Global VAT rate changes/news (July 19 – Aug 18, 2022)

BANGLADESH

• VAT rates simplification

BARBADOS

• Barbados Announces VAT Relief Measures
• Cutting VAT a necessary sacrifice, PM says

BELGIUM

• Belgian Plans for Broad Tax Reforms Include Rate Cuts
• Belgium to simplify VAT rates
• Green Party want to drop VAT on fruit and greens
• Providing furnished accommodation: additional conditions to determine the VAT regime
• VAT rate painting works

BOSNIA AND HERZEGOVINA

• Bosnia cuts VAT on essential foodstuffs as inflation soars

BOTSWANA

• Botswana cuts VAT to 12% from 14% to curb inflation
• Botswana Temporarily Reduces VAT Rate
• Botswana temporary VAT cut to 12% till 31 January 2023
• Guidance note on the VAT transitional rules (rate change)
• Temporary reduction in VAT rates and other economic measures announced
• Temporary reductions in VAT rates
• Transition rules for temporary reduction in VAT rates

BRAZIL

• Brazil caps ICMS on fuel, electricity and public transport on inflation worries

BRITISH VIRGIN ISLANDS

• British Virgin Islands Extends Customs Duties Reduction

CABO VERDE

• Government approves reduced special consumption tax rates for gasoline and diesel due to ongoing Russia-Ukraine conflict

CANADA

• Luxury tax on aircraft effective 1 September 2022

CHILE

• Construction companies may deduct 0.325 from the VAT determined for general construction contracts signed with beneficiaries of housing subsidies

COLOMBIA

• Abolition of 3-day VAT holiday

CROATIA

• Due to lower VAT, wood prices here are almost the same as last year

CYPRUS

• Cyprus: Government announces VAT Exemption on petroleum goods and fuel costs until the end of 2022
• Petrides warns opposition on VAT: don’t make comparisons with Germany

EUROPE

• VAT cuts on energy & food as inflation hits record 8.9% in July 2022

EUROPEAN UNION

• Greening the EU VAT Rate System: The Case for a Differentiated Assessment
• The EU VAT Rate Reform 2022 from an Environmental Policy Perspective

FINLAND

• Finland considers electricity VAT cut
• Lintilä calls for VAT cut to lower electricity prices
• Lintilä recognizes VAT reduction as the best way to curb rising electricity prices

FRANCE

• Public consultation on simplifying the VAT regime for specified food products

GERMANY

• BFH: Significance of the principal of neutrality for VAT rate reductions
• BMF: Reduced VAT rate for supplies of a charitable organization
• Germany considers cutting VAT on Gas Levy
• Germany lowers VAT on gas to relieve consumers
• Germany slashes VAT on gas to 7% following EU block
• VAT reduction not provided for in the coalition agreement

GUYANA

• Guyana Introducing Major Tax Relief for Mining Sector
• Removal of Value-Added Tax From Lubricating Oil

INDIA

• 5% GST payable on administering of COVID-19 vaccination by hospitals
• CBIC issued clarifications regarding applicable GST rates & exemptions on certain services
• Clarifications issued by the Central Board of Indirect Tax & Customs (CBIC)
• Group of Ministers (GoM) weighs scrapping 12% GST slab
• GST at 18% Applicable on Fee and Other Charges, SEBI clarifies
• GST Council likely to meet in September to consider 28% GST on casinos and online gaming
• GST rate increase for Government projects (works contracts) – impact & way forward
• GST rates on certain goods and services: 4 Myths cleared
• GSTN Issues Advisory on Reporting 6% Rate In GSTR-1
• India Customs Agency Clarifies GST Rates, Exemptions on Various Services
• More GST rate changes likely to address inverted duty, exemptions
• No GST on residential premises if rented out for personal use: Govt
• Sale of Robinson Barley and Purity Barley Taxable @12% under Orissa Sales Tax Act: Orissa HC
• Uniform GST Rate for Food and Supplies in IRCTC: AAR
• VAT reduced on aviation fuel in 16 States/UT’s; GST rate on MRO services also slashed from 18% to 5%

IRELAND

• Further extension of 9% tourism VAT rate not expected
• Increasing VAT ‘may have a negative impact on economy’

ITALY

• 10% VAT for the construction of the municipal archive
• Emergency food VAT cuts
• Government Reduces VAT rate on natural gas and electricity sectors
• Italy extends again gas VAT cut to 5% until 31 December 2022
• Italy Extends Energy Support Measures: Reduced VAT rate applicable till end Sept/Dec 2022, ….
• Italy Further Extends Reduced Fuel Excise Duties and Reduced VAT Rate on Natural Gas Used for Transport
• Ruling 388: VAT rate supply of wheeled ecotomographs and related accessories
• Ruling 389: VAT rate – Supply of vascular access instrumentation
• The prerequisites for the reduced VAT rate must be demonstrated
• VAT concessions also for tourist and recreational transport

JAMAICA

• Guide: Reduction in Standard GCT Rate – Issues impacting time of supply when there is a change to the standard rate

