 5%. The standard rates of PIS and COFINS under the so-called non-cumulative regime are 1.65% and 7.6%, respectively. There are reduced rates of 7% and 12% 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%), products that are part of the basic food basket and products from the electronic data processing industry (7%). 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 on 2013): The inter-state sale of imported goods (not submitted to any kind of industrialization), without similar in Brazil, is subject to the ICMS rate of 4%. Also, the inter-state sale of industrialized goods with imported content greater than 40% is subject to the ICMS rate of 4%. Exemptions: goods industrialized under the Basic Production Process (PPB). The reduced IPI rate of 0% 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 institutions. Reduced rates of 0.65% PIS and 3% COFINS apply under a so-called cumulative regime. Unlike the non-cumulative 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 on 2012): According to the new disposals brought by MP 563/2012, Cofins on Importation rate has now been increased to 1% (one percent), which will correspond to a total of 8,6% (eight point six percent), regarding import operations with the products listed at the appendix to Law n 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.
The standard VAT rate is 10 percent.
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 April 1, 2013. Prince Edward Island harmonized its retail sales tax with the GST to create a new 14 percent HST on April 1, 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 percent. 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 to an investment agreement with the 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 and 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: value-added tax, consumption tax, and business tax. VATThe 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% 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 taxBusiness 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, post and telecommunications, construction and real estate, finance and insurance, and entertainment services). The rate of business tax is 3% for each of transportation, construction, post and telecommunication, cultural activities, and sports; and 5% 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% and 20%. Business tax is a turnover tax in the sense that it is not creditable in business-to-business transactions.Consumption taxThere 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% to 56%, 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.Indirect taxes in China are subject to on-going significant reforms and therefore this information may be outdated quickly. Please contact your KPMG advisor for the most up-to-date advice.
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 10 percent and 5 percent.The reduced rate of 10 percent applies to tourist accommodations; full or half board services and the rent of campsites; certain hospitality services; magazines and newspapers other than daily published newspapers printed on paper excluding newspapers with the majority of content used for advertising (excluding those subject to 5 percent VAT rate); edible oils and fats; baby food; supply of water (except bottled or otherwise packaged drinking water); refined (white) sugar; tickets for concerts; science and arts magazines.The reduced rate of 5 percent applies to bread, milk, certain books, certain medicines, medical equipment and orthopaedic devices; admission to cinemas; daily published newspapers with an informative content encompassing at least 25,000 words per edition and excluding newspapers with the majority of content used for advertising; scientific magazines.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 museums, libraries, theatres, orchestras and other cultural services; betting and gambling; rent of residential property, etc.
The following differentiated rate was introduced on May 1, 2013:- 6 percent: general rate;- 0 percent: exemptions;- 7 percent: insurances and (as of January 1, 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 from 14 January 2013, the standard rate of VAT(Foros prostithemenis axias; FPA) is 18 percent. There are reduced rates of 5 percent and 8 percent, as well as 0 percent. For example, since 1 January 2011, 8 percent applies to passenger transportation services within Cyprus; hotel accommodation; restaurant and similar catering services, including alcohol drinks. 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. Effective from 13 January 2014, the standard VAT rate will be increased to 19 percent and the reduced rate of 8 percent to 9 percent.
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 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 of land including financial leasing of land; transfer and financial leasing of immovable property in certain conditions; and renting of land and immovable property.
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, non-conventional or renewable energy equipment and supply, and inland transport of individuals and cargo.
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; motor vehicles of a cylinder capacity less than 1600 cc (15 percent); some electrical appliance, 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-carrier 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 indirect tax 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."
Other rate information Hotel accommodation is subject to the 7 percent VAT rate. Passengers transport is also subject to the 7 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 (7 different rates applicable) and the overseas territories (4 different rates applicable). The following new VAT rates are expected be applicable in France January 1, 2014: The standard 19.6 percent VAT rate will be raised to 20 percent. The reduced 5.5 percent VAT rate (applicable to food items, energy, etc.) will be lowered to 5 percent. The intermediary 7 percent VAT rate (applicable to the food service industry, work on residential property, domestic passenger transport, the hotel industry, drugs authorized for marketing but not covered by social security, etc.) will be raised to 10 percent. 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 January 1, 2014. The 5 percent rate will apply to transactions for which the VAT is chargeable on or after January 1, 2014. The temporal application of the new rates will need to be confirmed (as sector-specific exceptions are often granted when such reforms occur).It is possible, in light of the parliamentary debates, that new VAT rate increases might be adopted before the January 1, 2014 effective date, so as to take into account sector-specific considerations or to adjust the return on the rates.
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.
