Governments worldwide are reducing VAT on essential items to combat inflation. Recent changes include:
- the end of temporary VAT cuts on electricity and public transport in Finland
- Cyprus is considering cutting VAT to zero on items such as milk, bread, baby food, toilet paper, and nappies
- Slovakia has permanently cut VAT on restaurant and catering services and sports facilities
- Spain has extended the zero rate of VAT on basic food items until June 2023
- Portugal has zero-rated certain food items
- Romania has exempted hospital supplies from VAT
- Belgium has permanently reduced VAT on energy
- Estonia is considering reducing VAT on food and beverages
- Ireland has extended the reduced VAT rate for the tourism and hospitality industries
- Morocco has canceled VAT on agricultural inputs to reduce prices of fresh produce.
Source Innovate Tax
