VAT news tagged as "VAT cut"

Greece

Greece VAT rate cut to 22% 2021

September 9th, 2018

The Greek government has committed to reduce its standard VAT rate by 2% from 24% to 22% by 2021. It last raised its VAT rate from 23% to 24% in June 2016. Previously, during the height of the financial crisis, it had increased the rate twice in 2010 from 19% to 23%. The latest announcement comes as …


Romania

Romania cuts tourism VAT to 5%

September 6th, 2018

Hotel accommodation and restaurant services in Romania are to be recategorised from the first reduced VAT rate of 9% to the second reduced 5% rate. The standard VAT rate for all other goods and services in Romania is 19%. Romania recently confirmed that it will not cut its VAT rate to 18% on 1 January …


Lithuania

Lithuania cuts food VAT

August 29th, 2018

Lithuania has proposed reclassificying foodstuffs from the 9% reduced VAT rate to 5%. The standard VAT rate in the Baltic state is 21%. The measure must first be approved by Parliament, but, given heavy inflation in the retail sector, is likely to pass.


Romania

Romania tourism VAT cut

August 24th, 2018

Romania is reviewing cutting the VAT rate on tourism services. This would include hotel accommodation, and entrance into attractions, hotels and similar public events. Currently, tourism related services are subject to the standard 19% VAT rate. The government is now reviewing reclassifying them to the 5% reduced rate. Romania just postponed a scheduled VAT rate 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 …