January 2022 VAT Changes

International VAT Rate Round Up: January 2022

January 2022 VAT Changes in Bahrain

From 1 January 2022, Bahrain has increased the standard VAT rate from 5% to 10%.

There is a transition period of one year for the below scenarios. This transition period will end on 31 December 2022.

  • One off supplies:
    • If the contract is entered into on or before 23 December 2021 and the supply is made between 1 January and 31 December 2022, the VAT rate is 5% unless the contract is renewed or amended before the supply is made; and
    • If the contract is entered into on or after 24 December 2021 and the supply is made on or after 1 January 2022, the VAT rate is 10%.
  • Continuous supplies:
    • If the contract is entered into on or before 23 December 2021 and the supply is made up to 31 December 2022, the VAT rate is 5% provided the contract is not renewed or amended in this time. If the contract is renewed or amended, 10% VAT will apply to the portion of supplied on/after the contract is renewed or amended; and
    • If the contract is entered into on or after 24 December 2021 and the supply is made on or after 1 January 2022, the VAT rate is 10%. VAT rate of 5% will apply to the portion that is supplied on or before 31 December 2021.

January 2022 VAT Changes in Bulgaria

In 2020, Bulgaria temporarily reduced the VAT rate of some goods and services to 9%.

In December 2021, the Bulgarian parliament voted to extend the reduced VAT until the end of the state of emergency in Bulgaria.

The 9% VAT rate applies to the below:

  • Catering and restaurant services;
  • Books and other publications;
  • Services relating to the use of sports facilities; and
  • Tour operator services.

The 9% VAT rate also applies to hotel accommodation, but this VAT rate is permanent, not temporary.

January 2022 VAT Changes in Latvia

From 1 January 2022, the VAT rate on books and press in printed and electronic format will be reduced to 5%.

Below is a list of some of the books that will have a reduced VAT rate going forward:

  • Books;
  • Brochures;
  • Booklets;
  • Colouring and painting books for children;
  • Notebooks;
  • Press publications; and
  • Newsletters and other periodicals.

January 2022 VAT Changes in Romania

From 1 January 2022, the VAT rate for the below will be reduced to 5% if in electronic format:

  • Books;
  • Textbooks;
  • Newspapers; and
  • Periodicals.

The 5% VAT rate already applies to the above in physical format.

January 2022 VAT Changes in Spain

Spain has announced that the VAT rate on electricity supplies will be reduced from 21% to 10% until 30 April 2022.

The VAT rate on the supply of masks is 4% and there is a 0% VAT rate on imports of medical supplies until 30 June 2022.

International VAT Rate Round Up: December 2021

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

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