VAT changes
The VAT changes are broken into two groups:
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Changes that may affect business operations for those shipping to this country
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Simple VAT rate changes
Changes that may affect business operations for those shipping to this country
Indonesia 
Indonesia is implementing a social media sales ban and a new minimum sales threshold for certain imports. This means that sales to Indonesia via social media are now completely banned. Additionally, for standard ecommerce transactions, orders valued at less than 100 USD cannot be sold to Indonesian consumers. Zonos will provide more information as it becomes available, and we have provided an overview of the ban on our blog. Read more.
Malaysia 
Effective January 1, 2024, Malaysia imposed a 10% sales tax on all low-value goods for merchants who sell more than 500,000 RM annually into Malaysia. Online sellers or facilitating marketplaces selling and importing goods to Malaysia by air with a value exceeding RM500 must apply a 10% sales tax during checkout. Failure to do so will result in double taxation. Previously, low-value sales were exempt. Both resident sellers and foreign will be required to follow this new obligation, meaning non-resident tax registrations for foreign sellers. It is not yet clear how to register and how collections online will be coordinated with border control to prevent double taxation. Read more.
Norway 
In January 2024, Norway adjusted its VAT On E-Commerce (VOEC) scheme by removing the exemption on low-value goods, previously set at a NOK 350 threshold. This means that all goods sold to Norwegian consumers, irrespective of value, will be subject to VAT, requiring international online sellers to register for VAT in Norway. The change is intended to eliminate the unfair advantage previously enjoyed by foreign online retailers and to streamline the VAT collection process for all ecommerce transactions. Read more.
Simple VAT rate changes
Czech Republic 
In the past, the Czech Republic had reduced VAT rates for specific items that had VAT rates of either 10% or 15%. The Czech parliament has approved consolidating these reduced rates to 12%, effective January 1, 2024. They have also reduced the VAT rate on physical books to zero. The standard VAT rate remains the same at 21%. Read more.
Estonia 
The Estonian government has approved a 2% increase, raising VAT to 22%, effective January 1, 2024. Read more.
Liechtenstein 
Effective January 1, 2024, Liechtenstein raised its standard VAT rate from 7.7% to 8.1% and its reduced rate from 2.5% to 2.6%. Read more.
Luxembourg 
Effective January 1, 2024, Luxembourg increased its standard VAT rate from 16% to 17%. This marks the end of a temporary reduction implemented in January 2023. Read more.
Singapore 
Singapore's GST rate increased to 9% from January 1, 2024. The Inland Revenue Authority has issued guidance on the implementation of this increase. Read more.
Sri Lanka 
With the recent 2023 cabinet approval, Sri Lanka increased its VAT rate from 15% to 18%, effective January 1, 2024. Read more.
Switzerland 
Switzerland increased its standard VAT rate from 7.7% to 8.1% and its reduced rate from 2.5% to 2.6%, effective January 1, 2024. Read more.
Takeaways
As we’ve stepped into 2024, the landscape of international taxation is shifting in ways that carry significant implications for businesses around the globe. Staying informed and agile in response to these changes is not just about compliance; it's a strategic necessity in a rapidly evolving global market. Whether it's adjusting pricing strategies, re-evaluating supply chains, or updating online platforms for new tax rates, the ability to adapt swiftly to these tax changes will be a key differentiator for success. We hope this breakdown serves as a valuable guide to navigate these complexities. Remember, while Zonos software can manage the technicalities of these tax changes, a thorough understanding of their broader impact is important for making informed business decisions.
2024 worldwide tax changes
As the global economy enters a new year, businesses and consumers must navigate the complexities of ever-changing tax landscapes. 2024 ushers in significant tax adjustments across various countries, impacting import policies, VAT rates, and ecommerce regulations. Understanding these changes is crucial for international trade, online retail, and cross-border transactions. From Luxembourg's VAT rate hike to Indonesia's new import thresholds, learn about the latest updates and what they mean for your business so you can prepare for the coming changes in tax rates and policies that have taken effect as of January 1, 2024.