Global VAT Rate Developments annouced in Oct 2021 – tons of action …

Highlights

• Bahrain doubeling their VAT rate from 5 to 10%
• Indonesia gradually increasing their VAT rate from 10 to 12%
• Uzbekistan cuts VAT from 15% to 12% per 2023
• Vietnam: 30% VAT reduction for hard-hit sectors
• VAT reductions for energy in Cabo Verde, Italy (Next to North Macedonia, Spain, Portugal already announced in September 2021) and considered in Lithuania, UK, Romania, Philippines ….

Bahrain

• Proposal to increase VAT rate to 10%
• Bahrain to Increase VAT Rate to 10% from 2022
• Expected Transitional Provisions (effect of change -VAT 5% to 10%)

Belgium

• 6% Reduced VAT Rate for Face Masks and Hydroalcoholic Gels extended till December 31, 2021
• Extension of the reduced VAT rate on mouth masks and hydroalcoholic gels

Bulgaria

• Bulgaria suggests changes in VAT in 2022
• Draft: VAT Changes for COVID-19

Cabo Verde

• State to reduce VAT on electricity, water tariffs from 15 pct to 8 pct

Canada

• Upcoming Federal Luxury Tax

Czech Republic

• Further Extension of the VAT exemption on Respirator Supplies till Dec 31, 2021

European Union

• European Commission says VAT rates reform negotiations progressing “well”
• European Union: Overview reduced VAT rates for water, electricty, gas
• European Parliament clears the way for zero VAT on healthy food
• Reduced VAT rates create a VAT Gap of 140Bn

Greece

• Greece Gazettes Law Extending Reduced VAT Rate for Tourism, Hospitality Industries Due to Coronavirus
• Budget 2022: Reduced VAT rate for agricultural goods, industrial food and provision of services by gyms and dance institutions
• Reduced VAT rate relevant to dining, tourism etc. is extended until 30/06/2022

India

• Government planning to impose 10-28% GST on online games & e-sports
• GST rate hike on soft drinks in India
• India GST extension to taxi, ride sharing and food delivery via E-Commerce operators (Jan 2022)
• CBIC clarifies on GST rates & exemptions for 9 services
• Applicability of Change in GST Rates of Various Services & Transitional measures
• Three-tier GST rate structure likely by next fiscal
• GST Rate Changes – Applicable From 01.10.2021
• Changes in GST Rates on Goods w.e.f October 01, 2021
• Changes in GST Rates on Services w.e.f October 1, 2021

Indonesia

• Indonesia will increase its VAT to 11% starting April 2022 and 12% in 2025
• Indonesian lawmakers approve two-stage VAT rate hike
• Budget 2022 approval: Standard VAT rate to 12%, new Carbon Tax, …
• Indonesia approves bill to increase VAT rate
• Extension of the 100% car discount until December 2021

Ireland

• Budget 2022: reduced VAT rate of 9% for the hospitality sector is being extended to 31 August 2022

Italy

• Italy Provides Temporary Super-Reduced VAT Rate for Natural Gas Supplies
• Temporary Super-Reduced VAT Rate (5%) for Natural Gas Supplies till Dec 31, 2021
• Revolution for VAT rates to come?
• Reduced VAT rate on medical devices
• The 4% VAT rate is applicable to the olive oil regardless the use

Kyrgyzstan

• Exemption of wheat grain and wheat flour imports from VAT until 1 August 2022

Lithuania

• Lithuania Proposes To Reduce VAT for Thermal Energy to 5% until 1 May 2022

 Netherlands

• 21% VAT for software that analyzes the data of an AED device
• Standard VAT rate for parking with Park, Sleep and Fly packages
• VAT treatment of Advance Therapy Medicinal Products

Norway

• Budget 2022: Exemption from VAT for naprapaths and osteopaths is being extended until 1 July 2022

Phlipppines

• Department of Energy studying suspension of 12% VAT on petroleum products
• VAT on digital services non-resident providers

Romania

• Romania pushes for cap on energy bills, generation tax
• Two different VAT rates applied to the same real estate transaction

Sri Lanka

• Zero rate for certain services to offshore gaming licensees

Sweden

• 2022 Budget: Repeal advertising tax, Increase VAT exemption threshold, Reduced VAT rate on repairs, etc

Thailand

• Thailand Publishes Decree Extending 7% VAT Rate for Two Years

Trinidad & Tobago

• Update – Trinidad and Tobago Clarifies Basic Food Items to be VAT-Free from November 2021

Turkey

• Turkey Provides Reduced VAT Rate for Used Mobile Phones

United Kingdom

• UK considers cut on domestic energy reduced VAT rate from 5% to 0%
• Clarification: Temporary reduced rate for hospitality, holiday accommodation and attractions

Uruguay

• Uruguay Provides Temporary VAT Rate Reduction for Tourist Services

Uzbekistan

• Uzbekistan cuts VAT from 15% to 12% per 2023
• Uzbekistan Plans To Reduce The VAT Rate From 2023

Vietnam

• COVID-19: 30% VAT reduction for hard-hit sectors
• Approved – VAT reduced by 30 percent between Nov 1 – Dec 31, 2021