Executive Summary:

October 2026 saw a dynamic and often contradictory landscape of global VAT and GST developments, characterized predominantly by “targeted sectoral measures rather than broad enacted standard-rate changes.” Key areas impacted included food and essential goods, beverages, energy, healthcare products, housing, hospitality, and product classification. The overall direction was mixed, with several countries moving to expand or extend zero-rating, while others increased tax burdens. A significant aspect highlighted by VATupdate.com is the temporary or prospective nature of many measures, necessitating careful attention to “publication, approval, effective and expiry dates” for businesses. Practical transition issues were also noted, particularly concerning advanced payments, credits, and post-change returns.

Key Themes and Most Important Ideas:

Targeted Sectoral Adjustments Dominate: The primary focus of VAT/GST changes in October 2026 was on specific sectors rather than general rate overhauls. The source states, “The most material developments affected food and essential goods, beverages, energy, healthcare products, housing, hospitality and product classification.” This indicates a granular approach by governments to influence specific markets or address particular socio-economic objectives.
Mixed Global Direction: Relief vs. Increased Burdens: There was no single prevailing trend across jurisdictions. Some countries implemented measures to reduce the tax burden, particularly on essentials, while others increased rates on certain goods or services.
- Relief Measures (Expanded/Extended Zero-Rating or Reductions):
  - Cyprus introduced “Temporary zero-rating for essential goods” such as meat, seafood, bread, milk, coffee, sugar, and baby food, effective from October 2026, with some extensions into 2027. Cyprus also reduced VAT on “Residential photovoltaic systems” from 19% to 9% from October 16, 2026.
  - Oman “expanded Zero-rating for food, medicines and medical equipment” effective October 1, 2026, covering detailed tariff-code lists.
  - United Kingdom “extended Temporary zero rate for domestic electricity” from 5% to 0% for Great Britain, effective October 1, 2026, with an expected UK-wide application from April 2027. The UK also confirmed “Land for registered social-housing providers to be zero-rated” from April 1, 2027.
  - Ireland reduced VAT on “Animal respiratory vaccines” to 9%.
  - Moldova implemented a “Tiered VAT reform replaces planned flat 20% approach,” with 8% for essentials and 12% for agri-food, HoReCa, and tourism.
  - Thailand “retained Reduced 7% VAT until September 2027,” deferring a scheduled increase to 10%.
- Increased Burdens (Rate Hikes or Withdrawal of Preferential Rates):
  - Poland “withdrew Preferential VAT for selected beverages,” raising rates from 5%/8% to 23% for items like non-alcoholic beer, dealcoholised wine, and drinks with added caffeine/taurine, effective January 1, 2027. This change is “PARLIAMENT APPROVED / PRESIDENTIAL STEP PENDING.”
  - Peru‘s “Reduced hospitality IGV scheduled to rise” from 8% to 12% (10.5% to 15% combined) on January 1, 2027, as the reduced regime expires.
  - Jamaica‘s “Tourism GCT increase deferred to April 2027,” moving from 10% to 15%.
  - Croatia‘s “Temporary energy relief scheduled to expire,” leading to an increase from 5% to 13% on April 1, 2027, for natural gas, district heating, and wood fuels.
Temporary Measures and Transition Challenges: A significant number of the reported changes are temporary or involve scheduled transitions, demanding careful monitoring by businesses. The source emphasizes that “Several measures are temporary or prospective, so businesses must distinguish publication, approval, effective and expiry dates.” This includes the UK’s extended electricity zero-rate, Cyprus’s temporary zero-rating for essential goods, and Croatia’s expiring energy relief. Practical transition issues highlighted include those in “Cyprus photovoltaic supplies invoiced or paid before the effective date, the United Kingdom electricity extension, and classification-sensitive zero-rating in Oman and Dutch export cases.”
Policy Proposals vs. Enacted Legislation: It’s crucial to differentiate between policy proposals and enacted government legislation. A prime example is Australia, where a “Policy proposal to raise GST to 15% and tax all food” from the Grattan Institute is noted. However, the source clarifies: “It is not government legislation or an enacted measure.” This underscores the need for businesses to track the status of proposed changes carefully.
Importance of Product Classification and Systems Impact: Across virtually all significant developments, the “systems impact falls mainly on product master data, tariff codes, pricing, point-of-sale logic, tax determination and controls for advance payments, credits and post-change returns.” This recurring observation underscores the operational challenges businesses face in implementing these varied and often complex VAT/GST changes.
Judicial Developments Clarify Application: Court cases continue to refine the application of VAT/GST rules, as seen in the Netherlands.
- A Netherlands court ruled that a “Bicycle maintenance card qualifies as a separate reduced-rate service,” separate from the bicycle sale, allowing for a reduced VAT rate.
- Netherlands court decisions also clarified that the “Export zero rate turns on the nature of interim EU use,” with different outcomes for horse export cases depending on whether interim EU use was directly tied to export or constituted substantive competition.

