Upcoming & past VAT changes

Switzerland
Swiss voters will decide whether to increase the standard VAT rate from 8.1% to 8.5% and the special accommodation rate from 3.8% to 4% to help finance the 13th AHV pension. The reduced rate would remain at 2.6%. If approved, the increase is not expected to take effect before 2028. Swiss Federal Social Insurance Office

Chile
Sellers may opt for a temporary VAT exemption on the first sale of qualifying new dwellings (with final municipal reception before 17 October 2026) for one year. This is an exemption, not a general zero rate. A separate refund procedure applies to qualifying sales made between 22 April and 30 November 2026. SII

Spain
The rental of a furnished apartment or dwelling to the same tenant for no more than 30 nights changes from being VAT-exempt to being subject to the 10% rate. If the rented property is the landlord’s habitual residence, the VAT exemption continues to apply. The 10% rate is also extended to renovation and repair work that meets certain conditions on dwellings intended to be let as habitual residences. Application of the reduced rate to renovation and repair work on dwellings requires payment by one of the methods prescribed by law. The 4% rate is extended to protected dwellings with permanent or indefinite protected status when supplied by their developers. Spanish Tax Agency, Royal Decree-Law 29/2026

Brazil
PIS and COFINS are abolished and CBS comes into effect. IPI is reduced to zero in many cases, and the selective tax (Imposto Seletivo) is introduced. The Senate will set the CBS rate in December 2026; estimates range from 8.8% to 9.43%. Planalto (Complementary Law 214/2025)

Cyprus
Zero rate applies to baby milk, baby and adult diapers (including incontinence products), feminine hygiene products (sanitary towels and tampons), and the fresh or chilled vegetables and fresh fruits listed in the decree (by CN codes) from this date until 31 December 2027. K.D.P. 362/2026

Czech Republic
VAT on non-alcoholic drinks served for consumption on the premises falls from 21% to 12%. The reduction does not apply to takeaway drinks. Ministry of Finance

Guatemala
The temporary VAT exemption for premium gasoline, regular gasoline and diesel ends. The ordinary tax treatment resumes. Congress of the Republic of Guatemala — Decree 22-2026

Kazakhstan
The reduced rate on medicines, medical devices and paid medical services rises from 5% to 10%. Adilet – Tax Code 214-VIII

Liberia
Liberia replaces GST with VAT. The Liberia Revenue Authority states the rate will be 15%, budget documents have indicated 18%. Registration opened in July 2026. Liberia Revenue Authority

Peru
The reduced tax rate for small businesses operating in the restaurant, hotel and tourist accommodation sectors rises from 10.5% to 15%. SUNAT

Spain, Canary Islands
Under legislation published by 30 September 2026, temporary fuel zero rating ends no later than 31 December 2026. Ordinary product-specific rates apply from January unless another extension is enacted; petroleum and gas have a 1% rate. Zero rating may have ceased earlier under the price conditions. Decreto ley 6/2026

Tajikistan
The standard VAT decreases to 13% from 14%. Asia-Plus (Tax Code art. 264)

Vietnam
The standard rate rises back to 10% from 8%. The reduction has been renewed repeatedly since 2022. Nghị quyết 204/2025/QH15

Kenya
The temporary reduced rate of 8% on gasoline, kerosene and diesel is scheduled to end. Unless extended again, the 16% standard rate applies from this date. EPRA, Parliament of Kenya

Croatia
The reduced 5% rate on natural gas, district heating, firewood, pellets, briquettes and wood chips is due to end. However, the reduction has been extended every year since 2022, most recently to 31 March 2027. Ministarstvo financija

Cyprus
The reduced VAT rate on electricity, 5% for all residential consumers, ends. KPMG

Jamaica
GCT on tourism rises from 10% to 15%. Short-term accommodation is brought into the scope of GCT. Ministry of Finance

United Kingdom
The temporary 0% rate on the installation of energy-saving materials in homes ends. The rate is back to the reduced rate of 5%. HM Revenue and Customs

Cyprus
Temporary zero rate on the defined fresh, chilled or frozen meats, fish, cuttlefish, squid, octopus and edible offal ends; the rate returns to 5%. Cyprus Tax Department, K.D.P. 354/2026

Cyprus
Temporary zero rate on the defined bread, milk, coffee, sugar and baby food ends; the rate returns to 5%. Cyprus Tax Department, K.D.P. 354/2026

Australia
Under the determination in force at the review date, the application period for GST-free NDIS supports ends after 30 June 2027. Check for an extension or replacement determination. This does not mean that every NDIS supply becomes taxable: other GST-free provisions may apply. Federal Register of Legislation

Latvia
The temporary 12% rate on bread, milk, poultry and eggs ends. They return to the 21% rate. Latvian Ministry of Economics

Pakistan
Under current legislation, the transitional sales tax rate for qualifying industrial activity in the former FATA/PATA areas rises from 12% to 14%. The temporary 1% treatment for certain qualifying electric vehicles is also scheduled to expire after 30 June 2027. Federal Board of Revenue, Sales Tax Act 1990

