15 VAT updates from 15 countries in the last 15 days

It’s been another busy month so far in the world of indirect tax. Here are 15 top rate changes and updates that we feel every tax team needs to know:

1) Azerbaijan

Electric vehicles and cars with hybrid engines are set to become 20% cheaper after Azerbaijan announced plans to exempt them from VAT.

2) Netherlands

A new ruling means mind sports organisations in the Netherlands will be subject to VAT from 1st January 2022; they will no longer be eligible to use the sports exemption.

3) Romania

Romania’s reduced rate of VAT (5%) will be applied to firewood from 1st December, providing the material is intended for heating residential properties.

4) France

VAT on services in the French overseas territory of New Caledonia will increase to 11% from 2022, while the standard and reduced rates will rise in July.

5) Italy

Italy’s VAT rate on feminine hygiene products has been lowered from 22% to 10%.

6) Lithuania

The Lithuanian parliament is currently considering a new bill to impose VAT at a rate of 5% on thermal energy and natural gas that is supplied to households.

7) Vietnam

A 30% reduction in VAT from 1st November until 31st December 2021 has been announced, with a new decree confirming the range of eligible goods and services includes transport, food, tourism and publishing.

8) India

The Indian government is reportedly considering applying a single GST rate to all online games and e-sports. Currently, two different rates – 18% and 28% – are used depending on whether games are deemed to be games of skill or games of chance.

9) Angola

VAT on essential consumer goods – including basic food items, small boats and agricultural machinery – has been reduced from 14% to 7%.

10) Bahamas

A shake-up of VAT in the Bahamas means that the standard rate is now 10% (down from 12%), but fewer transactions will be subject to the 0% reduced rate.

11) Uruguay

A temporary rate for certain tourism services in Uruguay will run from 1st November 2021 until 30th April 2022. The reduction applies to gastronomic services provided by restaurants, bars and cafes, as well as hotels and hostels provided that the services do not also include accommodation.

12) Spain

Covid masks will be liable for a 21% increase in sales tax from January.

13) Ireland

The reduced VAT rate of 9% for the hospitality industry has been extended to run until 31st August 2022.

14) Algeria

The Algerian Finance Bill 2022 includes a proposal to extend the current 9% reduced rate of VAT for certain goods and services to 31st December 2024.

15) Moldova

From 1st October 2021, the VAT rate for the HORECA industry in Moldova is set at 6%. This is in response to the public health emergency declared by the Extraordinary National Commission of Public Health.

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