- From January 1, 2025, changes to the EU reduced VAT rates system will be introduced
- New rules aim to harmonize rules for all EU Member States
- Member States can operate up to two reduced VAT rates of not less than 5%
- Reduced rates can be applied to a maximum of 24 categories of goods and services
- Introduction of an extra reduced rate of less than 5% and an exemption with the right to deduct input VAT
- Lower rates and zero rates can only be applied to 7 specific categories of goods and services
- Exceptions to reduced VAT rates for electronically supplied services will be expanded
- List of goods and services eligible for reduced rates will be extended from 21 to 29 categories, including children’s clothing and footwear
Source: essentiaglobalservices.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
