VAT news tagged as "VAT cut"

Croatia

Croatia delays 1% VAT cut till 2020

August 15th, 2018

The Croatian Prime Minister, Andrej Plenković, has said that the proposed cut in the standard VAT rate from 25% to 24% may be delayed from 1 Jan 2019 to 1 Jan 2020. A VAT rate cut had been committed to in the 2016 elections by the ruling Croatian Democratic Union (HDZ) party. The proposed cut …


Romania

Romania abandons 2019 VAT cut

August 3rd, 2018

Romania is considering postponing cutting its 19% VAT rate to 18%, as planned for January 2019. The decrease is in jeopardy as the country is struggling to reduce its deficit to 3% of Gross Domestic Product. Romania originally raised VAT from 19% to 24% in 2010 during the European financial crisis. But has since cut …


Moldova

Moldova cuts hotel VAT

July 29th, 2018

Moldova has proposed recategorising the VAT rate on hotel and restaurant services from the standard 20% rate to the reduced rate of 10%. The new rate will apply form October 2018. Tourism tax subsidy Few countries in the EU charge full VAT on such hospitality services.  Countries such as Ireland and Germany have long provided …


India

India cuts e-book VAT to 5%

July 28th, 2018

On 21 July, India’s Central Board of Indirect Taxes & Customs approved a reclassification of the e-books VAT from the standard rate to 18% to the lower rate of 5%. One condition for the application of the lower rate is that a paper-version of the publication must also be available.


China

China VAT cuts boost exports to US despite tariff wars

July 12th, 2018

China’s lowering of VAT in May on aluminium exports to the US and rest of the world has helped contribute to a 37% growth sales (source: Chinese Customs, June 2018). This comes despite the US imposing heavy tariffs on aluminium in March, and a spiralling trade war with China and the European Union. Since May …


Barbados

Barbados cuts VAT to 15% 2020

June 8th, 2018

The new Barbadian government is to cut VAT from 17.5% to 15% on 1 January 2020. The cut is partially aimed at helping to bolster the financial services sector, which cannot recover VAT it is charged as its services are VAT exempt. The government is anxious that regulatory tightening to avoid EU blacklisting may squeeze …


Sri Lanka

Sri Lanka 12.5% VAT 2020

May 27th, 2018

Sri Lanka plans to cut its Value Added Tax rate from to 12.5% from the current 15%. The plan was announced yesterday by the Finance Minister, Mangala Samaraweera. Sri Lanka agreed to raise its VAT rate from 11% to 15% in 2016.


Czech Republic

Czech VAT rate cuts

April 8th, 2018

The Czech Ministry of Finance has proposed a range of changes to the classification of supplies from the standard 21% VAT rate to the reduced rate of 10%. These include: Supplies of catering services Public provision of water supplies Supplies of local services including barbers, household goods’repairs and domestic cleaning


Romania

Romania cuts VAT to 18% 2019

January 29th, 2018

Romania has proposed a 1% VAT rate cut to 18% from 1 January 2019. The decrease comes as part of a package of tax simplifications. In addition to the reduction in the standard rate, the 5% reduced VAT rate will be extended to a number of property and agricultural supplies. Following the financial crisis, Romania …


St Lucia

St Lucia cuts VAT to 12.5%

February 18th, 2017

The Eastern Caribbean island of St Lucia this week announced a reduction in Value Added Tax from 15% to 12.5%. VAT was introduced to St Lucia in 2012 at 15%, a relatively high rate for the region.  Hotel and accommodation services are charged at 10%.