April 2023 VAT Changes

International VAT Rate Round Up: April 2023

April 2023 VAT Changes in Belgium

On 29 March 2023, Belgium enacted a bill, which will see the low 6% VAT rate for the supply of electricity, natural gas used as heating fuel and heat through heat networks for non-business use become permanent.

The bill will apply from 1 April 2023.

April 2023 VAT Changes in Bulgaria

The Bulgarian Ministry of Finance has published a proposal for public consultation for amendments to the VAT Act to limit the scope of application of the reduced 9% VAT rate.

The proposal states that from 1 July 2023, that the standard 20% VAT rate be applicable to the below supplies of goods and services.

At present, the below are subject to the 9% reduced VAT rate:

  • Restaurant and catering services;
  • The use of sports facilities; and
  • Tour operator services

The public consultation will be open until 16 April 2023.

April 2023 VAT Changes in Greece

In a press release of the Ministry of Finance, published on 15 February 2023, it was announced there will be a further extension of the reduced VAT rates until the end of 2023.

Before this announcement the VAT rate extension was due to end at the end of June 2023.

The 13% reduced VAT rate applies to:

  • coffee, non-alcoholic beverages, and aerated waters;
  • passenger transport and their luggage;
  • catering and tourism packages; and
  • gyms and dance schools that are not exempt from VAT

The 6% super reduced VAT rate applies to:

  • cinema tickets; and
  • goods related to public health.

April 2023 VAT Changes in Ireland

On 21 February 2023, the Government of Ireland announced new cost-of-living measures for families and businesses.

The measures for businesses include a new extension of:

  • the 9% reduced rate for tourism and hospitality
    • This has been extended until the end of August 2023
  • the 9% reduced rate for energy (gas and electricity)
    • This has been extended until the end of October 2023

April 2023 VAT Changes in Portugal

On 24 March 2023, Portugal announced VAT on a list of basic food items will be scrapped from April 2023 to October 2023.

This comes as part of a series of new measures to help the population cope with the rising cost of living.

The list of food products includes 44 essential food products.

Some products include, bread, potato, rice and pasta, milk, eggs, cheese, several fruits and vegetables, olive oil, butter, chicken meat, beef, and several fishes.

It is expected that these new measures will be fully implemented by mid-April.

April 2023 VAT Changes in Spain

In December, the Spanish Tax Authority extended the 5% reduced rate on Natural Gas until the end of 2023.

BOE Royal Decree-Law 20/2022 published in State Agency Official State Gazette.

In February, Agencia Tributaria published INFORMA with VAT Questions, confirming that the reduced rate applies to Natural Gas used for vehicles to the extent that it falls under tariff codes:

  • 2711.11.00: liquefied natural gas; and
  • 2711.21.00: natural gas in a gaseous state.

International VAT Rate Round Up: February 2023

If you missed out on February’s VAT rate announcements of VAT threshold changes, you can catch up now.

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