Poland: Senate passes various VAT changes
Poland’s Senate has approved several VAT amendments, including extending the reverse charge mechanism for gas, electricity, and greenhouse gas services and maintaining an 8% reduced VAT rate for certain agricultural goods. Additional VAT
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Peru extends reduced VAT rates for tourism sector Until 2027
Peru’s Congress has extended reduced VAT rates for hotels, restaurants, and tourist accommodations until 31 December 2027. The rates will remain at 8% for 2025 and 2026, before increasing to 12% in 2027. The measure, introduced under Law 32219,
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Kazakhstan proposes VAT rate increases and exemptions in tax code overhaul
The Kazakhstan government has introduced proposed amendments to its Tax Code on 11 February 2025, aimed at reshaping the country’s VAT framework. The key changes include raising the standard VAT rate from 12% to 16%, alongside a new reduced 10%
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Netherlands: MoF seeks alternatives to cover budget gap after scrapped vat hike on media, culture, and sports
The Netherlands Ministry of Finance issued a letter to the parliament outlining alternative measures to address the budget shortfall caused by cancelling the proposed VAT increase on media, culture, and sports from 9% to 21%. The VAT increase
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Lithuania: Parliament to discuss reduced VAT rate for food and catering in spring session
Prime Minister Gintautas Paluckas announced that the Lithuanian Parliament will consider introducing a reduced VAT rate for food products and public catering establishments in the spring session. Though he has not pledged his support, he recognized
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EU Commission issues January 2025 infringement package, highlights VAT concerns
The European Commission has published its Infringement Package for January 2025 – addressing VAT-related issues affecting multiple countries – on 31 January 2025. The Commission is sending a letter of formal notice to those Member States who
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Poland: Parliament passes bill on VAT changes, expands excise duty to nicotine products
Poland’s lower house of Parliament (Sejm) has passed a bill delaying changes to VAT rates during its January 22-24, 2025 sittings. The Sejm also extended the reverse charge mechanism to gas, electricity and services associated with the transfer
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Slovak Republic: Parliament considers restoring 20% VAT rate
The Slovak Parliament is reviewing four proposed amendments to the VAT Act. The first bill expands the 5% reduced VAT rate to include certain mixes and doughs for baked goods. The second bill extends the 5% rate to menstrual hygiene products like
See MoreSlovakia Republic announces new VAT rates for energy supplies
The Slovak Republic’s tax authority has released guidance on new VAT rates for energy supplies, effective from 1 January 2025. Under the guidance, the standard VAT rate will rise from 20% to 23%, and the reduced rate (including electricity)
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Israel issues guidance on increased VAT rate
Israel’s Tax Authority has issued guidance on the increase in the standard VAT rate from 17% to 18%, effective 1 January 2025. The guidance provides an explanation of how to apply the correct VAT rate to transactions such as goods, services,
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Indonesia: President announces 12% VAT limited to luxury goods, services
Indonesia’s President has announced that the VAT rate will increase from 11% to 12%, starting 1 January 2025. However, the VAT increase will only be applicable to luxury goods and services like private jets, yachts, cruise ships, and luxury
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Lithuania considers reduced VAT on essential foods, services
The Lithuanian Parliament (Seimas) accepted for consideration Draft Bill No. XVP-90 which aims to introduce a reduced 9% VAT rate on essential food products on 30 December 2024. The proposed bill also includes a measure to extend the lower VAT
See MoreSlovak Republic publishes guidance on VAT rate reduction for accommodation services
The Slovak Republic’s Financial Administration has released guidance detailing changes to the reduced VAT rate for accommodation services, which took effect on 1 January 2025. The guidance outlines how the new rate applies to advance payments,
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Turkey increases refund limit for transactions subject to the reduced VAT rate
The Turkish Official Gazette published Communique No. 53 on 30 December 2024, which outlines changes to the VAT refund threshold subject to the reduced VAT rate for 2025. According to the new regulation, the VAT refund threshold has been
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Russia expands list of agricultural seeds eligible for reduced VAT rate
The Russian government has issued Resolution No. 3596-r, expanding the list of agricultural crop seeds treated with biological or chemical agents that are subject to a reduced VAT rate of 10% upon sale and import. The resolution, which came into
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Vietnam extends VAT reduction for first half of 2025
The Vietnamese government has extended the reduced value-added tax (VAT) rate from 10% to 8% for eligible goods and services during the first half of 2025, effective from 1 January to 30 June. The new tax policy was introduced in Decree No.
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Norway publishes overview of tax changes for 2025
Norway’s government has released an overview outlining key tax changes which took effect on 1 January 2025. Some of the main changes include: Natural resource tax for hydropower The natural resource tax for hydropower plants has been
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Indonesia announces relief to ease 2025 VAT hike impact
Indonesia’s government has announced a relief package to mitigate the effects of the upcoming VAT increase to 12%, set to take effect on 1 January 2025. Earlier, Indonesia’s Finance Minister, Sri Mulyani Indrawati confirmed that the VAT rate
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