Indirect Tax
Malaysia announces cancellation of proposed High Value Goods Tax
Excerpts from various sources
Malaysia has officially cancelled the planned High-Value Goods Tax (HVGT) and instead, has opted to tax the luxury items under revised sales tax system at 5% or 10%. Other key measures remain in force, including the capital gains tax on unlisted share transactions, updates to the sales and services tax and the low-value goods tax on imports.
Czech Republic introduces new VAT Rule requiring repayment of deductions for unpaid liabilities from 2025
Excerpts from various sources
Effective 1 January 2025, the Czech Republic has introduced a new VAT rule (Section 74b) requiring VAT payers to reduce or repay input VAT deductions if they fail to pay for a taxable supply within six months of its due date (Six-month period starts from the end of the month when the invoice became due). If unpaid, the VAT deduction must be adjusted in the tax period when the six-month deadline lapses. Once the liability is paid, whether fully or partially, the taxpayer would regain the right to reclaim the corresponding portion of the VAT deduction in the payment period.
However, the VAT payers must make the correction within two calendar years after the first period when they were required to adjust i.e. after expiry of six months. The rule applies only to supplies received from 2025 onwards and excludes reverse-charge transactions.
Tariff escalation on Indian exports to the USA
Excerpts from various sources
As of 27 August 2025, the U.S. has imposed a 50% tariff on a wide array of Indian exports, doubling the initial 25% rate introduced in early August.
The new increased duty will cover a wide range of exports ranging from textiles, gems, jewelery, leather products, machinery, marine goods (sea food), etc. However, sensitive sectors like pharmaceuticals, medical devices, critical technology components electronics including smart phones, computers and semiconductors remain untouched. ‘Made-in-India’ Apple iPhones and chips will not see immediate price increases. The notification also clarifies that exceptions will apply to in-transit shipments with valid certification, humanitarian aid consignments, and goods covered under reciprocal trade agreements.