Top 5 Highlights (as identified by source, with additional detail):

Poland: Preferential VAT withdrawn for selected beverages
- Change: 5% retail / 8% catering → 23% (18 pp retail / 15 pp catering).
- Scope: Specified non-alcoholic beer, dealcoholised wine or cider, drinks with added caffeine or taurine, and qualifying beverages with ≥20% fruit/vegetable/mixed juice.
- Effective: January 1, 2027.
- Status: PARLIAMENT APPROVED / PRESIDENTIAL STEP PENDING.
- Significance: “It affects pricing, tax codes and transaction classification across high-volume or strategically important sectors.”
United Kingdom: Temporary zero rate for domestic electricity extended
- Change: 5% → 0% (5 percentage-point reduction).
- Scope: Qualifying domestic electricity in Great Britain and charities’ non-business use, with expected UK-wide application from April 2027.
- Effective: October 1, 2026.
- Status: BUDGET CONFIRMATION / TEMPORARY RELIEF, extended into summer 2027.
- Significance: “It affects pricing, tax codes and transaction classification across high-volume or strategically important sectors.”
Oman: Zero-rating expanded for food, medicines and medical equipment
- Change: Previous rate not specified → 0%.
- Scope: Detailed tariff-code lists for food commodities, human medicines and medical equipment, and 62 veterinary medicine/equipment items. May require ministry permits.
- Effective: October 1, 2026.
- Status: FINAL DECISIONS / IMPLEMENTED.
- Significance: “It affects pricing, tax codes and transaction classification across high-volume or strategically important sectors.”
Cyprus: Temporary zero-rating for essential goods
- Change: Previous rate not specified → 0%.
- Scope: Fresh, chilled or frozen meat and specified seafood (from Oct 1, 2026); bread, milk, coffee, sugar and baby food (from Oct 12, 2026); baby milk, diapers, feminine hygiene products and specified fruit and vegetables (during 2027).
- Effective: October 1 / October 12, 2026; separate 2027 extension.
- Status: FINAL DECREE / TEMPORARY (ending May 31, 2027, or December 31, 2027, depending on category).
- Significance: “It affects pricing, tax codes and transaction classification across high-volume or strategically important sectors.”
Australia: Policy proposal to raise GST to 15% and tax all food
- Change: 10% → 15% proposed (5 percentage-point proposed increase).
- Scope: Proposed to raise the standard GST rate and broaden the base to include all food.
- Effective: No effective date; proposal only.
- Status: INDEPENDENT POLICY PROPOSAL, “not government legislation or an enacted measure.”
- Significance: “It affects pricing, tax codes and transaction classification across high-volume or strategically important sectors.”

Monthly Worldwide VAT & GST Rate Changes – October 2026

Reporting period: 1–31 October 2026 | Exclusive source: VATupdate.com

Executive introduction

October 2026 was dominated by targeted sectoral measures rather than broad enacted standard-rate changes. The most material developments affected food and essential goods, beverages, energy, healthcare products, housing, hospitality and product classification. Several measures are temporary or prospective, so businesses must distinguish publication, approval, effective and expiry dates. The month also produced unusually practical transition issues, including Cyprus photovoltaic supplies invoiced or paid before the effective date, the United Kingdom electricity extension, and classification-sensitive zero-rating in Oman and Dutch export cases.

The overall direction was mixed. Cyprus, Oman and the United Kingdom expanded or extended zero-rating, while Poland, Peru, Jamaica and Croatia moved toward higher burdens. Australia’s 15% GST item remains a policy recommendation, not government legislation. The systems impact falls mainly on product master data, tariff codes, pricing, point-of-sale logic, tax determination and controls for advance payments, credits and post-change returns.

