Bahamas: As announced in October 2021, the standard VAT rate dropped from 12% to 10% on 1 January 2022. The Bahamian tax authorities have issued guidance that confirms the rate change, along with FAQs.
Bahrain: The standard VAT rate increased from 5% to 10% on 1 January 2022, subject to certain transitional rules which will allow the lower rate to continue to apply during calendar year 2022. The tax authorities have issued a guide on the application of the new and old rates.
Belgium: The tax authorities published guidance on 20 December 2021 on the VAT treatment of the installation of electric vehicle charging stations and related supplies of goods and services.
Cambodia: Guidance released on 8 September 2021 provides further details on the VAT rules introduced on 8 April with respect to e-commerce activities (i.e., the digital supply of goods and services and other e-commerce-related activities) engaged in by nonresident entities that do not have a permanent establishment in Cambodia. The guidance covers supplies to both Cambodian individual and businesses. Such nonresidents must register for VAT if they expect to have annual turnover of at least KHR 250 million or expected turnover within any three consecutive month period in 2021 of at least KHR 60 million; registration must take place within 30 days of meeting the turnover threshold. Nonresidents making digital supplies must file a VAT return. Where the supply is to a private consumer, the nonresident must pay the 10% VAT due, but for B2B supplies, the reverse charge will apply. Penalties will be imposed for noncompliance.
Finland: In a press release issued on 31 December 2021, the government announced that a law published in the official gazette on the same date provides that at-home COVID-19 tests sold in Finland and those imported from abroad are exempt from VAT during calendar year 2022. As a result, companies will be able to deduct VAT included in the purchases.
Laos: The standard VAT rate reduced from 10% to 7% as from 1 January 2022.
Malaysia: The Royal Malaysian Customs service released guidance on 31 December 2021 that provides information on the voluntary disclosure and amnesty program in the 2022 Budget. The program applies to a variety of indirect taxes and offers taxpayers (both companies and individuals) an opportunity to voluntarily disclose any outstanding tax liabilities and pay the relevant tax.
Oman: In December 2021, the tax authorities released a guide that sets out the VAT registration procedures for nonresidents, as well as the obligation to appoint a VAT representative (see the article in the October 2021 issue of Indirect Tax News). The authorities issued another guide in January 2022 that clarifies the VAT treatment of transactions in the oil and gas sector, including the supply chain in the Omani energy sector.
Poland: The effective date of the new VAT grouping rules, which was expected to be 1 January 2022, has been postponed to 1 July 2022 (for prior coverage, see the article in the October 2021 issue of Indirect Tax News).
Ukraine: Beginning in 2022, nonresident suppliers of digital services to private consumers and non-VAT-registered individual entrepreneurs must register for VAT purposes in Ukraine, collect the 20% VAT due and remit it to the State Tax Service (STS). The STS issued guidance on 10 December 2021, which clarifies that a nonresident supplying digital services to Ukraine under an intermediary agreement need not register as a VAT payer if certain requirements are met.