Global VAT rate changes/news – January 2023

AZERBAIJAN

• Tax Ministry Clarifies VAT on Share Investments in Charter Fund

BANGLADESH

• Reduced VAT on cooking oil likely to continue

BELARUS/RUSSIA

• Belarus – Russian VAT Deal In Doubt

BELGIUM

• Belgium Reduced Rate on Masks Expiring 31 December 2022
• Circular 2022/C/118 on the VAT rate on the right of access to fitness centers and other sports facilities
• Circular 2023/C/9 regarding the temporarily reduced VAT rate for the supply of heat by means of a gas-fired collective heating installation

BHUTAN

• Bhutan Revises Sales Tax and Customs Duty Rates for Inflation

BOSNIA AND HERZEGOVINA

• Law on the Abolition of VAT on Food Donations has been prepared

BOTSWANA

• Botswana Extends Temporary VAT Rate Reduction
• Botswana Temporary 12% VAT Rate Extended to 31 March 2023
• Extension of temporary reduced VAT rate
• Reduced VAT rate extended through 31 March 2023
• Reminder of VAT rate reverting to 14%
• Temporary VAT cut to 12% till 31 March 2023

BRAZIL

• Provisional measure amends law on temporary 0% tax rate for tourism industry

BULGARIA

• Amendments to the VAT Act to extend VAT rate of 9% on different types of goods and services
• Bulgaria Extends Temporary Reduced VAT Rate Due to COVID-19 to 31 December 2023
• Bulgaria Introduces Amendments to the VAT Act
• Changes in VAT law
• Changes in VAT law, including reporting of data regarding cross-border payments
• Reduced VAT rates in Bulgaria until December 31, 2023
• Various amendments to the VAT act (a.o. bad debts, rate, reverse charge, scrapping, fuel and export)

BULGARIA/EUROPEAN UNION

• ECJ C-733/22 (Valentina Heights) – Questions – Reduced VAT rate set for accommodation provided by hotels and similar establishments

CAMBODIA

• Cambodia’s GDCE to not raise VAT despite loss from trade pacts

CANADA

• Canadian Sales Tax Rates for 2023

CHINA

• China small businesses VAT cut for 2023
• China Small-Scale Taxpayers Rate Reduced
• VAT for small businesses which are currently levied at 3% will be reduced to 1%

COLOMBIA

• Colombia Sets 2023 Plastic Bag Consumption Tax Rate
• Uribe talks about lowering VAT again

CROATIA

• Croatian Government Increases Pressure on Trade Sector Regarding VAT

CYPRUS

• Cyprus Tax Agency Announces Application of Zero-Rated VAT on Medical Supplies Due to Coronavirus
• Cyprus VAT Rates for Products and Services Related to COVID-19

CZECH REPUBLIC

• Czech proposes consolidating reduced VAT rates 2024
• Czech Republic Considering Merge of Reduced VAT Rates

ECUADOR

• Ecuador Announces Tax Cut Plans
• Ecuador Legislates For Tax Relief Measures

EGYPT

• Finance min. issues amendments to some provisions of VAT law

ESTONIA

• Estonian Finance Ministry: VAT reduction for cancer medicines would create inequality

EUROPE

• Eastern Europe: Definition of exporter — VAT consequences
• January 2023: New year tax updates
• VAT cuts as Europe inflation drops to 9.2% December 2022

EUROPEAN UNION

• 2023 VAT rates in France and in 27 countries of the European Union
• VAT rates in Europe 2023: Definition, Actual Value-Added-Tax Rates

EUROPEAN UNION/GERMANY

• Flashback on ECJ Cases – C-453/09 (Commission v Germany) – No reduced VAT rate for live animals/horses

FINLAND

• Finland confirms 0% for domestic transport services
• Proposal on Tax Adjustment for 2023
• VAT reduction cuts VR train tickets prices until April

