Dubai Rolls Back VAT on Gold

May 4, 2018 Taxation in UAE

Tax on gold in DubaiABU DHABI – The gold and diamond trade in the UAE should pick up again, as the government rolls back VAT for these luxury items.

On May 2nd the government of the United Arab Emirates announced that it will implement a new tax mechanism to eliminate VAT on the wholesale of precious metals.

Earlier this year the government introduced a general VAT of 5 percent on all items, aside from education, healthcare, and basic food items.

The government has announced that a reverse-charge mechanism will now be implemented during the sale of gold and other precious metals.

The mechanism is aimed at impacting wholesalers and overseas suppliers, and will see the GST obligation transferred to the sale of the item to a retail buyer.

Some figures have suggested that the implementation of the VAT in Januar...

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Mobile Money Under Tax Threat in Uganda

May 3, 2018 Taxation in Uganda

Airtel Money - mobile moneyKAMPALA – Taxes on mobile money could seriously dampen the uptake of modern financial technology and systems in Uganda.

On May 1st, at the launch of the Uganda Rural Challenge Fund, representatives of financial institutions in Uganda collectively claimed that the government’s planned tax on mobile money transfers will inhibit financial inclusion.

The government hopes to enact a tax of 1 percent on all mobile money transactions.

Mobile money and other cell phone-centric payment systems have proven to be popular in Uganda, especially among poorer taxpayers who do not have ready access to banks and other traditional financial tools and services.

Uganda currently has an estimated 20 million mobile money users, and the Uganda National Financial Inclusion Strategy 2017-2022 hopes to see the...

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Ireland Backs Away from EU Digital Tax

May 2, 2018 Taxation in Ireland

Digital tax in the EUDUBLIN – Ireland stands to lose out on tax revenues if the EU goes ahead with a proposed EU-wide digital tax.

Irish authorities have heard evidence indicating that a newly proposed pan-EU tax on digital revenues could have a significantly negative impact on tax revenues in the country.

The new tax would see large multinational online businesses charged a 3 percent tax on revenues earned from users in the EU.

The tax would be paid to the government of the country in which the users live.

Currently, large online businesses do not pay taxes based on the location of their users, but, instead, on the location of the registered offices.

The current system has driven businesses to register in low-tax areas such as Ireland, despite making the bulk of their profit in other countries.

The government...

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Amazon Tax to Launch in New Zealand

May 1, 2018 Taxation in New Zealand

Amazon taxWELLINGTON – Small and cheap goods bought by New Zealanders online will soon be 15 percent more expensive, as the government announces the launch of an “Amazon tax”.

On May 1st the government of New Zealand announced that overseas firms selling goods to New Zealanders online will soon be liable to pay GST on all sales made to locals.

Currently, New Zealand levies a GST of 15 percent on the sale of all goods and services, whether online or in a physical store.

However, up to now, GST was simply not collected on the sale of goods with a purchase price of less than NZD 400, as the cost of compliance would be too high.

The government has now stated that any overseas firm making in excess of NZD 60 000 in sales to New Zealanders each year would be required to register for GST in New Zealand, ...

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EU Digital Tax Sees Opposition

April 30, 2018 Taxation in EU

Digital tax in the EUBRUSSELS – Despite initial support, EU ministers are backing out of support for an international tax on digital companies.

Over the weekend at a meeting of the Finance Ministers of the EU discussed the recent proposal to levy a tax on the revenues major international online businesses.

The taxation of major online businesses, such as Amazon, Google, and Facebook, is a controversial subject in the EU.

Online businesses have been accused of skipping out on their tax obligations by shifting their profits to low-tax jurisdictions.

As a move to balance out the profit-shifting, a proposal has been made to tax the revenues of big online businesses at a rate of 3 percent.

The proposal appeared to have significant support earlier this year, however, at the Finance Ministers backed away from suppo...

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