Expected VAT rate changes in 2020.
12th December 2019: Czech Republic, Hungary, Ireland and Poland are amongst the countries to be impacted by VAT rates changes in 2020.
The complex world of International VAT is subject to continually changing legislation, diverse filing requirements and large financial penalties for non-compliance. When the stakes are this high, you need to ensure your company is up to date with the latest VAT rate changes.
With 2020 looming, Taxback International take a look ahead to some of the rate changes that may affect you.
From 1 May 2020, the VAT rate for the below will reduce from 15%/21% to 10%:
- Catering services including serving draught beer
- Supply of e-books and audiobooks
- Water and sewer charges
- Hairdressing and barber services
- Repairs of bicycles
- Adjustments and repairs of clothing
- Textile products
- From 1 January 2020, the VAT rate for accommodation services from hotels, B&B and house sharing will be reduced from 18% to 5%
- Currently, the standard rate of VAT applies to food supplements. A Revenue concession allowed the zero rate to be applied to certain types of vitamins, minerals and fish oils.
- From 1 January 2020, this will no longer be the case and Ireland will raise the VAT applied to certain food supplements to 13.5%.
- This will not apply to all food supplements. Certain products such as some vitamins, minerals and fortified foods will continue to benefit from the 0% VAT rate.
From 1 April 2020 the VAT rate for the below will reduce from 8% to 5%:
- All types of bread and cakes
- Soups and broths
- Homogenised and dietetic foods
- Food for infants and toddlers, pacifiers, nappies and car seats
- Hygiene products
From 1 April 2020 the VAT rate for the below will increase:
- Some spices (cumin, turmeric) will increase from 5% to 8%
- Lobsters, octopus and other crustaceans, molluscs and aquatic invertebrates (including crabs, crawfish, shrimps) and preparations made of them, caviar and dishes sold in catering establishments that include the products mentioned here will increase from 5% or 8% to 23%
Ice that is used for food or other refrigeration purposes will increase from 8% to 23%.
See more Taxback International Articles
2019 has already brought many changes in the indirect tax world.
19th June 2019: What are the most important VAT updates from the first half of 2019?
Businesses must begin to prepare for EU VAT amendments in 2020.
16th December 2019: Several ‘quick fixes’ to the EU VAT system will impact B2B intra-community supplies and are expected to have considerable implications for businesses trading internationally.
EU VAT system amendments to come into force on January 1st 2020.
5th December 2018: The European Council confirmed four adjustments will be made to the current EU VAT rules in order to improve them.