News on Global VAT rate changes in August 2021

Highlights

• India & micro-management of VAT rates
• Austria, Belgium, Brazil, Bulgaria, Czech Republic, Philippines, Uruguay extending/introducing the reduced rates/exemption for COVID relates supplies
• Belarus reduced, Ukraine increased the VAT rate on foodstuffs
• Suriname intends increase of the VAT standard rate
• Possible reduction of VAT on energy supplies in Romania & North Macedonia

World

• Increase the VAT burden on meat products: The perfect solution?
• Highest standard VAT Rates globally … Europe wins
• VAT Rates in the EU + CH + GB + NO

Austria

• 0% VAT Rate on or local supplies and intra-community acquisitions of protective masks extended till December 31, 2021

Bangladesh

• VAT for restaurant goes down

Belarus

• Belarus Publishes Decree Reducing VAT Rate for Certain Foodstuffs and Other Changes
• Belarus Decreases VAT Rate on Certain Foodstuff from 20% to 10%

Belgium

• Recent VAT Developments in Belgium – An overview
• Belgium Circular 2021/C/74 on the extension of the temporarily reduced VAT rate for mouth masks and hydroalcoholic gels in the context of the fight against the…

Brazil

• Progress on the bill to remove VAT on the purchase of domestically produced vaccines

Bulgaria

• Bulgaria Considering 9% VAT Rate for Medicinal Products

Czech Republic

• Extension of the VAT exemption on Respirator Supplies till Oct 31, 2021
• Covid-19: Exemption from customs duties and VAT for imports of goods for state entities, charities or charities and rescue services has been extended…

Germany

• Online piano courses are not subject to the reduced VAT rate

Greece

• Additional VAT law changes aim to facilitate economic activity
• Greece Extends Reduced VAT Rates for Sports Tickets and Defibrillators and Extends VAT Suspension for Construction Companies
• Greece to Extend Reduced VAT Rates for Sports Tickets (till June 30, 2022) and Defibrillators (Dec 31, 2022)
• Additional VAT law changes aim to facilitate economic activity

India

• 18% GST applicable on ‘Other Services’ not naturally bundled with Construction Services: AAR
• 5% GST on Supply of MDEs and parts exclusively and directly to Shipyards or Indian Navy for use in manufacture of Ships, Vessels, Boats, Floating Structures: AAR
• Option of 18% GST with ITC or 7.5% GST without ITC exercised in respect of ongoing residential project is applicable for all units in entire project: AAR
• Will ailing India’s Auto Sector finally get A GST Rate Reduction?
• Goa govt unlikely to reduce VAT on aviation fuel
• Govt says open to ‘tinkering’ GST rates on automobiles
• Puducherry govt cuts VAT on petrol by 3%
• 12% GST payable on PVC Carpet Mat: AAAR
• 5% GST payable on Two or Three-wheeled ‘Battery Powered Electric Vehicle’ supplied with or without Battery Pack: AAR
• GST Exemption on DNB Fee: Supreme Court issues Notice to Govt on Doctors’ Plea
• 18% GST payable on Mixed Supply of Instant Mix Flour of Gota or Methi Gota with Chutney powder or Kadi Chutney Powder: AAR
• Works Contract taxable at 12% with ITC for services provided by sub-contractor to contractor for NHAI
• Is Purified Drinking water supplied at affordable price taxable @ 18%
• GST rate for supply of electrically operated vehicles without fitting of battery
• 18% GST payable on Manpower Services like Data Entry Operator, to City Corporation or Municipalities: AAR
• Auto sector fears higher GST rate on certain parts after Supreme Court ruling
• Reduce VAT on natural gas from 12.5% to 3%, says Goa Chamber of Commerce and Industry
• Car Seat Covers attract 28% GST: AAR [Read Order]
• 18% GST payable on Diesel as part of a Composite Service
• GST rate for supply of electrically operated vehicles without fitting of battery
• CBIC clarifies 5% GST on milling of grains into flour
• Tertiary Treated water is purified water taxable @18%
• 5% GST on Supply of MDEs and parts exclusively and directly to Shipyards or Indian Navy for use in manufacture of Ships, Vessels, Boats, Floating Structures: AAR

