New Vat and GST Rates for 2015

New Vat and GST Rates 2015

Below is a list of Changes to VAT rates and introductions of VAT and rates as of or after 1st January 2015.

Europe

Czech Republic
Introduced an additional reduced VAT rate of 10%, their other VAT rates are currently 21% (since 2013) and 15% (reduced).

Luxembourg
Raised their VAT rates by 2% – with the standard rate going from 15%-17%, the 1st reduced rate went from 12%-14%, and the 2nd reduced rate from 6%-8%. However the 3rd super reduced rate remains at 3%. This is due to the EU digital download change. The boundaries for the VAT rates have also changed so some items now fall under different VAT rates.

For further reading please see our earlier posts:
Luxembourg VAT increase coming soon (posted 21-10-2014)
Digital media downloads force Luxembourg to raise VAT (posted 08-04-2014)

Rest of world

Bahamas
Has introduced VAT at a standard rate of 7.5%, this is currently the only rate but some goods/services are exempt or Zero rated. Having previously been a Tax haven and indirect tax free the Bahamas has now introduced VAT in order to apply for the World Trade Organisation. Companies in the Bahamas will now need to register for VAT.

Iceland
Iceland has now cut its standard VAT rate from 25.5% to 24% after reducing its sovereign debt from 90% to just above 70%. They have also abolished the commodities tax. However the reduced rate has now risen from 7% to 12%.

Sri Lanka
The standard VAT rate has been reduced from 12% to 11%. They currently have no reduced or additional rates. The boundaries for VAT have also changed so some goods that were exempt are now liable to VAT.

Malaysia
As of the 1st of April 2015, Malaysia will be introducing 6% GST. This is to replace the current Sales and Services Tax. Unlike the current Tax, GST is applied at multiple stages, this is to help reduce fraud.

For further reading please see our earlier posts:
Why MY GST is nothing like Singapore or Australia and more like Europe  (posted 02/01/2015)
Oracle R12 Malaysian GST 21 day rule  (posted 02/01/2015)
Are you ready for the 2015 Malaysian GST?  (posted 07/11/2014)

Peru
The Peruvian standard VAT rate has been reduced from 16% to 15%. The Sales Tax, which is 2%, will remain unchanged. The VAT rate may be further lowered in 2016 to 14% but nothing has yet been confirmed

Egypt
The Egyptian Government is looking at introducing VAT at a rate of 10-12% to replace its current GST system. The original date suggested was 2015 but nothing has yet been confirmed.

Laura Stockley
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Laura Stockley

Consultant at eBiz Answers Ltd
Laura graduated from University with a degree in Business Studies, and has been working as an Oracle eBTax consultant for several years now, with both R12 eBTax and Fusion (Oracle Cloud) Tax. Focussing primarily on the tax module and its components, Laura also works on the other financial modules and understands how they integrate with the tax engine. Laura has worked on projects with multiple clients covering all aspects of the tax module including AP, AR and GL, working on everything from design, configuration, testing to support. An excellent communicator, Laura enjoys interacting with end users and relishes the challenge of resolving their issues; making tax an enjoyable experience, always.
Laura Stockley
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