The most unusual International VAT laws of 2006

Taxware has released its ‘Five Most Unusual International VAT Laws for 2006’.

The company’s team of international tax experts who continually monitor over 27,000 ever-changing tax jurisdictions around the globe compiled the annual listing.

In reviewing the latest VAT laws from across the globe, the Taxware team has selected the following as the most unusual in 2006:

5. In Morocco, the operation of Turkish-style baths and public showers are exempt from VAT but if you want to emerge clean as well as relaxed, then a tax of 7% is payable on any soap that’s used.

4. Belgians that collect and store manure pay VAT at the standard rate of 21%. However, spreading manure around is viewed as an agricultural service and taxed at a lower rate of 6%.

3. Icelanders take the preservation of the Icelandic language, which has changed little since the 13th Century, very seriously. Keen to keep matters this way, the government taxes books written in Icelandic at just 14%, rather than the standard 24.5% for those printed in other languages.

2. In the horse racing-mad Republic of Ireland, it might come as some surprise to find that shodding your trusty steed attracts a levy of 21% whilst equine dentistry is taxed at just 13.5%.

1. In the UK, individual chocolate flakes are taxed at the standard 17.5% rate but buy a catering box of at least 144 and a zero rating will be applicable, provided that the pack is clearly labelled ‘for use as cake decorations only: not for retail sale’.