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Top of mind for many as a new administration takes office is the potential introduction of additional tariffs on imports into the US, which carries implications for global business and directly impacts many countries. This issue features perspectives on the tariffs from Canada and the US, and BDO will be hosting several webinars to provide guidance on how to navigate the evolving trade landscape.
In the world of VAT, 2025 starts off with new legislation in China and Vietnam to modernise their respective regimes. The Chinese VAT law consolidates nearly 30 years of disparate regulations, amongst other things, into a single piece of legislation. Elsewhere in the Asia-Pacific, a standard VAT rate hike in Indonesia was originally proposed to apply across the board but has been limited to luxury goods.
The EU finance ministers finally reached agreement on the ViDA package, and VAT on virtual events and online courses are now taxed at the applicable VAT rate in the member state of the recipient, ushering in a significant change to the VAT treatment of these services. The Czech Republic has revised its VAT rules and transposed several EU measures into its domestic legislation. Estonia and Spain report developments on e-invoicing. A new law decree in Italy makes the secondment of staff a taxable supply for VAT purposes even if the consideration paid is simply a reimbursement of costs and another decree clarifies that VAT paid on the import of goods should be classified as a customs duty.
Finally, new reporting obligations apply to certain digital platform operators in Canada and we look at sales tax trends in the US for 2025.
Read about these developments and more in the January 2025 issue of Indirect Tax News and be sure to check out the VAT rates updates for 2025.
In this edition:
- China: New VAT Law to Apply in 2026
- European Union: E-invoicing: Transforming Businesses for the Digital Age
- United States: Sales Tax Trends to Watch in 2025
- International: VAT/GST Rate Changes for 2025
- Canada:
- Building resilience: Canadian businesses plan for trade hurdles
- New Digital Platform Operator Reporting Rules
- China: Export Tax Rebate Reduced or Eliminated for Various Products
- Czech Republic: Significant Changes Made to VAT Rules
- Ecuador: Update on Indirect Tax Changes
- Estonia: E-Invoicing Changes for 2025
- European Union:
- Overview of the Forced Labour Regulation
- ViDA Package Finally Adopted: Significant VAT Changes on the Horizon
- New VAT Rules for Virtual Events in 2025
- CJEU Rules on VAT Treatment of Electric Vehicle Charging
- France: Political Instability and New VAT Case Law
- Indonesia: Standard VAT Rate Increase for Luxury Items
- International: Indirect tax bytes
- Italy:
- Secondment of Staff to be VATable Supply as From 2025
- Import VAT Now Considered a Custom Duty
- Spain:
- New Enhanced VAT Controls on Energy Products
- E-Invoicing, Billing Systems and the ViDA Package
- Guidance Issued on VAT Deductibility for Mixed Use Leased Vehicles
- Supreme Court Establishes Precedent on VAT Taxable Base for Related Party Transactions
- United Kingdom: 2024 Autumn Budget Brings Changes to Non-Domiciled Taxation disposing of shares
- United States: Tariffs and Trade Taking Center Stage in New U.S. Administration
- Vietnam: New VAT Law Affects Foreign Businesses in E-Commerce and Digital Sectors
For more detailed information on any of the issues or how BDO can help, please contact Pascal Dauw or the country contributors directly.