FRANCE

• 2023 finance bill adopted by Parliament
• 2023 Finance Law: overview of VAT changes
• 5% VAT for electric vehicle charging infrastructure and energy renovation projects
• Changes to French VAT rates established by the 2023 finance law
• Extension of the 5.5% VAT rate for goods aimed at limiting the spread of COVID-19
• Guidance: Regime applicable to press publications
• Guidance: Regime applicable to the supply of goods to be taken away by travelers going to another Member State of the European Union or to a third country or…

GERMANY

• 2022 Annual Tax Act: Obligations for payment service providers and 0% for photovoltaic systems
• FAQs on VAT incentives for photovoltaic systems
• Germany considers VAT cut to lower food prices
• Proposal to scrap VAT on fruit and vegetables sparks debate in Germany

GHANA

• Ghana enacts various amendments to tax laws introduced in the 2023 Budget Statement
• Tax Agency Posts Amendments to VAT Act

GREECE

• COVID-19 vaccines and diagnostic medical devices subject to super-reduced VAT rate
• Greek government published a draft of the budget bill for 2023 that extends the reduction in VAT rates
• New legislation extends several taxpayer-favorable rules
• VAT exemption for Covid testing kits ends, AADE confirms
• VAT from 1.1.2023 on rapid, PCR and other diagnostics

GRENADA

• Tax department presents proposed 2023 Budget (a.o. rate changes)

GUYANA

• Abolish 14% rate on residential properties, and new fully electric motor vehicles, excluding hybrid
• Budget 2023: VAT on new electric vehicles removed; duty on imported cars slashed
• Finance Minister proposes removal of VAT on residential properties
• Gov’t removes VAT on new electric cars
• VAT measures proposed in 2023 budget

HUNGARY

• Socialists call for lower VAT in brackets affecting poor
• Tax changes in Hungary from 2023

INDIA

• 12% GST applicable to Contract for Construction of new Railway siding
• 18% GST applicable on 75 Inch Interactive Flat Panel Screens used for Data Processing Purposes, attracts 28% if other functions exist
• 18% GST applicable on Manpower Services given to Government Departments: AAR
• 18% GST applicable on Renting Immovable Property to an Educational Institution
• 18% GST leviable on Interactive Flat Panel Screens if used for data processing purposes only
• 18% GST on air freight leaves bad taste in the mouths of Indian betel leaf exporters
• 5% GST for Covid vaccine at hospitals
• Additional Liability after GST Rate Changes: Chhattisgarh HC directs Dept to Consider Representation
• Administering of COVID-19 vaccine by hospitals is a composite supply and liable for GST at 5%
• CBIC Clarifies GST rates of Certain Goods as Recommended by GST Council
• Clarifications On Applicable GST Rates on Certain Goods
• Concessional GST rate of 12% on composite supply of works contract to be applied prospectively
• Food-beverages prepared in a restaurant to attract 5% GST, rules Gujarat AAR
• Forest Permit Fee attracts 18% GST: AAAR
• Goa slashes VAT on jet fuel to 8%
• GST @18% leviable on doorstep healthcare and logistics services provided to senior citizens
• Hiring of goods transportation vehicle by GTA is exempted from GST
• Installation, Parts and Service of Oxygen Supply System to Hospitals and Homes attracts 18% GST
• MOF releases its GST recommendations
• Sale of Residential Apartments to Buyers does not include Parking Space in Composite Supply, subject to 18% GST
• Supply of sharpeners along with pencils amounts to ‘Mixed Supply’ taxable at the higher rate among all the supplies
• Welding of railway tracks along with labour services is a ‘Composite Supply’ taxable at 18% GST
• Work Contract Services to Repair/ renovate railway track attracts 18% GST

