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Latest global tax headlines: May updates and announcements

Whether you’re interested in indirect tax or e-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 GST 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 charge 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.