Tanzania
Under current legislation, the temporary VAT exemptions for supplies of double-refined edible oil manufactured locally from locally grown seeds and locally manufactured garments made from locally grown cotton expire after 30 June 2027. Clyde & Co, Finance Act 2026

Thailand
The standard VAT rate returns from 7% to 10% unless the increase is again postponed. The Revenue Department

Chile
The temporary optional VAT exemption on the first sale of qualifying new dwellings ends. SII

Algeria
Under current legislation, the temporary 9% VAT treatment for tourism, hotel and thermal activities, classified tourist restaurants, travel services and tourist vehicle rental expires after 31 December 2027. Deloitte Société d’Avocats

Cyprus
The temporary zero rate on baby milk, diapers, defined feminine hygiene products and the listed fresh/chilled vegetables and fresh fruits ends; the rate returns to the reduced rate of 5%. K.D.P. 362/2026

Peru
The reduced tax rate for small businesses operating in the restaurant, hotel and tourist accommodation sectors ends. IGV rate for them returns to the standard 18%. SUNAT

Sweden
The temporary VAT reduction on foodstuffs ends and the rate returns from 6% to 12%. Skatteverket

Pakistan
Under current legislation, the transitional sales tax rate for qualifying industrial activity in the former FATA/PATA areas rises from 14% to 16%. Federal Board of Revenue, Sales Tax Act 1990

Tanzania
Under current legislation, the temporary zero rating of locally manufactured fertiliser expires after 30 June 2028. EY, Tanzanian Finance Act 2025

Brazil
The transition begins. ICMS and ISS rates fall to nine tenths of their original rates and decrease further each year, while IBS rises correspondingly. ICMS 18% becomes 16.2%. Planalto (Complementary Law 214/2025)

Tunisia
The temporary 7% VAT treatment for specified electric-vehicle charging equipment expires. They return to 19% rate. Tunisian Ministry of Finance – Finance Act 2026, Art. 47

Romania
Under current legislation, the reduced 11% rate for firewood, wood pellets, briquettes and other qualifying wood products expires. The standard 21% rate applies. Law 141/2025, Article II(44) – Fiscal Code, Article 291(3^4)

Belgium
Under current legislation, the temporary 6% rate for qualifying heat pumps supplied with installation in dwellings less than 10 years old ends, returning to 21%. The separate renovation relief for older dwellings is unaffected by this expiry. Belgisch Staatsblad / Moniteur belge

Ireland
VAT on electricity, natural gas and new apartments rises back from 9% to 13.5%. KPMG

Romania
Under current legislation, the reduced 11% rate for qualifying chemical fertilisers and chemical pesticides used in agriculture expires. The standard 21% rate applies. Law 141/2025, Article II(44) – Fiscal Code, Article 291(3^3)

Brazil
ICMS and ISS are abolished. Only CBS and IBS (both 'por fora') and the selective tax (Imposto Seletivo) remain. Planalto (Complementary Law 214/2025)

Cyprus
The reduced VAT rate of 9% applies to the supply of photovoltaic systems to residential customers (as defined in the Electricity Market Regulation Law) for self-consumption of electricity in their residences. In other cases the standard rate of 19% generally applies. K.D.P. 363/2026, KPMG

Cyprus
Zero rate applies to defined bread, milk, coffee, sugar and baby food from this date. Cyprus Tax Department, K.D.P. 354/2026

Ecuador
The temporary 8% IVA rate for tourism services during the October holiday ends; the 15% rate applies again. Executive Decree No. 513

Ecuador
IVA on qualifying tourism services is temporarily reduced from 15% to 8% on 9–11 October 2026 under Executive Decree No. 513. Executive Decree No. 513

Poland
The VAT rate on qualifying motor petrol, diesel and certain biocomponent fuels was temporarily reduced from 23% to 8% until 31 December 2026. Minister of Finance and Economy / Journal of Laws, Lookuptax / VATupdate

Cyprus
Zero rate applies to defined fresh, chilled or frozen meats, fish, cuttlefish, squid, octopus and edible offal from this date. Cyprus Tax Department, K.D.P. 354/2026

Guatemala
From 1 October through 31 December 2026, premium gasoline, regular gasoline and diesel are temporarily exempt from VAT under Decree 22-2026. Diario de Centro América — Decree 22-2026

Oman
The zero-rated lists for veterinary products, human medicines and medical equipment, and food products were replaced by Decisions 223/2026, 224/2026 and 225/2026. Classification is based on the 12-digit customs tariff code; for medicines and veterinary products a release permit from the relevant ministry is also required. Oman Tax Authority, PwC

Romania
The transitional 9% VAT relief for qualifying residential property purchases during 1 August 2025–30 September 2026 ends. Law 161/2026 extended the deadline to 30 September 2026. From 1 October 2026, purchases previously covered by this relief are subject to 21%. Portal Legislativ – Law 161/2026, Articles I–II

Spain, Canary Islands
Decree-law 6/2026 extends the energy-products zero rate through 31 December. The zero rate will not apply in November or December if the condition specified for the respective month is met. Decreto ley 6/2026, BOC 196, 30-09-2026

Thailand
The reduced standard rate of 7% is extended for another year. The Nation Thailand