Top 5 Highlights

Poland: Preferential VAT withdrawn for selected beverages

5% retail / 8% catering → 23% (18 pp retail / 15 pp catering). Specified non-alcoholic beer, dealcoholised wine or cider, drinks with added caffeine or taurine, and qualifying beverages containing at least 20% fruit, vegetable or mixed juice. Effective: 1 January 2027. Status: PARLIAMENT APPROVED / PRESIDENTIAL STEP PENDING. The development is significant because it affects pricing, tax codes and transaction classification across high-volume or strategically important sectors.

United Kingdom: Temporary zero rate for domestic electricity extended

5% → 0% (5 percentage-point reduction). Qualifying domestic electricity in Great Britain and charities’ non-business use. Northern Ireland remained at 5% initially; VATupdate reports expected UK-wide application from April 2027. Effective: 1 October 2026. Status: BUDGET CONFIRMATION / TEMPORARY RELIEF. The development is significant because it affects pricing, tax codes and transaction classification across high-volume or strategically important sectors.

Oman: Zero-rating expanded for food, medicines and medical equipment

Previous rate not specified → 0% (Not calculable). Detailed tariff-code lists for food commodities, human medicines and medical equipment, and 62 veterinary medicine/equipment items. Human and veterinary products may require ministry release permits. Effective: 1 October 2026. Status: FINAL DECISIONS / IMPLEMENTED. The development is significant because it affects pricing, tax codes and transaction classification across high-volume or strategically important sectors.

Cyprus: Temporary zero-rating for essential goods

Previous rate not specified → 0% (Not calculable). Fresh, chilled or frozen meat and specified seafood from 1 October 2026; bread, milk, coffee, sugar and baby food from 12 October 2026; baby milk, diapers, feminine hygiene products and specified fruit and vegetables during 2027. Effective: 1 Oct / 12 Oct 2026; separate 2027 extension. Status: FINAL DECREE / TEMPORARY. The development is significant because it affects pricing, tax codes and transaction classification across high-volume or strategically important sectors.

Australia: Policy proposal to raise GST to 15% and tax all food

10% → 15% proposed (5 percentage-point proposed increase). The Grattan Institute proposal would raise the standard GST rate and broaden the base to include all food. It is not government legislation or an enacted measure. Effective: No effective date; proposal only. Status: INDEPENDENT POLICY PROPOSAL. The development is significant because it affects pricing, tax codes and transaction classification across high-volume or strategically important sectors.

Worldwide Rate Snapshot

Cyprus – Temporary zero-rating for essential goods: Previous rate not specified → 0%; 1 Oct / 12 Oct 2026; separate 2027 extension; FINAL DECREE / TEMPORARY.
Cyprus – Residential photovoltaic systems reduced to 9%: 19% → 9%; 16 October 2026; FINAL DECREE / RATE REDUCTION.
France – Reduced VAT framework for social housing clarified: Standard treatment varies → 5.5% / 10%; 2026 guidance; transaction-specific; GUIDANCE UPDATED.
Ireland – Animal respiratory vaccines move to 9%: Previous rate not specified → 9%; Not specified in the VATupdate.com article; RATE REDUCTION.
Poland – Preferential VAT withdrawn for selected beverages: 5% retail / 8% catering → 23%; 1 January 2027; PARLIAMENT APPROVED / PRESIDENTIAL STEP PENDING.
United Kingdom – Temporary zero rate for domestic electricity extended: 5% → 0%; 1 October 2026; BUDGET CONFIRMATION / TEMPORARY RELIEF.
United Kingdom – Public and workplace EV charging confirmed at 20%: Disputed for earlier supplies → 20%; 1 November 2026; BUDGET CONFIRMATION / GUIDANCE.
United Kingdom – Land for registered social-housing providers to be zero-rated: Previous rate not specified → 0%; 1 April 2027; BUDGET CONFIRMATION.
Oman – Zero-rating expanded for food, medicines and medical equipment: Previous rate not specified → 0%; 1 October 2026; FINAL DECISIONS / IMPLEMENTED.
Australia – Policy proposal to raise GST to 15% and tax all food: 10% → 15% proposed; No effective date; proposal only; INDEPENDENT POLICY PROPOSAL.
Peru – Reduced hospitality IGV scheduled to rise: 8% IGV → 12% IGV; 1 January 2027; FINAL / SCHEDULED EXPIRY.
Jamaica – Tourism GCT increase deferred to April 2027: 10% → 15%; 1 April 2027; FINAL / DEFERRED.
Croatia – Temporary energy relief scheduled to expire: 5% → 13%; 1 April 2027; FINAL / SCHEDULED REVERSION.
Moldova – Tiered VAT reform replaces planned flat 20% approach: Planned flat 20% → 8% / 12% tiered; energy tiered; Energy reform 1 April 2027; parcel rule 1 October 2026; FINAL / TIERED REFORM.
Thailand – Reduced 7% VAT retained until September 2027: 7% retained → 10% statutory default; Potential reversion 1 October 2027; FINAL EXTENSION / SCHEDULED DEFAULT.
Netherlands – Bicycle maintenance card qualifies as a separate reduced-rate service: 21% asserted by authority → Reduced rate upheld; percentage not stated; Judgment reported 29 October 2026; COURT JUDGMENT.
Netherlands – Export zero rate turns on the nature of interim EU use: 0% claimed → 0% upheld or denied depending on facts; Decisions reported during October 2026; NATIONAL COURT DECISIONS.

