International VAT Rate Round Up: July 2022

July 2022 VAT Changes in Belgium

The temporary reduced VAT rate for the supply of electricity has been extended to 31 December 2022.

The reduced VAT rate is 6%.

On 11 May 2022, the application of the temporarily reduced VAT rate for delivery of natural gas and heat via heating networks application was extended from 30 June 2022 until 30 September 2022.

On 24 June 2022, the Council of the Ministers announced that a draft Royal Decree had been approved and the application of the reduced rate for the supply of electricity, natural gas and heat via heating networks and heat pumps under residential contracts will be further extended until 31 December 2022.

July 2022 VAT Changes in Croatia

A reduced VAT rate for liquefied petroleum gas has been confirmed.

From 1 April 2022 to 31 March 2023 VAT rate of natural gas will be reduced to 5%.

The VAT rate for liquefied petroleum gas is 25%.

July 2022 VAT Changes in India

The government intends to raise taxes from 12% to 18% on certain goods and services.

The rate on coal and petroleum will also increase from 5% to 12%.

There may be a discussion/ a proposal to change the VAT rate tier:

• From 5% to 7% or 8%;
• From 18% to 20%.

July 2022 VAT Changes in Italy

Italy has announced the reduced VAT rate (5%) has been extended for methane gas intended for civil and industrial use in relation to the estimated consumption for the months of Q2 2022 (April – June 2022).

From 3 May 2022 to 8 July 2022, the VAT rate for natural gas used for transport was reduced from 22% to 5%.

July 2022 VAT Changes in Poland

Poland has announced the extension of some measures aimed to reduce inflation until 31 October 2022.

These measures were due to expire on 31 July 2022.

The following has been extended:

• VAT rate reduction of fuel from 23% to 8%;
• 5% VAT rate on electricity and heating; and
• Fertilizers and basic foods are exempt from VAT.

July 2022 VAT Changes in Russia

Russia has confirmed a VAT rate cut in accommodation services for 5 years.

From 1 July 2022 to 30 June 2027, the VAT rate on accommodation services will drop from 20% to 0%.

July 2022 VAT Changes in Sri Lanka

The Sri Lanka Inland Revenue Department has announced an increase in the standard VAT rate.

From 1 June 2022, the standard VAT rate has increased from 8% to 12%.

International VAT Rate Round Up: June 2022

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

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