Tax & Accounting Blog

July 2014 International Indirect Tax Update

Blog, Indirect Tax, ONESOURCE, Reuters Business News, Reuters Tax & Accounting News, Sales and Use Tax, VAT Tax Rates July 30, 2014

The month of July saw many changes across several countries. The following is a list of those countries and the specifics behind each change.

Canada – Multiple Provinces

EPRA has announced that environmental handling fees will be updated in several provinces effective 1 October 2014.

Czech Republic

The emerging government coalition of the Social Democrats (CSSD), movement ANO, and KDU-CSL are considering a third VAT rate that could be as low as 10% and would apply to medicines, books, diapers, and baby food. The Lower House of Parliament approved the measure in its third reading on 7 July 2014.

European Union

On July 8 2014 the EU’s Council adopted the European Commission’s policy recommendations for 26 EU Member States. Member States may implement the recommendations in 2015 budgets and policies.


The European Commission has requested that France no longer treat admission to sporting events as exempt from VAT. The government of France has 60 days to respond to the request or risk the matter being referred to the European Court of Justice.


The Bundestag’s Finance Committee has recommended a reduction in VAT for audio books to 7%. In order to enter into effect the measure must be voted on by the Bundestag and Bundesrat, signed by the President and published in the Official Journal.


The next phase of Japan’s tax plan would further increase the Consumption Tax rate from 8% to 10% in 2015. Whether this happens will depend on various economic factors too difficult to predict at this early stage.


The Prime Minister has announced a plan to increase VAT in 2015.


Both houses of Malaysia’s Parliament have passed the GST Bill. The GST Act has been published in the Gazette and the regulations have been promulgated. GST is scheduled to take effect April 1, 2015 and will replace the current sales and service tax.


The Government announced that it will decreases its current VAT rate from 7% to 6.4% beginning October 1, 2014 and then increase the VAT rate all the way up to 9% beginning October 1, 2015.


The Government has proposed a 1% increase to VAT to fund the National Health Insurance (NHI). If the increase is approved, the VAT rate in Zimbabwe will be 16%.