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EU VAT proposals and global VAT response to covid-19

21 July 2020

Newsletters and Updates

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Please see below table for VAT mitigation measures introduced worldwide. These measures exclude VAT amended VAT rates for PPE and medical equipment.

Country

Description of goods or services

Old VAT rate

New VAT rate

Start date

End date

Austria

Hospitality, cultural events

10%

5%

1 July 2020

31 December 2020

 

Non-alcoholic drinks

20%

10%

1 July 2020

31 December 2020

Belgium

Hospitality, restaurants, cafés, publishing

12%

6%

8 June 2020

31 December 2020

Bulgaria

Hospitality, restaurants, cafés, books

21%

10%

1 July 2020

31 December 2020

Colombia

Hospitality, restaurants, cafés

8%

zero

25 May 2020

31 December 2020

Cyprus

Hotels, accommodation, public transport, hospitality, restaurants and cafés

9%

5%

1 July 2020

10 January 2021

Czech Republic

Accommodation, sports and cultural events

15%

10%

1 July 2020

31 December 2020

Germany

Standard rate

19%

16%

1 July 2020

31 December 2020

 

Restaurants and catering services

19%

5%

1 July 2020

30 June 2021

 

Reduced rate

7%

5%

1 July 2020

30 June 2021

Greece

Taxis, ferries, public transport and non-alcoholic drinks

24%

13%

1 June 2020

31 October 2020

 

Accommodation, hotels, cafés, restaurants.

9%

5%

1 July 2020

9 January 2021

 

30% discount on VAT rates for sales in 5 islands

 

 

1 July 2020

31 December 2020

Jamaica

Standard rate

16.5%

15%

1 April 2020

31 March 2021

Kenya

Standard rate

16%

14%

1 April 2020

No end date

Lithuania

Hospitality, restaurants and cafés

21%

9%

Unsure

31 December 2020

Malaysia

Hotel service tax

10%

zero

30 March 2020

30 June 2021

 

Tourism tax at hotels

RM10 per night

zero

1 July 2020

30 June 2021

Mexico

Standard rate

16%

10%

1 July 2020

31 December 2020

Moldova

Hospitality, restaurants, cafés

20%

15%

1 May 2020

31 December 2020

Norway

Cinemas, hotels, public transport

12%

6%

1 April 2020

31 October 2020

Turkey

Hotels, accommodation and domestic flights

18%

1%

1 April 2020

30 November 2020

UK

Hospitality inc restaurants, cafés, pubs, accommodation and entry to attractions

20%

5%

15 July 2020

12 January 2021

Ukraine

Cultural events and domestic electricity

20%

10%

17 March 2020

31 December 2020

 

 

EU VAT proposals

The EU Commission has published proposals in July 2020 for VAT changes, to be debated by the EU Parliament and the EU Council, for possible introduction between 2021 and 2023, including the following.  This builds upon the changes due to be introduced in July 2021 for the removal of distance selling thresholds for b2c intra-EU sales of goods, and its replacement with a One-Stop-Shop (OSS) return currently used only for e-services.

  • Changes to the Tour Operators Margin Scheme (TOMS) including harmonisation throughout the EU;
  • Increased use of digital reporting of VAT, including real-time submission of e-sales invoices to tax authorities to support VAT returns submitted;
  • Review of VAT for the gig economy;
  • A single EU wide VAT registration for all non-resident overseas suppliers;
  • Extend the OSS (One stop shop) return to the sale of all services, not just those provided electronically.

If you have any questions, please contact the VAT team.