Global VAT Rate Changes: April 2020
Our experts review all of the VAT rate changes announced by tax authorities in the last month.
Czech Republic / Czechia
In Czech Republic, there are three VAT rates:
- Standard rate of 21%;
- First reduced rate of 15%;
- Second reduced rate of 10%
From 1 May 2020, the VAT rate for the below categories will be reduced from 15% and 21% to 10%:
- Catering services including serving of draught beer;
- Cleaning;
- Care for kids and the elderly ;
- E-books and audiobooks supply
- Drinking water and sewer charges
- Hairdressing and barber services
- Repairs of bicycles
- Footwear and textile products
- Adjustments and repairs of clothing
Estonia
From 1 May 2020, the VAT rate on e-books and other electronic publications has been reduced from 20% to 9%.
Not all electronic publications are included in this reduction – music and video resources and publications with mostly advertising content will be subject to 20% VAT rate.
Manitoba
From 1 July 2020, the PST rate will be decreased from 7% to 6%.
Norway
The low VAT rate has been reduced from 12% to 6% for the period 1 April 2020 to 31 October.
This applies to passenger transportation, accommodation, public broadcasting and entry to cinemas, sports events, amusement parks and adventure centres.
Spain
From 22 April 2020, the VAT rate on e-books and other electronic publications has been reduced form 21% to 4%.
United Kingdom
From 1 May 2020, the VAT rate on e-books and other electronic publications has been reduced from 20% to 0%.
