Worldwide, there were 62 percent more indirect tax changes in the third quarter of 2012 than there were during the same period in 2011, according to the latest ONESOURCE Indirect Tax rate report from Thomson Reuters.
There were 525 tax code changes in Q3 2012, compared with 324 in Q3 2011. This includes 146 U.S. changes in Q3 2012, compared with 202 in Q3 2011. In the rest of the world, there were 379 international indirect tax code changes, up 310 percent from 122 in Q3 2011.
“We are seeing an increase in both the number of taxes and the complexity of tax laws outside of the U.S., which is making it more difficult for global companies to keep up with changing tax rates and regulations,” says Carla Yrjanson, vice president of tax research and content at Thomson Reuters. “As a result, many global companies are putting best practices and technology in place to ensure they achieve compliance in a cost effective manner.”
The report highlights that there were 20 VAT increases globally, up from 14 in Q3 2011.
In China, Beijing joined the VAT Pilot program in September. Over in India, two Indian states increased their standard rates. In Kamataka, rates rose from 14 percent and 5 percent to 14.5 percent and 5.5 percent. In Punjab, they rose from 12.5 percent and 5 percent to 13.5 percent and 5.5 percent.
In the U.S., the average state sales tax remained the same at 5.48 percent in Q3 2012.
Sixty-nine state, county, city and transit sales tax increases were implemented in the U.S., compared with 97 in Q3 2011.
In Europe, Spain increased its standard and reduced VAT rates from 18 percent and 8 percent to 21 percent and 10 percent.