The number of indirect tax changes that businesses must deal with is growing globally, according to the latest ONESOURCE Indirect Tax rate report from Thomson Reuters.
During the second quarter of 2012 global indirect tax changes quadrupled by comparison with the same period during 2011, increasing the administrative burden on business. ‘Globally, businesses had to comply with over 1,000 tax changes this past quarter,’ said Carla Yrjanson, vice president of tax research and content at Thomson Reuters.
‘Without the right technology, domain expertise and accurate tax information at the country and jurisdiction levels, it’s difficult to achieve compliance in a cost effective manner,’ added Yrjanson, and the business implementation costs are the same whether the changes are increases, decreases or exemptions.
The report reflects changes in tax laws for over 175 countries (and can be downloaded here). Highlights include:
- The total number of US state, county, city and transit sales tax rate increases declined from 111 in Q2 2011 to 104 in Q2 2012.
- The number of value added tax rate increases globally declined from 13 to 5.
- The average state sales tax in the US was 5.48 percent in Q1 2012, down from 5.52 percent in Q1 2011.
- In Europe, the VAT rate for Madeira, Portugal was increased and Norway ended its temporary 13 percent reduced rate.
- China added a 7 percent rate for the purchase of transportation services retroactive to January 1, 2009.
- India increased standard service tax from 10 percent to 12 percent effective April 1, 2012.