Detailed Developments

Europe: EU Member States

Croatia

Croatia: Temporary energy relief scheduled to expire

Rate development: 5% → 13%; 8 percentage-point increase. Legal or procedural status: FINAL / SCHEDULED REVERSION. The VATupdate.com coverage reports a concrete rate, zero-rating, exemption or classification development and does not support expanding the measure beyond the stated categories.
Scope and impact: Natural gas, district heating and related fees, plus wood fuels including firewood, pellets, briquettes and wood chips. B2B/B2C, domestic/import and input-tax-recovery details are not specified unless expressly noted above.
Timing and transition: Effective or relevant date: 1 April 2027. End date or permanence: Reversion may change if relief is extended again. Detailed rules for tax points, deposits, credit notes, returns, vouchers and first affected return periods are not specified in the VATupdate.com article unless mentioned above.

Business implications

Affected businesses should align tax codes and product or service classifications with the stated scope, review tax-inclusive and tax-exclusive prices, and control open orders, invoices, returns and credits around the applicable date. These are reasonable implementation observations arising from the reported measure; they are not additional legal requirements stated by VATupdate.com.

Sources on VATupdate.com

Global upcoming VAT rate changes

Cyprus

Cyprus: Residential photovoltaic systems reduced to 9%

Rate development: 19% → 9%; 10 percentage-point reduction. Legal or procedural status: FINAL DECREE / RATE REDUCTION. The VATupdate.com coverage reports a concrete rate, zero-rating, exemption or classification development and does not support expanding the measure beyond the stated categories.
Scope and impact: Purchase and installation of photovoltaic systems supplied to residential customers for self-consumption in their homes. B2B/B2C, domestic/import and input-tax-recovery details are not specified unless expressly noted above.
Timing and transition: Effective or relevant date: 16 October 2026. End date or permanence: Not specified. Detailed rules for tax points, deposits, credit notes, returns, vouchers and first affected return periods are not specified in the VATupdate.com article unless mentioned above.

Business implications

Sources on VATupdate.com

Cyprus: Temporary zero-rating for essential goods

Rate development: Previous rate not specified → 0%; Not calculable. Legal or procedural status: FINAL DECREE / TEMPORARY. The VATupdate.com coverage reports a concrete rate, zero-rating, exemption or classification development and does not support expanding the measure beyond the stated categories.
Scope and impact: Fresh, chilled or frozen meat and specified seafood from 1 October 2026; bread, milk, coffee, sugar and baby food from 12 October 2026; baby milk, diapers, feminine hygiene products and specified fruit and vegetables during 2027. B2B/B2C, domestic/import and input-tax-recovery details are not specified unless expressly noted above.
Timing and transition: Effective or relevant date: 1 Oct / 12 Oct 2026; separate 2027 extension. End date or permanence: 31 May 2027 or 31 Dec 2027, depending on category. Detailed rules for tax points, deposits, credit notes, returns, vouchers and first affected return periods are not specified in the VATupdate.com article unless mentioned above.

