Recent worldwide VAT/GST RATE developments

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Highlights

• Temporary VAT reductions on energy in Belgium, Bulgaria, Croatia, Italy, Lithuania and Poland. Netherlands, Romania and UK debating about it. Ireland decided not to lower VAT rates on energy.
• VAT rate reduction on Food in Algeria, Bulgaria, Croatia, France, Lithuania, Poland, Turkey and Ukraine
• Uzbekistan Decree reducing the VAT rate to 12%
• United States: State and Local Sales Tax Rates, 2022

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ALGERIA                                     

• 2022 Finance Act: Extension reduced VAT rate
• Algeria withdraws e-commerce and basic foodstuff VAT
• Council of Ministers: All taxes on certain food products frozen, 19% VAT on E-Commerce abolished

BAHRAIN                                    

• Bahrain Publishes VAT Return Filing Manuals for 2022

BANGLADESH

• Restaurant owners want reduction in VAT

BELGIUM                                    

• Belgium Temporarily Cutting VAT Rate on Electricity
• Belgium to cut VAT in response to energy price spike
• Renovation: administrative simplification and abolition of the VAT certificate
• VAT on electricity temporarily reduced to 6%
• VAT on electricy lowers from 21 to 6% as of March 1 till May 31, no VAT reduction for gas

BULGARIA                                  

• Bulgaria considers 0% VAT for water and natural gas, electricity, and central heating, food products and beverages, and medicinal products and medical equipment…
• Bulgaria to Introduce VAT Zero Rate on Certain Food, Energy, and Medical Product Supplies
• Bulgaria to zero-rate food, heating and water April 2022 in inflation crisis
• Extension of the reduced VAT rate on certain supplies in Bulgaria
• Extension of the scope and the term of the application of the reduced 9% VAT Rate
• Possible reduction in VAT rates in Bulgaria

COLOMBIA

• Ministry of Finance Establishes Electronic Invoicing Requirement for Producers of Zero-Rated Goods Requesting VAT Bimonthly Refunds

CROATIA

• Croatia cuts heating and food VAT
• Croatia reduces VAT on gas, energy, food and other items

CYPRUS

• Taxpayers will pay ‘Golden Passport’ VAT deficit

ECUADOR

• Ecuador Regulates Application of Reduced VAT Rate for Taxpayers in Tourism Sector
• Reducing VAT Rate on Tourism Services Due to Coronavirus
• Temporary VAT reduction for Tourism Sector

EUROPE

• European energy & food VAT rate cuts during inflation crisis

EUROPEAN UNION

• Application of normal VAT rate on delivery of wood chips not contrary to EU law
• COVID-19, the European Health Union and the CJEU: Lessons from the Case Law on the Banking Union
• European Commission: agreement was reached to update the current rules governing VAT rates for goods and services
• Extension of reduced rates for a green VAT
• The One-Stop-Shop for VAT: which rates to use and where to pay
• VAT rates – greater flexibility for Member States

FRANCE

• Adjustment of VAT rates for human food, animal food, and agricultural products in France
• VAT at 5.5% until December 2022 for products adapted to the fight against covid-19

GERMANY

• Bakery branches and VAT rate – the BFH has decided!
• Funeral speakers don’t have it easy
• The New Reduced VAT Rate Rules on Digital Media (Part I)
• The New Reduced VAT Rate Rules on Digital Media (Part II)

GHANA                                       

• GRA to engage importers, exporters over amended VAT structure

GREECE

• Greece Extends 6% VAT Rate for Products Needed for Protection from COVID-19
• Greek Finance Minister: Everything is open for a reduction of VAT on food
• New measures to support farmers: Reduction of VAT on fertilizers – 7% turnover subsidy for farmers
• Publishers urge slashing of VAT on book production
• VAT cuts not being ruled out

INDIA

• GST Council may cut tax exemptions, hike rates
• GST overhaul likely soon; 3 tax slabs, exemption cuts, rate hikes on the cards

INDONESIA

• Indonesia extends VAT cut on new houses
• The extension of the sales tax on luxury Goods-DTP 2022 to reduce the effect of market shock

IRELAND

• Donohoe rules out VAT cut despite soaring energy bills
• Minister Donohoe defends decision not to reduce VAT on fuel

ITALY

• 5% VAT rate on gas also for the second quarter of 2022
• Circular No. 3/2022 to address tax measures from the 2022 Budget
• First home bonus under 36 and VAT, what you need to know
• Main changes regarding VAT (and other taxes) contained in Law no. 234 of December 30, 2021
• Reduced VAT for vehicles adapted to the disabled: change the documentation to be presented
• VAT rate applicable to the supply of food boxes with different ingredients

