Tax Guideline Summaries for Global Businesses

Argentina’s VAT system is governed by the National Tax Code and other VAT-specific laws. VAT is applied on the sale of goods and services within Argentina, as well as on imports. The system aligns with global standards but includes specific requirements unique to the country.

Australia’s GST system is a broad-based consumption tax, similar to VAT systems in other countries. Introduced in 2000, GST is levied at each stage of the supply chain. Businesses charge GST on taxable sales and claim GST credits on eligible purchases. GST compliance is managed by the Australian Taxation Office (ATO).

The VAT system in Austria, known locally as Umsatzsteuer (USt), is governed by Austrian VAT legislation in line with the EU VAT Directive. This system applies to most goods and services within Austria, including imports and exports.

Belgium’s VAT system is governed by the Value Added Tax Code and Royal Decrees, along with the EU VAT Directive. VAT is applied on most goods and services within Belgium, as well as imports and certain exports.

Brazil’s tax system is unique, with VAT administered at both the federal and state levels. Key taxes include: • ICMS (State Tax): Applied to the sale of goods and provision of services. • IPI (Federal Tax): Imposed on industrial products. • ISS (Municipal Tax): Tax on Services • PIS and COFINS (Federal Contributions): Levied on revenue from goods and services.

Value Added Tax in Bulgaria is also known as “Danak varhu dobavenata stoinost” (DDS) in Bulgarian. The VAT system in Bulgaria, governed by the Bulgarian VAT Act, aligns with the EU VAT Directive. VAT is applicable on most goods and services within Bulgaria, as well as on imports.

Canada’s VAT system is known as GST/HST (Goods and Services Tax / Harmonized Sales Tax). This system includes both federal GST and provincial sales taxes (PST) or HST for certain provinces, managed at both federal and provincial levels.

Chile’s VAT system is governed by the Chilean Tax Code. VAT applies to most goods and services supplied within Chile, as well as on imports.

Colombia’s VAT system is governed by the Colombian Tax Statute. VAT applies to most goods and services supplied within Colombia, as well as on imports.

Costa Rica’s VAT system is governed by the Value Added Tax Act (Ley de Impuesto al Valor Agregado). VAT applies to most goods and services supplied within Costa Rica, as well as on imports.

Croatia’s VAT system is governed by the Croatian VAT Act, which aligns with the EU VAT Directive. VAT applies to most goods and services within Croatia, as well as on imports.

Cyprus’s VAT system is governed by the Cyprus VAT Act, which aligns with the EU VAT Directive. VAT applies to most goods and services within Cyprus, as well as on imports.

The Czech VAT system, governed by the Value Added Tax Act, aligns with the EU VAT Directive. VAT is charged on most goods and services within the Czech Republic, including imports.

The VAT system in Denmark, governed by the Danish VAT Act (Momsloven), aligns with the EU VAT Directive. VAT is applicable on most goods and services within Denmark, including imports and some exports.

Ecuador’s VAT system is governed by the Ecuadorian Internal Tax Regime Law. VAT applies to most goods and services supplied within Ecuador, as well as on imports.

Estonia’s VAT system is governed by the VAT Act, which aligns with the EU VAT Directive. VAT applies to most goods and services within Estonia, as well as on imports.

Finland’s VAT system, governed by the Finnish VAT Act (Arvonlisäverolaki), aligns with the EU VAT Directive. VAT applies to most goods and services supplied within Finland, as well as on imports.

The VAT system in France, known as Taxe sur la Valeur Ajoutée (TVA), is governed by the French Tax Code (Code Général des Impôts, or CGI) and aligns with EU VAT regulations.

The VAT system in Germany, known locally as Umsatzsteuer (USt), is based on the EU VAT Directive and was implemented under the German Value Added Tax Act (UStG). It applies to most goods and services within Germany, including imports, and follows EU regulations with local adaptations.

Greece’s VAT system is governed by the Greek VAT Act, in line with the EU VAT Directive. VAT is applied on most goods and services within Greece, as well as on imports.