United Kingdom
The government announced on 21 July 2026 that VAT on household electricity bills is removed from 1 October 2026. The zero rate will remain in effect until 31 March 2027, i.e. until the end of the 2026–27 financial year, after which an extension will be considered. GOV.UK

Uruguay
Decree 235/026 extends the 9-percentage-point VAT reduction for qualifying electronically paid services through 30 April 2027. For eligible services taxed at 22%, the effective tax burden remains 13%. DGI, Decree 235/026

Bolivia
Supreme Decree No. 5709 specifies the goods covered by the exemption under Law No. 1755. The domestic exemption applies only to the importer’s first sale, with an invoice that gives the buyer no input VAT credit. Decreto Supremo N° 5709

Hungary
VAT on firewood and on sawdust and wood waste compressed into pellets, briquettes or similar forms for heating falls from 27% to 5%. NAV, Taxation Question 2026/6; Act XLVIII of 2026

North Macedonia
VAT on specified diesel fuels is temporarily reduced from 18% to 10%. vlada.mk, ujp.gov.mk

Pakistan
Qualifying locally manufactured hybrid electric vehicles with engine capacity up to 2,000 cc are removed from the special 25% sales tax regime and become subject to the standard 18% rate. Federal Board of Revenue, SRO 1525(I)/2026 (PDF)

Nicaragua
A temporary VAT exemption begins for 12–20 September 2026 for tourism, restaurant, recreation and leisure businesses covered by Interinstitutional Agreement MHCP-INTUR-DGI No. 01-2026. Ministry of Finance and Public Credit – Agreement MHCP-INTUR-DGI 01-2026

Hungary
The VAT rate on prescription-only medicines and pharmacy-compounded medicines for human use is reduced from 5% to 0%. NAV

Iceland
The temporary 11% rate on fuel ends. Government of Iceland

United Kingdom
The temporary reduced 5% rate for children's meals and children's tickets to cinemas, theatres, exhibitions and family attractions ends. HM Revenue and Customs

Spain, Canary Islands
Zero rating is extended to qualifying goods and services for public entities’ and public-sector companies’ R&D and technological innovation, subject to statutory use and evidence requirements. Agencia Tributaria Canaria — I+D+i

Ecuador
The temporary 8% IVA rate for tourism services during the 10 August holiday ends; the 15% rate applies again. Executive Decree No. 465

Ecuador
IVA on qualifying tourism services is reduced from 15% to 8% during the 10 August holiday, from 8 to 10 August 2026. Executive Decree No. 465

Malaysia
Sales tax exemptions are extended to specified vessels and floating structures. Related tariff headings are removed from the First Schedule of the sales tax rate order. Eligibility depends on the exact tariff subheading; this is not a general exemption for every vessel. Federal Gazette — P.U. (A) 276/2026; see also 281/2026

Romania
The standard VAT rate rises from 19% to 21%. The reduced rates of 5% and 9% are generally replaced by 11%, while a transitional 9% rate remains available for qualifying residential property purchases. ANAF – Law 141/2025

Bolivia
Law No. 1755 introduces a new five-year IVA exemption for imports and domestic sales of specified inputs, equipment and capital goods for the agricultural, industrial, construction, transport and mining sectors. Ley Nº 1755, artículo 9

France
The supply and installation of fixed reversible air-to-air heat pumps meeting the statutory technical criteria qualify for 5.5% VAT in residential properties completed more than two years ago, down from 20% on equipment and 10% on qualifying installation work. Légifrance, Order of 13 July 2026

Nepal
Nepal introduces a new 5% VAT rate. Transportation and delivery services provided by riders through resident ride-sharing platforms become subject to 5%, while the platforms' own commissions remain subject to 13%. Household electricity consumption up to 50 units per month is exempt; consumption above 50 units is subject to 5% on the excess units. Electricity supplied to non-household consumers is subject to 13%. Inland Revenue Department – Finance Act 2083

UK, Gibraltar
Gibraltar introduces a new 15% Transaction Tax on goods, replacing import duties. The rate rises to 16% in the second year and to 17% in the third. There is also a reduced rate of 5% and a zero rate for essentials such as food, water, medicines, books and electricity. HM Government of Gibraltar (PDF)

Nepal
VAT exemptions are revised. New exemptions include specified services supplied by insurance agents, e-library services, paneer, labour charges for manufacturing gold and silver ornaments and goods, and prescription eyeglasses. Electricity supplied between electricity-trading businesses and household electricity consumption of up to 50 units per month are also exempt. Inland Revenue Department – Finance Act 2083, sections 1(2) and 55(10), published on 14 July 2026

Austria
A new 4.9% rate is introduced for selected staple foods, replacing the 10% rate for these foods. USP

Ireland
VAT on restaurant and catering services, hot takeaway food, and barbering and hairdressing services falls from 13.5% to 9%. Department of Finance

Latvia
The VAT rate on bread, milk, poultry and eggs was reduced from 21% to 12% for one year. Consumer Rights Protection Centre (PTAC)

