VAT Rates changes that took effect in the EU – Jan 2013
Gareth Bevan 27 October 2017 No comments
France – w.e.f. 1 January 2014
Standard rate increases from 19.6% to 20%
Reduced rate 1 increases from 7% to 10%
Reduced rate 2 unchanged at 5.5%
Reduced rate 3 unchanged at 2.1%
NB: Infringement proceedings have commenced against France for their use of the 5.5% VAT rate on e-books. The European Commission claims e-books should be subject to the standard VAT rate.
Ireland – w.e.f. 1 January 2014
Reduced rate 3 will remain at 9%
The temporary rate that applied from 1 July 2011 to 31 December 2013 has been extended for an unnamed period.
The goods and services in this category (which includes printed matter such as brochures, maps, programmes, leaflets, catalogues and newspapers, excluding books) will remain at the 9% rate.
Croatia – w.e.f. Unknown – Proposal of Change to Rates
A draft law, drawn up by the Croatian Government in November, proposes multiple amendments to Croatian VAT rates.
The draft law would raise the 10% reduced rate to 13%.
Cultural services rendered by libraries, theatres, orchestras and museums will become newly subject to this rate, as will sports and pleasure vessels on certain conditions.
Another amendment to Croatian VAT rates in the draft law impacts newspapers and magazines that contain more than 25,000 words which are published on a daily basis.
These media will newly benefit from a 5% reduced rate provided that their content does not consist mainly of advertising. Sales of periodicals not published daily are subject to VAT at the higher reduced rate, set to rise to 13%.
Cyprus – w.e.f. 13 January 2014
Standard rate increase from 18% to 19%
Reduced rate 2 increases from 8% to 9%
Reduced rate 1 unchanged at 5%
Czech Republic – w.e.f. Unknown – Proposal of Change to Rates
The Czech coalition government is considering introducing a new, reduced VAT rate for medicines.
Currently, the Czech Republic only has a single reduced VAT rate of 15% (the standard Czech VAT rate is 21%).
The proposed new reduced VAT rate would help offset the planned withdrawal of the patients’ health regulatory fees.