International VAT Rate Round Up: February 2021

VAT rate updates are more frequent than ever. Taxback International update you monthly on the most important VAT changes, so you can keep your business up to date.

Standard VAT rate updates:

Greece VAT rates

The VAT rates for the islands Samos, Chios, Kos, Lesvos and Leros will be reduced until 30 June 2021.

The standard, reduced and super-reduced VAT rate are reduced by 30% for these islands.

The VAT rates will now be:

  • Standard VAT rate – 30%;
  • Reduced VAT rate – 9%; and
  • Super-reduced VAT rate – 5%

Austria VAT rates

Austria announced an extension of the reduced 5% VAT rate in the hospitality, cultural and hotel industries until 31 December 2021.

There will also be an extension of existing tax payment deferrals with no interest charges or penalties until 31 March 2021

Bulgaria VAT rates

There is a VAT reduction on services provided by restaurants or catering companies, including food delivery, books, baby foods, baby diapers and similar hygiene products for babies from the standard 20% to 9%.

The measure will apply from 1 July 2020 to 31 December 2021, and VAT reduction on tour operators’ services, beer and wine provided as a part of restaurant/catering services and the use of certain sports facilities to 9 % for the period from 1 August 2020 to 31 December 2021.

Germany VAT rates

Restaurant and catering services which are subject to the reduced tax rate due the Corona Tax Assistance Act, will be taxed with VAT at a rate of 7 % in the period from 1 January 2021 to 30 June 2021.

The VAT rate will return to 19% from 1 July 2021.

Greece VAT rates

The exemption on import duties and VAT for goods related to combating the COVID-19 pandemic extended up to 30 April 2021.

Ireland VAT rates

From 9 April 2020 to 30 April 2021, there will be a temporary zero rate of VAT for the supply of Covid-19 vaccines and test kits and the temporary application of the zero rate of VAT to certain supplies of personal protection equipment (PPE) and medical equipment.

Norway VAT rates

Self-employed individuals, business and private individuals can apply for deferred payment of most tax and duty claims if they are having financial difficulties as a result of Covid-19.

The deferred payment scheme has been extended and you can now apply until 28 February 2021.

If you are granted a payment deferral the claim will not be collected in the deferment period.

It is still possible to pay the claims if individual/companies financial situation improves.

Interest on overdue payments will accrue in the deferment period. The payment deadline will not change.

The interest on overdue payments is currently 8% from 1 January 2021.

The deferred payment scheme includes an instalment scheme from 1 April 2021 to 1 September 2021.

If you are granted a deferral of payment until 28 February 2021, you will be offered an instalment plan.

If you have applied for deferral to a date earlier than 28 February 2021, you will have to apply for a new extension to 28 February for the claim to be covered by the instament scheme.

The instalment scheme is for those who are still struggling at the end of the payment deferral period.

Also, Norway temporarily reduced 6% VAT rate extended, until June 2021. This applies to accommodation, leisure and transport.

VAT Threshold Updates

Last month we covered important VAT threshold update, catch up here.

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