Worldwide VAT/GST rate developments

Below we have summarized various updates in respect of VAT/GST rates around the world in the past 3 to 4 weeks.

World

• Global indirect tax rates
• Global VAT rate changes as of May 1, 2021
• Global VAT/GST rate overview

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AFRICA

Kenya

• Kenyans react after KRA introduced a 16% VAT on cooking gas
• Marketing support services for non-resident entities, zero-rated for VAT purposes (tribunal decision)

Rwanda

• Zero VAT rate for electric vehicles, spare parts, batteries and charging station equipment

Uganda

• VAT proposals in pending legislation

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AMERICAS

Brazil

• Cheaper fuel: Amapá reduces 72% of the ICMS calculation base for public transport companies

Colombia

• Colombia’s Executive branch submits tax reform bill to Congress

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ASIA-PACIFIC

Azerbaijan

• VAT Rates in Azerbaijan

India

• 12% GST leviable on Oxygen and Remedisvir, States demand exemption
• COVID-19: IGST reduced to 12% on oxygen concentrators
• Flavoured milk to draw 12% GST: Gujarat-based Authority for Advance Rulings

Indonesia

• Government’s plan to increase the VAT rate has drawn criticism
• Plans to Raise VAT to 15%

Nepal

• Federation of Nepalis Chambers of Commerce seeks a revision in VAT rate

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EUROPE

Austria

• 0% VAT Rate on or local supplies and intra-community acquisitions of protective masks extended till June 30, 2021
• VAT rates in Austria

Belarus

• VAT rates in Belarus

Belgium

• Belgium Confirms VAT and Duty Exemption on Imports for COVID-19
• Belgium Provides Reduced VAT Rate for Restaurant and Catering Services
• Circular 2021/C/39: Covid-19 measures – Extension of the temporary rate reduction for face masks and hydroalcoholic gels up to and including 30.06.2021, ….
• Update on VAT relief measures (COVID-19)
• VAT rates in Belgium
• VAT reduction catering industry – be careful with advances received before May 8, 2021
• VAT reduction for catering, also for alcohol till end of Sept 2021

Bosnia and Herzegovina

• VAT rates in Bosnia and Herzegovina

Bulgaria

• VAT rates in Bulgaria

Croatia

• VAT rates in Croatia

Cyprus

• VAT rates in Cyprus

Czech Republic

• VAT rates in Czech Republic

Denmark

• Conditions for a photograph to be an art object – change of practice – resumption – draft control signal
• VAT Rates in Denmark

Estonia

• VAT rates in Estonia

European Union

• “Ready-to-eat meals” subject to reduced VAT rate (CJEU judgment)
• ECJ VAT C-703/19 (J.K.) – Decision – Clarification of the term ‘restaurant service’ and ‘food’ to which a reduced VAT rate applies
• European Commission Extends VAT Exemption For PPE
• European Commission proposes VAT exemption for vital goods and services distributed by the EU in times of crisis
• European Commission published an overview of the VAT rates applied in the EU Member States – Situation per January 1, 2020
• European Commission waives customs duties and VAT on the import of medical equipment from non-EU countries till Dec 31, 2021
• International VAT Rate Round Up: May 2021

Finland

• Parliament Considers Bill to Further Extend VAT Exemption on Goods Due to Coronavirus
• Single vs. composite supplies …. which VAT rate to use?
• VAT Rates in Finland

France

• VAT rates in France

Germany

• Germany declares its nightclubs are now cultural institutions
• Photo studio cannot claim the reduced VAT rate for the granting and transfer of copyrights
• Sales of a fast-food outlet located in a shopping center with communal eating facilities are subject to the general rate of VAT
• VAT rates in Germany

Greece

• Greece’s Syriza party calls for lower VAT rates for restaurants and bars
• VAT rates in Greece

Hungary

• New residential property: tax refund support now available – Useful information on 5% VAT for residential property
• VAT rates in Hungary

Ireland

• VAT rates in Ireland

Italy

• Court rules about 10% rate for photovoltaic systems
• Reduced VAT on vehicles for persons with fiscally dependent disabilities
• Sale of real estate unit with kitchen
• VAT and Customs Duties Relief for Importation of Medical Equipment till Dec 31, 2021
• VAT rate for swabs with nylon tip to carry out the nasopharyngeal Covid-19 testing

Malta

• PN proposes 7% VAT for bars and restaurants in tourism recovery proposals

Moldova

• Moldova Exempts COVID-19 Vaccines from VAT and Customs Duties till May 31, 2021
• Moldova Providing 12% Reduced VAT Rate for Accommodation and Restaurant services
• Moldova Tax Agency Announces Reduced VAT Rate for Hospitality Services Due to Coronavirus

Netherlands

• 21% VAT for the delivery of a separate docking station for an electronic handheld magnifier
• Approval of application of zero VAT rate on delivery of certain COVID (self) test kits expanded
• No reduced VAT rate because it is unlikely that mattresses are to prevent or treat pressure ulcers
• VAT rate for separate docking station for electronic handheld magnifier
• VAT rates in the Netherlands
• Zero VAT rate for (electronic) newspapers not permitted and not an efficient tool

Norway

• VAT rates in Svalbard and Jan Mayen

Poland

• Binding rate information better than tax interpretations

Portugal

• VAT rates in Portugal

Romania

• VAT rates in Romania

Russia

• VAT Rates in Russia

Serbia

• VAT rates in Serbia

Slovakia

• VAT rates in Slovakia

Slovenia

• Govt to lower VAT on women’s sanitary products
• VAT on women’s sanitary products lowered from 22% to 9.5% as of May 3, 2021
• VAT rates in Slovenia

Spain

• Extentension 0% VAT rate for sanitary products extended till Dec 31, 2021
• President Sanchez Opposed VAT Reduction That Could Save 10,000 Spanish Hairdressing Salons
• Spain Royal Decree-Law for New E-Commerce Rules and Extended 0% VAT Rate for COVID-19 Medical Supplies
• VAT rates in Spain

Sweden

• VAT rates in Sweden

Switzerland

• VAT rates in Switzerland

Turkey

• Turkey Extends Temporary VAT Rate Reduction for Overnight Accommodation Services
• VAT rate for overnight services at accommodation facilities would be decreased from 8% to 1% for the period from 1 June 2021 to 30 June 2021
• VAT rates in Turkey

Ukraine

• 7% or 20%: determined by the VAT rate on hotel services

United Kingdom

• Charities: HMRC update on the VAT liability of digital publications
• VAT Rates in the United Kingdom

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MIDDLE EAST

Oman

• List of medicines and medical equipments that are subject to 0% VAT rate
• Zero VAT for transportation of goods and services in Oman’s special zones

Saudi Arabia

• 15% is temporary and will last one to five years, then it will go down to between 5% to 10%
• His Highness the Crown Prince on the possible reduction of the 15% VAT rate
• Saudi Arabia to reconsider VAT after achieving economic objectives – VAT rate back to 5%??
• VAT increase is temporary: Saudi Crown Prince Mohammed bin Salman

United Arab Emirates

• New Public Clarification on Extended Temporary Zero-rating of Certain Medical Equipment

For more (worldwide) news about VAT/GST rates, please click here.