Global upcoming VAT rate changes

August 1, 2025

Fiji

• Standard VAT Rate reduces to 12.5%

Romania

• Standard VAT rate increases from 19% to 21%
• Only one reduced rate remains: 11%, replacing previous 5% and 9% rates

September 22, 2025

India

• Streamlined Rate Structure: A simplified dual-rate system—5% and 18%—now anchors the GST regime, making classification and compliance far more intuitive.
• New 40% Slab for Sin & Luxury Goods: A distinct 40% rate has been introduced for high-impact items like tobacco, pan masala, luxury SUVs, and sugary beverages, reinforcing both revenue and public health goals.
• Obsolete Slabs Eliminated: The 12% and 28% rates have been scrapped, removing long-standing ambiguities and paving the way for a cleaner, more predictable tax system.

January 1, 2026

Austria

• Feminine Hygiene & Contraceptives at 0%

Finland

• Approved: Reduced VAT rate from 14% to 13.5% starting January 1, 2026, affecting a wide range of goods and services including food, transport, accommodation, medicines, books, and cultural/sports activities.
• Public Broadcasting VAT Increase: The VAT rate on public broadcasting services will be increased

Germany

• The coalition government plans to lower the VAT rate for restaurant meals from 19 to 7 percent starting January 1, 2026, without a broader VAT reform.

Kazakhstan

• standard VAT rate from 12% to 16% starting in 2026.
• A 5% reduced VAT rate will apply in 2026 (rising to 10% in 2027) for pharmaceuticals, medical equipment, and healthcare services.
• A 10% VAT rate from 2027 will cover print publications and other socially important goods

Lithuania

• Reduced VAT rate will increase from 9 percent to 12 percent starting January 1, 2026
• New rate applies to accommodation services, regular passenger transport services including baggage, and entry to artistic and cultural institutions and events
• VAT rate for printed and electronic books will change to a reduced rate of 5 percent from the current 9 percent

Peru

• The current General Sales Tax (IGV) rate in Peru is 18%. This is composed of:
  • 16% IGV proper
  • 2% Municipal Promotion Tax (IPM)
• The IGV rate would drop to 15% starting January 1, 2026, then gradually increase:
  • 2027: 16%
  • 2028: 17%
• The preferential IGV rate would apply from January 1, 2026 through December 31, 2030, across all productive sectors.

Romania

• Government considers VAT Rate Increase to 23%

Switzerland

• The standard VAT rate will rise from 8.1% to 8.8% by 2026 to fund an extra pension payment.
• The special rate for accommodation will increase from 3.8% to 4.2%, and the reduced rate on everyday goods will go from 2.6% to 2.8%

Unknown – Proposals

Belgium

• Delay in Approval of Program Law Regarding 6% VAT Rate for Demolition and Reconstruction of Private Homes

Ireland

• Government Delays VAT Cut for Hospitality Until Mid-2026, Excludes Accommodation from 9% Rate

Russia

• Proposal to  reduce VAT on essential food items from 10% to 5% in a bid to curb inflation and strengthen consumer purchasing power

See also

• PwC overview of global VAT/GST rates

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