Slovakia increases VAT 1% to 20% +++ +++ EU - 2009 VAT refund deadline delayed from Sep 2010 to Mar 2011 +++ Poland - 1% VAT increase to 23% +++ Australia - Victoria Fire Service Levy to be scrapped in July 2012 +++ UK - VAT to increase from Jan 2011 +++ Romania - increases VAT 5% to 24% +++ UK - confusion on UK 1% IPT increase +++ Andorra - 4.5% VAT to be introduced +++ India - GST to be implemented April 2011 at three standard rates +++ Bulgaria - to introduce insurance premium tax at 2% +++ Finland - VAT and IPT raised to 23% +++ Belgium - the 9.25% insurance premium tax on credit insurance has been withdrawn +++ Canada - HST introduced in British Columbia and Ontario +++ Hungary - implements insurance premium tax +++ Bulgaria - Intrastat reporting thresholds increased +++ UK - HMRC backs down on VAT on InsuranceWide comparison website +++ France - changes requirements for fiscal rep on insurance +++ Bulgaria - New proposals being pushed with the World Bank to introduce mandatory Catastrope Fund to cover earthquakes etc. +++ +++ EU adopts new VAT Directive on electronic invoices +++ Portugal - increased VAT by 1% to 21% +++ New Zealand - increases GST to 15% +++ Spain - VAT rate increases to 18% +++ Croatia - a 10% motor 3rd party liablitiy risk premium will be charged from 2009 to cover traffic accident costs +++ Czech Republic - new rules on non-resident traders extends the requirement to VAT register +++ Greece in second emergency VAT increase from July +++ Hungary - increased VAT rate to 25% +++ Czech Republic - proposal to change VAT payment point to when cash received +++ Mexico - simplification of VAT reporting +++ EU - ECJ court ruling imposes VAT on salary sacrifice schemes and vouchers +++ Italy - extends reverse charge on VAT for foreign companies +++ Denmark - extension of VAT reverse charge on services from non-resident suppliers +++ Panama - increases VAT to 7% +++ Denmark - overhaul of VAT registration process to comply with EU employment law +++ Estonia - reduced VAT increased from 5% to 9%; many items now on standard rate +++ France - National Guarantee Fund levy on insurance premiums is rising +++ Mexico - increases VAT 1% to 16% +++ Estonia - 2% increased VAT from July 09 to help combat financial crisis +++ EU - New proposals to force all EU member states to switch to monthly VAT reporting to help combat fraud +++ EU - more proof required for VAT import exemptions for onward supply relief +++ EU - Revised Mutual Assistance Directive issued to assist tax authorities share information on VAT and IPT +++ EU - new electronic service to verify authenticity of VAT numbers +++ Finland - Traffic Safety Charge for 2009 will be Euro 7.2m +++ France - Tough new invoice requirements to help combat fraud +++ Taiwan - introduces VAT refunds for non-resident businesses +++ France - French Motor Insurance Parafiscal Charge hike from 0.1% to 0.6% +++ France - Natural Disaster Compensation Scheme has increased again from 8% to 12% +++ France - New information requirements for foreign companies applying for non-resident VAT registrations +++ Taiwan - introduces VAT refunds for non-resident businesses +++ France - Confirmation of changes to ACOSS levies, which are now managed by URSSAF +++ Germany - New IPT levy on Surety and Financial Guarantee reinsurance +++ India - sets CENVAT at 10.3% Germany - valid VAT number may not be sufficient evidence alone to allow for zero rating on intra-community supply +++ Germany - proposal to scap the requirement for annual VAT returns +++ Greece - withdrawal of Stamp Duty underway; Life and Damage insurance now exempt +++ Hungary - rules on tax point (now when invoice paid) creates risks for VAT recovery +++ India - many new activities brought into Service Tax regime +++ Hungary - Aircraft hull and aviation liability is now exempt from the 1.5% Fire Brigade Charge +++ Ireland - New retrictions on VAT relief on bad debts +++ Ireland - government insurance levy on non-Life increases from 2% to 3%; new 1% levy on Life +++ Mexico - simplification of VAT reporting +++ Italy - Hunting Accident Victims' Fund changed to 5% of 94% of premium +++ Italy - Scraping of the requirement on VAT-registered businesses for the annual filing of lists of customers and suppliers +++ Italy - Court ruling that VAT reclaims deadline should be two years +++ Italy - potential to defer VAT payments to point where cash received +++ Latvia - standard rate VAT increased by 3% to 21% from Jan 2009 +++ Latvia - 2% VAT increase to take standard rate to 23% from 2010 +++ Luxembourg - Fiscal representation revived for importers of goods +++ Luxembourg - international shipping vessels registered in Lux are IPT exempt +++ Netherlands, The - Tax authorities increase IPT rate from 7% to 7.5% +++ Poland - Potential for quarterly VAT returns +++ Poland - Plans for reverse charge on consignment stock +++ Poland - New 12% Parafiscal Charge on Motor Liability contracts to cover medical care at accidents +++ Poland - improved import VAT set-off scheme for established importers +++ Poland - Polish insurance chamber of commerce says 12% levy on 3rd party motor insurance to go +++ Poland - motor liability insurance is now exempt from the Fire Brigade Tax +++ Romania - Proposals being drawn up with the World Bank for new compulsory national catastrophe program +++ Romania - invoice issuing deadline has been extended to 15 days after the month of the taxable supply +++ Slovakia - adoption of the Euro brings new VAT return form +++ Slovakia - calls for increased VAT rate from the IMF +++ Spain - switch from quarterly to monthly VAT returns proposed +++ Spain - online submissions for non-residents; local bank account still required +++ Sweden - IPT now introduced at 32% of gross premiums on 3rd party liability risks +++ Sweden - group life insurance from Swedish or EU insurers is exempt from IPT +++ Switzerland - VAT rate increase to 8% in 2011 +++ Ukraine - VAT e-filling obligatory +++ United Kingdom - VAT registration threshold increased to GBP70k +++ Seychelles - introduction of VAT at 10% in 2012 +++ Jersey - call for rise in 3% VAT rate +++ Romania - imposes intra-community supply registers +++ India - GST implementation now planned for April 2011 +++ UK - wins ECJ case on restricting VAT refunds to non-EU banks and insurers +++

