- Gibraltar will introduce a Transaction Tax (TT) on goods and a new excise/import duty system from 10 April 2026, as part of a customs union with the EU.
- The TT starts at 15%, rises to 16% in year two, and aligns with the lowest EU VAT rate (currently 17%) from year three onward; it applies to goods imported or manufactured for sale in Gibraltar.
- Exemptions include bunkering fuel, ship supplies, and goods not intended for sale; EU minimum excise rates will apply to tobacco and alcohol, aiming to match Spanish rates for these and fuel by 2029.
- Businesses should review pricing and compliance processes, as the new tax structure will affect costs and competitiveness.
- The TT and excise duties apply only to goods, not services, and are levied at importation or manufacture, not at the point of sale.
Source: taxnews.ey.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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