- In August 2025, a major VAT system reform will be implemented.
- The reform introduces a two-tier VAT system to simplify the current structure.
- The standard VAT rate will increase from 19 percent to 21 percent.
- A new reduced VAT rate of 11 percent will replace the current 5 percent and 9 percent rates.
- Only two VAT rates will remain: 21 percent and 11 percent.
- The reduced VAT rate of 5 percent will increase to 11 percent for essential and cultural goods and services.
- Goods and services moving from 5 percent to 11 percent include books, firewood, thermal energy, and cultural site access.
- Goods and services moving from 9 percent to 11 percent include medicine, food, agricultural water, fertilizers, and water services.
- Goods and services moving from 9 percent to 21 percent include accommodation, restaurant services, social housing, renewable energy systems, and event access.
- The reform aims for a more transparent and manageable VAT framework.
- These changes are expected to impact pricing, consumer costs, and business operations.
Source: krgroup.eu
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.