Business implications

Sources on VATupdate.com

France

France: Reduced VAT framework for social housing clarified

Rate development: Standard treatment varies → 5.5% / 10%; Not calculable. Legal or procedural status: GUIDANCE UPDATED. The VATupdate.com coverage reports a concrete rate, zero-rating, exemption or classification development and does not support expanding the measure beyond the stated categories.
Scope and impact: Approved lease-to-own housing, designated urban-renewal housing, solidarity real leases, qualifying land and specified social or medico-social premises, subject to income, price, zoning and institutional conditions. B2B/B2C, domestic/import and input-tax-recovery details are not specified unless expressly noted above.
Timing and transition: Effective or relevant date: 2026 guidance; transaction-specific. End date or permanence: Not specified. Detailed rules for tax points, deposits, credit notes, returns, vouchers and first affected return periods are not specified in the VATupdate.com article unless mentioned above.

Business implications

Sources on VATupdate.com

Ireland

Ireland: Animal respiratory vaccines move to 9%

Rate development: Previous rate not specified → 9%; Not calculable. Legal or procedural status: RATE REDUCTION. The VATupdate.com coverage reports a concrete rate, zero-rating, exemption or classification development and does not support expanding the measure beyond the stated categories.
Scope and impact: Respiratory vaccines for animals only. Other animal vaccines remain subject to VAT; the requested broader zero rate was not adopted. B2B/B2C, domestic/import and input-tax-recovery details are not specified unless expressly noted above.
Timing and transition: Effective or relevant date: Not specified in the VATupdate.com article. End date or permanence: Not specified. Detailed rules for tax points, deposits, credit notes, returns, vouchers and first affected return periods are not specified in the VATupdate.com article unless mentioned above.

Business implications

Sources on VATupdate.com

IFA Welcomes Reduced VAT on Respiratory Vaccines, Urges Zero Tax for All Animal Vaccines

Poland

Poland: Preferential VAT withdrawn for selected beverages

Rate development: 5% retail / 8% catering → 23%; 18 pp retail / 15 pp catering. Legal or procedural status: PARLIAMENT APPROVED / PRESIDENTIAL STEP PENDING. The VATupdate.com coverage reports a concrete rate, zero-rating, exemption or classification development and does not support expanding the measure beyond the stated categories.
Scope and impact: Specified non-alcoholic beer, dealcoholised wine or cider, drinks with added caffeine or taurine, and qualifying beverages containing at least 20% fruit, vegetable or mixed juice. B2B/B2C, domestic/import and input-tax-recovery details are not specified unless expressly noted above.
Timing and transition: Effective or relevant date: 1 January 2027. End date or permanence: Permanent measure; no end date reported. Detailed rules for tax points, deposits, credit notes, returns, vouchers and first affected return periods are not specified in the VATupdate.com article unless mentioned above.

Business implications

Sources on VATupdate.com

Europe: Non-EU Countries

Moldova

Moldova: Tiered VAT reform replaces planned flat 20% approach

Rate development: Planned flat 20% → 8% / 12% tiered; energy tiered; Not calculable. Legal or procedural status: FINAL / TIERED REFORM. The VATupdate.com coverage reports a concrete rate, zero-rating, exemption or classification development and does not support expanding the measure beyond the stated categories.
Scope and impact: Essentials at 8%; agri-food, HoReCa and tourism at 12%; energy becomes tiered. VATupdate also reports 20% on e-commerce parcels below EUR 150 from 1 October 2026. B2B/B2C, domestic/import and input-tax-recovery details are not specified unless expressly noted above.
Timing and transition: Effective or relevant date: Energy reform 1 April 2027; parcel rule 1 October 2026. End date or permanence: Not specified. Detailed rules for tax points, deposits, credit notes, returns, vouchers and first affected return periods are not specified in the VATupdate.com article unless mentioned above.

Business implications

Sources on VATupdate.com

Global upcoming VAT rate changes

United Kingdom

United Kingdom: Land for registered social-housing providers to be zero-rated

Rate development: Previous rate not specified → 0%; Not calculable. Legal or procedural status: BUDGET CONFIRMATION. The VATupdate.com coverage reports a concrete rate, zero-rating, exemption or classification development and does not support expanding the measure beyond the stated categories.
Scope and impact: Land sold to registered providers of social housing, enabling transfer before the golden-brick stage and improving VAT recovery on related costs. B2B/B2C, domestic/import and input-tax-recovery details are not specified unless expressly noted above.
Timing and transition: Effective or relevant date: 1 April 2027. End date or permanence: Not specified. Detailed rules for tax points, deposits, credit notes, returns, vouchers and first affected return periods are not specified in the VATupdate.com article unless mentioned above.

