- Changes in VAT Rates Effective January 1, 2025:
- The VAT rate for certain goods and services will increase from 10% to 14%. This includes books, pharmaceuticals, sports services, cultural event tickets, passenger transport, and accommodation services. Sanitary protection products and children’s diapers will also be reduced from 25.5% to 14%.
- Exemptions and Specific Cases:
- Newspapers, magazines, and public broadcasting will remain at a reduced VAT rate of 10%. Candy and chocolate will see a VAT increase from 14% to 25.5% starting June 1, 2025. The applicable VAT rate depends on the date of delivery or service completion, and advance payments determine the VAT rate in effect at the time of payment.
- VAT Filing and Reporting Requirements:
- Businesses must report VAT according to the new rates starting January 1, 2025. The rate applied depends on the delivery or service completion date. Advance payments received before the rate change will be taxed at the old rate of 10%. VAT returns must reflect the correct rates based on the timing of transactions and payments.
Source
- Join our Linkedin Group on ”VAT Rates – Legislative changes”, click HERE
- Global Upcoming VAT Rate changes – Chronological, click HERE
