Austria – reduction of VAT rate to 5% from 1 July till 31 December for certain supplies

Finance Minister Blümel: reduced VAT rate introduced to support the gastronomy, culture and publishing sectors.

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KSA: VAT rate triples to 15% as from July 1, 2020

Saudi Arabia: Increase in VAT rate announced to address the Kingdom’s medium and long term fiscal position

The Government of the Kingdom of Saudi Arabia (‘KSA’) has announced several measures to counter the financial and economic impact of COVID-19 on the government budget. Such measures include a reduction in capital expenditures, discontinuation of the cost of living allowance and an increase in the VAT rate to 15%.

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POLAND: Planned changes in the scope of VAT rates as of 1 April 2019

The system of VAT rates in Poland is complicated causing difficulties in running a business, due to the need for the taxpayer to correctly assign goods or services to the appropriate grouping of the Polish Statistical Classification of Goods and Services (PKWiU). Sometimes even a small detail may impact the level of the VAT rate (e.g. yogurts with grains 8%, regular yogurt 5% VAT).

The Ministry of Finance has published another draft amendment to the VAT Act (of 8 November 2018), which concerns the proposal to change the VAT rates system in Poland . Some changes are expected to take effect from 1 April 2019 (e.g. lower, 5% VAT rate on e-publications) and some from 1 January 2020 (majority).Read More »

NL – Reduced VAT rate to be increased from 6% to 9%

As of 1 January 2019 the reduced rate for VAT is to be increased from 6% to 9%. This change in rate will mean extra costs for some businesses and an additional administrative burden for almost all of them. A business applying the reduced VAT rate on supplies of goods and services will have to prepare for the change. The rate change will require internal changes (the administrative system) and external adjustments (for example the pricing of services and products).

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Swiss public votes NO – Financing of the AHV by increasing the VAT rate

At yesterday’s popular vote, the Swiss voters have refused to raise the VAT rates in order to finance old age pensions.

Since a temporary VAT rate increase from the past runs out, the VAT rates will actually decrease:Read More »

EU – public consultation on reform of VAT rates policy, small enterprise and definitive VAT System for B2B intra-EU transactions in goods

539368_web_r_by_wandersmann_pixelio-deAs you know the European Commission published three VAT-related consultations at the end of last year to prepare its work for the upcoming year. Each of the three consultations relates to a specific set of reforms already announced in the European Commission’s VAT Action Plan earlier this year. The three consultations relate to:Read More »

Czech Republic – increase of VAT rate as from 1 of January 2013

The Chamber of Deputies has approved the economic measures intended to keep the state budget deficit under three percent of gross domestic product for the next three years. The measures include an increase in the standard VAT rate from 20% to 21% and the reduced rate from 14% to 15%.

France – Increase of the VAT rate as per 1 of January 2014

The normal VAT rate will raise from 19.6% to 20%. The reduced VAT rate for instance for restaurants will increase from 7% to 10%. The super-reduced VAT rate for food and energy, however, will be reduced from 5.5% to 5%. Why? Because the government wants to reduce the tax burden on the companies in area of direct tax.

With this tax relief the French government intends to make the French companies more competitive on the international market

Finland – increase of VAT rate as per 1 January 2013

The Finnish Government has issued on Monday 17 September 2012 an official proposal to increase the current VAT rates by 1% in Finland. It is foreseen to increase the standard VAT rate from 23% to 24% and the two reduced VAT rates from 9% to 10% and from 13% to 14%.

If passed by Parliament, the increase will take effect from 1 January 2013.

Serbia – increase of the VAT rate as per 1 of October 2012

The VAT rate will be increased from 18% to 20%. Final confirmation is pending.