Hungary’s VAT system, governed by the Hungarian VAT Act (Act CXXVII of 2007), aligns with the EU VAT Directive. VAT is applicable on most goods and services supplied within Hungary, as well as on imports.

reland’s VAT system is governed by the Value Added Tax Consolidation Act 2010. VAT is applied on most goods and services within Ireland, as well as on imports.

The VAT system in Italy, known locally as Imposta sul Valore Aggiunto (IVA), is a tax on the consumption of goods and services at each production stage. Italian VAT is chargeable on local Italian transactions, transactions within the EU, and imports. The system follows the EU VAT directives, with local adjustments to suit the Italian market.

Latvia’s VAT system is governed by the Latvian VAT Act and aligns with the EU VAT Directive. VAT applies to most goods and services within Latvia, as well as on imports.

Lithuania’s VAT system is governed by the Lithuanian VAT Act, aligned with the EU VAT Directive. VAT applies to most goods and services within Lithuania, as well as on imports.

Luxembourg’s VAT system, governed by the Luxembourg VAT Law of February 12, 1979, aligns with the EU VAT Directive. VAT is applicable on most goods and services within Luxembourg, as well as on imports.

Malta’s VAT system, governed by the Value Added Tax Act (Act XXIII of 1998), aligns with the EU VAT Directive. VAT is applicable on most goods and services within Malta, as well as on imports.

Mexico’s VAT system is governed by the Mexican Value Added Tax Law (Ley del IVA). VAT applies to most goods and services within Mexico, as well as on imports.

The VAT system in the Netherlands, known locally as Belasting over de toegevoegde waarde (BTW), is governed by the VAT Act of 1968. The tax applies to most goods and services within the Netherlands, including imports, with specific mechanisms for digital and cross-border transactions. VAT compliance follows EU VAT directives and local Dutch regulations.

Norway’s VAT system, governed by the Norwegian VAT Act of 2009, applies to most goods and services within Norway as well as on imports. VAT is administered by the Norwegian Tax Administration.

Poland’s VAT system, governed by the Polish VAT Act, aligns with the EU VAT Directive. VAT is applicable on most goods and services within Poland, as well as on imports.

Portugal’s VAT system, governed by the Portuguese VAT Code, aligns with the EU VAT Directive. VAT applies to most goods and services supplied within Portugal, as well as on imports.

Romania’s VAT system is governed by the VAT Act, which aligns with the EU VAT Directive. VAT is applicable on most goods and services supplied within Romania, as well as on imports.

Serbia’s VAT system is governed by the Serbian VAT Law and applies to most goods and services within Serbia, as well as on imports.

Slovakia’s VAT system is governed by Act No. 222/2004, aligning with the EU VAT Directive. VAT applies to most goods and services within Slovakia, as well as on imports.

Slovenia’s VAT system is governed by the Value Added Tax Act (ZDDV-1), in alignment with the EU VAT Directive. VAT applies to most goods and services within Slovenia, as well as on imports.

South Africa’s VAT system is governed by the Value-Added Tax Act No. 89 of 1991, administered by the South African Revenue Service (SARS). VAT applies to most goods and services within South Africa, as well as on imports.

Spain’s VAT system, governed by Law 37/1992, aligns with the EU VAT Directive. VAT applies to most goods and services supplied within Spain, as well as on imports.

Sweden’s VAT system is governed by the VAT Act of 1994 (Mervärdesskattelagen), aligning with the EU VAT Directive. VAT applies to most goods and services within Sweden, as well as on imports.

Switzerland’s VAT system, governed by the Federal Law on Value-Added Tax (MWST), applies to most goods and services within Switzerland, as well as on imports.

Turkey’s VAT system is governed by the Turkish VAT Law No. 3065. VAT applies to most goods and services supplied within Turkey, as well as on imports.

The UK’s VAT system is governed by the UK VAT Act and aligns with EU rules for goods moved between Northern Ireland and the EU. VAT applies to most goods and services supplied within the UK, as well as on imports.