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Global news – February 2012

Monday, February 27, 2012

by Nick Ryan

China has commenced its VAT pilot scheme prior to introducing VAT nationally. The pilot scheme is being run in Shanghai using a range of VAT rates including 0%, 6%, 11% and 17%.
Meanwhile, the drive for austerity, as opposed to growth, is leading a number of countries to increase their VAT rates in order to either sustain or increase their revenues for indirect taxation. Some of the rate increases of note are:
• France increases its reduced rate of 5.5% to 7%.
• Hungary’s standard rate has increased to 27% from 25%.
• Italy has increased their standard rate from 21% to 23% and their reduced rate to 12% from 10%.
• Norway has increased their reduced rate to 15% from 14%.
• Sweden has bucked the trend by reducing its rate for restaurant services to 12% from 25%.