Global VAT rate changes/news – March 2023

BAHAMAS

• FNM chair: VAT Health Claims Change ‘Insane’
• ‘Everything is On Table’ over VAT Health Claims

BARBADOS

• Revenue Authority Extends Reduced VAT on Residential Electricity Supply
• VAT holiday electric and plug-in hybrids exended to March 31, 2026
• Tax measures in 2023 budget
• Extension of excise tax and VAT holiday on purchase of electric vehicles by ordinary persons or companies for another two years, to 31 March 2026
• Removal of value added tax (VAT) cap on gasoline and diesel (currently 47 cents* and 37 cents per litre, respectively)

BELGIUM

• Belgium to Simplify Reduced VAT Rates from Jan 2024
• Belgian chamber approves permanent VAT reduction and excise reform on gas and electricity
• VAT rate on electricity, gas and heat permanently reduced to 6%
• Belgium domestic heating VAT cut to 6% permanent
• Permanent reduction: 6% VAT Rate on Electricity, Natural Gas and Heating Networks
• First Wave of 2024 VAT Reforms
• Minister of Finance released proposal for first phase of tax reform
• Belgium: Proposal for first phase of tax reform
• Belgian Finance Minister launches proposal for tax reform
• Reduced rate on electricity, natural gas and heat – Bill of 16 February 2023
• The Belgian Minister of Finance proposes long awaited tax reform

BELIZE

• Belize Exempts Feminine Hygiene Products from GST
• Belize becomes 2nd country in region to eliminate taxes from women’s sanitary products

BOTSWANA

• Temporary reduced VAT rate expires on 31 March 2023
• Botswana VAT Rate to Increase from 12% to 14%
• Botswana Tax Agency Announces Reversion to Standard VAT Rate April 1
• Extension of temporary reduced VAT rate

BRAZIL

• Brazil modifies taxation of fuels and crude oil

BULGARIA

• Changes in VAT rates in Bulgaria
• Bulgaria Considers Ending 9% VAT on Catering and Restaurants

CHINA

• China to Implement Zero Tariffs on Coal Imports to End-2023

CROATIA

• Croatia extends heating VAT cut till March 2024
• Croatia Parliament Considers Bill to Extend Reduced VAT Rate on Heating-Related Supplies
• A Week in Croatian Politics – Corruption, Energy Prices and VAT

CYPRUS

• VAT Guide – Cyprus

CYPRUS/EUROPEAN UNION

• EU pushing Cyprus on home VAT bill

DENMARK

• Ruling: VAT – advance payment – accrual and exemption on export

EUROPE

• VAT cuts as Europe inflation drops to 8.5% February 2023

EUROPEAN UNION

• VAT rate developments in Europe to combat energy crisis and inflation
• European Union: Average standard VAT rate is 21,52%, effective VAT rate is 11,62%
• EU VAT Reforms Tracker

EUROPEAN UNION/UNITED KINGDOM

• EU-UK Windsor Framework – Northern Ireland Energy Saving Zero-Rating VAT

FRANCE

• Monaco Extends Value-Added Tax Reliefs
• Monaco Extends Scope of Application of Reduced VAT Rate, Introduces Electronic Seal Procedure for E-Invoicing

GERMANY

• Bundestag transfers gastro VAT reduction to committees
• Temporary reduction in the VAT rate for deliveries of gas and heat
• 7% VAT also for connections houses on gas network
• Rental of movable living containers subject to reduced VAT rate
• Zero VAT rate on photovoltaic systems – The Ministry of Finance’s letter comes with changes

GREECE

• Greece Extends VAT Rate Reduction on Key Supplies
• Parliament considers Bill to Boost Economy through Tax Measures
• New law 5034/2023 with regulations for zero VAT on coronavirus vaccines, clawback etc.
• Reduced and super-reduced VAT rate is extended until 31.12.2023
• Extends its Temporarily Reduced VAT Rates Once Again
• Zero VAT on coronavirus vaccines

GRENADA

• Grenada Increases VAT and Excise Tax on Sugary, Alcoholic Beverages and Tobacco Products per 1 March 2023

