- Gibraltar will introduce a Transaction Tax (TT) on goods starting April 10, 2026, with an initial rate of 15%, rising to 16% in the second year, and aligning with the lowest EU value-added tax rate (currently 17%) from the third year onward. Exemptions apply to bunkering fuel, ship supplies, and goods not for sale.
- The new system will also enforce EU minimum excise rates on tobacco and alcoholic beverages, with a target to align these rates with Spanish rates by 2029. The TT will be levied at the point of importation or manufacture based on the customs value of the goods.
- Affected businesses should review their pricing strategies and compliance processes, as the changes will impact cost calculations and market competitiveness in Gibraltar. An independent body will be established to monitor competitiveness between Gibraltar and Spain.
Source EY
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