US Sales Tax

With complex and varying compliance rules across 45 States, Sales Tax can present a significant and burdensome barrier to successful trade in the US. This challenge is heightened by the increasing scrutiny that is being given to reporting by the state tax authorities', looking for additional revenues. 

Click here for free guidance on individual state rates.

TMF US can provide an efficient and cost effective solution to the bureaucracy and time consuming reporting requirements, providing a single point-of-contact for sales tax compliance for the whole of the US.

 

45 independent tax regimes

US Sales Tax is a consumption tax on the sale of goods and services to the end consumer. Unlike VAT or GST, it is only levied on the final transaction with the customer there is no charging or reporting requirements for the companies in the supply chain. In most situations, the seller is held responsible for the calculation, collection and settlement of sales tax to the local state.

It is charged by State and Local authorities and administered by the merchant who is responsible for charging a combined % tax.  The merchant must charge sales tax if it has a 'nexus' in the State, which translates into a physical presence of employees, property or inventory.  This is similar to the permanent establishment concept.

Sales Tax was first introduced in West Virginia in 1921. It has since spread to 45 states in the US. The US is one of the very few countries in the world that still applies a final sales tax; most OECD countries now operate a full VAT or GST tax regime. Click here to read more about VAT.

Each state sets its compliance regime, which creates complex variations in: 

  • Which goods and services are liable to tax (e.g. food and clothing is often excluded)
  • Invoicing requirements (e.g. legal basis of tax)
  • Registration requirements with each state authority
  • Reporting timetables and deadlines
  • Sales tax returns
  • Fines and penalties for non-compliance
  • Tax audit processes 

Such differences mean it is important to plan the best structuring of invoices and in which state the tax should be recognised. Careful planning at the outset is vital to ensure any queries from the tax authorities are kept to a minimum.

 

how tmf us can simplify the sales tax burden for your business

Strategic planning at the outset of operating in the US is vital to reduce the Sales Tax burden and avoid the likelihood of fines or inconvenience of intensive interrogations by local tax offices. Where businesses are operating across a number of sates, this management becomes more important. This is where TMF can assist.

Our services from our US offices include:

  • Putting into place a tax calendar with you to successfully manage your tax affairs
  • Gathering all accounting entries from your systems for inclusion in the tax fillings
  • Reviewing all postings to ensure full compliance with each State's tax code and SOX
  • Sending you a Payment Memo or making a bank transfer on your behalf for settlement of tax liability
  • Providing you with a summary of the filing, including reconciliation of any differences
  • Offering you an on-call enquiries facility for all sales tax compliance issues
  • Being a first point-of-contact for the tax authorities in any State, and liaising with you on any material issues

 

contact us today for a free review of your sales tax requirements 

Our sales tax professionals in the US and Europe can provide you with a quick and simplified overview of your sales tax compliance requirements across the US.  Contact our US Sales Tax experts for a quick assessment of your needs Click Here.

 
 
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