VAT on Digital Sales

Provisions to force foreign suppliers of B2C digital downloads to register for and pay local  VAT/GST continue to spread to new countries across the world. The latest jurisdiction to introduce this is the Canadian province of Quebec. Foreign suppliers of digital services above a value of CAD 30,000 p.a. will become registrable for Quebec Sales…

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Introduction of VAT in Bahrain

On 1 January 2019 Bahrain became the third of the six GCC countries to introduce VAT, following Saudi Arabia and the United Arab Emirates one year earlier.  As per the terms of the Unified VAT Agreement signed by all the GCC States in 2016 the rate of VAT is 5%. In a departure from the…

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Poland Enforcing Split Payments

It has been confirmed that the Polish Authorities are planning on enforcing split payments for industries vulnerable to VAT fraud, in particular scrap metal, electronics, precious metals, steel and car parts for B2B transactions will come into force some time later this year. The impact on foreign businesses who currently settle by bank transfers which…

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China: VAT Rate Reduction

The Chinese authorities have confirmed they will reduce the rate of VAT on the manufacturing industry from the current 16% down to 13% as of 1 April 2019. For the transportation and construction industries, VAT will be reduced to 9% from 10% to help reduce tax burdens on the manufacturing sector and small businesses. The…

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