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November tax updates: 15 snippets from the world of VAT

With inflation hitting 10.7% in Europe in October, it’s perhaps no surprise to see that many countries are cutting VAT to support businesses and consumers this November.

Here’s our latest round-up of 15 snippets from the indirect tax industry this month, featuring tax changes relating to energy, food and other essentials.

1) Poland

The zero VAT rate for food will remain in place beyond 1st January, Poland’s Deputy Finance Minister Artur Sobon has confirmed.

2) Uzbekistan

A new tax-free system for foreign visitors will be introduced in January 2023. It means tourists in Uzbekistan will be exempt from VAT on all purchases, with refunds issued at airports, rail stations and border checkpoints.

3) Sweden

The Budget for 2023 has been announced and includes an increase in the VAT rate on repairs to bicycles, shoes and clothing from 6% to 12%. The temporary reductions in excise tax on petrol and diesel used in agriculture, forestry and aquaculture will also be extended.

4) Netherlands

The House of Representatives has passed a bill that would see VAT on the supply and installation of solar panels on or near homes be reduced from 21% to 0% from 1st January 2023.

5) Mozambique

The standard rate of VAT in Mozambique is set to be cut from 17% to 16%, providing the move is signed off by parliament.

6) Luxembourg

Parliament has approved a bill that will allow all VAT rates to be cut by 1%, with the exception of the super-reduced rate that will remain at 3%.

7) South Korea

The threshold for e-invoicing is to be reduced in South Korea. In 2023, the point at which businesses will be required to issue e-invoices for B2G and B2B transactions will be lowered to 100,000,000 KRW (approximately $83,000).

8) UK

A tribunal involving Northumbria Healthcare NHS Foundation Trust v HMRC has concluded that car parking at hospitals is subject to VAT.

9) Ukraine

Imports of goods that are required to heat homes and buildings in Ukraine will be exempt from VAT and import duties over the winter months.

10) Singapore

Parliament has approved an increase in the GST rate to 8% effective from January 2023, with a further rise to 9% coming in January 2024.

11) Latvia

A variety of food products will now be subject to a reduced rate of VAT at 5% following the passing of Bill 1664.

12) Finland

Temporary rate cuts have been applied to electricity, which will now be taxed at 10% until April 2023, as well as public transport that will be subject to 0% VAT until the same date.

13) Hungary

A reduced rate of 5% on new housing will remain in place for a further two years until the end of 2024.

14) Albania

The Albanian parliament has accepted a proposal for consideration that would see VAT on the import of electric vehicles cut to 0%.

15) Estonia

The VAT rate applied to specific press publications has been reduced from 9% to 5%.