VAT Package Update

VAT Rate Changes

On January 1, 2010 the following countries were affected by a Tax Rate change: the United Kingdom whose standard rate of VAT was raised from 15 percent to 17.5 percent; Mexico whose standard rate of VAT went from 15 percent to 16 percent; Ireland whose standard rate of VAT went from 21.5 percent to 21 percent; the Czech Republic whose standard rate of VAT increased from 19 percent to 20 percent and whose reduced rate increased from 9 percent to 10 percent; and the Israeli standard rate of VAT which was reduced from 16.5 percent to 16 percent.

Elite organized webinars and provided support documentation at the beginning of December 2009 for the UK VAT Rate change affecting the majority of Elite clients. The articles containing the supporting documentation can be found on the Elite Knowledge Base as follows:

ELITE 3E: Are You Ready for the 2010 UK VAT Rate Increase? (100917)
Elite Enterprise: Are You Ready for the UK VAT Rate Increase? (100881)
Elite Enterprise Guidelines for UK VAT Rate Change 1 Jan 2010 (100882)

Latest Country News for the VAT Package

In March of 2010 legislation implementing the January 1 VAT Package changes were put in place for Spain. However, a lower level resolution from the Spanish General Tax Directorate will be issued. The Italian Council of Ministers, meeting on January 22, finally approved the legislative decree implementing the VAT Package changes in Italy.

Latest Elite News

The new ESL reports including EU Acquisitions and EU Sales Lists are available in 3E 2.5 CP07.

The new ESL reports including EU Acquisitions and EU Sales Lists for Enterprise 3.7 and 3.8 are available. If your firm is on a version prior to Enterprise 3.7, you can receive a quote for a custom reporting solution by contacting the Elite Technical Services Group at tetsg.request@thomsonreuters.com (US) or at elite.consulting@thomsonreuters.com (Europe).

A VRN (VAT Registration Number) Validation Service is being offered by the Technical Services Group. Please contact elite.consulting@thomsonreuters.com for further details.

Upcoming Changes

The India GST Task Force has recommended that the implementation date of the dual GST be postponed by six months to October 1, 2010.

Spain’s proposed increase to the standard rate of VAT from 16 percent to 18 percent will be effective July 1, 2010.

The Canadian provinces of British Columbia and Ontario intend to harmonize their provincial sales taxes with the federal Goods and Services Tax (GST). British Columbia will combine the 7 percent Provincial Sales Tax (PST) with the 5 percent GST for a 12 percent Harmonized Sales Tax (HST). Ontario will combine their 8 percent Retail Sales Tax (RST) with the 5 percent GST to create a 13 percent Harmonized Sales Tax. Both come into effect on July 1, 2010.

For more detailed information on tax and financial reporting headlines go to the Elite Knowledge Base at /Elite/News and Information/Global Operations/Tax and Financial Reporting News.