International VAT Rate Round Up: March 2024
The March edition of our International VAT Rate Roundup, delves into the latest updates from Ecuador, Indonesia, Israel, and Malaysia, shedding light on the evolving landscape of value-added tax regulations in these diverse regions.
Ecuador
Following the dismissal of the bill by the National Assembly and subsequent veto by the president, the outcome culminates in a rise in VAT from 12% to 13%, with provision for potential elevation to 15% under specific circumstances as determined by the president. The president has confirmed that the new rate will be 15%. The reform needs to be published in the Official Gazette to take effect. The expected effective date is 1 April 2024.Indonesia
The Indonesian government has postponed the increased VAT rate from 11% to 12% in 2025. The VAT rate will remain at 11% in 2024. The postponement of the VAT rate increase is to ensure that the government and the businesses will have enough time to prepare for the change.Israel
The Israeli government approved an order increasing the VAT rate from the current 17% to 18%. The new rate will come into force in January 2025.Malaysia
Accepting the 2024 Budget, the Malaysian Tax Authorities increased the Service Tax rate from 6% to 8%. The increased rate will come into effect from 1 March 2024. The change was published in the Federal Government Gazette on 26 February 2024. Another change is the expansion of the scope of the Service Tax including:- Karaoke center services
- Brokerage and underwriting services
- Logistics services
- Provision of food and beverages
- Telecommunication
- Provision of parking place
- Logistic
Stay Up to Date
Each month we feature the latest news trends and topics covered by the Taxback International experts. For monthly news and regulatory updates subscribe to our VAT Newsletter.International VAT Rate Round Up: February 2024
If you missed out on our February VAT rate announcements of VAT threshold changes, you can catch up now.
