VAT news tagged as "Reduced VAT rates"

Ireland

Ireland Finance Ministry questions tourism VAT subsidy

August 1st, 2018

Ireland’s reduced 9% VAT rate on tourism services has been challenged by the Finance Ministry as a ‘deadweight’ on the economy’s finances. The department has claimed this week the rate reduction is no longer relevant given the buoyant visitor numbers. The rate was temporarily cut from 13.5% in 2011 at the height of the financial crisis as …


Mexico

Mexico reintroduces border reduced VAT

July 7th, 2018

Mexico is planning to reintroduce a reduced VAT rate in the 19 mile border area next to the US border. The rate for standard supplies will be 8% compared to the regular 16%. Until 2013, there was a reduced VAT rate of 11% in operation near the border.


Netherlands

Netherlands reduced VAT rate rise to 9% 2019

June 25th, 2018

The Netherlands has announced an increase in its 6% reduced VAT rate to 9%. This will come into effect on 1 January 2019. The Dutch reduced VAT rate applies to the following supplies: Foodstuffs (excluding foodstuffs for animal consumption); some soft drinks; water supplies; certain pharmaceutical products; certain medical equipment for disabled persons; domestic passenger …


Croatia

Croatia cuts VAT to 24% 2019

June 19th, 2018

Croatia’s Prime Minister, Andrej Plenkovic, has committed to reduce the standard VAT rate from 25% to 24%. The implementation date will be 1 January 2019. There is no update of the reduced rates: 13% for accommodation, food and newspapers. VAT at a rate of 5% is applicable for to selected foodstuffs, books and medical equipment. The …


Costa Rica

Costa Rica 13% VAT implementation

June 7th, 2018

Costa Rica has published a plan to introduce a 13% VAT regime to replace its existing Sales Tax. The current 13% sales tax is levied on imports and domestic sales of all goods. There are exemptions for basic foodstuffs, medicines and other essentials. Services are exempt. The country needs to widen its tax based, which means …


China

China cuts VAT rates 1 May 2018

March 29th, 2018

China is to lower a range of its VAT rates from 1 May 2018, costing €53billion per annum. The VAT rate on manufacturing supplies will be cut from 17% to 16%. The rate on construction, voice telecoms and transportation will be reduced from 11% to 10%. Further reforms will consolidate the existing 13% rate on agriculture into …


Austria

Austria lowers hotel VAT to 10%

March 1st, 2018

Austria is to lower the VAT rate on accommodation services, including hotels and bed & breakfast rooms and related services. The supplies will be moved from the current reduced rate of 13% to 10% from 1 November 2018. Most countries in the EU subsidies their tourism sectors such subsidies. The exceptions include the UK, Slovakia …


Europe

EU VAT reduced rates overhaul

January 18th, 2018

The European Commission has today issued proposals giving more flexibility to EU member states in setting their reduced VAT rates.  The plans could be implemented in 2022. Presently, states are limited to two reduced VAT rates below their national standard VAT rate, but no lower than 5%.  Countries may only set their reduced rates for prescribed goods and …


Greece

Greece extends islands reduced VAT rate

December 26th, 2017

Greece is to extend the application of a 30% discount on its VAT rate for key holiday islands. The reduction will not continue to 30 June 2018 The islands include: Chios; Kos; Leros; Lesbos; and Somos. This is the last group of island to benefit from the tax subsidy, which has been gradually withdrawn following …