IRELAND

• Cut VAT to fight price rises and save jobs, says ISME
• Fianna Fáil Ministers Are Opposed To Cutting VAT For Builders
• Ireland Extends VAT Zero Rate for COVID-19 Tests
• Ireland Updates Guidance on VAT Zero-Rating and Exemptions
• Irish Revenue releases VAT Notes for Guidance to Finance Act 2022
• Lower rate VAT charges may not end in February
• Minister McGrath announces Zero Rating of VAT on Covid-19 Testing Kits
• Report estimates that increasing 9% VAT rate could cost up to 24,000 tourism and hospitality jobs
• Revenue commissioners release guidance on VAT
• Revenue eBrief No. 015/23: VAT zero-rating of Covid-19 Testing Kits
• Revenue eBrief No. 236/22 – VAT treatment of Printing and Printed Matter
• Tax and Duty Manuals updated with VAT changes introduced by Finance Act 2022
• Tourism minister seeks further extension of 9% VAT rate
• VAT rate changes for Certain sanitary products

ISRAEL

• Key Israel business group seeks steep cut in food tax

ITALY

• 2023 Budget Law – New provisions in the VAT, excise duties and consumption tax field
• 2023 budget law VAT measures
• Circular 2: VAT on international transport services (C-288/16)
• Government studying reducing VAT on telecoms to 10%
• Italy eyes cut in excise duties as anger grows over fuel prices
• Italy prolongs gas VAT cut to 5% until 31 March 2023
• Italy reduced the VAT rates on certain products in 2023
• Reduced VAT Rates on Feminine Hygiene Products, Baby Products, and Face Masks from 1 January 2023
• Renewed and expanded reduced VAT rates in the energy sector
• Ruling 12: An online database can be an electronic service for VAT purposes
• Ruling 40: Frequent exporter rules – installation of plant
• Ruling 6: Intermediation in the manufacture and supply of dental prostheses
• Ruling 7: VAT rate applicable to vegetable product on edible turf
• Ruling 9: Transport and home delivery of meals: VAT treatment
• Ruling 95: Frequent exporter scheme by non-residents
• Tax Authorities Clarify Reduced VAT Rate Applies to Certain Dietary Supplements
• The principal may also be liable for the correct VAT rate
• The responsibility of the transferee in the event of incorrect application of the VAT rate on the invoice

JAPAN

• 78% urge election before tax hikes to cover Japan defense budget rise
• IMF report: More revenues could be raised by unifying and raising consumption tax rate
• Intention to raise consumption tax rate?
• Japan’s Finance Minister: Not Considering Consumption Tax Hike
• Kishida’s plan to combat Japan’s low birthrate stirs talk of sales tax hike

JORDAN

• Sales Tax rates for specific goods and services

KENYA

• Increase VAT to 18 percent
• Ruto seeks to reduce VAT gap from 38.9 to 19.8 percent

LITHUANIA

• 9% reduced VAT rate applies to specific goods and services
• Lithuania cuts the VAT rate applied to digital books, accommodation, and hospitality services

LUXEMBOURG

• Administration Posts Circular on Reduction in VAT Rates
• Changes to the VAT Rates of certain products
• VAT Luxembourg – Reduction of VAT Rates

MACEDONIA

• Proposed amendments to the VAT law

MALTA

• Plans to introduce 18% VAT on aesthetic procedures

MONTENEGRO

• Lower VAT for solar panels
• Montenegro introduces a reduced VAT rate on baby diapers, feminine hygiene products, and solar panels
• Montenegro Sets Reduced VAT Rate for Baby Diapers, Feminine Hygiene Products, and Solar Panels
• Reduction VAT rate of 7% on women’s sanitary products and baby diapers

MOROCCO

• Finance Law 2023: Increase in VAT rates applicable to certain liberal professions

MOZAMBIQUE

• Mozambique to cut VAT to 16% 2023 update
• Update – Mozambique VAT Changes for 2023