Pakistan
The transitional sales tax rate for qualifying industrial activity in the former FATA/PATA areas increases from 10% to 12%. Magazines and female sanitary pads and tampons become sales-tax exempt. The temporary 1% rate for specified qualifying electric vehicles is extended through 30 June 2027. The Third Schedule is substantially expanded to cover additional categories of retail-packed consumer goods. For goods covered by the Third Schedule, sales tax is generally calculated on the retail price fixed by the manufacturer or importer rather than on the actual invoice value. Federal Board of Revenue, Sales Tax Act 1990, amended through Finance Act 2026

Pakistan
The concessional sales tax rates of 8.5% and 12.75% for locally manufactured hybrid electric vehicles are no longer in force. Hybrids within the vehicle categories of Table II of SRO 297(I)/2023 become subject to the 25% rate. Federal Board of Revenue, Sales Tax Act 1990, Eighth Schedule, amended through Finance Act 2026

Pakistan, Balochistan
Education services are subject to a statutory 0% rate with no entitlement to input tax credits or adjustments. Concurrently, the general exemption for education services no longer extends to commercially operated educational institutions or to sports education services. The exemption applicable to hospitals and clinics has also been restricted: it excludes cosmetic and plastic surgery performed for aesthetic reasons, as well as room and bed services where the daily charge (inclusive of all fixed charges) exceeds PKR 10,000 per room or bed. Balochistan Finance Act 2026 (Act No. XVI of 2026), section 2(10)–(11) (PDF)

Pakistan, Balochistan
Balochistan raises rates for POS-compliant restaurants from 2% to 4%; non-qualifying restaurants remain at 8%. Marriage halls, lawns, mandap, pandal and shamiana services rise from 2% to 4% of the service fee (minimum PKR 10,000 per event), technical, scientific and engineering consultancy from 6% to 8%, and commission agents from 4% to 8%. Cosmetic and plastic surgery and transplantations rise from 4% to 6% (minimum PKR 50,000 per month). Hospital, institute and clinic services are taxed at 3% from 1 July 2026; the previous Third Schedule specified 2% for hospitals and clinics. These reduced rates remain ineligible for input-tax credit or adjustment. Balochistan Revenue Authority, Revised rates of BSTS applicable from 1 July 2026 (PDF)

Pakistan, Khyber Pakhtunkhwa
A 5% rate without input tax adjustment is introduced for specified virtual-asset and digital trading platform services. The definition and taxation of government-funded projects are revised: qualifying projects approved on or after 1 July 2025 are subject to 4%, specified social-welfare projects are exempt, and qualifying projects approved between 1 July 2021 and 30 June 2025 retain the transitional 2% rate subject to conditions. KPMG – A Brief of Provincial Tax Laws 2026

Pakistan, Punjab
Concessionary sales-tax rates are revised. Digitally paid hotel, motel, guest-house and restaurant services move from 5% to 8%, while other payment methods remain subject to 16%. Several other services previously taxed at 5% also move to 8%. Foreign exchange services become subject to 3% on permitted spread charges, without input tax adjustment. KPMG, A Brief of Provincial Tax Laws 2026

Pakistan, Sindh
Concessionary rates are revised: insurance agency services fall to 2% and brokerage to 3%; legal, tax-consultancy, insolvency, beauty and physical-wellbeing services are subject to 8%; accounting and auditing move to 15%. Most construction services and oil-tanker transport also move to 15%, while ready-mix concrete and dredging remain at 8%. Property developers remain subject to fixed area-based charges. Qualifying education services are subject to 3%, while educational support services under CPC 9292 remain at 5%. Sindh Revenue Board, Sindh Finance Act 2026

Poland
The temporary VAT reduction on petrol, diesel and certain biofuels ends. The rate returns from 8% to 23%. eli.gov.pl

Portugal
The reduced 6% rate applies to construction and renovation contracts for affordable housing that meet the conditions laid down by law (new item 2.42 of List I). It may be applied retroactively from 1 January 2026 if the contractor and the customer jointly opt for it. At the same time, the reverse-charge mechanism for construction services was extended. Diário da República (PDF); AT circulars 25116/2026 and 25117/2026

Spain
The temporary 10% VAT rate on fuels ends. BOE

Spain, Canary Islands
The temporary energy-products zero rate is extended through 30 September, with conditions for August and September. Gas is added to the statutory 1% rate, displaced while zero rating applies. The correction published on 1 July expressly includes gas in the extension. Decreto ley 4/2026; corrección BOC 131/2026

Sri Lanka
VAT on financial services increases from 18% to 20.5%. Sri Lanka Inland Revenue Department

Sweden
VAT on admission to dance events is reduced from 25% to 6%. Skatteverket

Tanzania
Locally manufactured garments made from locally grown cotton cease to be zero-rated and instead become VAT-exempt through 30 June 2027. The change removes the normal input VAT recovery associated with zero-rated sales. Clyde & Co, Finance Act 2026

United Kingdom
A temporary 5% rate replaces the standard 20% rate on children's meals and children's tickets to cinemas, theatres, exhibitions and family attractions. HM Revenue and Customs

Spain
The temporary 10% VAT rate on electricity, natural gas, biomass pellets and briquettes, and firewood ends, returning to 21%. Agencia Tributaria

