International VAT Rate Round Up: September 2022

September 2022 VAT Changes in Germany

The German government has announced the VAT rate on natural gas will be reduced from 19% to 7%.

The reduced VAT rate will be in effect from 1 October 2022 to 31 March 2024.

September 2022 VAT Changes in Lithuania

The Lithuanian government has introduced draft legislation that would reduce the VAT rate on gas supplied to households from 21% to 5%.

This reduced VAT rate would apply to liquefied petroleum gas in cylinders and natural gas.

If this draft legislation is passed, the reduced VAT rate will come into effect in November 2022.

September 2022 VAT Changes in Peru

Peru will reduce the VAT rate on restaurants, hotels, tourist accommodation and catering services.

The VAT rate for qualifying restaurants and hotels will be 8%.

The tax rate for hotels and restaurants will be 10% (8% VAT rate and 2% promotion municipal tax).

This reduced VAT rate will have some info effect from 1 September 2022 to 31 December 2024

The reduced rate will apply to the following:

• Businesses whose main activity is the operation of hotels/restaurants and tourist accommodations – the income from these activities must be at least 70% of their income; and
• Businesses must be small or micro businesses and have annual sales of less than PEN 7,820,000.

If businesses are part of an economic group that does not meet the above requirements, they will not qualify for the reduced VAT rate.

September 2022 VAT Changes in Poland

The Polish government have announced that the reduced VAT rate for fuel, electricity and foodstuffs will be extended to 31 December 2022.

The below VAT rates will apply until 31 December 2022:

• 8% on fuel;
• 5% on electricity;
• 0% on foodstuffs;
• 5% on heat energy;
• 0% on fertilizers; and
• 0% on natural gas.

September 2022 VAT Changes in Singapore

The Minister for Finance has announced the GST rate will increase from 7% to 8% from 1 January 2023.

They have also announced a further increase to 9% from 1 January 2024.

International VAT Rate Round Up: August 2022

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

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