UK: 
USA:
Whether it’s reduced rates or reclassifications, the summer months are always a busy time for indirect tax updates.
Here is our round-up of some of the global headlines relating to VAT, Sales Tax and more in recent weeks:
Uruguay
The reduced rate of VAT for tourism services has been extended until 30th September 2023. The rate for hospitality normally stands at 22%, but was lowered to 9% in November 2020 and will remain at the reduced figure for at least three more months.
Italy
The 5% VAT rate for methane gas supply will be extended and tariff components for gas sector system charges will be maintained at zero for the third quarter of the year as Italy seeks to contain energy costs.
Estonia
Four new VAT bills have been approved, including one that will see the country’s VAT rate increase from 20% to 22% from 1st January 2024.
Vietnam
VAT in Vietnam has been reduced by 2% for a six-month period. From 1st July 2023 until 31st December 2023, the tax will be charged at 8% instead of its usual 10% rate.
Poland
The zero-rate of VAT on food will remain until 31st December 2023.
Cyprus
The government has proposed the introduction of a new VAT rate of 3% that would be applied to a limited range of supplies.
Liechtenstein
New laws have been published in the Official Gazette that will allow VAT in the nation to increase from 7.7% to 8.1% from 1st January 2024.
Zimbabwe
The zero-rating of ethanol has been extended to run until at least 2025.
Finland
The Finnish government has recently proposed a reclassification of many reduced VAT rated supplies. Items such as books, public transport, hotel services and entrance to sports events would be taxed at 14% instead of the current 10% under the new regulations.
USA
The proposed cut to Sales Tax in New Mexico which would lower the standard rate from 5% to 4.875% may now go further to 4.625%.
Nigeria
The NCS has been asked to impose VAT at 7.5% on diesel imported into the country.
Romania
A proposal has been made to introduce a new 9% reduced VAT rate on certain non-alcoholic drinks from 2024.
Spain
Spain’s temporary 5% VAT rate will apply to certain electricity and fuel supplies until 31st December 2023.
Philippines
The Bureau of Internal Revenue has added 25 cancer drugs to its list of VAT-exempt items.
Austria
The temporary zero VAT rate applied to protective face masks in Austria expired on 30th June 2023.
Fiji
A new two-rate system is set to be introduced. The standard rate of VAT will return to 15% for all supplies from August 2023, apart from 22 items that will qualify for a 0% rate.
India
Representatives of the automobile industry have requested a special 5% rate for two-wheel vehicles that run on flex fuel, bringing them in line with those powered by electricity.
Switzerland
New deemed supplier rules are set to be introduced in Switzerland from January 2025 that will require online marketplaces to charge, collect and remit VAT on sales of low-value imported goods.