INDIA

• Disability aids, appliances should not attract 5% GST: Parliamentary panel
• GST on Hotels/ Restaurants may be increased to 12% from 5% with ITC benefit: Sources
• Roof mounted AC units for passenger coaches subject to 28% GST
• VAT Cut Reduced Revenue from Fuel by Rs 10,500 Crore
• VAT Reduction on ATF is Welcome but not Enough
• Maharashtra Reduces VAT on ATF to 18%
• VAT Charged on Petrol & Diesel in State won’t be Reduced

INDONESIA

• Indonesia lowers VAT on electric vehicles to 1%

IRELAND

• Revenue to get Extra €563m from Higher Hospitality VAT Rate
• Government Ignored Officials’ Calls in Extending 9% Hospitality VAT Rate

ISRAEL

• Israel VAT Foreign B2C Digital Services Jan 2024

ITALY

• Italy Lowers VAT and Allows Tax Credits to Offset Energy Costs
• Italy to consolidate VAT rates
• Ruling 257: VAT rate medical devices
• Circular: Reduced VAT rate for the sale of the photovoltaic system
• Court: 4% VAT for bread with soy flour
• Ruling 239: VAT rate of 5% if the thermal energy is supplied with the «energy service» contract

JAPAN

• Japanese National Tax Agency tightening compliance on tax-free shop scheme

KENYA

• VAT on Exported Services is Standard Rated at 16% (Court Decision)

LATVIA

• Survey: Majority supports reduced VAT on catering in Latvia

LUXEMBOURG

• Project to extend the scope of the dwelling VAT rate

MALAYSIA

• Malaysia Postpones Imposition of Sales Tax on Low Value Goods

MONACO

• Extended scope of VAT Reduced rates for petfood, charging infrastructure electric vehicles, energy renovation

NETHERLANDS

• Parliamentary letter about research into definitions for fruit and vegetables in the context of a VAT zero rate

NETHERLANDS

• Zero rate VAT for fruit and vegetables – far away..
• Abolition of VAT on fruit and vegetables is in danger of dying
• Netherlands Food VAT Temporary Cut Proposals – Food Inflation 18%
• Reduced VAT rate applicable to sexy dance parties
• Erotic parties under a reduced VAT rate
• 21% VAT for theater intermission drinks, tax interest partly scrapped
• Parking after your stay in the hotel is charged with 21% VAT
• Court of Zeeland-West Brabant: Intermission drink must be regarded as distinct supply
• Court of Appeal in The Hague: Reduced VAT rate to dance parties
• Normal VAT rate for long-term parking arrangement
• Standard VAT rate for parking in Park, Sleep & Fly packages
• University researcher: Start scrapping VAT on fruit and vegetables tomorrow

NEW ZEALAND

• Is GST a bread and butter issue?

NIGERIA

• Nigeria’s Finance Minister Lied In Claiming Country’s VAT Rate Lowest In The World
• Buhari’s Finance Minister Asks Tibubu’s Govert to Raise VAT to 10%
• Finance Minister Pushes for VAT Increase
• Deletion Of “Non-Oil Exports” From Zero Rated Goods Under The Nigerian Value Added Tax Act – A Disincentive To The Solid Mineral Sector
• Finance Minister urges incoming administration to raise VAT to 10%

NORWAY

• Sales to other than Denmark, Finland or Sweden – exemption documented with form RD-0032

PAKISTAN

• Tax Agency Announces Sales Tax Rate on Specified Imports, Locally Manufactured Vehicles
• Pakistan increases Sales Tax and Federal Excise tax rates
• Pakistan Specifies Luxury Goods Subject to Enhanced Sales Tax
• Notification about 25% sales tax for luxury items
• FBR imposes 25% GST on luxury items from March 8

PHILIPPINES

• FIRB moves to Resolve VAT Issue

PHILIPPINES

• Top exporters urge resolution on VAT zero-rating for their purchases
• Major Export Industries Await Govt’s VAT-Zero Rating Resolution

POLAND

• Announcement on the VAT rate for medical devices covered by the procedure set out in Art. 97 MDR
• VAT cuts cost Poland EUR 7.9 billion in 2023
• Poland Likely to Extend Food Inflation VAT Rate Cuts to 1 Jan 2024
• Poland will likely keep Zero VAT on Food until Years End
• Consultations on the implementation of the VAT warehouse institution

