International VAT Rate Round-Up

International VAT Rate Round Up: January 2024

In today’s global economy, staying abreast of international VAT rate adjustments is crucial for businesses operating across borders. Here’s a concise roundup of recent updates from several countries, including Bulgaria, Greece, Lithuania, Luxembourg, Romania, Sri Lanka, and Vietnam, detailing changes in VAT rates and regulations.


The Bulgarian government has extended various reduced VAT rates:

  • The reduced VAT rate of 9% for restaurant and catering services has been extended until 31 December 2024.
  • The same 9% rate also applies to tour operator services and the use of sports facilities until 30 June 2024.
  • Additionally, the 0% VAT rate for the supply of bread and flour is extended until 30 June 2024.


Greece has made significant adjustments to its VAT rates:

  • Non-alcoholic beverages and carbonated waters will now be subject to a reduced VAT rate of 13% permanently.
  • Cinema tickets, defibrillators, and select personal hygiene items will enjoy a super reduced VAT rate of 6% permanently.
  • The reduced 13% VAT rate for cocoa, tea, chamomile, and infusions will remain in effect until 30 June 2024.
  • The transportation of persons and their luggage (excluding taxis) will also be subject to the 13% reduced VAT rate until 30 June 2024.


In Lithuania, proposed amendments to the VAT law include:

  • Introducing a reduced VAT rate of 5% for all fruits, berries, and vegetables sold in the country.
  • Rejection of amendments to extend the 9% VAT rate to catering services and takeaway food.
  • A return to the standard VAT rate of 21% from 1 January 2024.


Luxembourg’s VAT rates are undergoing changes:

  • The temporary reduction of VAT rates will come to an end, with the standard VAT rate set to be 17% from 2024.
  • The Intermediary VAT rate will be 14%, while the Reduced VAT rate will stand at 7%.


Romania has implemented VAT rate adjustments as follows:

  • The reduced VAT rate of 9% for restaurant and catering services remains, with exceptions such as alcoholic beverages.
  • Additional services, previously taxed at the super reduced rate of 5%, will now be taxed at the standard rate of 19%.
  • These services include various transportation methods used for tourist or leisure purposes.

Sri Lanka

Sri Lanka has decided to increase its VAT rate:

  • The VAT rate will rise from 15% to 18%, effective from 1 January 2024, as approved by the Cabinet of Ministers.


Vietnam has extended its reduced VAT rate:

  • The reduced VAT rate has been lowered from 10% to 8% until 30 June 2024, applicable to most goods and services except those specified in Resolution 43/2022/QH15.

Keeping track of these changes is essential for businesses navigating international markets, ensuring compliance with tax regulations and optimizing financial strategies. Stay tuned for further updates as VAT policies continue to evolve globally.

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