International VAT Rate Round Up: February 2023

February 2023 VAT Changes in Bulgaria

On 29 December 2022, NRA published an updated version of the VAT Law.

Below is a synopsis of some of the changes in relation to the 9% reduced VAT rate.

Extension of the 9% reduced VAT rate for certain supplies until 31 December 2023 (initially applied from 1 July 2020):

• Restaurants and catering services including takeaway and delivery, but no alcohol;
• Supplies under the special travel-agent VAT scheme;
• Delivery of services for the use of sports facilities;
• Supplies of central heating and natural gas;
• Bread and flour.

The 9% reduced VAT rate applies permanently to:

• Accommodation;
• Books and periodicals, including electronic ones if:
  • the publication is not entirely or mainly devoted to advertising;
  • not consist entirely or mainly of moving images or audible music;
• Baby food and diapers.

February 2023 VAT Changes in Italy

The VAT rate on Natural Gas (domestic and industrial use) is currently set to 5%. The VAT rate was previously set at 10%.

On 29 December 2022, the Italian Tax Authority further extended the 5% VAT rate on Natural Gas (domestic and industrial use) until 31 March 2023.

The reduced rate was initially applied in December 2021 and was extended multiple times:

• 1^st extension until 31 March 2022;
• 2^nd extension until 30 June 2022;
• 3^rd extension until 30 September 2022;
• 4^th extension until 31 December 2022;
• 5^th extension until 31 March 2023.

February 2023 VAT Changes in Sweden

On 21 December 2022, the Swedish Tax Authorities announced the VAT rates on electronic publications, and they also updated their website in the VAT rates section.

Electronic books and newspapers are subject to a 6% VAT rate.

The 6% VAT rate applies if:

• The publication is not entirely or mainly devoted to advertising; and
• Does not consist entirely or mainly of moving images or audible music.

The main condition for the publication to be considered advertising is when its content consists of at least 75% advertising.

International VAT Rate Round Up: January 2023

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

Work with real VAT experts

With over 15 years’ experience in the area of VAT compliance and consultancy, we handle all countries and languages where VAT obligations exist. We have a dedicated & centralized team of VAT experts, with a reputation of excellence within all global tax offices ready to speak to you about your VAT obligations.

Taxback International

For over 25 years Taxback International has been a world leader in VAT consultancy and compliance providing expert support to more than 12,000 global clients including Apple, Google, IBM, and Twitter.

With increasing digitalization of global tax processes, we have developed tailored technology solutions to solve challenges facing companies today.

• Comply – End-to-end VAT compliance platform.
• TBI Pay – Streamlined cross-border payments technology.
• VAT Connect – Cloud-based, automated review of transactional data and images via AI and Machine Learning for Domestic and Foreign VAT Reclaim.