International VAT Rate Round Up: January 2023

January 2023 VAT Changes in Greece

At the beginning of December 2022, the Greek government adopted a bill extending the 13% reduced VAT rate until 30 June 2023, for certain goods and services.

The bill covers the following changes:

• passenger transport and their luggage, catering and tourist package, non-alcoholic beverages, and aerated waters
  • 13% reduced rate extended until 30 June 2023 (start date 1 June 2020);

• gyms and dance schools
  • 13% reduced rate extended until 30 June 2023 (start date 01 October 2021);

• cinema tickets
  • 6% reduced VAT rate from 1 January 2023 until 30 June 2023.

January 2023 VAT Changes in Ireland

From 1 January 2023, newspapers and periodicals, including digital editions, will be zero-rated.

The VAT rate relating to the hospitality and tourism sector will return to 13.5% from 1 March 2023.

January 2023 VAT Changes in Italy

Fuel – Natural Gas Used for Transport is currently set at a 5% reduced VAT rate.

Below is a timeline for the extension of the VAT rate:

• VAT rate originally reduced from 3 May 2022 until 8 July 2022;
• subsequently extended to 2 August 2022;
• subsequently extended to 21 August 2022;
• subsequently extended to 5 October 2022;
• subsequently extended to 17 October 2022;
• subsequently extended to 31 October 2022;
• subsequently extended to 4 November 2022;
• subsequently extended to 18 November 2022; and
• extended again until 31 December 2022.

January 2023 VAT Changes in Lithuania

After months of discussions, Seimas of the Republic of Lithuania has adopted an amendment of the VAT Law in Article 19 “VAT rates”.

The final version of the amendment is as follows:

The 9% reduced VAT rate applies to:

• heat energy for residential premises;
• printed and electronic books and non-periodical publications’;
• accommodation services;
• passenger transportation (and their luggage) services;
• firewood and wood products for burning for household users;
• catering services – until 31 December 2023;
• visiting art/culture institutions/events;
• performance services provided by actors, singers, musicians, dancers etc – until 30 June 2023;
• visiting sports events/clubs – until 30 June 2023.

January 2023 VAT Changes in Poland

The currently applicable reduced VAT rates in Poland, part of the anti-inflationary shield, are in contradiction with the European regulations, and Poland will have to bring back the higher VAT rates.

Recently, the Polish Finance Minister signed a regulation with the following changes:

• Meals –  not prepared (basic) food
  • 0% VAT rate  – will be extended until 30 June 2023;

• Natural Gas – domestic use
  • Previous VAT rate of 0%
  • VAT rate will return to 23%, but citizens/households can apply for a refund;

• Electricity and Heat
  • Previous VAT rate of 5%
  • VAT rate will return to previous 23%;

• Motor Fuels
  • Previous VAT rate 8%
  • VAT rate will return back to the previous VAT rate of 23%;             

• Fertilizers
  • Previous VAT rate 0%
  • VAT rate will return back to 8% for 2 years until the end of 2024.

January 2023 VAT Changes in Slovakia

The VAT rate relating to restaurant and catering services has been temporarily reduced:

The VAT rate will be reduced from 20% to 10% for the period 1 January 2023 to 31 March 2023.

The reduced VAT rate applies only for immediate consumption, otherwise e.g., for delivery, the original tax of 20% will be applied.

The reduced VAT rate is also applicable to:

• Transportation of people by cable cars and ski lifts;
• Entrance fees to indoor and outdoor sports facilities; and
• Entrance fees for artificial swimming pools.

January 2023 VAT Changes in Switzerland

Swiss Federal Council approved the increase of the VAT rates from 1 January 2024

• The standard rate of 7.7% will increase to 8.1%;
• The reduced rate of 2.5% will increase to 2.6%; and
• The special rate for the accommodation of 3.7% will go to 3.8%

The rates are decided but the ordinance is still in its draft stages.

January 2023 VAT Changes in Vietnam

From 1 January 2023, the standard VAT rate will return back to 10%.

From 1 February 2022 to 31 December 2022, the VAT rate was reduced to 8%.

International VAT Rate Round Up: December 2022

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.