VAT rules on business mileage Recently Published
VAT rules on business mileage Recently Published
The travelling expenses are covered by way of a set payment per mile (currently 35p per mile)
Previously, I would have invoiced for time worked as per contract plus business mileage which is reclaimable from the client at their agreed mileage rate and any agreed expenses supported by receipts. VAT would then have gone on top of the total.
It seems as though the end client is now seeking to reclaim some VAT element of the mileage rate by means of the fuel receipts. I am not sure how this is meant to work as fuel purchased by an individual for their personal vehicle is not directly related to the business miles incurred by them. After all mileage allowance is meant to cover wear and tear and running costs of the vehicle as well as actual petrol consumed.
I’m beginning to suspect that they’ve got themselves confused between business mileage for company cars (where the mileage claimed is purely to cover fuel purchased) and mileage rates paid for use of personal vehicles.
Have there really been any changes in VAT rules this month that might explain what they’re on about?
More: shout99.com
1/10/2006
Roll-back: Haryana okays VAT concessions
Roll-back: Haryana okays VAT concessions
The Haryana government on Saturday announced exemption from levy of VAT from four more items and reduction in rate of VAT from 12.5 per cent to four per cent on another 15 items with effect from January 1, while at the same time reiterating that it will still achieve the target of a 16 per cent increase in revenue and tax collections from Rs 6,000 crore in 2004-2005 to Rs 7,000 crore during the current financial year.
Addressing mediapersons after presiding over the second meeting of the state level consultative committee, excise and taxation minister Venod Sharma claimed that the level of confidence of trade and industry on the department had improved dramatically since the Bhupinder Singh Hooda government took over reins of power in the state.
The level of simplification in procedures could be gauged from the fact that 87,329 cases of sales tax out of a total of 1,10,594 for the year 2003-04 had been deemed assessed without calling the dealers to offices, he added.
He also said that the limit for use of single VAT D-3/ST-38 for movement of goods had been increased from Rs 10,000 to Rs 25,000 both for inward and outward movement with effect from November 1, 2005.
‘Stable policies, lower tax rates, IPR regime, VAT will boost FDI’
‘Stable policies, lower tax rates, IPR regime, VAT will boost FDI’
Industry body FICCI, today said stability in policies, removal of ground level obstacles, stricter enforcement of IPR and introduction of VAT by all states will ensure steady growth in Foreign Direct Investment (FDI) inflows in 2006 and beyond.
Opening up of Indian markets, reduction of tariff and non-tariff barriers, stable exchange rates and government incentives are the major imperatives that are to be considered for attracting large doses of FDI, FICCI said in a release.
With increasing purchasing power, rising middle class and a young population, FICCI said the country is perceived to emerge as one of the three fastest growing economies in the years ahead and achieve double-digit growth in near future.
Investors feel that the move over to the VAT regime is the biggest indirect tax reform that has been undertaken in the country and would have a positive impact regarding the future of FDI inflows.
More: hindu.com
Gujarat to decide on switching to VAT regime next week
Gujarat to decide on switching to VAT regime next week
The Gujarat Cabinet will meet on January 11 to take a final decision on switching to Value Added Tax (VAT) regime from the next financial year (2006-07), its Finance and Planning Minister Saurabhbhai Patel, said on Friday.
“The government has framed rules required for implementing the VAT,” he said after winding up the visit of a 16-member delegation to Karnataka to showcase his state’s tourism potential.
A Bill to amend existing tax laws to move over to VAT system would be introduced in the coming Assembly session, he said.
Patel said he has sought the help of 600 travel agents to speed up tourist inflow to Gujarat.
The Gujarat Minister said the delegation was highly impressed with the involvement of NGOs in implementing mid-day meal programme for school children in Karnataka and wanted to replicate the model in Gujarat.
More: hindu.com
Gujarat to implement VAT
Gujarat to implement VAT
The Gujarat Government will shortly implement Value Added Tax (VAT), said Saurabhbhai Patel, Minister of State for Finance, Energy and Petrochemicals.
He told presspersons here on Friday that his Government had held discussions with the Union Government’s Empowered Committee on VAT and made certain suggestions that have been agreed to. The State has passed legislation making minor changes in the VAT rules, he added. More details on implementing VAT will be discussed in the next session of the Gujarat Legislature in February.
Gujarat has spent its plan expenditure for this fiscal of Rs. 11,000 crores, and the focus is on developing the lucrative tourism sector.
Soure: hindu.com
1/7/2006
VAT in Bulgaria May See Hike in 2006
VAT in Bulgaria May See Hike in 2006
VAT rate may be increased by 2%, unless the current account deficit start decreasing, a deputy finance minister said.
