Whether you’re interested in indirect tax or e-invoicingElectronic invoicing - widely referred to as e-invoicing - is the exchange of a digital document between a supplier and a buyer. E-invoices are issued, transmitted and received in a structured data format that enabled automatic and electronic processing. They contain data in a machine-readable format so that an AP system can read an invoice without manual data entry, leading to faster and more efficient invoicing., take a look at our round-up of the latest headlines from around the world this month.

Germany
The VAT rate on gas and electricity has been returned to 19%, following a period of global energy price pressures that led to some concessions across the EU.

Poland
In an attempt to battle rising inflation, Poland has reinstated VAT at 5% on basic foods.

Bulgaria
The 0% VAT rate for bread and flour has been extended and will now remain in place until 31st December 2024.

Laos
From 1st May, the standard VAT rate in Laos is 10%; an increase from its previous level of 7%.

Cyprus
A temporary zero-rating of certain basic commodities will remain in place until 30th June 2024.

Liberia
President Joseph Boakai is believed to have filed a draft bill that would see a new VAT regime introduced in Liberia, replacing its existing GSTGoods and Services Tax system.

Barbados
The Revenue Authority has issued a series of updates, including the temporary extension of its reduced VAT rate on electricity supplies.

Greece
The Greek Budget for 2025 will include a suspension of VAT on construction activities. It is part of a Budget that will seek to increase incomes and reduce taxes by €870 million.

Lithuania
Lithuania is investigating the possibility of increasing VAT by 1% to 22% to fund additional military spending.

Indonesia
Indonesia is set to increase its standard VAT rate to 12% as part of its new Budget plan.

Bahrain
A new tourist tax of BHD3 per room per day has been introduced on hotel accommodation across Bahrain.

Finland
The standard VAT rate in Finland will rise from 24% to 25.5%, possibly from 1st September this year under a proposed 2025 Budget that has been drafted.

Israel
The second phase of Israel’s adoption of B2B e-invoicing has taken place, with businesses now required to report transactions above NIS 25,000 to the tax authority for a unique invoice allocation number.

Angola
Additional items have been added to Angola’s reduced VAT rate list, meaning many more goods and services will now have the lower 5% rate applied to them.

Turkey
Amendments confirmed by the Revenue Administration this month have confirmed that the 1% VAT rate for certain food products is not applicable to food and drinks services offered by restaurants, cafes and patisseries; which must instead pay VAT at 10%.

Thailand
The Revenue Department is planning to introduce a reverse chargeWhen the Reverse Charge (mechanism) is in effect, the recipient of goods or services assumes responsibility for reporting both the purchase and the supplier’s sale in their VAT return. scheme for the scrap metal industry this year. It will aim to combat VAT refund fraud – with more than half of all fake VAT invoices in Thailand coming from the scrap metal industry.

Ecuador
A new regulation in Ecuador has confirmed VAT at a reduced rate of 5% can be applied to local transfers of construction materials.
And finally…

Italy
It has been confirmed that sales of cat litter with a predominantly vegetable composition and not intended for food use is subject to VAT at the standard rate of 22%; and not at Italy’s reduced rate or by exemption.