Archive for November, 2016

Sri Lanka finally implement VAT Changes

As of the 1st of November 2016 the VAT rate in Sri Lanka has risen from 11% to 15%. There has been a lot of confusion over the last few years as to what changes the Government were going to make, as they have announced several proposals previously that have fallen though at the eleventh hour see our previous post here – Will Sri Lanka implement an increased VAT rate?. This is one reason why it is essential to have an adaptable and manageable indirect tax solution.

With this standard VAT increase there have also been several other VAT changes implemented. A range of 81 basic foodstuffs and other products are now Zero-rated. These changes fall inline with the monetary programme set out by the IMF.

Croatia VAT Changes

The Croatian Prime Minister has announced plans to reform the tax system. The main changes are being made to Income Tax, Corporate Tax and VAT with smaller changes in the real estate sales taxes, excise duties, and a number of other tax-related laws. These changes are  being implemented in order to ‘establish a stable, sustainable and predictable tax system’.

With regards to the changes to the VAT system. The standard rate will be reduced from 25% to 24%, but they will also be combining the two current reduced rates of 13% and 5% to a single reduced rate of 12%. These are expected to be implemented on the 1st of January 2018.

Businesses will need to make sure that they are ready for these changes to ensure that they are charging the correct VAT especially if they deal with any reduced rate goods or services.