Tax & Accounting Blog

Q2 2014 International Tax Summary

Blog, Indirect Tax, ONESOURCE, VAT Tax Rates June 30, 2014

India Telangana

The state of Andhra Pradesh was divided into two states, Telangana and Andhra Pradesh. This officially took effect on 2 June 2014. The existent VAT law will apply to both states until the new government makes modifications to the law. The VAT standard rate is 14.5%, reduced rates are 5% and 1%.

VAT Rates in Crimea

The State Council of Crimea has proposed new Value Added Tax rates, a standard rate of 4%, and a reduced rate of 2%, effective June 1, 2014.

European Commission Issues Economic Policy Recommendations

The European Commission released policy recommendations on Monday June 2, 2014  for 26 EU member states. The recommendations are designed to strengthen the economic recovery of the last year, and include country-specific recommendations.

New VAT Rate in Ukraine

A new VAT rate was introduced in Ukraine with an act named “On Prevention of Financial Disaster and Creation of Grounds for Economic Growth in Ukraine”, No. 1166-VII, dated March 27, 2014. The new 7% rate is applied to pharmaceuticals and medical equipment, which were previously exempt from VAT.

China VAT Expansion to Telecom Sector

Effective 1 June 2014 the telecommunications sector in China moves under the VAT regime from the business tax regime. The applicable rates are 11% for basic telecommunications services and 6% for value-added telecommunications services.