International VAT Rate Round Up: February 2022

February 2022 VAT Changes in Belgium

Belgium has announced a temporary VAT rate reduction to help taxpayers with for the rising energy prices.

From 1 March 2022 to 1 July 2022, there will be a temporary VAT rate reduction on electricity from 21% to 6%.

February 2022 VAT Changes in Bulgaria

The Bulgarian government has submitted a proposal for the application of a 0% VAT rate from 1 April 2022 for the below:

• Water, natural gas, central heating and electricity supplied for households;
• Basic food and beverages; and
• Medical products, medical devices and medical equipment.

February 2022 VAT Changes in Poland

Poland has announced a further reduction of their VAT rates in response to rising prices.

The below VAT rates will apply from 1 January 2022 to 31 July 2022:

• 8% on fuel;
• 5% on electricity;
• 5% on heat energy;
• 0% on certain basic foodstuffs;
• 0% on fertilizers; and
• 0% on gas.

February 2022 VAT Changes in Vietnam

Vietnam has announced a VAT rate reduction in 2022 for those goods and services that are subject to 10% VAT rate. The new temporary VAT rate will be 8%. The reduced VAT rate will be in place from 1 February to 31 December 2022. Exempt goods and services, or goods and services at the 5% VAT rate are not affected by this change.

The VAT reduction will not apply to the below:

• Information technology;
• Banking, insurance and other financial activities;
• Telecommunications;
• Real estate;
• Mining and the production of petroleum;
• Metal production; and
• Goods and services that are subject to special consumption tax.

International VAT Rate Round Up: January 2022

If you missed last month’s VAT rate announcements or VAT threshold changes, you can catch up now.

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