The increase of VAT is contradictory to any of pre-election platforms advocated b the ruling parties, Georgi Kadiev said, but this is seen as one of efficient measures that would stop the bulge of the deficit.
He said also that should the cut in social security burden on the workers generates results, the rate may be downed by another 2%.
The up-trend of the current account deficit has been one of main fields of battle during the talks between the government and the IMF.
In the end of last year, while reporting on the fiscal policy, Finance Minister Plamenr Oresharski mentioned a possible VAT increase only as a last-recourse gear to melt the current account deficit.
More: novinite.com
State Government Drastically Cuts VAT on 28 Items
State Government Drastically Cuts VAT on 28 Items
To bring uniformity in the current tax structure, the NDA government, as promised during the election campaign, on Thursday dropped the Value Added Tax (VAT) rates on 28 items including candle, tea, sports items, medical equipment, used cars, road construction equipment and many others essential commodities.
On all of the items in the new schedule, the tax has been dropped from 12.5 percent to a much lower rate of 4 percent, Deputy Chief Minister Sushil Kumar Modi said amidst roaring applause.
“Currently we are concentrating on 28 essential items but in near future more goods will be added to the list that will bring relief to farmers as well as businessmen while providing low rates to the consumers,” Modi said.
Seeds certified by the government entities have been declared completely tax free, he said.
Admitting that the new lower tax rate would initially result in a loss of nearly Rs. 30 crore in the first fiscal year, Modi said that in the long run it would have positive impact on the state economy. “We are committed to bring reforms in the current tax system and would soon form six advisory committees for the six divisions of the commercial taxes made up of prominent businessmen and economists to further give an impetus to the state’s economy,” Modi said.
Soure: patnadaily.com
VAT increases, bankers complain
VAT increases, bankers complain
The 2006 annual budget report shows an increase in taxes. Banks and stock exchange companies are to pay a VAT of 10%, instead of 7% in the past, on any loan or banking operations.
As expected, past government declarations concerning the flow of stock options transfer are respected. But the “value added tax” programme; a part of the Budget report, turned out to be more surprising and controversial regarding VAT increase.
The rise in taxes has provoked the anger of bankers. The government measures oblige them to adapt their whole information system. They also fear an increase of loan costs and a major decrease of profits.
“This new legislation clearly displays the lack of commitment on the part of the government which promised easier lodging loans,” argued a bank executive. He added that “the financial staff wasn’t informed of these changes and didn’t have enough time to react.”
More: moroccotimes.com
1/6/2006
VAT rules on business mileage
VAT rules on business mileage
My current client has instructed all staff including contractors to pass onto them VAT receipts for fuel so that they can reclaim the VAT.
I currently contract to a large IT company in the UK. Yesterday a memo was sent to all staff in our department stating that following a change in VAT rules, they are now able to reclaim the VAT on fuel used on business. All staff have been instructed to submit VAT receipts for fuel related to business mileage.
I can understand the thinking about this for permanent staff, but I’m really not sure how legitimate this is for contract staff who have a business relationship (rather than employee) with the client via one or more third party companies (agency, ltd co, etc).
Is this legitimate?
Also, it occurs to me that for contractors who operate company cars, they may already be reclaiming the VAT on all fuel purchased for the car.
I have queried this with the client, but I get the impression that they tend to regard contractors as temporary staff and take little interest in the complexities of the legal relationships. Usual story, I guess, but I certainly don’t want to be party to any offence they commit as a result!
More: shout99.com
Finance chief to recommend VAT increase in February
Finance chief to recommend VAT increase in February
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FINANCE Secretary Margarito Teves believes the government will enforce a two-percentage point increase in the value-added tax (VAT) starting February 1 since a condition triggering the tax hike is likely to have been met.
“The Department of Finance will recommend to the President to increase the VAT rate as required by law,” Teves said in a press briefing.
Under the law, President Gloria Arroyo can raise the VAT rate to 12 percent from the existing 10 percent when either the government deficit exceeds 1.5 percent of GDP or when VAT collections, as a percentage of GDP, are more than 2.8 percent.
Teves said preliminary estimates showed that a budget deficit of 160 billion pesos last year is equivalent to around three percent of the country’s GDP estimated at about 5.3 trillion pesos.
Earlier, National Treasurer Omar Cruz said the government’s budget deficit in 2005 is likely below his initial estimate of 160 billion pesos and much lower than the official ceiling of 180 billion.
More: money.inq7.net