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 ….

See also Global VAT/GST rate overview

 

Algeria

• Algerian 2022 Finance Bill proposes to extend 9% reduced VAT rate for specific goods and services until Dec. 31, 2024

Angola

• Angola reduces VAT rate on essential consumer goods from 14% to 7%

Bahamas

• VAT rate reduced from 12% to 10%, but less transactions subject to 0%

Bahrain

• Official: Bahrain raises VAT to 10% by 2022

Belgium

• Circular 2021/C/88: Extension of the temporarily reduced VAT rate for mouth masks and hydroalcoholic gels
• 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
• VAT pardon on gas and electricity in the Czech Republic

Dominican Republic

• Dominican Republic Exempts Online Sale of E-Books for VAT Purposes

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

Germany

• German court decisions about reduced VAT rate for music events

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

Italy

• VAT rate for bakery products – “bases for pincers”

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
• CBIC increased GST rate on permanent transfer of Intellectual Property right in respect of goods
• Permanent Transfer of IPRs attracts 18% GST: CBIC
• Ice-cream parlours facing a meltdown over 18% GST levy

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
• Lithuania Parliament proposes 5% VAT for thermal energy and natural gas to consumers

Malaysia

• SUPP: SST of 6% hopefully to be replaced with GST of 2%

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

Paraguay

• Paraguay Extends VAT and Consumption Tax Relief for COVID-19

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
• Complete list of VAT-free food items as of Nov 1, 2021

Turkey

• Turkey Provides Reduced VAT Rate for Used Mobile Phones

Ukraine

• VAT treatment for services relating to aircraft operating international flights

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
• Vietnam Issues New VAT Rate for Imported Medical Equipment
• Vietnam VAT relief for tourism and hospitality sectors