- Estonia and India VAT Changes: Estonia’s Parliament has approved a 2% VAT increase, raising the standard rate to 24% effective July 1, 2025. In India, new GST rates for hotel accommodations will take effect on April 1, 2025, with an 18% rate applicable for rooms priced over INR 7,500 and a 5% rate for cheaper rooms.
- VAT Developments in Other Countries: Indonesia will increase its VAT from 11% to 12% starting January 2025, focusing on luxury goods. Ireland is considering reinstating a 9% VAT rate in the hospitality sector effective July 1, 2025, while Lithuania is proposing a 9% reduced VAT rate for essential foodstuffs to take effect in July 2025.
- Revisions in Peru, Portugal, and Slovakia: Peru has extended a temporary 10% VAT rate for small businesses in tourism and hospitality until December 2026. Portugal clarified that bicycles are no longer considered luxury goods, allowing for VAT deductions effective January 1, 2025. Slovakia has proposed a return to a 20% standard VAT rate by July 2025 while also expanding the scope of reduced VAT rates.
Source Taxbackinternational
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