PORTUGAL

• 0% VAT for essentials
• Portugal Providing 0% VAT Rate for Essential Foods and Other Support to Mitigate Increased Cost of Living
• Portugal considers food VAT rate cut – food inflation 21.5%
• Considers Cutting Value-Added Tax to Ease Food Prices

RUSSIA

• Services provided on ski slopes are subject to VAT at a rate of 20%
• Application of zero VAT rate in relation to the supply of components to the manufacturer of space products

SLOVAKIA

• The reduced VAT rate of 10% on selected services is here permanently
• Slovakia Introduces a Reduced VAT Rate of 10% for the Tourism and Catering Sectors
• New version of the KVDPH form (March 15, 2023)

SPAIN

• Spanish consumer survey: VAT reduction for food has limited effect
• 0% VAT rate of RD-Law 20/2022, of December 27, does not limit the right to deduct paid VAT
• Inflation on Spain’s food prices reaches record levels despite VAT cuts in January
• Reply to pharmacists about VAT rate to certain pharmaceutical products
• Temporary rate of 5% to the supply of liquified compressed natural gas and liquified natural gas, both used in the propulsion of vehicles
• Temporary rate of 5% to the supply of meteorological review of the equipment, checking of the meter and/or reading, IRC fee
• Temporary rate of 5% to the supply of heating
• Temporary rate of 5% to liquified natural gas
• Temporary rate of 5% to olive stones and almond shells, intended to be used directly as fuel
• Temporary rate of 5% to wood by-products, wood chips, sawdust, bark, etc
• Reinvoicing restaurant expenses. Applicable rate.

SWITZERLAND

• Guidance: VAT rate from 2024
• Increase in Swiss VAT rates may affect tax payers today already

TURKEY

• VAT rate of 1% for all deliveries of prefabricated buildings and containers until 31.12.2023

UKRAINE

• Reduction of VAT rates to 10% and not only: what changes does the authorities prepare for the dairy industry?
• Reduction of VAT on fuel was a mistake, it will be returned to the level of 20%

UNITED KINGDOM

• Upper Tribunal: Admission to attraction: Driving experiences
• Embryos of animal species which are used for human food may be zero-rated but “anything below” the embryo stage is standard-rated
• UT: WM Morrison Supermarkets PLC – zero-rating as ‘confectionery’?
• FTT: The supply of a ‘driving experience’ for young drivers does not qualify for the reduced VAT rate
• Reduce VAT for Hospitality
• Treasury announces review of battery storage VAT anomaly
• Conservative MP calls for VAT on Hospitality to be Cut to 10%
• Medicines dispensed on prescription
• VAT energy saving materials relief: consultation
• Consulting on expansion the VAT energy-saving materials relief to improve energy efficiency and reduce carbon emission
• Does illegal mean standard rated?
• Roof insulation or a new roof? Can the reduced rate of VAT apply?
• FTT: The Young Driver Training Ltd – Exemption/temporary reduced VAT rates – VAT liability of the driving experiences
• Tax Authority Clarifies VAT Value Shifting
• UT: CPR Commercials Ltd – zero-rated export transactions for which it did not hold evidence of export
• Food for assistance dogs now zero rated

UNITED STATES

• Columbia, Boone County propose sales taxes on recreational marijuana
• South Dakota Temporarily Lowers Sales Tax Rate
• Oklahoma: Local Rate Change Announced
• Temporary reduction in sales tax rate (South Dakota)
• US South Dakota cuts sales tax to 4.2%
• Alabama has the highest local sales tax in the nation
• All States: State and Local Tax Rate Changes Reported During March 13 – 17, 2023
• Income Tax Reductions Affect Sales Tax Rates and Rules
• US South Dakota votes to cut sales tax to 4.2%
• South Dakota legislators vote to lower state sales tax
• Texas: Reduced Sales Tax Rate Proposal

UZBEKISTAN

• Uzbekistan Extends Zero Customs Duty on Certain Consumer Goods Until 2024

VIETNAM

• VAT rate reduction according to Decree No. 15/2022/ND-CP has ended

WORLD

• Spanish consumer survey: VAT reduction for food has limited effect
• How can VAT stimulate the circular economy?
• Indirect tax in the news: Latest updates from around the world (VAT rate changes)

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• Global VAT rate changes/news – February 2023
• Global VAT rate changes/news – January 2023