Last Update: January 12, 2021
Some highlights:
- Temporary VAT rate changes due to COVID-19 measure are coming to an end at Dec 31, 2020 or are being extended.
- A number of countries reduced the VAT rate on Feminine Care Products (Austria, Ireland and the UK. Quid Czech?).
- The EU Commission issued an agreement on 0% VAT on vaccines and testing kits till Dec 31, 2022. The country specific implementation of the zero rating of these products is not included in the below overview.
- Besides the ending of the temporary standard VAT rate reduction in Germany and Ireland, no other country changed its standard or reduced VAT rate systematically.
Click in the name of the country in case you want to see the specific newsletter.
| VAT RATE CHANGES | |||||
| Country | Start date | End date (if appplicable) | Old rate | New rate | Scope |
| Austria | 31/12/2021 | 5% | 20% | Temporary application of a reduced VAT rate of 5% in the gastronomy, culture and publishing sectors shall be prolonged to last until 31 December 2021 | |
| Austria | 01/01/2021 | 10% | Repair services (including repair and modification) relating to bicycles, shoes, leather goods and clothing | ||
| Austria | 01/01/2021 | 20% | 10% | VAT rate reduction on Feminine Care products | |
| Belgium | 01/01/2021 | 31/12/2022 | 6% | Demolition and reconstruction of private residences | |
| Belgium | 01/01/2021 | 12% | 6% | Temporary VAT cut on hospitality for COVID | |
| Bulgaria | 31/12/2021 | 20% | 9% | (1) Restaurant and catering services, which consist of supply of cooked and uncooked food, except for services, which consist of supply of spirits. (2) Supply of books on physical carriers or by electronic means (including textbooks, training aids, drawing books, etc.), but excluding editions with advertising content and editions where the content is mostly musical or audio-visual and (3) diapers for babies. | |
| Colombia | 01/01/2021 | 8% | 0% | Temporary VAT cut for COVID hospitaliy | |
| Costa Rica | 01/01/2021 | 1% | Proposed on basic goods | ||
| Cyprus | 01/07/2020 | 10/01/2021 | 9% | 5% | Temporary VAT cut for COVID hotels, restaurants, passenger transport |
| Czech Republic | 16/08/2022 | 15% | 10% | VAT cut on accomodation; sporting & cultural events | |
| Czech republic | Proposal: reduce VAT on women’s menstrual aids | ||||
| European Union | 31/12/2022 | 0% | VAT Relief on Vaccines and Test Kits for EU hospitals, medical practitioners and individuals. This measure is applicable in all EU Member States | ||
| Finland | 30/04/2021 | 0% | Exemption for domestic sales of goods used for the prevention, testing and treatment of covid-19 infection and intra-Community acquisitions from other Member States | ||
| Germany | 01/01/2021 | 19% | 16% | Ending of temporary VAT cut of the standard rate | |
| Germany | 01/07/2021 | 19% | VAT cut for COVID resturants; catering | ||
| Greece | 01/05/2021 | 6% | Reduced VAT Rate for PPEs | ||
| Greece | 01/07/2020 | 10/01/2021 | 9% | 5% | Temporary VAT cut for COVID hotels, restaurants, passenger transport |
| Greece | 30/04/2021 | 24% | 13% | Temporary VAT cut for COVID transport; non-alcholic drinks | |
| Greece | 01/07/2021 | – | – | Holiday islands discounted VAT rate – 30 percent discount on VAT rates for goods and services | |
| Greece | 30/04/2021 | 6% | Reduced VAT Rate for PPEs | ||
| Hungary | 08/02/2021 | 27% | 5% | Temporary VAT cut for COVID on take-away food | |
| Hungary | 01/01/2021 | 31/12/2022 | 27% | 5% | Reduced VAT Rate for New Residential Properties |
| Ireland | 01/09/2020 | 28/02/2021 | 23% | 21% | Ending of temporary VAT cut for COVID |
| Ireland | 01/01/2022 | 13.5% | 9% | Ending of temporary VAT cut on tourism and hospitality for COVID | |
| Ireland | 01/01/2021 | 9% | Reduced rate of VAT applies to the supply of menstrual cups, menstrual pants and menstrual sponges | ||
| Jamaica | 01/04/2021 | 16.5% | 15% | Temporary VAT cut on hospitality for COVID | |
| Japan | 01/01/2021 | 8% | 5% | Proposed on reduced VAT rate | |
| Kenya | 01/04/2020 | 01/01/2021 | 16% | 14% | Temporary VAT cut for COVID |
| Kenya | 01/01/2021 | 3% | 1% | Temporary VAT cut for COVID | |
| Lithuania | 01/01/2021 | 21% | 9% | Temporary VAT cut on tourism and hospitality for COVID | |
| Malaysia | 01/07/2021 | 6% | 0% | Temporary VAT cut on tourism | |
| Mexico | 01/01/2021 | 31/12/2024 | 16% | 8% | VAT at Southern and Northern border regions |
| Moldova | 01/01/2021 | 15% | 12% | Hospitality proposed | |
| Netherlands | 16/03/2020 | 31/03/2021 | 0% | Provision of care personnel | |
| Netherlands | Not known yet | 9% | Online sports services by gyms | ||
| Norway | 01/06/2021 | 6% | 12% | Further extension??? | |
| Oman | 01/04/2021 | 0% | 5% | Introduction of VAT | |
| Portugal | 31/12/2021 | 6% | Reduced rate on face masks and hand sanitizer sold to general public | ||
| Romania | 01/01/2021 | 20% | 5% | Residential properties | |
| Russia | 01/01/2021 | 20% | 10% | eBooks proposed | |
| Spain | 01/01/2021 | 10% | 21% | Sugar-heavy drinks | |
| Spain | 02/01/2021 | 4% | Reduction of VAT on electric cars to 4% | ||
| Turkey | 31/05/2021 | 18% | 8% | Temporary VAT cut on hotels, accomodation, domestic flights | |
| United Arab Emirates | 01/09/2020 | 28/02/2021 | 5% | 0% | Temporary zero-rating of personal protective equipment (PPE) |
| UK | 01/01/2021 | 5% | 0% | VAT on Women’s sanitary products abolished | |
| UK | 31/03/2021 | 20% | 5% | Temporary VAT cut on tourism and hospitality for COVID | |
| Uruguay | 04/04/2021 | 13% | 22% | Café and restaurtant services temporary VAT cut | |
