Most unusual new VAT rules revealed

Most unusual new VAT rules revealed

Soap used in Turkish baths, manure and horse ‘shodding’ all subject to VAT

This year, the Moroccan tax office has deemed that the operation of
Turkish-style baths and public showers are exempt from VAT, but if you fancy
using a bit of soap while you are there, then you will be forced to pay 7% tax
on the soap used.

This was just one of the five most unusual international VAT rules for 2006
revealed by tax software vendor Taxware.

Proving that taxation need not be a dry and boring affair, governments around
the world found the most unlikely of activities and object to apply VAT to.

Others include:

– Belgians that collect and store manure pay VAT at the standard rate of 21%,
who will now only have to pay VAT at 6% if the manure is spread around as it is
then viewed as an agricultural service

– Icelandic books written in the Icelandic language which will be taxed 14%,
rather than the standard 24.5% for those printed in other languages.

– Never one to miss out on all things absurd, in the Republic of Ireland the
‘shodding’ of horses attracts a levy of 21% whilst equine dentistry is taxed at
just 13.5%.

Related Articles

Supreme Court rules against Pimlico Plumbers in landmark employment case

Legal Supreme Court rules against Pimlico Plumbers in landmark employment case

1m Alia Shoaib, Reporter
Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

Personal Tax Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

2m Alia Shoaib, Reporter
Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

4m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

5m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

7m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

8m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

9m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

9m Emma Rawson, ATT Technical Officer