KENYA

• Kenya Consulting on Draft National Tax Policy – VAT aspects

KOSOVO

• Kosovo women seek end to ‘Period Poverty’

LATVIA

• Latvia to cut basic foods VAT to 5% as inflation hits new records in July

LITHUANIA

• VAT relief to support Ukraine

MOZAMBIQUE

• Mozambique plans to cut VAT from 17% to 16%
• Mozambique to cut VAT to 17%

NEPAL

• 13% VAT on foreign digital services July 2022

NETHERLANDS

• According to AG, the introduction of a reduced VAT rate must be tested against the principle of proportionality
• Dutch legislative process for introducing equal treatment delivery of e-books not unreasonably long
• Government Clarifies VAT Refund Provision for Discounts in Connection to VAT reduced rate to energy
• Impact of the new structure of the VAT rate guideline
• Magic mushrooms (Sclerotica) are not a food, so 21% VAT applies
• Magic Mushrooms for mind-altering effect or hallucinatory effect, so normal VAT rate
• Magic truffles no food no reduced VAT rate
• Netherlands Court Case: No reduced VAT rate for supplies of e-books in 2019
• Netherlands Court Case: No reduced VAT rate on self-care products
• Reduced VAT rate electronic download e-books not already in 2019
• Sclerotia are not foodstuffs subject to the reduced rate
• Standard VAT rate applicable on delivery of self-care products
• VAT rate of 21% for e-book sales was allowed
• Zero rate wrongly applied, offense fine not justified

NIGERIA

• Discordant tunes over 5% excise duty in telecoms sector
• Manufacturers Association of Nigeria urges government to remove VAT on Automotive Gas Oil
• VAT increase may assuage Nigeria’s fiscal position

NORWAY

• EFTA Approves Prolongation of a Zero VAT Rate for Certain Electronic News Services in Norway
• Norway to replace electric car VAT exemption with special subsidy
• Norway: VAT rates for charitable and benevolent organisations

OMAN

• List of VAT zero-rated medical equipment

PARAGUAY

• Decree reducing VAT rate for transport sector
• Provision of VAT Relief for Transport Sector

PERU

• Peru cuts tourism VAT to 8% until 2024
• Peru Providing Temporary 8% VAT Rate for Tourism and Hospitality Sectors
• VAT reduced to 8% to promote reactivation of hotels, restaurants and accommodation

PHILIPPINES

• Philippines Revenue Regulations on Renewable Energy Incentives
• Sworn declaration for VAT-zero rating of local purchases of registered business enterprises

POLAND

• 5 major VAT Developments in Poland
• Advance payment: No possibility of extending the deadline for applying the 0% rate
• Government amends Reduced VAT Rate on Certain Goods effective July 16
• Law published: Extension reduced VAT rates till Oct 2022, VAT grouping as of 2023, E-Invoicing as of 2024, ….
• Medicines financed by public collections again without VAT
• Poland: Government amends reduced VAT Rate on certain goods effective July 16, 2022
• The Senate wants VAT cuts on heating oil, pellets and LPG

ROMANIA

• Changes to the Scope of Reduced VAT Rates
• Recent VAT changes
• Romania proposes VAT rate increases on sparkling drinks, hotels, and catering supplies
• VAT rate increases to 9% (from 5%) for hotel accommodation, restaurant and catering services as of Jan 1, 2023
• VAT rates are increasing next year, with implications in the food and real estate sectors

RUSSIA

• For the 0% rate of 0%, the hotel must be included in a special register
• MinFin guidance about zero rate for sale of goods by the principal for export

SAUDI ARABIA

• IMF recommends that Saudi Arabia maintains the current VAT rate
• Saudi’s ZATCA: VAT applicable to gold if its purity level is below 99%

SINGAPORE

• Singapore Provides Guidance on Preparing for GST Rate Change (7 to 8% in Jan 2023)
• Singapore Tax Agency Posts Guidance on Preparing for GST Rate Change
• Singapore Updates Guidance on Preparing for GST Rate Change
• Updated e-tax guide for 2023 GST Rate Change: A Guide for GST-registered Businesses
• Updated e-tax guide for GST: Clarification on “Directly in Connection With” and “Directly Benefit”

SLOVENIA

• Slovenia Tax Agency issues guidance on VAT rates, exemptions and input VAT deduction
• Slovenia to cut VAT on domestic energy and digital news as inflation rises

SPAIN

• New case law in Spain: VAT on amateur sports events

SRI LANKA

• Sri Lanka to increase VAT to 12 percent, telecom levy to 15 percent

SWITZERLAND

• Switzerland to hold another referendum for VAT rise proposal

TRINIDAD AND TOBAGO

• Trinidad And Tobago Sales Tax Rate – VAT

UGANDA

• Key Amendment to exempt supplies and zero-rated supplies
• Uganda removes VAT on imported rice from Tanzania

UKRAINE

• When is the zero VAT rate applied to the supply of goods for the Armed Forces?

UNITED ARAB EMIRATES

• Explaining Standard, Zero-Rated and Exempt Supplies in UAE VAT