VAT rate changes

International VAT Rate Round-up: July 2020

Austria

The Austrian Government has temporarily cut the VAT rate to 5%, from 1st July 2020 on the following:

  • Food and drinks in restaurants
  • theatre
  • cinema tickets
  • works of art
  • books
  • newspapers
  • zoos and nature parks
  • accommodation or overnight stays
  • other commercial catering activities such as butchers, bakers or Buschenschanken
  • e-publications

 

This change was introduced to help the affected businesses cope with the fallout from the COVID-19 pandemic.

The change of VAT rate is effective until the end of 2020.

 

Bulgaria

From 1 July 2020 – 31 December 2020, the 9% VAT rate will be temporarily introduced for certain supplies of goods and services.

The reduction of the VAT rate is a temporary measure for coping with the fallout of the COVID-19 pandemic and is intended to support all of the affected business sectors.

The reduced VAT rate will apply to the below:

  • Catering services and restaurants (excluding alcoholic beverages)
  • Books
  • Food suitable for babies and children, diapers and other similar hygiene items

 

Czech Republic

The Czech Republic government have adopted a tax package that will reduce the VAT rate for the below from 15% to 10% from 1st May 2020:

  • Admission to cultural and sporting events
  • Accommodation services
  • Saunas and fitness centres

 

Cyprus

The VAT rate for tourism accommodation and catering sector services has been reduced from 9% – 5% from 1 July 2020 – 10 January 2021.

 

Germany

On 12 June 2020, cuts to VAT rates as part of a COVID-19 stimulus package were approved.

From 1 July 2020 to 31 December 2020 a temporary reduction in the German VAT rates will be introduced.

The standard VAT rate will reduce from 19% to 16% (standard VAT rate) and from 7% to 5% (reduced VAT rate).

In addition, from 1 July 2020 until 30 June 2021, the VAT rate for catering food services and meals in restaurants will be reduced from the standard to the reduced rate.