Increasingly more of the local businesses we work with have begun or are seriously considering beginning to trade internationally.
There are many advantages to International trading and it can be easier than you might think. However, there is always a risk that misunderstanding local legal frameworks in relation to VAT can cause issues. Seeking professional advice in the early days of trading can save you problems in the long run.
Many of you may not be aware that one of our associates specialises in overseas VAT (or its equivalent). This means that we can help businesses register and manage VAT in a whole range of countries across the world.
We thought we would highlight this by bringing some VAT news from a few different countries.
International VAT news
France – Digital Economy.
The French Finance Minister has given details of the French government’s policy with regard to ensuring that companies providing digital services pay the correct amount of VAT in the correct country.
The European Commission will shortly be debating a joint proposal from France and Germany about this issue. A crackdown on the supply of digital services across Europe seems likely.
Latvia – VAT Registration threshold reduced.
The threshold for VAT registration will be reduced from €50,000 to €40,000 from January 2018. There will also be changes to personal and business tax introduced at the same time.
Denmark – Online VAT.
Denmark is to devote more resources to detecting and penalising foreign sellers of goods to consumers in Denmark. This is to help prevent local suppliers from being undercut by foreign competition. One of the steps being taken will enable the Danish tax authorities to obtain details of credit card transactions carried out by Danish consumers in foreign online stores.
There is no “distance selling threshold” for electronically supplied services to Denmark. A business selling such services to Danish consumers must pay Danish VAT on the sale. The distance selling threshold for goods is DKK280,000 (about £33,500).
The Kuwait government has approved the introduction of a VAT regime to start in January 2018. This brings Kuwait into line with other GCC (Gulf Co-operation Council) states which have agreed to the introduction of VAT, although not all will be ready by January. The GCC states are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.
If you are looking to start trading internationally, or are already doing so, and need support, give us a call on 01509 816150 or contact us via our form below.