- The government is proposing changes to reduced value-added tax rates, with many products and services seeing an increase from 10% to 14% starting on January 1, 2025.
- The higher VAT rate will apply to items such as medicines, books, sports services, and travel tickets, while newspapers and magazines will remain at the reduced 10% rate.
- Hygiene products like sanitary pads, incontinence pads, and children’s diapers will see a decrease in VAT from 25.5% to 14%.
- The VAT rate for goods and services will depend on whether they are delivered or performed before or after January 1, 2025, with prepayments before the change still subject to the 2024 rate.
- Continuous services like monthly gym memberships will be subject to the 14% VAT rate starting in January, but prepayments in December will still be at 10%.
- Examples of changed VAT rates from January 1, 2025, include books, medicines, sports services, transportation, cultural event tickets, accommodation, sanitary products, and children’s diapers.
Source:
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
