The Government’s goal is to tax the most important foodstuffs with the lowest possible levels of Value Added Tax (VAT), and accordingly will continue to reduce the VAT on key foods in 2018.
From January 1, 2018, the VAT on fish for consumption, pork offal (e.g. tongue, liver and brain) and by-products for human consumption (e.g. trotters and pigs’ feet) all have been reduced from standard 27% to 5%. On the other hand, VAT on restaurant food and services (excluding alcohol), admission to certain open air concerts, hotel accommodation had been reduced from 27% to 18% as of January 1, 2017 and to 5% from January 1, 2018. The VAT rate had already been reduced from 27% to 5% on a large number of basic foodstuffs, including milk, poultry and eggs as of January 1, 2017.
