International VAT Rate Round Up: August 2023

August 2023 VAT changes in Italy

On 28 June 2023, the Italian Tax Authority published in the Official Gazette Nr. 79.

The Tax Authority announced an extension of the 5% reduced VAT rate on gas (domestic and industrial use) until 30 September 2023 – DECREE-LAW 28 June 2023, n. 79, Art.1, paragraph 4.

August 2023 VAT changes in Lithuania

On the 21 June 2023, the Lithuanian Tax Authorities registered a Bill XIVP-2926 to amend Article 19 of Law No IX-751 on VAT making permanent the 9% reduced VAT rate for catering services provided by restaurants, cafes, and similar catering establishments and for takeaway food, with the exception of alcoholic beverages and services or parts of services that are related to alcoholic beverages.

Currently, catering and restaurant services are subject to a 9% reduced rate until 31 December 2023.

August 2023 VAT changes in Russia

It has been proposed that the VAT rate for certain children’s goods (baby care products, car seats and bicycles etc) will be lowered from 20% to 10%.

This draft law was submitted to parliament in late July 2023.

August 2023 VAT changes in Ukraine

In March 2022, under martial law, the Ukrainian Tax Authority reduced the VAT rate from 20% to 7% for motor gasoline, heavy distillates, liquefied gas, biodiesel, and alternative motor fuel, classified under UKT FEA codes 2709 00 10 00 and 2709 00 90 00.

The application of the reduced rate was for a limited time and due to expire until the 1 July 2023.

There is no indication that the application of the reduced rate will continue, so we are expecting from the 1 July 2023 fuels will be taxed at the basic VAT rate of 20%.

International VAT Rate Round Up: July 2023

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

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