JAPAN

• Japan has no plans to review sales tax rates, finance minister says

KYRGYZSTAN

• Kyrgyzstan Amends Sales Tax Rates
• Kyrgyzstan VAT on digital services Jan 2022

LAOS

• Laos Reduces VAT Rate to Support the Post-COVID-19 Economy

LITHUANIA

• Lithuania electricity and food 9% VAT proposal
• Lithuania proposes to reduce VAT Rate for electricity and food products
• Lithuanian cabinet approves zero VAT on heating
• Minister: government moves to cut VAT on heating to zero
• The Lithuanian government plans to temporarily apply a 0% VAT rate to district heating

MAURITANIA

• Mauritania Enacts Finance Law for 2022

MONTENEGRO

• Montenegro Amends Reduced VAT Rate for Catering Services
• Montenegro Extends Application of Reduced VAT Rate of 7%

NETHERLANDS

• Cabinet is looking at possible zero VAT rate on solar panels
• IT system tax authorities do not stand in the way of VAT reduction
• No reduced VAT rate for arcade
• PVV wants to reduce home energy bills through VAT
• Wedding dresses fit for fun for VAT no low-taxed daytime recreation

NIGERIA

• Again, IMF Urges Nigeria to Increase VAT, Remove Fuel Subsidy
• IMF Suggests VAT Hike, Fiscal, Exchange Rate Reforms to Nigeria

POLAND

• Binding Tax Information and the VAT rates changes in the Anti-Inflation shield 2.0
• Lower VAT on electricity not for tenants
• Lowering the VAT rate on certain goods in 2022
• Poland Clarifies VAT Reduction for Basic Foods Products and Other Aspects of Anti-Inflation Shield 2.0
• Polish Anti-Inflation Shield v1 and v2 reducing the VAT rates
• Reduced VAT rates on certain goods, through 31 July 2022
• Scope of the reduction of VAT rates between Feb 1 and July 31, 2022
• Temporary VAT reduction from February 1st, 2022

ROMANIA

• Proposal to discuss the VAT rate reduction to 5% on car fuels will be discussed in the Senate
• Romania will have the opportunity to reduce VAT on food to 0% by next year at the latest: in what context?

RUSSIA

• MoF recalled conditions for applying reduced VAT rate for medical products

SINGAPORE

• 48% of Singaporeans to Spend Less If GST Raised: YouGov
• Overview of Tax Changes in Singapore Budget 2022
• Singapore raises GST for first time in 15 years, GST will go up to 8% next year, then 9% from 2024
• UOB economist: GST hike may set in by July 1
• Upcoming GST hike seen as key to improving fiscal sustainability
• VAT rate increase from 7 to 8% in January 2023 and to 9% in January 2024
• What you need to know about the impending GST hike

SOUTH AFRICA

• 1% VAT hike likely after grant extension: economists
• South Africa could announce an ‘alternative’ VAT hike next week: experts
• VAT hike the most likely option for South Africa: analyst
• Will the government unveil potential VAT hikes to fund the Basic Income Grant?

SWEDEN

• 2022 Budget VAT Measures: Increase registration threshold & reduced VAT rate on repairs as of July 1, 2022
• Proposals: Increased turnover limit for exemption from VAT & Further reduced VAT on certain repairs

TAIWAN

• Government lowers VAT to alleviate cost pressure on manufacturers

TURKEY

• Turkey Expands 1% VAT Rate for Food Supplies
• Turkey reduces VAT rate on foodstuff to 1%
• VAT Discount on Foodstuffs

UKRAINE

• Nuances of VAT taxation of accommodation services provided by hotels
• Proposal to temporarily exempt the sale of food and reduce VAT on housing and communal services
• Temporary zero VAT rate for the sale of food products
• Ukraine heating and food VAT rate cut proposal

UNITED KINGDOM

• Calls for VAT reduction on Retro Fit Insulation for UK Homes
• More than 250 hospitality bosses call for VAT freeze as diners hit by rising costs
• Owners of Alton Towers and Cadbury World urge Government to pull back on VAT hike
• Rishi Sunak will not make promised VAT cut in energy bills, minister says
• Treasury urged to remove VAT on energy efficiency measures
• UK not persuaded by VAT cut on energy bills, minister says
• VAT cut for EV drivers without off-street parking
• VAT Rates—How Important Are They?

UNITED STATES

• State and Local Sales Tax Rates, 2022
• Washington D.C. Sales Tax Compliance Rates

URUGUAY

• Uruguay Extends Application of Reduced VAT Rate till Dec 31, 2022

UZBEKISTAN

• Uzbekistan Decree reducing the VAT rate to 12%

VIETNAM

• Vietnam Publishes Implementing Decree for VAT Rate Reduction and Donation Deductions for COVID-19

WORLD

• 2022 global VAT & GST rate changes
• Value Added Tax Rates (VAT) By Country

 

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