resources-post-top-bg VAT Rate changes for 2018 – how will they affect you?

VAT Rate changes for 2018 – how will they affect you?

What’s the plan for VAT in 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 their 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 it’s 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 traveling 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



Make sure you’re subscribed to our blog so you don’t miss out on anything VAT related in 2018!

Taxback International VAT Blog

We know that Indirect taxes such as VAT and GST can have a huge effect on your business. As VAT rates change sporadically keeping yourself informed can be difficult.  Compliance is always crucial. That’s why our Indirect Tax Experts share their hand-picked news stories every day that you need to know. From breaking news to VAT changes and new EU legislation. We know that relevant information means better decision making. We aim to be your number 1 source for VAT and GST news.

+353 56 778 34 00 

  Connect with us on Twitter

  Connect with us on LinkedIn

See more Taxback International Articles

Leveraging VAT technology to maximise VAT reclaim and ensure compliance

1st July 2020: With tighter controls and more requirements for real-time reporting across the globe, Taxback International can help you respond more quickly to these with the help of artificial intelligence.

Recovering VAT to optimise cash flow

1st July 2020: To help as many companies as possible optimise their cash flow and prevent financial difficulties, Taxback International is offering a free evaluation to all companies.

GST reclaim is a hidden savings opportunity for the APAC region

18th June 2020: Companies are unaware of just how much revenue is tied up in unclaimed VAT/GST reclaim from travel expenses and company invoices.