September International Indirect Tax Updates.
In response to economic pressures a number of changes went into effect globally this month including the following.
In order to promote tourism cash strapped Greece has reduced the VAT on restaurant meals, take-out and catered food from 23 percent to 13 percent.
On July 18th the Federal Board of Revenue (FBR) issued SRO 670(I)/2013 FBR restoring the zero-rate on stationery items including colors in sets, writing, drawing and marking inks, erasers, exercise books, pencil sharpeners, geometry boxes, pens, ball point pens, markers and other porous tipped pens, and pencils including colored pencils. FBR also restored the zero-rate for many dairy products including flavored milks, yogurt, cheese, butter, cream, ghee, whey, milk and cream, and preparations for infant use put up for retail sale. Bicycles also once more qualify for the zero-rate.
Effective 1 September 2013, the reduced VAT rate of 9% will apply to the supply of bread, wheat and flour. The rate on bread and wheat was reduced in an effort to cut tax evasion by the pastry industry. In order to offset the losses incurred by the rate reduction the government will apply excises on luxury goods such as cars with an engine capacity over 3,000 cc, jewelry, gold and sailing boats.
After extensive lobbying from the Tanzanian tourism industry, the Government agreed to withdraw its proposal in the 2013/4 Finance Bill to impose VAT on Tourism Services.