NAMIBIA

• Namibia Publishes VAT Amendments on VAT registration, deduction of VAT, etc

NETHERLANDS

• Containers on the beach, no sports accommodation, no reduced rate
• Parking at the festival site at a reduced VAT rate
• Reduced VAT rate applies to parking at a multi-day festival
• Surf lessons from sea containers are subject to 21% VAT anyway
• Use of beach pavilion and beach no provision of sports facilities

NORWAY

• Expert committee proposes changes to Norwegian tax system – Abolishing reduced VAT rates
• Government committee publishes report recommending various tax changes
• VAT Rates for 2023 were announced by the government

PHILIPPINES

• BIR clarifies new revised VAT rules for REEs under CREATE Law
• Government issued Circular for zero-rated VAT incentives
• VAT zero-rating application never goes out of style

POLAND

• Changes in VAT rates in 2023
• Poland Sets 2023 Thresholds for Reduced Tax Rate, Simplified VAT, Investment Incentive, Simplified Flat-Rate Tax, and Social Security Contribution Cap
• Polish VAT rates for 2023 clarified
• Proposed 0% VAT rate for goods and provisions to support Ukraine
• Reduced VAT rates extended in 2023
• Temporarily reduced VAT rates on electricity, gas, etc will no longer be extended in 2023
• The taxpayer-entrepreneur cannot get rich at the expense of the consumer
• VAT changes in Poland in 2023

PORTUGAL

• Law on changes in the VAT code
• Portugal is the first in Europe to reduce VAT rates on bicycles

ROMANIA

• 5% VAT for the delivery of social housing
• Law to reduce VAT To 5% on solar panel installations
• Romania Expands Products and Services Qualifying for 9% VAT Rate on Fertilizers, Other Agricultural Products
• Romania raises VAT on hotels and catering to 9% Jan 2023
• Romania reduces VAT on residential solar to 5%
• Romania Updates Types of Agricultural Supplies Subject to 9% VAT Rate
• VAT rate changes in Romania to keep in mind starting 2023

RUSSIA

• It is planned to expand the list of goods subject to VAT at a reduced rate
• Russia cuts tourism VAT to zero from 20% – update
• VAT rate of 0% does not apply to shift hostels

SAUDI ARABIA

• Saudi Arabia ‘virtually only country’ to successfully raise VAT in pandemic: Minister
• Saudi economy minister hails Kingdom’s VAT rise ‘success’ during pandemic
• VAT treatment of some financial services

SINGAPORE

• Singapore looks to ‘GST discounts’, cash handouts to ease pain of sales tax hike that’s set ‘to bite’
• Singapore VAT News: GST Changes from January 2023
• Singaporeans say ‘2 step GST increase will be another excuse next year for businesses to increase prices further’

SPAIN

• Canary Islands: Reduced VAT Rates on Face Masks and Gloves Extended to 30 June 2023
• Informative note VAT rates and equivalence surcharge RD-Law 20/2022
• Main tax changes introduced by Royal Decree-Law 20/2022 – Reduced VAT rates
• Pubication of Royal Decree-Law 20/2022 and its implications for VAT – VAT rate reduction
• Reduced VAT Rates on Face Masks and Electricity Extended and Zero Rate on Basic Foods
• Reduction of VAT on staple food
• Relevant news regarding VAT and Excise Taxes included in Royal Decree-Law 20/2022
• Spanish 2023 Budget Tax Measures and Other Tax Measures
• Spanish anti-inflation package approved despite right-wing abstention
• Supreme Court dictates that balloon rides do not have reduced VAT on passenger transport
• Tax collection and distribution effects of the reduction in VAT rates on certain food products
• Tax measures in 2023 budget law
• VAT measures in 2023 budget law
• VAT reductions in Spain in 2023

SWEDEN

• The position statement Tax rate on electronic publications has been revised due to new practice

SWITZERLAND

• Increase in Swiss VAT rates as from the 1st of January 2024
• Switzerland Tax Agency Announces Net Rates of VAT Effective Jan. 1, 2024
• Updated net tax rates from January 1, 2024 (due to VAT rate increase)

