Taxware research department publishes 2004 summary of most intriguing and
amusing legislative changes
11 April 2005 - Taxware, a leading provider of global tax calculation and compliance solutions and subsidiary of First Data Corp.(NYSE: FDC), today published a summary of some of the most amusing and intriguing new Value Added Tax (VAT) rules introduced worldwide between January 1, 2004 and January 1, 2005. These include:
In Morocco, the operation of Turkish-style baths and public showers are exempt from VAT but if you want to emerge clean as well as relaxed, tax of 7% must be paid on all soap used.
In Portugal, the selection of pasta can prove to be taxing as Spaghetti and Penne incur only a 5% VAT rate, whereas if you choose Ravioli, Cannelloni or Tortellini, you will be slapped with a 19% VAT rate.
In San Marino, alternative medicine is catching on with the general public but this isn't reflected in the country's VAT policy. While traditional drugs carry a small 2% VAT rate, alternative medical treatments, such as homeopathy for instance, may incur 17% VAT.
UK residents are exempt from paying VAT on food but not when that food has hallucinogenic properties. According to HM Customs and Excise, the sale of ’magic mushrooms’ is subject to the standard VAT rate of 17.5%.
Still on the subject of food in the UK, hot 'prepared' food is taxable, but zero-rated if the food is cold when it reaches the customer. Toasted sandwiches are zero-rated because the purpose of toasting relates to flavour and texture and not to the necessity of the food being hot when consumed.
"Never let it be said that tax legislators haven't a sense of humour", declared Jon Abolins, senior vice president of Operations for Taxware. "The inventiveness that lies behind these nuances of interpretation and application of VAT regulations deserves to be recognised and celebrated."
"Living with these rules, however, causes considerable additional expense for companies that have to ensure their compliance worldwide", continued Abolins. "The appeal of VAT for tax authorities lies in its flexibility. For corporate organisations required to monitor, understand and apply the minutiae of tax regulations, the reality can be very burdensome. Hence the
rise in interest in Taxware's innovative tax compliance solutions."
Taxware, a subsidiary of First Data Corporation, is a leading developer of global commercial tax compliance systems. For more than 25 years, Taxware's products have simplified the tax calculation and compliance process with solutions for sales, use, value added and other consumption taxes for businesses around the globe. By combining expert knowledge of the
most current research and changes in tax legislation with the best available automated processes, Taxware has developed comprehensive solutions that facilitate compliance with Sarbanes-Oxley, serving as the control for corporate transaction tax operations. To learn more about Taxware, please visit www.taxware.com.
Press Contact : David Ford, Ford-Peacock Consultancy Ltd, +44 (0)1295 722213 email@example.com
This press release was distributed by ResponseSource Press Release Wire on behalf of Ford-Peacock Consultancy Limited in the following categories: Consumer Technology, Personal Finance, Business & Finance, Computing & Telecoms, for more information visit https://pressreleasewire.responsesource.com/about.