Business implications

Sources on VATupdate.com

United Kingdom Autumn Budget 2026: Indirect Tax Changes

United Kingdom: Public and workplace EV charging confirmed at 20%

Rate development: Disputed for earlier supplies → 20%; Not calculable. Legal or procedural status: BUDGET CONFIRMATION / GUIDANCE. The VATupdate.com coverage reports a concrete rate, zero-rating, exemption or classification development and does not support expanding the measure beyond the stated categories.
Scope and impact: Electricity supplied through public and workplace EV charge points. Supplies through 31 October 2026 remain subject to litigation according to VATupdate. B2B/B2C, domestic/import and input-tax-recovery details are not specified unless expressly noted above.
Timing and transition: Effective or relevant date: 1 November 2026. End date or permanence: Permanent treatment; no end date reported. Detailed rules for tax points, deposits, credit notes, returns, vouchers and first affected return periods are not specified in the VATupdate.com article unless mentioned above.

Business implications

Sources on VATupdate.com

United Kingdom Autumn Budget 2026: Indirect Tax Changes

United Kingdom: Temporary zero rate for domestic electricity extended

Rate development: 5% → 0%; 5 percentage-point reduction. Legal or procedural status: BUDGET CONFIRMATION / TEMPORARY RELIEF. The VATupdate.com coverage reports a concrete rate, zero-rating, exemption or classification development and does not support expanding the measure beyond the stated categories.
Scope and impact: Qualifying domestic electricity in Great Britain and charities’ non-business use. Northern Ireland remained at 5% initially; VATupdate reports expected UK-wide application from April 2027. B2B/B2C, domestic/import and input-tax-recovery details are not specified unless expressly noted above.
Timing and transition: Effective or relevant date: 1 October 2026. End date or permanence: Extended into summer 2027; VATupdate articles report 1 July and 31 July, creating a source inconsistency. Detailed rules for tax points, deposits, credit notes, returns, vouchers and first affected return periods are not specified in the VATupdate.com article unless mentioned above.

Business implications

Sources on VATupdate.com

Middle East

Oman

Oman: Zero-rating expanded for food, medicines and medical equipment

Rate development: Previous rate not specified → 0%; Not calculable. Legal or procedural status: FINAL DECISIONS / IMPLEMENTED. The VATupdate.com coverage reports a concrete rate, zero-rating, exemption or classification development and does not support expanding the measure beyond the stated categories.
Scope and impact: Detailed tariff-code lists for food commodities, human medicines and medical equipment, and 62 veterinary medicine/equipment items. Human and veterinary products may require ministry release permits. B2B/B2C, domestic/import and input-tax-recovery details are not specified unless expressly noted above.
Timing and transition: Effective or relevant date: 1 October 2026. End date or permanence: Not specified. Detailed rules for tax points, deposits, credit notes, returns, vouchers and first affected return periods are not specified in the VATupdate.com article unless mentioned above.

Business implications

Sources on VATupdate.com

Oman Expands VAT Zero-Rating for Food, Medicines and Medical Equipment from 1 October 2026

Asia-Pacific

Australia

Australia: Policy proposal to raise GST to 15% and tax all food

Rate development: 10% → 15% proposed; 5 percentage-point proposed increase. Legal or procedural status: INDEPENDENT POLICY PROPOSAL. The VATupdate.com coverage reports a concrete rate, zero-rating, exemption or classification development and does not support expanding the measure beyond the stated categories.
Scope and impact: The Grattan Institute proposal would raise the standard GST rate and broaden the base to include all food. It is not government legislation or an enacted measure. B2B/B2C, domestic/import and input-tax-recovery details are not specified unless expressly noted above.
Timing and transition: Effective or relevant date: No effective date; proposal only. End date or permanence: Not applicable. Detailed rules for tax points, deposits, credit notes, returns, vouchers and first affected return periods are not specified in the VATupdate.com article unless mentioned above.

