News on Global VAT rate changes announced in July 2021

AFRICA

• Guyana: VAT relief for COVID-19 supplies extended to December 31
• South Africa: An 18.5% VAT rate and other new taxes that could fund South Africa’s NHI

ASIA PACIFIC

• China
  • China MOF Releases Preferential Tax Measures for Residential Leasing Companies
  • Reduction from 13% to 11% for the sale of goods and full refund of unutilized input VAT credits in all sectors are expected
• India
  • 12% GST on Construction of Airport Authority of India Residential Colony for self-use or for Staff / Employees
  • 12% GST on unbranded chips too: Kerala AAR
  • Tanker Bodybuilding on Job Work basis, on Chassis supplied by Customer, is Supply of Services, 18% GST payable: AAR
  • 12% GST applicable on Laboratory Reagents for Rapid Testing of Food Safety Parameters: AAR
  • 12% GST on Mats, Matting & Floor Covering of Coir backed by PVC, Rubber, Latex
  • 12% GST on Chips, Sharkarai varatty, Roasted and Salted Cashew nuts, Namkeens
  • 18% GST forces hotels to junk biodegradable packaging
  • Alcohol-based hand sanitisers to attract 18% GST
•  Pakistan
  • Discounted VAT Rates in Some Service Sectors
  • Expanded sales tax on services (Balochistan)
• Philippines
  • BIR Regulations Issued Suspending 12% VAT Rate for Certain Supplies to Exporters and Certain Conditions for Proprietary Educational Institution Benefits
  • 12% VAT on exporter inputs suspended
• Vietnam
  • New Circular clarifying conditions to be entitled to 5% VAT rate on medical equipment

EUROPE

• European Union
  • ECJ C-330/21 (The Escape Center) – Questions – VAT rate applicable to he right to use sports facilities if no individual/group guidance is provided
  • Commission waives customs duties and VAT on the import of medical equipment from non-EU countries
  • VAT rates in the EU: updated guidance and improvements to TEDB database for eCommerce
• Belgium
• • Floods – VAT measures for reconstruction
  • Extension of VAT relief measures (COVID-19) / Belgium Notes Extension of 6% Reduced VAT Rate for Masks and Hydroalcoholic gels
  • VAT on the way to dentist and physiotherapist
• Bulgaria: VAT Rate Reduction For Certain Sectors
• Cyprus: Zero rate for services closely connected to the supply of Covid-19 diagnostic medical devices
• Czech Republic Extends VAT Exemption for Masks and Respirators for COVID-19
• Germany: Federal Fiscal Court rules standard VAT rate applies to composite theatrical event
• Greece
  • Greece Extends 6% Reduced VAT Rate to Electronic Books and Publications
  • Greece Confirms Permanent Extension of VAT Reduction for Five Islands
• Ireland: Government urged to extend 9% VAT rate further than currently planned
•  Italy
  • Reduced VAT rate for supplements with therapeutic properties
  • Energy and VAT reduced rate
• Lithuania: VAT rate reduction for catering services, cultural and sports events (COVID-19)
• Kosovo: VAT Exemption for Books, Textbooks and Serial Publications
• Luxembourg: Circular on the application of 0% VAT rate to vaccines and in vitro diagnostic medical devices
• Netherlands
  • Packages or arrangements – what is the right VAT rate?
  • Report theater performance by blind interpreter taxed at 21% VAT
• North Macedonia Provides Temporary Reduced VAT Rates for Electricity Supplies to Final Consumers
• Norway Extends Reduced VAT Rate for COVID-19
• Portugal: Standard VAT rate in Azores is reduced to 16%
• Romania Reduces VAT on Heating Energy Intended for Domestic Use from 19 to 5% as of Jan 13, 2022
• Slovenia: Covid-19: Extension of the VAT Exemption for medical supplies and subsidies till December 31, 2021
• Turkey: Discounted VAT Rates in Some Service Sectors
• Ukraine Application of zero VAT rate
• United Kingdom:
  • New builds without the correct planning permission, will not qualify for the zero rating
  • 2 months to go: Is your business ready for a new UK VAT rate?
  • VAT zero rate to apply to trades in UK emissions trading scheme allowances within the VAT Terminal Markets Order
  • UK ministers resist calls to reduce VAT on green home improvements

LATIN AMERICA

• Uruguay Gazettes Decree Further Extending Reduced VAT Rate for Tourism Sector Due to Coronavirus

NORTH AMERICA

• State and Local Sales Tax Rates, Midyear 2021
• California: Sales and Use Tax Rates