Ecuador
VAT on qualifying tourism services is temporarily reduced from 15% to 8% for the Battle of Pichincha holiday, from 23 to 25 May 2026 inclusive. The establishment must have the required tourism registration and annual operating licence (Executive Decree 391). SRI — NAC-COM-26-029

Pakistan, Khyber Pakhtunkhwa
Healthcare exemptions are expanded to Sehat Sahulat services and government hospitals, while other health-related services become subject to 2% without input tax adjustment. The education exemption is extended to teachers, including visiting faculty, providing services to schools, colleges and universities. Khyber Pakhtunkhwa Finance Department – Gazette Notification No. BO(RES-II) FD/3-4/2026

Ecuador
The temporary 8% IVA rate for tourism services during the Labour Day holiday ends; the 15% rate applies again. Executive Decree No. 368

Iceland
VAT on fuel sold at the pump is temporarily reduced from 24% to 11% in response to rising oil prices. Government of Iceland

Liberia
GST is raised from 12% to 13%. GST for telecommunications services remains at 15% Liberia Revenue Authority

Uruguay
The seasonal full VAT rebate through the payment system ends for certain services supplied to non-resident tourists. The 9-percentage-point reduction remains available for qualifying electronic payments: an effective tax burden of 13% on services taxed at 22%. Qualifying accommodation for non-residents continues to be invoiced without VAT year-round. IMPO, Decree 220/025, Article 1

Ecuador
IVA on qualifying tourism services is reduced from 15% to 8% during the Labour Day holiday, from 30 April to 3 May 2026. Executive Decree No. 368

Costa Rica
Breast-cancer screening examinations, including mammograms, treatments and complementary studies required for early diagnosis, become outside the scope of VAT. PGR/SINALEVI – Law 10712

Kenya
Reduced rate of 8% is introduced on gasoline, kerosene and diesel. It has been repeatedly extended. FINTUA, Kenya Law

Spain, Canary Islands
Salt, butter and roasted coffee fall from 3% to zero without the fuels’ temporary time limit. A temporary zero rate is also introduced for petroleum, refined products and biofuel blends, gas, biomass briquettes and pellets, and firewood, initially through June and subject to price conditions. Decreto ley 3/2026

Ecuador
The temporary 8% IVA rate for tourism services during Easter ends; the 15% rate applies again. Executive Decree No. 348

Ecuador
IVA on qualifying tourism services is reduced from 15% to 8% during the Easter holiday, from 3 to 5 April 2026. Executive Decree No. 348

Argentina
Electricity used in agro-industrial irrigation systems or equipment becomes subject to 10.5% under Article 189 of Law 27,802. The standard VAT rate remains 21%. Argentina.gob.ar: national legislation

Sweden
The VAT rate on foodstuffs is temporarily reduced from 12% to 6% through 31 December 2027. Restaurant and catering services remain at 12%, while spirits, wine and strong beer remain at 25%. Skatteverket

Poland
VAT on petrol, diesel and certain biofuels is temporarily reduced from 23% to 8%. gov.pl

Spain
The VAT rate on electricity, natural gas and fuels, including petrol and diesel, is temporarily reduced from 21% to 10% in response to the Middle East crisis. For electricity, the reduction applies only to contracts with a contracted capacity of 10 kW or less and to social-tariff customers classified as severely vulnerable. The reduction also covers biomass pellets and briquettes, as well as firewood. BOE

Belgium
VAT on plant protection products for agricultural use rises from 12% to 21%. Fertilisers mixed with these products also become subject to 21% instead of 6%. Other qualifying fertilisers retain the 6% rate. Belgisch Staatsblad / Moniteur belge

Belgium
The VAT rate on taxable furnished accommodation and camping pitches rises from 6% to 12%. A transitional concession retains 6% for bookings made by 28 February 2026 where VAT becomes chargeable by 30 June 2026. The change does not make previously exempt residential letting taxable. Belgisch Staatsblad / Moniteur belge

France
Cooling energy supplied through district cooling networks, including the fixed subscription charge, becomes subject to the reduced VAT rate of 5.5%. BOFiP, Finance Act for 2026, Article 93

Ecuador
VAT on qualifying tourism services is temporarily reduced from 15% to 8% for the Carnival holiday, from 14 to 17 February 2026 inclusive. The establishment must have the required tourism registration and annual operating licence (Executive Decree 304). SRI — NAC-COM-26-009

Colombia
The emergency tax measures in Legislative Decree 1474 of 2025 cease to have effect. The 5% rate again applies to liquors, wines, aperitifs and similar products, and the ordinary exclusion of up to USD 200 again applies to postal, urgent and express-delivery consignments that meet the conditions of the applicable agreement or treaty. The exceptional continuation of VAT on online games also ceases to have effect. The Constitutional Court subsequently declared the decree unconstitutional and ordered refunds of indirect taxes paid while it had effect where payment can be established. DIAN / Constitutional Court, C-079/26

Venezuela
Decree No. 5,207 takes effect, temporarily exempting specified imports and domestic sales of hydrocarbon-derived fuels and specified inputs and additives used to improve gasoline quality from VAT. The benefit has a maximum duration of one year. Finanzas Digital

