International VAT Rate Round Up: September 2023

September 2023 VAT Changes in Finland

The Finnish Government included in its Draft Budget, published on 28 August 2023, increasing the VAT rate to 14% for goods and services currently subject to 10%, excluding newspapers and magazines.

If approved the change will take effect from January 2025.

The below goods and services currently subject to 10%:

• Hotel services;
• Public transport;
• Pharmaceuticals;
• Entrance to cultural & sporting events;
• Film screenings; and
• Royalties for television and public radio activities.

September 2023 VAT Changes in Ireland

On 31 August 2023, the Revenue updated its website.

Despite the multiple calls from the affected sectors, from the 1 September 2023 Tourism and Hospitality are back to a 13.5% VAT rate.

13.5% VAT rate applies to certain goods and services including:

• catering and restaurant supplies (excluding alcohol, soft drinks and bottled water)*;
• hot take-away food, and hot tea and coffee*;
• hotel lettings, for example, guesthouses, caravan parks or camping sites*;
• admissions to cinemas, theatres, certain musical performances, museums, art galleries or exhibitions*;
• amusement services of the kind normally supplied in fairgrounds or amusement parks*
• admission to an open farm*;
• hairdressing services*;
• certain printed matter such as brochures, leaflets, catalogues or printed music (excluding books)*;
• certain fuels;
• certain building services;
• repair services;
• cleaning and maintenance services (generally);
• certain photographic supplies;
• the importation of certain works of art and antiques;
• the supply of live horses, other than those normally intended for use in the preparation of foodstuffs or in agricultural production;
• hire of horses;
• supply of greyhounds;
• tour guide services; and
• short-term hire.

* 13.5% VAT rate applies from 1 September 2023 and prior to 1 November 2020.

September 2023 VAT Changes in Moldova

The VAT rate for hotel and restaurant services will reduce from 20% to 8% from 1 January 2024.

The 20% standard VAT rate will apply to passenger cars from 1 January 2026.

September 2023 VAT Changes in Portugal

As previously mentioned, Portugal was due to end the zero VAT rate that was applied to basic food items at the end of October 2023.

It has been confirmed that the zero VAT rate will be extended until 31 December 2023.

The VAT rate was reduced from 6% to 0% for 46 basic food items in April 2023.

September 2023 VAT Changes in The Philippines

On 2nd & 3rd August 2023, the House of Representatives approved and transmitted to the Senate Bill Nr. 8456 which brings a 0% VAT rate on the sales of natural gas.

The Bill still needs approval from the Senate and shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation.

September 2023 VAT Changes in Singapore

As previously mentioned, Singapore will increase the GST rate again from 8% to 9% from 1 January 2023.

In January 2023, the GST rate was increased from 7% to 8%.

September 2023 VAT Changes in Thailand

At present, the Thai government is considering whether to reintroduce the 10% VAT rate on 30 September 2023.

The government has not come to a final decision yet.

If the government decides to not extend the 7% VAT rate, the VAT rate will automatically revert to the standard 10% rate on 30 September 2023.

International VAT Rate Round Up: August 2023

If you missed out on our August VAT rate announcements of VAT threshold changes, you can catch up now.

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