International VAT Rate Round Up: June 2024
The June edition of our International VAT Rate Round Up highlights the latest updates from Finland, Lithuania, Slovakia and Vietnam.
Finland
On May 30, 2024, the Finnish government introduced a bill to parliament proposing an increase in the standard VAT rate from 24% to 25.5%. This adjustment is set to take effect on September 1, 2024.
Lithuania
Lithuania is also undergoing changes to its VAT regulations. On April 19, 2024, a bill (Reg. Nr. XIVP-3658) was submitted to the Seimas, proposing amendments to the VAT Law, specifically Article 19, Paragraph 3, Clause 6. The proposed changes focus on reducing the VAT rate for catering services and takeaway meals provided by restaurants, cafes, and similar establishments to 9%. If approved, this reduced rate will come into force on July 1, 2024, and will remain effective until the end of 2027.
Slovakia
In Slovakia, a draft act was submitted on April 17, 2024, to the National Council, proposing a temporary reduction of the VAT rate on fuels. The bill seeks to introduce an 8% VAT on gasoline and diesel, a notable decrease from the standard rate. This temporary measure is planned to be in effect from July 1, 2024, to December 31, 2025.
Vietnam
Vietnam is considering an extension of its current 8% VAT rate until the end of 2024. The government is actively summarizing and evaluating the impact of this reduction and plans to report the findings to the National Assembly. This step is crucial for the timely consideration and potential implementation in the latter half of 2024.
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International VAT Rate Round Up: May 2024
If you missed out on our May VAT rate announcements of VAT threshold changes, you can catch up now.
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