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Bringing it back to VAT

Kitty Miv, Editor
27 April, 2022

This week we're circling back to VAT and indirect tax matters, starting with the news from Moldova that legislation has newly been enacted to introduce a value-added tax exemption for electronic publications.

Meanwhile in Portugal, indirect tax measures were recently announced in the 2022 Budget, in order to mitigate the impact of rising international energy prices.

The Budget included a cut to the ISP fuel tax, which is equivalent to a reduction in the value-added tax rate from 23 percent to 13 percent. The measure is expected to be in place in May and June 2022. Additionally, a six percent reduced rate of VAT will newly apply to the installation of solar panels and to the repair of domestic appliances, and a VAT exemption will be introduced for feed and fertilizers.

In the Netherlands, the Dutch Government launched a consultation on a proposal to introduce a value-added tax zero rate on the supply and installation of solar panels, which will run until May 20, 2022. To qualify for the zero rate, the solar panels will need to be installed on or in the immediate vicinity of homes.

Then in Poland, the authorities announced plans to enact legislation to waive value-added tax on supplies of goods, including military equipment and items to sustain troops, for use by other member states within Polish territory.

The policy, which will be effective from July 1, 2022, is intended to support the EU's Common Security and Defence Policy (CSDP), a framework for cooperation between EU member states on peace-keeping and international security matters, fostering collaboration and the pooling of civil and military assets.

And finally for this week, in Oman, new English language guidance was published by the Federal Tax Authority explaining the VAT rules that apply to the financial services sector.

Drafted with input from regulators and the industry, the guidance explains the Tax Authority's interpretation of key provisions of the Law relevant to financial services and outlines how the TA's administrative policies pertain to transactions made by financial institutions or any business that provides financial services as part of its activities.

The guide is aimed at those businesses that render financial services, including banking services, money exchange and other regulated services, insurance services, and Islamic financial services. As well as providing guidance on each of these specific services, the guidance covers registration, reporting, and record-keeping obligations, and the rules regarding VAT refunds.

Until next week!


About the Author

Kitty Miv, Editor

Kitty was born in Argentina in 1960 to a Scottish cattle rancher and his Argentine wife. Educated in Edinburgh and at Princeton, Kitty worked for the World Bank as an economist, where she met and married an emigre Iranian banker. During her time with the Bank, Kitty worked in a number of emerging markets, including a spell in the ex-USSR as a Transition Economies Team Leader. Kitty is now a consultant in Brussels and has free-lance writing relationships with a number of prominent economic publications. kitty@lowtax.net


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