There is no VAT 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 12 percent. An increased rate of 15 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 12 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% 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 state-specific 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 per cent to 5 per cent); gold, silver, precious stones (for example diamonds), articles or ornaments made of the aforementioned (1 per cent); and exports of goods (zero rated). There are increased rates of 20 per cent 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 per cent 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 would be 12.36 per cent. 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 per cent. 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 a VAT (pajak pertambahan Nilai (PPN)) is 10 per cent. 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 per cent to 200 per cent. 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 insurance services, finance leasing, hotel and restaurant activities, employment and manpower services, various social services, and the supply of electric power and potable water.
The standard rate of Irish VAT is 23%. There are also reduced rates of 13.5%, 9%, 4.8%, and 0%. The main reduced rate of 13.5% applies to, for example immovable goods, building services and repair, and maintenance services. The second reduced rate of 9% applies to certain goods and services in the tourism sector such as hotels accommodation and restaurant meals. The supply of livestock, live greyhounds, and hire of horses are liable to VAT at 4.8%. However, it is expected that the Irish tax authorities will be required to change legislation in respect of the rate of VAT applicable to live horses and greyhounds following the ECJ decision in Commission v Ireland (Case C-108/11). The export of goods, basic foodstuffs, oral medicines, medical equipment, and appliances are liable to the 0% rate. There is a special farmer's flat rate addition of 4.8% (5.2% prior to 1 January 2013) 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 per cent effective 2 June 2013. The historical VAT rates are as follows: From 1 March 2004 to 1 September 2005 - 17 per cent. From 1 September 2005 to 1 July 2006 - 16.5 per cent; From 1 July 2006 to 1 July 2009 - 15.5 per cent; From 1 July 2009 to 1 January 2010 - 16.5 per cent; From 1 January 2010 to 1 September 2012 - 16 per cent; From 1 September 2012 through 2 June 2013 - 17per cent; From 2 June 2013 to today - 18 per cent
The standard rate of Italian VAT is 22% for transactions with tax points arising after 1 October 2013. Reduced rates of VAT of 10%, 4% and 0% also can apply in Italy. Examples of items subject to the 10% rate include certain domestic supplies of fuel, hotel accommodation, water and social housing. Examples of supplies qualifying for the 4% 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 per cent. The rate of 10 per cent applies to certain tourism services. The supply of electricity services for commercial use is 16.5 per cent. The rate of 25per cent applies to the supply of certain telephone services and instruments. The Telecommunication providers attract Telephone Calls Taxes at rates of J$0.05, J$0.40 and US$0.075 per minute, on certain calls. Commercial importers pay an advanced GCT payment of 5 per cent 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 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 per cent. The rate increased from 3 per cent to 5 per cent 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 thresholds: - JOD 10,000 for manufacturers subject to the special tax;- JOD 30,000 for service industries; - JOD 60,000 for manufacturers subject to the general tax;- JOD 75,000 for traders.GST is charged on:-The supply of goods and/or services, unless such is non-taxable 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 per cent and applies to products, merchandise and transactions that are not subject to the reduced rate.The zero rate (0 per cent) 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, Tea, Rice.Examples of goods liable to VAT at the reduced rate of 4 per cent. 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, Medicines.Goods liable to VAT at the reduced rate of 8 per cent include Constructions steel.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 bimonthly basis , and has 30 days following filing deadline to pay the GST due. Failing to do so ,shall trigger late filing penalties JOD 100, in addition to late payment penalties of 0.4 per cent on the amount of GST due per each week delay.
The standard VAT rate is 12 per cent. A 0 per cent 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 standard rate of VAT is 16 per cent. A reduced rate of 0 per cent applies to exports of goods and services, transportation of passengers by air carriers on international flight. Other tax supplies are exempt from VAT. These include medical services, financial services, passenger transportation, residential accommodation, pharmaceutical products, unprocessed agricultural produce and aircrafts.
The standard rate of VAT is 10%. Each business person is entitled to credit input taxes paid, except for those in connection with entertainment expenses, non-business 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 zero-rated: (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 non-taxable 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.
There are currently no indirect taxes in Kuwait. Custom duty is however charged at 5 per cent 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 per cent. There are reduced rates of 12 per cent and 0 per cent which apply to, for example pharmaceuticals, passenger transport, and heating for inhabitants (12 per cent); supply, import, repair and maintenance of certain ships and aircraft, passenger transport by air or sea, financial transactions outside the EU and exports (0 per cent). 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 per cent . There are reduced rates of 3.8 per cent, 2.5 per cent, and 0 per cent which apply to, for example hotel accommodations (3.8 per cent); water in conduits, medications, books, newspapers, food and non-alcoholic beverages (2.5 per cent); and exports of goods (0 per cent). 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 immovable property.
The standard rate of VAT (Pridetines 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 2013).A 5 percent reduced VAT rate is applicable to certain drugs and medicine (applicable until 31 December 2013); 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 medical supplies.
