We may be just a couple of weeks into 2022, but there has already been a raft of important VAT updates, changes and proposals from around the world.
To keep you up to speed at the start of the new year, here’s our rundown of 22 tax snippets from 2022 so far:
The VAT rate applied to sales made via electronic methods has been increased to 19%.
Romania is reportedly considering the implementation of zero-rated VAT on food as inflation continues to rise. Inflation in the country was most recently measured at 8.2%.
Lawmakers in Kuwait are currently debating the introduction of a VAT regime with a standard rate of 5%. The Ministry of Finance has pencilled in its arrival for January 2023.
A new excise tax on e-cigarettes has been proposed by the Uruguay Executive Branch, which sent a bill to parliament outlining the ruling.
The 6% VAT rate for the country’s catering sector has been extended until 15th March 2022.
A temporary cut in the VAT on domestic energy from 21% to 6% is being considered after inflation in Belgium hit 6.5% in December.
A new decree has been published that extends the VAT and selective consumption tax relief measures first introduced as a response to the pandemic.
The National Council and the Council of States have voted to increase the VAT rate in Switzerland as part of a plan to fund a reform of the country’s pension system.
The Ministry of Economy and Finance has confirmed food items will be exempt from VAT for the next two years.
A range of incentives for the health sector – relating to both VAT and income tax – have been extended until 30th June 2022.
California has updated its sales tax code of regulations to expand the exemption powers for the production, storage and distribution of electric power.
Several items will now benefit from a reduced VAT rate of 10%, including pasta, solar water heaters and photovoltaic panels.
A proposal to reduce VAT on food, fuel and energy has been adopted by the Council of Ministers. From 1st February, VAT on fuel will drop to 8%, on electricity and heat to 5% and on food to 0%.
The Greek government is considering reducing VAT to help the nation overcome record-breaking inflation, which could top 5% when the latest figures are revealed.
Medium-sized retailers will have a flat rate of 3% applied to them, while a 0% rate will be imposed on textile prints by local manufacturers.
The country’s VAT regime has been extended to cover certain additional digital services provided to consumers – and it applies to transactions from November 2021.
The German government has been urged by Greenpeace to increase the VAT paid on meat.
Authorities in Panama have repeated proposals for a Withhold VAT on payment providers that process payments to non-resident digital services providers.
A new Tunisian law has come into effect that will see VAT deducted from retailers of alcoholic drinks.
Zero-rate VAT will continue on vaccine and testing kits in relation to Covid-19 for an extended period.
Ukraine now requires non-resident digital service providers to register for and pay VAT at the standard rate on sales to local consumers.
A new proposal has been tabled by the Vietnamese government to cut the standard rate of VAT from 10% to 8%.