Consumption Tax tagged posts

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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UK Sugar Tax is Already Working

April 9, 2018 Taxation in UK

sugar tax in the UKLONDON – The UK’s sugar tax has already forced drinks manufacturers to reduce their sugar, and will lead to young people consuming less sugar, while older consumers are showing very little sign of wanting to change.

New research conducted by experts at the UK Institute of Fiscal Studies has suggested that the country’s newly-enacted sugar tax will lead to a reduction in sugar consumption among only a select group of people in the country.

Under the new rules enacted on the 6th of April, drinks manufacturers will need to pay a tax of GBP 0.18 per litre on drinks with a sugar content exceeding 5 grams per 100 ml, and a higher tax of GBP 0.24 per litre on drinks with more than 8 grams per 100 ml.

The researchers believe that most consumers will see some reduction in their sugar consumptio...

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South Africa’s Sugar Tax Launched

April 4, 2018 Taxation in South Africa

sugary drink taxPRETORIA – South Africa is tackling its obesity epidemic by targeting sugary drinks.

Over the weekend South Africa’s tax on sugary drinks came into effect, with manufacturers now paying out a fee if their drinks are too sweet.

From April 1st, manufacturers and importers of sugar-sweetened beverages will be liable to pay a levy on the sugar content of the drink.

The levy is only charged if the drink has sugar content in excess of 4 grams of sugar per 100 mls.

The rate of the levy is currently set at ZAR 0.021 per gram, for each gram over the 4g threshold.

The threshold was set at 4g to encourage manufacturers to create low-sugar alternatives.

It is hoped that the new tax will help alleviate the problem of obesity in South Africa, as it is now the country with the highest obesity rate ...

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Don’t Forget the VAT, Say UAE Authorities

March 14, 2018 Taxation in UAE

Dubai taxABU DHABI – Businesses in the UAE are being reminded to comply with their new VAT obligations.

The Federal Tax Authority (FTA) of the United Arab Emirates has issued new guidance to all businesses in the area, advising them of their responsibilities as VAT-registered entities.

The main guideline was the reminder that any prices for goods or services displayed, offered, or advertised by the business must be inclusive of all VAT and Excise duties which will be owed on the sale.

The FTA said that not displaying taxes on the sale price is equivalent to misleading consumers.

Any businesses that do not display taxes on its products will be liable to pay a fine of AUD 15 000 per tax which is not already included in the price.

The introduction of VAT in the UAE has hit some minor roadblocks, ...

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