Value-added tax (VAT)
The standard VAT rate is 12.5%. There is also a 0% rate charged on certain goods and services. In respect of the hotel sector and related services, the rate is 10%, with a reduced rate of 7% for a supply of a tourism accommodation service applicable from 1 December 2020.
The VAT rate of 0% has been legislated on certain supplies, which include, but are not limited to, the following:
- Goods to be exported.
- Goods for sale at duty-free shops.
- Fuel.
- Water.
- Electricity.
The following goods and services are exempted from VAT, but this list is not exhaustive:
- Domestic residential rental.
- Educational services.
- Financial services.
- Insurance services…..
Source: PwC
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