News
26 Apr 2012 04:55pm

Companies contend with fewer indirect tax changes

The global indirect tax burden has eased over the last three months, despite a rise in VAT rates in six European member states, research from Thomson Reuters shows

The latest Onesource report found that the number of indirect tax increases fell from 154 in Q1 2011 to 107 in Q1 2012.

This resulted from the decline in the number of state, county and city sales tax increases in the US from 100 to 90, and a fall in the number of VAT increases globally from 54 to 17.

The year on year statistics also show that there was a significant drop in the number of indirect tax rate changes during Q1 2012 – down to 446 changes compared to the astonishing 2,154 seen in Q1 2011.

However, companies did have to contend with increased VAT rates in Cyprus, the Czech Republic, France, Hungary, Ireland and Norway, while China added a reduced rate for the sale of self-used fixed assets sold in the Shanghai VAT pilot region.

 

Julia Irvine

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