VATupdate

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Global VAT rate changes as of Jan 1, 2021

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

 

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