Ecuador
The temporary 8% IVA rate for tourism services during the New Year holiday ends; the 15% rate applies again. Executive Decree No. 271

Algeria
The renovation of older residential properties, catering and accommodation provided to patients by health establishments, vocational training provided by state-approved institutions and the accommodation and catering they provide directly, and passenger transport by bus become subject to the reduced 9% VAT rate. Deloitte Société d’Avocats

Belgium
The temporary 6% rate, instead of 21%, is reintroduced for qualifying heat pumps supplied with installation in dwellings less than 10 years old. It applies until 31 December 2030. Certain hybrid systems and cooling-only equipment are excluded. The separate rules for older dwellings remain in place. Belgisch Staatsblad / Moniteur belge

Bhutan
Bhutan introduces GST. It replaces sales tax. KPMG

Bolivia
The temporary relief in Article 8 of Law No. 1613 for specified capital goods and industrial plants ends: the import exemption and domestic zero rate were limited to 31 December 2025. A 0% customs duty must not be confused with a VAT exemption. SIN: Ley Nº 1613, artículo 8.5

Brazil
Brazil's tax reform begins. In 2026, the dual VAT system is tested: CBS 0.9% and IBS 0.1% are shown on invoices, but they are offset against PIS/COFINS, so the tax burden does not change. ICMS 18%, ISS and PIS/COFINS continue in full. Planalto (Complementary Law 214/2025)

Denmark
Commercial instruction in activities such as exercise, dance, singing and music for people aged 30 and over becomes taxable at 25%. Instruction of people under 30 is exempt. Certain non-profit sports-club activities and subsidy-eligible public adult education remain exempt. Skattestyrelsen

Ecuador
IVA on qualifying tourism services is reduced from 15% to 8% during the New Year holiday, from 1 to 4 January 2026. Executive Decree No. 271

Finland
The VAT rate on funding received by Yle from the State Television and Radio Fund increased from 10% to 13.5%. Finnish Tax Administration, VAT Act, section 79 subsections 2–3 and section 85 subsection 1 point 13

Finland
The 14% tax rate was reduced to 13.5%. For example, the VAT on food was reduced from 14% to 13.5%. Finnish Tax Administration, Act 1358/2025, section 85 and entry into force

Germany
The VAT rate on food supplied as part of restaurant and catering services is permanently reduced from 19% to 7%. Drinks remain subject to 19%. Federal Ministry of Finance

Ghana
VAT reform (Act 1151) takes effect. The 1% COVID-19 Health Recovery Levy is abolished. NHIL and GETFund are moved back into the VAT base, ending the cascading calculation. The effective rate falls from about 21.9% to 20%. The VAT Flat Rate Scheme is abolished. Registration threshold rises from GHS 200,000 to GHS 750,000. Ghana Revenue Authority

Greece
The VAT suspension for properties of developers covered by the scheme continues until 31 December 2026 instead of expiring on 31 December 2025. Property transfer tax applies; this is not a general VAT rate reduction. Ministry of Economy and Finance

Greece, Aegean Islands
The 30% rate reduction extends to islands in the North Aegean Region, the Evros Regional Unit (Samothrace) and the Dodecanese with at most 20,000 inhabitants according to the latest census and official list. The mappings are 24% → 17%, 13% → 9%, 6% → 4% and 4% → 3%. Leros retains the reduction under the population rule. The separate arrangement for Lesbos, Kos, Samos and Chios continues. AADE

Greece, Aegean Islands
The VAT suspension for properties of developers covered by the scheme continues until 31 December 2026 instead of expiring on 31 December 2025. Property transfer tax applies; this is not a general VAT rate reduction. Ministry of Economy and Finance

Hungary
Certain beef products become subject to the reduced 5% rate. NAV

Kazakhstan
Standard VAT rises to 16% from 12%. New reduced rates are introduced: 10% for domestic periodicals, and 5% for medicines, medical devices and paid medical services. Adilet – Tax Code 214-VIII

Latvia
The reduced 5% rate on books and periodicals is limited by language. The reduced rate applies only to publications in Latvian, Latgalian or Livonian, or in the official languages of EU and EEA countries, Switzerland, EU candidate countries or OECD countries. Likumi.lv – amendments to the VAT Law, 03.12.2025

Lithuania
Reduced VAT 9% is replaced by 12%. Certain transport services, accommodation, cultural events, catering and take-away food are moved from 9% to 12%. Books, publications and medicine move down from 9% to 5%. District heating VAT moves up from 9% to 21%. Lithuanian Tax Inspectorate (VMI)

Malawi
VAT is raised from 16.5% to 17.5%. Malawi Revenue Authority

Malaysia
Service tax on rental and leasing falls from 8% to 6%. The exemption threshold for small and medium-sized enterprises as tenants rises from MYR 1 million to MYR 1.5 million. TraTax

Mexico
The northern and southern border tax incentives continue during 2026. The extension published on 31 December 2025 preserves the relief producing the effective 8% rate through 31 December 2026. Mexican federal legislation

Mexico
The 2026 Federal Revenue Law also applies the 0% rate to reusable and disposable period underwear and menstrual discs. Mexican federal legislation

