Global VAT rate changes – This was in the news in November 2022

ALBANIA

• 0% VAT on the import of electric vehicles

BAHRAIN

• Updated list of medicines subject to zero rate of VAT; industry focus groups on e-invoicing

BELGIUM

• Circular 2022/C/90: extension temporarily reduced VAT rate for mouth masks and hydroalcoholic gels
• Circular 2022/C/93: application of the reduced VAT rate of 6% in the case of demolition and reconstruction of private homes
• Draft bill on the extension of the reduced VAT Rate on Electricity and Heating Networks till March 31, 2023
• Standard statement replaces the VAT certificate to apply 6% reduced VAT rate

COLOMBIA

• Day without VAT: President Gustavo Petro explained why the December day was eliminated

COSTA RICA

• Reduced VAT on goods in “basic tax basket”; credit for general sales tax on commercial vehicles repealed

CROATIA

• Croatia VAT rate and reporting/record keeping changes
• Tax Agency Clarifies VAT Treatment of Advance Issued Invoices for Solar Power Plants

CYPRUS

• Supreme Court deems VAT reduction unconstitutional

CZECH REPUBLIC

• Changes in the taxation of individuals and new rules for VAT

ESTONIA

• Estonia Parliament Considers Bill to Reduce VAT on Foodstuffs, Catering Services
• Estonia reduces VAT rate on press releases to 5%
• VAT cut on food and catering proposal

EUROPE

• VAT cuts as Europe inflation eases to 10% – November 2022
• VAT cuts as Europe inflation jumps to 10.7% October 2022
• International VAT Rate Round Up: November 2022
• VAT Rates in Europe
• Updated version (v6) of the Guidance document on Rules of Origin of the EU-Vietnam FTA has been published.

FINLAND

• Amendments to VAT rates proposed for sales of electricity and passenger transport
• Electricity VAT cut to 10% until April 2023; public transport to 0%
• Finland Gazettes Law Temporarily Reducing Energy, Transportation VAT Rates Under 2023 Budget Due to War
• Finland Provides Temporary VAT Rate Reduction for Electricity and Exemption for Passenger Transport

FRANCE

• New Caledonia to simplify VAT rates

GCC

• GCC Tax News – 24 November 2022

GERMANY

• BMF: Tax rate for transactions with silver coins
• Germany Extends Reduced VAT Rate for Restaurant and Catering Services
• Reduced VAT rate for restaurant and catering services: Extension of the time scope until December 31, 2023
• VAT benefits based on the additional agreement to the NATO troop statute; Modification of the list of official procurement bodies of the Dutch Armed Forces
• VAT benefits due to the additional agreement to the NATO troop statute
• Vattenfall must report electricity prices with the applicable VAT rate

GHANA

• 2023 Budget: Finance Minister announces VAT rate to be increased by 2.5%
• 2023 budget: Increase VAT rate, change registration threshold, VAT exemption reforms and rollout electronic VAT invoicing
• Ghana Budget 2023 Includes Additional Top individual income tax Rate, Increased VAT Rate, and Other Measures
• Ghana raises VAT 2.5% to 15% 2023
• Ghana: Tax measures in 2023 budget
• Tax highlights of Ghana’s 2023 Budget Statement and Economic Policy provided
• VAT likely to go up
• We won’t accept 2.5% VAT hike – Minority

GUYANA

• Policy 14 – VAT on Garments produced by Local Manufacturers
• Policy 16 – VAT on Funeral Services and Human Remains
• Policy 3 – VAT on Educational Services and Materials
• Policy 43 – VAT on Rice and Rice Products
• Policy 45 – VAT on Porridge Products
• Policy 55 – VAT on Eggs
• Policy 56 – VAT on Meat

HUNGARY

• 5% on the sale of new residential property extended to Dec. 31, 2024, with further extension to Dec. 31, 2028, if the building permit was finalized by Dec. 31,…
• The most important VAT changes expected: 5% new residential property extended and fiscalization (electronic receipts)

INDIA

• Brick kiln owners protest against GST hike; demand revert to old 1%
• Define game of chance, game of skill to decide on taxation: GST law panel
• GST on Sale of Developed Land: Madhya Pradesh HC directs BDA to Reconsider 12% Levy on Plots
• Industrial Safety Belt not exceeding Rs. 1000 sale value, taxable at 5% GST
• Karnataka fixes extra 5% plus GST for auto services run by ride-hailing apps
• Mistake of Applying VAT Rate is Rectifiable: Kerala HC
• Panel may recommend 28% GST on online gaming, tweak in calculation method

