Finance Minister releases amended proposal for a “broad tax reform”: VAT rates, E-Invoicing/E-Reporting, Excise

In the field of VAT, a major reform is also envisaged, especially a reform of the VAT rates.

VAT rate reform aims to meet several social wishes by providing a 0% tariff for a number of important basic products. This mainly concerns fruit and vegetables, medicines, diapers and other products for intimate hygiene protection, and public transport.
The tariff reform aims at adjusting the tariff structure whereby the existing reduced tariffs of 6% and 12% would be integrated into a new reduced rate of 9%. However, the 6% rate would be retained for utilities (for domestic use) to which everyone must have access, such as electricity, natural gas and heat via heating networks, as well as tap water.
On the other hand, coal, as a highly polluting fuel, would become subject to the normal rate of 21%.
The tariff reform aims to consolidate the currently temporary reduced rate for demolition and reconstruction of the sole and private home, albeit at the new rate of 9% instead of the current rate of 6%.
The proposal also contains measures aimed at improving the effective collection of the VAT actually due. The VAT gap would be further reduced through e-invoicing and e-reporting.
Existing subsidies for fossil fuels in the form of reduced excise duties would be further phased out.