resources-post-top-bg Global VAT rate changes: April 2020

Global VAT rate changes: April 2020

VAT News Updates

8th May 2020: A roundup of all the VAT rate changes announced by tax authorities last month.

Our experts review all of the VAT rate changes announced by tax authorities in the last month. 

Czech Republic

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%.

See more Taxback International Articles

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.

Global VAT updates relating to Covid-19

Updated 7th September 2020: Governments globally continue to alter VAT rates to support their businesses and economies.

VAT rate changes 2020.

24 January 2020: Canary Island, Germany, Czech Republic, Ireland and Italy are some of the countries to be impacted by VAT changes in 2020.