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VAT Rate Changes For 2018 – How Will They Affect You?

VAT Rate Changes for 2018

Throughout the year, Taxback International have been updating you on what’s been going on around the world in VAT. There are constant changes in VAT, and it’s important for those who have a lot of business travel to know these changes.

Below are some of the changes that you may need to be aware of in 2018.


Norway is set to increase in the reduced VAT (or MOMS as it’s known) rate, from 10% to 12%, to be in effect from January 2018.

The Netherlands

The Dutch Government is set to increase the reduced VAT rate from 6% ro 9%.


Switzerland has a scheduled reduction in the VAT rate from 8% to 7.7%. Also, businesses not based in Switzerland, but provide supplies vis-a-vis Switzerland, may be liable to pay Swiss VAT.


The standard rate of VAT is set to fall from 8% to 7.7% and the special rate of VAT on accommodation will be reduced from 3.8% to 3.7%.


As of 1 January 2018 Finnish VAT registered businesses will no longer pay VAT upon importation. The import VAT will be reported in the company’s VAT return for the relevant period and simultaneously recovered via the same leading to no cash flow issues for importers. The new rules do not apply to businesses that are not registered for VAT and to private individuals.


Lebanon increased its Value Added Tax (VAT) rate from 10% to 11% – October 2017.


Brazil announced plans to combine its current indirect taxes into a single VAT (Value Added Tax) regime – simplifying the current complex tax system.

The Gulf Region – UAE & Saudi Arabia

The United Arab Emirates and Saudi Arabia were to be the first countries in the Gulf Cooperation Council (GCC) to introduce Value Added Tax (VAT) from January 2018.

United States of America

In 2018, Washington will be one of the first states in the U.S.A. to require all online marketplaces, like Amazon – to collect sales tax on behalf of third-party sellers.

United Kingdom

It was announced that existing joint and several liability rules to hold online marketplaces jointly and severally liable with the overseas sellers using their services, will be extended and as of 2018 will apply to sales by UK businesses through the online marketplace. Also as per the new legislation, VAT numbers given to online marketplaces by any business selling goods in the UK via online marketplaces are to be displayed on that online marketplace and should be valid.

Will these VAT changes impact you?
The answer is yes. If you’re travelling abroad for work, you’re entitled to recover VAT you pay on certain expenses, such as meals, entertainment, travel expenses (fuel and taxis), etc. It is also important to know these VAT changes if you are an (online) retailer, selling goods overseas – to ensure VAT compliance

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