Slovakia increases VAT by 1% to 20%
The new Slovak government agreed yesterday to increase VAT by 1% to 20%. The increase is a temporary 1-year measure, starting in 2011. It comes as part of a range of austerity measures aimed at balancing the budget. The 6% reduced Slovak VAT rate is to go.
This matches a similar increase in the Czech Republic, which introduced a temporary 1% increase to 20% in January 2010.