BDO Indirect Tax News | January 2025

BDO's latest Indirect Tax News publication once again brings together up-to-date views on the most significant changes in indirect taxation in different countries.

The January 2025 edition looks at import tariffs planned by the new US administration, which will have a significant impact not only on international trade but also directly on a number of countries. A Canadian perspective on the issue is also included. BDO will be hosting a series of webinars to provide you with more detailed information on the planned changes. The publication also discusses Canada's new reporting obligations for digital platform operators and trends in US sales taxes ("sales tax") for 2025.

2025 will bring new indirect tax legislation in China and Vietnam. In China, VAT legislation will be harmonised for the first time in almost 30 years, with the aim of a clear and coherent set of laws, rather than the fragmented legislation of the past. Elsewhere in Asia, Indonesia is increasing its VAT rate, with the change mainly affecting luxury goods.

EU finance ministers finally reached an agreement on the so-called ViDA (VAT in Digital Age) package. This will mean that the country of sale and the VAT rate for virtual events and online courses will be determined by the country of the buyer.

The Czech Republic has reformed its VAT legislation and introduced several EU regulations into its national legislation. Estonia and Spain have reformed their VAT provisions on e-invoicing.

Italy has introduced VAT rules on temporary agency work, where the mere reimbursement of expenses is now considered a VATable supply of services. In addition, the new provision classifies VAT on importation as a customs duty in Italy.

Read more about all the news in our country-specific articles below. BDO experts around the world are at your service for all your indirect tax questions.