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 16.5 percent.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, fertilisers, 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.
VAT or GST has been proposed but the implementation has been postponed. In its place, 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 mizjud) 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.
The standard rate of VAT (porez na dodatu vrijednost; PDV) is 19 percent. 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 (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 has two rates for VAT: 0 percent and 15 percent. However, for imports, VAT is charged at 16.5 percent, unless the service or goods imported is considered an exempt or zero rated activity, if supplied by a Namibian supplier.
The standard rate of VAT (omzetbelasting (BTW)) is 21 percent (as of 1 Oct 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 imported services.
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.
The standard rate of VAT (impuesto al valor agregado (IVA)) is 10 percent. The 5 percent rate applies to transfers of real estate, transfers of the right to use goods, certain basic food items (cesta básica), loans and financial interests, commissions and surcharges, and supplies of pharmaceutical products. Exports are zero-rated. Exempt supplies include certain diplomatic and investment imports; farm products in their natural state; foreign currencies; governmental or private securities including shares or stock; goods received through inheritance; transfer of credits; books, magazines, and others of scientific, educational, and general interest media; interest on public or private shares and securities; deposits in financial entities authorized by the Central Bank of Paraguay; services of cooperatives; home savings; and loans under the Sistema de Ahorro y Préstamo para la Vivienda.
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 precent 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, till the end of 2013, with option for further extension for subsequent periods. According to the planned amendment of VAT Act increased VAT rates will be maintained also for period 2014 - 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. Meanwhile, Madeira has a standard VAT rate of 22 percent, with reduced rates of 12 percent and 5 percent. Azores islands has a standard VAT rate of 16% with reduced rates of 9 percent and 4 percent.
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 backery 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 tax rate for the rendering of services is 4 percent (as of October 2011) and for the supply/import of goods 6 percent. The tax rate for services related to insurances is 5 percent (as of October 2011).
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 (& zero-rated;) 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 & unprocessed food, financial services, donated goods & services sold by non-profit bodies, bus & taxi fares, electricity and inter-island passenger fares in Samoa.
There is no VAT or GST in Saudi Arabia.
The standard rate of VAT (porez na dodatu vrednost (PDV)) is 20 percent (effective 1 Oct 2012). There are reduced rates of 8 percent 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 (8 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 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 June 30th 2013 standard VAT rate amounts to 20 percent and reduced rate to 8.5percent.As of July 1st 2013 both rates will increase:- standard rate to 22 percent,- reduced rate to 9.5 percent.
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 Sri Lankan VAT system consists only two rates of 0 percent and 12 percent The VAT rate for VAT on financial services is also 12 percent.
Standard rate applicable to services is 4 percent. The tax rate for the rendering of services is 4 percent (as of October 2011) and for the supply/import of goods is 6 percent. The tax rate for services related to insurances is 5 percent (as of October 2011).
The standard rate of turnover tax (Belasting op Bedrijfsomzetten; BBO) in St. Maarten as of 11 February 2011 is 5 percent.
There is a flat rate of 17% VAT for all service and purchases in Sudan. However, a VAT rate of 30% 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 1st 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 non-alcoholic 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.
Syria currently has no VAT.
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, the export of goods, services rendered which relate to the export of goods, 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; Some foods and beverages; Used passenger cars; Financial leasing services (with certain conditions) Examples of goods and services taxable at 8 percent are as follows; Some foods and beverages; 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 percent. There is however, a reduced rate of 0 percent 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 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 17 percent
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 transactional-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 rate applies to any entity with a turnover of at least VT$4 million that carries on a taxable activity. There is reduced rate of 0 percent (zero-rated) which applies to goods which are exported, those not situated in Vanuatu at the time of supply, those sold as going concerns to registered persons and those internationally transported. Services supplied outside Vanuatu, to approved educational institutions and aid donors are also zero-rated. The supplies exempt from VAT include financial services, education supplied by an approved educational institution, donated goods and services sold by non-profit organizations, residential rental accommodation, the sale of a property which has been used for as such for at least five years and the activity of any company registered under the International Companies Act No.32 of 1992.
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 (5 percent); and the exports of goods and services (0 percent). Please note that export services are subject to VAT registration and permanent establishment tests of the recipient and strict requirements.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.It is restated in the Amended Law on VAT, which will be effective from 1 January 2014 that export services mean those being consumed outside Vietnam. This applies even the recipient passes the VAT registration and permanent establishment tests, in which case such services may be still subject to VAT, if they are regarded by the tax authorities as being consumed in Vietnam. Also according to the Amended Law on VAT, VAT rate on the sale or lease of socialized houses will be reduced to 5 percent from 10 percent, effective from 1 July 2013. In addition, 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, financial services, conveyance of real 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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