IRELAND

• Finance Bill 2022 – Key Indirect Tax Measures
• Ireland changes VAT rates for newspapers, hospitality, & tourism
• Ireland changes VAT rates for newspapers, tourism, and hospitality in 2023

ITALY

• Adjustment of the VAT ceiling following a sale under the non-taxable VAT regime
• Budget 2023 approved by Council of Ministers: VAT rate reduction baby products and feminine hygiene products, suspension plastic & sugar tax
• Government explains 4% reduced VAT rate for medical nutrition food products
• New urgent measures for excise duties and VAT on fuels
• Ruling 564: Reduced VAT for the transfer of technical aids if made directly to disabled people
• Ruling 566: 5% VAT rate on administration of methane gas for civil/industrial use?
• Rulings 561, 562 and 563: Reduced VAT for food supplements: in which cases?
• VAT rate on baby products reduced to 5%

JERSEY

• Proposal to cut GST on basic food products

LATVIA

• Parliament approved reduced VAT rate on specific food products

LITHUANIA

• 5% reduced VAT rate to specific services was considered by Parliament
• Lithuania confirms various VAT rate cuts
• Lithuania introduces changes to the applicable VAT rates for hospitality, ebooks, accommodation and events
• Lithuania Parliament Considers Bill to Reduce VAT Rate on Specific Services Provided by Performers
• Lithuania to cut e-book VAT
• Minister supports extending lower rate VAT on restaurants for entire year, not just 6 months
• Permanently Extension of 9% VAT Rate for Certain Supplies
• Preferential VAT rate of 5% for repairs and certain household items
• VAT Law No. IX-751 Article 19 amendment bill: reduced VAT rate of 9%

LUXEMBOURG

• Luxembourg Temporarily Reduces VAT Rates
• Luxembourg VAT Rates Decrease effective 1 January 2023
• Reduced VAT rates for Luxembourg in 2023: a practical Q&A on the impact for businesses!
• The decreased Luxembourg VAT rates in practice

MALDIVES

• GST rate for tourism sector and general sector will increase to 16% and 8%, respectively, from 1 January 2023
• Guidance: GST Rate Changes Fact Sheet
• Maldives GST Rate Increase effective January 1, 2023
• Maldives raises GST from 6% to 8% 2023 update

MOLDOVA

• State Tax Service Clarifies That Goods Sold Abroad Are Not Subject to VAT

MOZAMBIQUE

• Mozambique to cut VAT to 16% 2023 – proceeds to parliament
• Mozambique to Reduce Standard VAT Rate

NETHERLANDS

• Advocate General to Supreme Court: Explanation of transitional law in the event of an increase in the VAT rate; purchase guarantee agreement; the concept of…
• Bill: 0% VAT for solar panels on homes from 1 January 2023
• Court of Appeal of Amsterdam: Aphrodisiacs subject to standard VAT rate
• Draft billl: 0% VAT for solar panels on homes from January 1, 2023
• Explanation of transitional law in the event of an increase in the VAT rate; purchase guarantee agreement
• For real estate transactions in September 2013, the VAT rate of 21% applies according to AG
• No zero rate on delivery of horse to buyer established outside the EU when used for training and competitions in the period between delivery and export
• Progress of VAT zero rate on fruit and vegetables
• Purchase guarantee agreement before April 28, 2012, still 21% VAT
• Senate wants to abolish VAT on fruit and vegetables
• Sex drive stimulants fall under the general VAT rate
• VAT authorities explain VAT rate for animal feed
• VAT treatment of solar panels and nitrous oxide in the 2023 Tax Plan
• VAT zero rate not applicable to the delivery of horse to a customer established outside the EU

NIGERIA

• Experts fault IMF’s recommendation to raise VAT by 100 percent
• IMF Advises Nigerian Government to Increase VAT to 15%
• IMF Recommends 15% VAT Rate To Nigeria, Other Economic Reforms

NORWAY

• Introduction of value added tax on electric cars from 1 January 2023 – more details on the time of delivery

PAKISTAN

• APTMA seeks zero-rating regime revival for export boost

PERU

• Peru enacts regulations on temporary VAT reduction for specific hotels and restaurants

PHILIPPINES

• Exporters seek removal of 12% VAT on products
• House asked to begin hearings on anti-VAT bills (to remove VAT on utilities)
• Makabayan seeks VAT exemption of electricity, water, toll services
• P187 billion revenue losses seen if utilities VAT removed
• Salceda: Marcos wants House to study removing VAT on utilities

