Consumption Tax tagged posts

Amazon Shuts Out Australians, Blames GST Rules

June 1, 2018 Taxation in Australia

Amazon tax AustraliaCANBERRA – Australia’s new tax rules have led Amazon to shut out Australian shoppers.

On May 31st the international online retailer Amazon announced that it would be geo-blocking Australian shoppers from their US website.

Users located in Australia would still be able to us the Australian section of Amazon.

Amazon is taking the move to lessen the tax compliance burden arising from Australia’s new rules regarding GST on internet purchases.

The Australian government has set in place new rules to mandate that online retailers reaching a pre-set sales threshold must register for GST in Australia, and collect the 10 percent tax from all sales made in Australia.

Previously goods worth less than AUD 1000 and purchased overseas could be brought into the country without facing the tax.

The T...

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Peru Enacts Sugar Tax

May 11, 2018 Taxation in Peru

can of cokeLIMA – Peru joins the list of nations levying a tax on sugary drinks.

On May 10th the government of Peru announced that it will implement significant new taxes on sugary drinks, and a handful of other products regarded as being bad for the nation’s health.

Sugary drinks with more than 6 grams of sugar per 100 ml will see a tax of 25 percent, while drinks with less sugar will see a reduced rate of 17 percent.

The tax will apply not only to sugar-sweetened beverages, non-alcoholic beers, and juice drinks.

Exemptions from the new tax will be granted to pharmaceutical drinks and enriched milk products aimed at mothers and babies.

Similar tax hikes will also be enacted on alcoholic drinks, tobacco products, and gasoline.

The new measures are aimed at combating the rising instances of obesi...

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China Cutting Business’ Tax

May 8, 2018 Taxation in China

Bund Sunrise April 16 2018 in Shanghai ChinaBEIJING – Chinese firms are being given tax cuts, and encouraged to spend their savings on technology and training.

Late last week the government of China announced that it will be implementing a series of tax cuts for businesses, ultimately aiming to help modernize the economy by encouraging extra spending on greater use of technology and staff upskilling.

The government are dropping the rate of VAT for businesses, based on the industry in which they operate.

The sale of goods will now see a VAT rate of 16 percent, compared to 17 percent, while businesses in transportation, logistics, and construction will see their tax rate drop from 11 percent to 10 percent.

No changes will be enacted to the already reduced rate of 6 percent for businesses operating in financial or consumer services.

Te...

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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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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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