Morocco
The final stage of the three-year VAT rate reform takes effect. Electricity rises from 18% to 20%, electricity meter rental from 15% to 20% and other passenger and freight transport from 18% to 20%. Urban and road passenger and freight transport falls from 12% to 10%, while refined sugar rises from 9% to 10%. The former 7% and 14% rates are no longer in use. Moroccan Ministry of Economy and Finance – VAT reform 2024–2026

Morocco
VAT exemptions are extended. Fertilisers and growing media intended exclusively for agricultural use and human or animal blood and its derivatives become exempt with input VAT deduction rights. Specified short, uncooked and unfilled pasta products become exempt without deduction rights. Moroccan Ministry of Economy and Finance – Finance Act 2026

Netherlands
VAT on accommodation is moved to 21% from 9%. Belastingdienst

Nigeria
The Nigeria Tax Act 2025 takes effect. The scope of zero rating is expanded to cover basic food, medicines, educational materials, and the generation and transmission of electricity. Healthcare, education, residential rent and passenger road transport become exempt from VAT. Input VAT can now also be recovered on services and fixed assets, not just goods. NALFT

Norway
The zero-rated amount for sales of qualifying battery-electric passenger vehicles falls from NOK 500,000 to NOK 300,000. The excess remains subject to 25% VAT. The threshold also changes for leasing. Contracts entered into and vehicles delivered before 1 January 2026 retain the NOK 500,000 threshold under the transitional rule. Skatteetaten

Peru
The combined rate for qualifying micro and small restaurant, hotel and tourist accommodation businesses increases from 10% to 10.5%: IGV remains at 8%, while IPM rises from 2% to 2.5%. SUNAT, Special rate for restaurants, hotels and tourist accommodation; Laws 32219 and 32387

Portugal
The following also become subject to the 6% rate: olive oil production operations, fresh or frozen meat of game animals, edible offal, as well as sales of works of art by registered resellers (except when the margin scheme is applied, in which case the margin continues to be subject to the standard rate). Ofício Circulado n.º 25101/2026

Russia
The standard VAT increases to 22% from 20% (Federal Law 425-FZ). Federal Law 425-FZ

Slovakia
Some foods high in sugar or salt move from the reduced 19% rate to the standard 23% rate. Only 50% of the VAT on passenger cars can be deducted. Slov-Lex

Spain, Canary Islands
A new 1% IGIC rate is introduced for petroleum and refined petroleum products, including blends with biofuels. IGIC on energy drinks rises from 7% to 15%. Gobierno de Canarias, BOC (Ley 9/2025)

Tunisia
The 7% VAT rate is extended to specified non-locally manufactured inputs required for lithium-battery production and to qualifying plug-in hybrid vehicles. Specified electric-vehicle charging equipment is also subject to 7% through 31 December 2028. Tunisian Ministry of Finance – Finance Act 2026, Arts. 46–47

Tunisia
The special reduced-rate concession for imported photovoltaic panels is abolished. Imported panels covered by the former concession return from 7% to the standard 19% rate. The reduced treatment for qualifying locally manufactured photovoltaic modules remains. Tunisian Ministry of Finance – Finance Act 2026, Art. 62

Zimbabwe
The standard rate rises from 15% to 15.5%. VATCALC

Belgium
The 6% rate is extended to sales of qualifying works of art, collectors’ items and antiques under the normal VAT rules. Sales under the margin scheme are excluded: the margin remains subject to 21%. The margin scheme cannot be used for these items if a reduced VAT rate was applied when the dealer bought or imported them. Belgisch Staatsblad / Moniteur belge

Venezuela
Decree No. 5,196 suspends the Article 17(1) VAT exemption for specified imports and introduces a conditional exoneration for goods included in its appendix. The exoneration benefit is scheduled to apply through 31 December 2026. LEĜA Abogados

Ireland
VAT on new apartments falls from 13.5% to 9%. KPMG

France
A reduced VAT rate of 5.5% applies to the supply and installation in residential property of qualifying photovoltaic equipment with a capacity of up to 9 kWp that meets the required environmental and technical criteria. BOFiP, French tax administration

Malaysia
The second phase of the financial services expansion takes effect: fees, commissions and similar payments fall within service tax, subject to the applicable exclusions and exemptions. The general percentage rate is 8%. RMCD — Service Tax Policy 1/2025, Amendment 5

India
India drops rates 12% and 28%. New higher rate 40% is introduced. Government of India (PIB)

Fiji
Fiji cuts VAT to 12.5% from 15%. Fiji Revenue & Customs Service

France
The reduced 5.5% VAT rate on subscriptions for electricity and natural gas supplied through networks is abolished. These subscriptions become subject to the standard 20% rate. BOFiP, French tax administration

Belgium
The reduced 6% rate for renovation and demolition and reconstruction no longer covers the supply with installation of the fossil-fuel-specific parts of central heating systems, including boilers and related burners and controls. These become subject to 21%, subject to transitional provisions. Maintenance and repair are not automatically excluded by this change. Belgisch Staatsblad / Moniteur belge

