UK: 
USA:
New Year’s Day is typically one of the busiest days of the year for rate changes and 2025 is shaping up to be no different.
Here’s our quick round-up of 10 VAT rate changes already pencilled in for 1st January:
Indonesia
Indonesia’s VAT rate is set to increase to 12% on 1st January. Chief Economic Minister Airlangga Hartaro confirmed the move as part of the draft 2025 state Budget.
Finland
A number of goods and services will be reclassified from 1st January and different VAT rates will apply. Items such as hotel services, pharmaceuticals, public transport and books will rise from 10% to 14%.
Spain
The temporary zero-rating of a range of basic foods is set to end. Items including bread, flour, eggs, milk, fruits and cereals have been subject to a 0% rate since Spanish authorities introduced it to tackle rising inflation. On 1st January, VAT on these foods will rise to 4%.
Vietnam
The Vietnamese government’s 2% rate cut on some essential goods, first introduced in February 2022, is due to expire at the end of 2024. It means the rate should return to 10% (rather than the current 8%) from New Year’s Day.
Germany
Sales of artwork will be subject to VAT a new, lower rate of 7% from 1st January. This is down from the current rate of 19% and reverses an earlier rate hike made in 2014.
UK
The VAT exemption on private education is set to end, with VAT at 20% applicable from 1st January. The new legislation will apply to all pupils of compulsory school age. This will make the UK one of relatively few countries to make private education subject to an indirect tax.
Israel
Israel’s standard VAT rate will rise from 17% to 18% on 1st January. The increase was approved by parliament in March.
Portugal
The VAT cut on basic foods from 7% to 0% is due to expire at the end of 2024. From New Year’s Day, 46 foods including milk, rice, meat and bread will return to the 7% rate.
Slovakia
The government has proposed a 3% increase in the standard rate, taking it from 20% to 23%. If approved, it could come into effect on 1st January.
Tajikistan
The country’s standard rate of VAT has already been lowered from 15% to 14% and it will reduce again on 1st January to a new rate of 13%.