TAIWAN

• Petition on behalf of small shops

TURKEY

• Turkish main opposition leader says he will lower special consumption tax on alcohol products

UKRAINE

• For a European integration of Ukraine, the VAT rate can be reduced to 10%, but for everyone (that is, the 7% rate can be abolished)
• Hetmantsev expressed his opinion about a possible reduction in the VAT rate
• How are hotel services subject to VAT starting in 2023?
• Reducing VAT won’t affect Ukraine’s EU integration, Zelenskyy’s office says
• Separation of transportation and forwarder services does not change the “zero” VAT
• Ukraine potential 10% EU transition VAT rate

UNITED ARAB EMIRATES

• New customs duty now applicable on international shopping exceeding Dh300

UNITED KINGDOM

• Children’s clothing made from the skin of goats is zero rated, but only if not made from Yemen, Mongolian or Tibetan goats
• FTT: Claim for overpayment on the basis that reduced rate for domestic fuel should have applied to sales of coal
• FTT: Pavan Trading Limited – zero-rating – evidence of export
• FTT: Zero-rating – evidence of export
• RAC reiterates call for VAT cut on public EV charging as costs rise 50% in eight months
• Upper Tribunal Sides With Morrisons in Confectionery VAT Dispute
• Who bears the burden of VAT rate changes?
• With marshmallows and VAT, size matters — Wacky Tax Wednesday

UNITED STATES

• 2022 Sales Tax Rates and Rules Report: Cities and Counties Rate Changes Continue
• All States: State and Local Tax Rate Changes Reported During January 2 – 6, 2023
• Arkansas: Local Tax Rate Changes Announced
• Indiana: January 2023 Gasoline Use Tax Rate Announced
• Kansas lawmakers debate sales tax holiday
• Ketchikan Gateway Borough & City of Ketchikan Sales Tax Holiday March 25, 2023
• Key Sales Tax Updates Affecting the Northeast
• Kodiak, Alaska: Annual Sales Tax Holiday occurring March 4, 2023
• Maryland Proposes Adjusting Sales and Use Tax Rate Based on Inflation
• Ohio: Local Tax Rate Changes Announced
• Sales tax rate on groceries in Kansas now reduced to 4%
• Sales Tax Rates & Rules Trends 2023
• State and Local Tax Rate Changes Reported During January 9 – 13, 2023
• US Rhode Island proposes sale tax rate cut
• Vertex 2022 End-Of-Year Rates and Rules Report
• Virginia reduces grocery sales tax
• 3 indirect tax trends to watch out for in 2023

URUGUAY

• Uruguay Implements Zero VAT Rate on Hotel Services for Uruguayan-Resident Tourists
• Zero VAT rate on hotel-related services to resident tourists for the summer season

UZBEKISTAN

• Changes for 2023 Include Reduced VAT Rate, Reduced Corporate Rate for Taxpayers Changing from Single Turnover Tax, and Others
• Uzbekistan Tax Agency Announces Tax Changes for 2023
• Uzbekistan Tax Changes for 2023 Include Reduced VAT Rate

VIETNAM

• Changes In VAT From The Beginning Of 2023 In Vietnam
• VAT reduction helps economic recovery

WORLD

• KPMG Review on Global Indirect Tax 2022 and Outlook for 2023
• The intergovernmental fiscal outlook and the implications of Russia’s war against Ukraine, high energy prices and inflation

ZAMBIA

• Cabinet approves gradual electricity tariff increment

ZIMBABWE

• Adjusted VAT rates take effect
• Zimbabwe Hikes VAT from 14.5 To 15 Percent
• Zimbabwe Increases VAT Rate to 15% and Other Tax Measures for 2023
• Zimbabwe Standard VAT Rate Increase Effective 1 January 2023
• Zimbabweans subjected to price increase as new VAT takes effect