Indonesia

• Retailers call for review on VAT increase, multi-tariff taxes
• 2022 Budget: Increasing the standard VAT rate from 10% to 12%, along with the introduction of varied rates of 5% to 25% for certain goods and services, as…

Italy

• VAT rate applicable to waste disposal/collection services
• VAT rate of 5%, even though there is a audio guide in the transport price for waterways
• Tax authorities question issue guidance about VAT rate of bakery products
• Tax authorities question issue guidance about VAT rate for medical devices
• VAT rules for zero-rating of ocean-going vessels, pleasure boats

Kenya

• For the classification of the sale of a meal as a delivery or service, the customer’s decision is important

The Netherlands

• No reduced VAT rate for parking at the festival
• Parking at amusement park not subject to reduced rate
• 9% VAT for mosaic plate supplied by the maker
• Reduced VAT rate for cell and gene therapy products

North Macedonia

• North Macedonia Reduces VAT on Electricity Supplies

Philippines

• Philippines Tax Agency Issues Regulation to Suspend Increased VAT Rates on Specific Supplies Due to Coronavirus

Poland

• The Polish New Deal
• European Commission does not agree with Poland introducing a zero VAT rate on books
• SAC’s ruling on applying the 5% VAT rate to supplies of takeaway meals
• Scope of the concept of “restaurant service” to which the reduced VAT rate applies

Romania

• Cîțu does not take into account the elimination of VAT from energy bills this winter

Russia

• Draft law on sales of goods to foreign citizens from warehouses located outside Russia

South Africa

• 4 taxes that could fund South Africa’s NHI – including 20% VAT

Suriname

• Suriname Parliament Approves Increase in Sales Tax Rate to 12%
• Suriname Planning to Increase Sales Tax Rate to 12%

Thailand

• Tax returns deadline and VAT rate 7% extended
• Cabinet approves VAT extension of 7% VAT rate
• Thailand to Retain VAT at 7% for Another Two Years

Turkey

• Extension of Temporary Reduced VAT Rates for Certain Goods and Services till Sept 30, 2021

Tuvalu

• Tuvalu Consumption Tax

Ukraine

• VAT rate for certain types of agricultural products increased from 14 to 20% as of August 1, 2021
• Ukraine Zelensky signs law to return 20% VAT rate for certain types of agricultural products

United Kingdom

• VAT is due on potato snacks, but maize and corn-based snacks are VAT free
• Construction of a dwelling – zero-rated? The CMJ (Aberdeen) case
• Scrap the VAT: Why the public is suddenly taking an interest in consumption taxes
• Parent spends £200 a child on school uniform amid calls to cut VAT
• Save VAT by booking in advance
• VAT complications and rate changes
• New VAT rate for hospitality
• Isle of Man Issues Release on Change in Temporary VAT Reduced Rate for Certain Supplies from October 2021

United States

• Sales Tax Rates in Major Cities, Midyear 2021
• North Dakota: Q4/2021 Local Sales and Use Tax Rate Changes

Uruguay

• Uruguay extends COVID-19 VAT cuts

Country Summaries – for full list, click HERE

• VAT rates in Egypt
• VAT rates in Colombia
• VAT rates in Angola
• VAT rates in Albania
• VAT Rates in Taiwan
• VAT Rates in South Korea
• VAT Rates in Mongolia
• VAT Rates in Kazakhstan
• Commercial Tax Rates in Myanmar
• VAT Rates in Uzbekistan
• VAT Rates in Vietnam
• GST Rates in Singapore
• SST Rates in Malaysia
• VAT Rates in Indonesia
• VAT Rates in Georgia
• VAT Rates in China (Mainland)
• VAT Rates in Thailand
• VAT Rates in Philippines
• VAT (GST) Rates in New Zealand
• VAT Rates in Japan
• VAT Rates in China (Mainland)