Implementation of 12% VAT rate

• MoF Regulation-131/2024 comes into effect on January 1, 2025.
• It implements the mandate of Law No. 7 of 2021 regarding the Harmonization of Tax Regulations.
• The regulation sets a VAT rate of 12% for goods and services.
• The VAT calculation mechanism is divided into three categories: luxury goods, non-luxury goods and services, and deliveries using other values as a tax base.
• Luxury goods subject to Sales Tax on Luxury Goods are taxed at 12% of the selling price or import value.
• Non-luxury goods and services are taxed at 12% of 11/12 of the import value, selling price, or replacement value.
• Deliveries using other values as a tax base are subject to separate tax regulations.

Source: taxand.com

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.

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