Tax & Accounting Blog

June 2013 International Tax Updates

Indirect Tax, ONESOURCE, VAT Tax Rates May 30, 2013

This was a busy month for tax changes around the world, some of which will go into effect in June with other important changes occurring throughout the summer.

June Rate Changes

Israel: Effective 2 June the standard rate will increase from 17% to 18%. The change will go into effect at midnight on Saturday rather than on Friday as originally planned due to the Sabbath.

Upcoming Changes

The following are some of the important changes that have been announced for the coming months.

Rate Changes

Montenegro: The government has officially proposed raising the VAT from 17% to 19%. No effective date has been given for the change.

Slovenia: The Government of Slovenia will increase the standard and reduced VAT rates from 20% to 22%, and 8.5% to 9.5% on 1 July 2013.

China

China’s State Council has announced the expansion of the Pilot VAT Program. On 1 August 2013, the Pilot Program, which was previously limited to 12 regions, will go nationwide. The Pilot Program was implemented last year beginning with Shanghai and followed by 11 more provinces and municipalities including Beijing and Tianjin. Along with the geographic expansion, the program will also be expanded to include the film, radio, and television industries.

Croatia

Croatia will become the 28th member state of the European Union this summer. All 27 Member States, including most recently Germany, have now ratified Croatia’s Accession Treaty and Croatia’s membership in the European Union will be formalized as of 1 July 2013.

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