Business implications

Sources on VATupdate.com

Australia urged to raise GST to 15% and tax all food

Thailand

Thailand: Reduced 7% VAT retained until September 2027

Rate development: 7% retained → 10% statutory default; 3 percentage-point scheduled increase. Legal or procedural status: FINAL EXTENSION / SCHEDULED DEFAULT. The VATupdate.com coverage reports a concrete rate, zero-rating, exemption or classification development and does not support expanding the measure beyond the stated categories.
Scope and impact: All sales of goods, services and imports when the current reduced-rate decree expires. B2B/B2C, domestic/import and input-tax-recovery details are not specified unless expressly noted above.
Timing and transition: Effective or relevant date: Potential reversion 1 October 2027. End date or permanence: 7% decree expires 30 September 2027; further extension considered likely by VATupdate. Detailed rules for tax points, deposits, credit notes, returns, vouchers and first affected return periods are not specified in the VATupdate.com article unless mentioned above.

Business implications

Sources on VATupdate.com

Global upcoming VAT rate changes

Americas

Jamaica

Jamaica: Tourism GCT increase deferred to April 2027

Rate development: 10% → 15%; 5 percentage-point increase. Legal or procedural status: FINAL / DEFERRED. The VATupdate.com coverage reports a concrete rate, zero-rating, exemption or classification development and does not support expanding the measure beyond the stated categories.
Scope and impact: Tourism activities and short-term rentals supplied through platforms such as Airbnb and Booking. B2B/B2C, domestic/import and input-tax-recovery details are not specified unless expressly noted above.
Timing and transition: Effective or relevant date: 1 April 2027. End date or permanence: Permanent measure; no end date reported. Detailed rules for tax points, deposits, credit notes, returns, vouchers and first affected return periods are not specified in the VATupdate.com article unless mentioned above.

Business implications

Sources on VATupdate.com

Global upcoming VAT rate changes

Peru

Peru: Reduced hospitality IGV scheduled to rise

Rate development: 8% IGV → 12% IGV; 4 percentage-point increase. Legal or procedural status: FINAL / SCHEDULED EXPIRY. The VATupdate.com coverage reports a concrete rate, zero-rating, exemption or classification development and does not support expanding the measure beyond the stated categories.
Scope and impact: Restaurants, hotels and accommodation. VATupdate reports the combined rate including the 2% municipal promotion tax moving from 10.5% to 15%. B2B/B2C, domestic/import and input-tax-recovery details are not specified unless expressly noted above.
Timing and transition: Effective or relevant date: 1 January 2027. End date or permanence: Reduced regime ends on 31 December 2026. Detailed rules for tax points, deposits, credit notes, returns, vouchers and first affected return periods are not specified in the VATupdate.com article unless mentioned above.

Business implications

Sources on VATupdate.com

Global upcoming VAT rate changes

Court Cases and Judicial Developments

Netherlands

Netherlands: Bicycle maintenance card qualifies as a separate reduced-rate service

Rate development: 21% asserted by authority → Reduced rate upheld; percentage not stated; Not calculable. Legal or procedural status: COURT JUDGMENT. The VATupdate.com coverage reports a concrete rate, zero-rating, exemption or classification development and does not support expanding the measure beyond the stated categories.
Scope and impact: A bicycle sale and accompanying maintenance service card were separate supplies with separate consideration; the discount allocated to the bicycle was respected. B2B/B2C, domestic/import and input-tax-recovery details are not specified unless expressly noted above.
Timing and transition: Effective or relevant date: Judgment reported 29 October 2026. End date or permanence: Not applicable. Detailed rules for tax points, deposits, credit notes, returns, vouchers and first affected return periods are not specified in the VATupdate.com article unless mentioned above.

Business implications

Sources on VATupdate.com

Netherlands: Export zero rate turns on the nature of interim EU use

Rate development: 0% claimed → 0% upheld or denied depending on facts; Not applicable. Legal or procedural status: NATIONAL COURT DECISIONS. The VATupdate.com coverage reports a concrete rate, zero-rating, exemption or classification development and does not support expanding the measure beyond the stated categories.
Scope and impact: Separate horse-export cases reached different outcomes. Training or selection activity tied directly to export could preserve zero-rating, while substantive competition use in the EU could break the material and temporal link. B2B/B2C, domestic/import and input-tax-recovery details are not specified unless expressly noted above.
Timing and transition: Effective or relevant date: Decisions reported during October 2026. End date or permanence: Not applicable. Detailed rules for tax points, deposits, credit notes, returns, vouchers and first affected return periods are not specified in the VATupdate.com article unless mentioned above.

Business implications

Sources on VATupdate.com

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