Global Indirect Tax Burden Eases in Q1, According to Thomson Reuters ONESOURCE Report
There were 30 percent fewer indirect tax increases reported globally in the first quarter of 2012 than there were during the same period in 2011, according to the latest ONESOURCE Indirect Tax rate report from Thomson Reuters.
The number of indirect tax increases declined from 154 in Q1 2011 to 107 in Q1 2012. This includes two components:
- The total number of state, county, and city sales tax increases in the U.S. declined from 100 to 90.
- The number of value added tax increases globally dropped from 54 to 17
The quarterly ONESOURCE Indirect Tax rate report summarizes changes in sales, use and value added taxes — providing a high-level look at information incorporated in detail in the Thomson Reuters ONESOURCE Indirect Tax Solutions.
The global Q1 2012 report released today found that:
- In the U.S. – The average state sales tax was 5.48 percent in Q1 2012, down from 5.52 percent in Q1 2011.
- In Europe – France, Ireland, Norway, Hungary, Cyprus, and the Czech Republic raised VAT rates in Q1.
- In Asia – China added a reduced rate for the sale of self-used fixed assets sold in the Shanghai VAT Pilot Region.
Overall, there were 446 changes to indirect tax rates in Q1 2012, down significantly from 2,154 in Q1 2011.
“Global companies had to comply with nearly 450 tax changes this past quarter,” said Carla Yrjanson, vice president of tax research and content at Thomson Reuters. “Without the right technology, domain expertise and accurate tax information, a company would find it difficult, if not impossible, to achieve compliance with confidence in a timely fashion.”
To download the full report, go to: http://onesource.thomsonreuters.com/solutions/indirect-tax/indirect-tax-rate-reports/.
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