International VAT Rate Round-up: December 2020
VAT Changes in Bulgaria
Bulgaria has announced a proposed amendment to the VAT act in relation to “takeaway” (home delivery) food services.
The VAT rate for “takeaway” services is currently 20%. It is proposed the VAT rate will be reduced to 9%.
Only food consumed at a restaurant is subject to the lower VAT rate of 9%.
VAT Changes in Canada
The Federal Government has announced a proposal to levy 5% goods and services tax on electronic and digital services provided by foreign businesses that are not required to register under the current GST/HST rules from 1 July 2021.
This will apply to non-resident foreign businesses whose annual supplies exceed $ 30,000.
VAT Changes in Hungary
Hungary have announced a temporary reduced VAT rate of 5% on the supply of takeaway meals and non-alcoholic drinks.
This reduced VAT rate is effective from 14 November 2020 to February 2021.
VAT Changes in Moldova
From 1 January 2021, a reduced VAT rate of 12% is proposed to be introduced to the below:
- Food and services supplied by business providing hotel and restaurant services (VAT rate is currently 15%)
VAT Changes in Norway
Norway have announced the reduced VAT rate from 12% to 6% has been extended until 1 July 2021.
On 31 March 2020, Norway introduced the reduction in an attempt to mitigate the financial impact of COVID-19.
This reduction was originally set from 1 April 2020 to 31 October 2020.
The 6% VAT rate applies to:
- Passenger transport;
- Hotel accommodation;
- Public broadcasting and entry to cinemas;
- Sports events; and
- Amusement parks and experience centres
Covid-19 related VAT Changes in Greece
Greece has announced an extension for payments of VAT liabilities that expire between 1 November and 30 November 2020 to 30 April 2021.
This extension is granted free of interest and surcharges.
Payments that are due on VAT returns with filing deadlines between 30 November 2020 and 31 December have also been extended to 30 April 2020.
The extension will be available for companies that have been financially affected by COVID-19 with a specific Activity Code Number (ACN).
Covid-19 related VAT Changes in Italy
Italy has announced for companies that meet the below criteria, their December 2020 VAT payments can be postponed until 16 March 2021:
- Revenues did not exceed EUR 50 million in 2019;
- Suffered a reduction in their turnover of at least 33% in November 2020 (compared to November 2019; and
- Had to temporarily suspend business activity due to the restrictions put in place because of COVID-19
The suspended payment will have to be made in a single instalment by 16 March 2021, or in up to four equal monthly instalments starting from 16 March 2021.
Covid-19 related VAT Changes in Slovenia
Slovenia has announced a VAT payment deferral option. The tax authority may grant a deferral of payment of VAT for up to 2 years or they may allow payments in a maximum of 24 monthly instalments over a period of 24 months.
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