From energy to food, governments around the world are cutting VAT on essential items to combat rising inflation.
Here are 10 rate changes that have been revealed in recent weeks:
The temporary VAT cuts on electricity and public transport have ended. VAT on domestic electricity now returns to its usual rate of 24%, while public transport will be liable for VAT at 10% once again.
VAT on a range of essential items will be cut to zero. The government is deliberating over which goods to include in the scheme, with milk, bread, baby food, toilet paper and nappies among those under consideration.
VAT on restaurant and catering services and sports facilities has been permanently cut from 20% to 10%.
The zero rate of VAT will continue to be applied to basic food items until 30th June 2023 following an extension by the government.
VAT on certain food items has been zero rated to help consumers combat rising prices. Milk, eggs, bread and designated fruits will all now be applicable for zero VAT.
A new law passed in Romania will see a number of supplies made to hospitals become exempt from VAT. These include construction services, supplies of medical equipment and delivery of prostheses and orthopedic products.
The VAT rate on energy has been permanently reduced to 6%. It had been at this rate since March 2022 as a temporary measure, but will now continue indefinitely.
Parliament has approved the consideration of a bill that would seek to reduce VAT on food and beverages to 5%.
The tourism and hospitality industries will continue to benefit from the second reduced rate of VAT – currently 9% – until 31st August 2023 following a recent extension.
The government has adopted a bill that cancels VAT on agricultural inputs in an attempt to reduce prices of fresh produce.