POLAND

• Brussels does not agree to zero VAT rates, so the anti-inflationary shield has to change
• Gas for households will still be without VAT
• McDonald’s is still winning disputes with the tax office over the VAT rate
• Poland to extend food VAT cuts to June 2023
• Poland VAT rates temporarily reduced
• Poland zero-rating VAT energy blocked by EU
• Sasin: Higher VAT rates on electricity, fuels and fertilizers will return
• Zero VAT on food will remain. Minister Soboń confirms

PORTUGAL

• Madeira: Proposal Reduced rate for electricity, natural gas, butane and propane, Internet access services
• VAT on the purchase and repair of bicycles and all canned fish and molluscs will pass to 6% reduced rate

RUSSIA

• 0% VAT for commuter railway transportation of passengers is planned to be extended until the end of 2034
• 0% VAT proposed for tour operator activities
• Children’s goods are proposed to be taxed at a zero rate of VAT
• Proposed to reduced VAT rate for products and children’s goods
• Russia Clarifies That Reduced VAT Rate Does Not Apply to Processed Vegetables
• Russia cuts VAT to 5% on basics
• Russia Planning to Cut VAT Rate on Several Goods

SINGAPORE

• GST rise to 8% Jan 2023; 9% Jan 2024 – passed
• Guidance: Preparing for GST Rate Change
• Legislative changes in Singapore per Jan 1, 2023 – Low value goods threshold & VAT rate rise
• New overseas vendor GST registration regime, impending GST rate increases (also for international transport)
• Parliament passes GST hike but DPM Wong keeps open possibility of review if S’pore economy suffers ‘severe impact’ in 2023
• Singapore Parliament Passes Bill on GST Hike: CNA
• Updated Frequently Asked Questions for Businesses – GST rate change

SLOVAKIA

• Reduced VAT rate 5 % will only be applicable for rental housing as of Jan 1, 2023

SOUTH AFRICA

• Types of Supplies for VAT Purposes

SRI LANKA

• Sri Lanka Budget 2023 and Inland Revenue (Amendment) Bill
• VAT will be increased again next April

SWEDEN

• Budget Bill 2023: Increase in the VAT rate from 6% to 12% on repairs

SWITZERLAND

• Switzerland Supreme Court Clarifies VAT Obligations for Rental, Accommodation Services

TURKEY

• Special Consumption Tax thresholds revise for some cars

UKRAINE

• Electric generators are proposed to be exempted from taxes

UNITED ARAB EMIRATES

• United Arab Emirates VAT Law Amendments and the Impact for Businesses
• VAT Public Clarification: Gold and Diamonds – Amendment to Tax Treatment of Making Service (VATPO32)

UNITED KINGDOM

• British charging operators want to see reduced VAT on electric car charging
• Calls for VAT to be slashed as one-third of hospitality firms at risk of failure
• Colouring books are zero rated unless they contain swear words, nudity or theft – in which case they are standard rated
• HMRC Guidance: Fuel and power (VAT Notice 701/19)
• HMRC Guidance: Protective equipment (VAT Notice 701/23)
• News Corp UK & Ireland: zero-rating of digital newspapers – Supreme Court hearing
• News UK VAT fight worth £100m+ to publishers reaches Supreme Court
• Standard or reduced VAT rate due on Charging of Electric Vehicles?

UNITED STATES

• Colorado: City of Lone Tree Temporary Sales Tax Reduction
• End of New York Fuel Tax Holiday

URUGUAY

• Uruguay President Announces Zero-Rated VAT on Hotel Stays for Resident Tourists

UZBEKISTAN

• Uzbekistan to cut VAT for foreign visitors next year

VIETNAM

• Special Consumption Tax in Vietnam (2022)
• Vietnam MOF Issues Guidance on VAT Rates on Specific Goods and Services Through Dec. 31

WORLD

• Global 2023 VAT / GST changes
• Global VAT rate changes announced in week 44 (week of Oct 31, 2022)
• Global VAT rate changes announced in week 45 & 46 (Nov 6-19, 2022)
• November tax updates: 15 snippets from the world of VAT
• OECD: Tax revenues rebounded as economies recovered from the COVID-19 pandemic
• Optimize your tax codes in SAP, work efficient, save money and time
• Treatment of VAT on advertising

ZAMBIA

• 2023 Budget presented to the National Assembly
• Media owners petition HH against VAT on newspaper sales

ZIMBABWE

• 2023 budget: Rate increase to 15% – Purchases from VAT registered suppliers only deductible for income tax if supported by fiscal tax invoices
• Finance and Economic Development Minister proposed to raise VAT from 14.5% to 15% per 1 January 2023
• Telecoms, Mobile and Broadband Sector Report 2022: Heavy Tax Burden Causing Difficulties for Players/Consumers