The introduction of a VAT system that will replace current indirect taxes, including the business turnover tax (BBO), health tax (BAZV), and additional funding tax for public private partnership projects (BAVP), with the following rates and exemptions:
- standard 18% rate on goods and services
- reduced 6% rate on food and non-alcoholic beverages;
- zero-rating on exports; and
- exemptions for hotel room revenue (subject to tourist levy), education, the medical and bank sectors, and utilities, as well as hotel room revenue, which is subject to tourist levy;
Source Orbitax
