Slovakia to cut food VAT rate 2016

Mon 13th Jul 2015

Slovakia has proposed a reduction in its VAT rate on basic foodstuffs from 20% to 10% from 1 January 2016.

The Slovakian VAT rate on basic foodstuffs is one of the highest in the European Union. It is set at its standard VAT rate of 20%. Most other EU countries apply a reduced VAT rate to foodstuffs. The UK VAT rate on food is nil – also for Malta, too.

The impact of this high rate is felt most severally on the poorest since they spend a higher proportion of their income on food. The ruling is part of the SMER-SD government’s programme to improve social equality.

Slovakia is looking to cut its standard VAT rate from 20% to 19% soon, although the IMF has warned against this.