Belgium
The 12% rate for coal and other solid fossil fuels previously covered by the reduced-rate category is abolished. The standard 21% rate applies. Belgisch Staatsblad / Moniteur belge

Greece
Imports of works of art, collectors’ items and antiques, and supplies of specified works of art by their creators or successors, move from 13% to 6%. On qualifying islands the corresponding rates are 9% and 4%. The reduction does not apply to margin-scheme sales. Law 5222/2025, Articles 236 and 275 (AADE)

Greece, Aegean Islands
Imports of works of art, collectors’ items and antiques, and supplies of specified works of art by their creators or successors, move from 13% to 6%. On qualifying islands the corresponding rates are 9% and 4%. The reduction does not apply to margin-scheme sales. Law 5222/2025, Articles 236 and 275 (AADE)

Nepal
VAT exemptions are removed for specified diamonds, precious and semi-precious stones, and dust and powder of precious or semi-precious stones, making the affected goods subject to the standard 13% VAT rate. The date shown is the date the Act was authenticated. Ministry of Law, Justice and Parliamentary Affairs, Finance Act 2082, section 35

Belgium
A permanent 6% scheme covers qualifying sales of dwellings rebuilt after demolition. It includes a sole and mainly owner-occupied dwelling of up to 175 m² and certain long-term residential rentals. Eligibility depends on the use, floor area and retention or rental period. The new rules apply to VAT becoming chargeable from 1 July 2025; the legislation was published on 29 July 2025. Belgisch Staatsblad / Moniteur belge

Estonia
The standard VAT rises to 24% from 22%. Estonian Tax and Customs Board

Italy
VAT on works of art, antiques and collectors’ items falls to 5% (previously 10% or 22%). The reduced rate does not apply under the margin scheme. Assonime

Malaysia
A major reform: Newly taxable services include rental and leasing, construction, financial services, private healthcare for non-citizens, and private education with fees above the set threshold. Sales tax was extended to previously exempt non-essential and luxury goods at rates of 5% and 10%. Ministry of Finance

Norway
VAT on drinking water supplied by waterworks and qualifying wastewater services falls from 25% to 15%. Ordinary construction and installation services for private water and wastewater systems are not covered by the reduction. Skatteetaten

Pakistan
The sales-tax exemption for photovoltaic cells and solar panels is withdrawn and they become subject to 10%. A phased withdrawal of the sales-tax exemption for qualifying industrial activity in the former FATA/PATA areas begins at 10% for 2025/26. Federal Board of Revenue, Finance Act 2025 explanatory circular

Pakistan, Khyber Pakhtunkhwa
A reduced 8% rate is introduced for specified services provided by non-corporate agents, including shipping and freight-forwarding, travel, recruitment, insurance, commission and distribution agents, without input tax adjustment. Corporate entities generally remain subject to the standard rate, while customs agents are subject to a fixed charge. Khyber Pakhtunkhwa Finance Act 2025

Pakistan, Khyber Pakhtunkhwa
Restaurant and hotel taxation is revised. A 6% rate applies where payment is made through debit or credit cards, mobile wallets or QR scanning. Qualifying non-corporate restaurants generally pay 10% on cash transactions, while corporate-sector entities remain subject to 15% on cash transactions. Khyber Pakhtunkhwa Revenue Authority – Finance Act 2025

Pakistan, Khyber Pakhtunkhwa
Sales tax on government-funded construction projects, including ADP, PSDP and hydropower projects, increases from 2% to 4%, without input tax deduction. Qualifying older ADP projects retain transitional treatment. Khyber Pakhtunkhwa Finance Act 2025 – section 1(3), Second Schedule, Part II, item 11

Slovakia
The 5% rate is extended to certain gluten-free foods, all newspapers and periodicals regardless of publication frequency, and admission to theatres, museums and exhibitions. Finančná správa

Tanzania
The zero rate on locally manufactured fertiliser is extended through 30 June 2028. The zero rate on locally manufactured garments made from locally grown cotton is extended through 30 June 2026. EY, Tanzanian Finance Act 2025

Spain, Ceuta
The 0.5% rate applies to construction, first supplies and works directly related to new housing, including public works for buildings used mainly as housing. It also applies to Annex V goods for new housing where the importer or buyer is registered under IAE heading 501.1. BOCCE

Andorra
Zero rating is extended to administrative grants of use of affordable housing under the legislation specified in Article 59.15, including the qualifying parking, ancillary premises, storage rooms and furniture let together with the home. Llei 5/2025, article 82

Canada
HST in Nova Scotia is lowered from 15% to 14%. Government of Nova Scotia

Australia
The application period of the GST-free NDIS supports determination is extended to supplies made on or before 30 June 2027. Federal Register of Legislation

Finland
The planned increase in VAT on confectionery and chocolate was abandoned. Finnish Government

France
The supply and installation of boilers capable of using fossil fuels cease to qualify for reduced VAT rates on residential renovation and become subject to 20%. Maintenance and repair of these boilers may continue to qualify for 10%. French tax administration

Colombia
Games of chance operated exclusively online become temporarily subject to VAT at the standard 19% rate. The emergency measure applies until 31 December 2025. DIAN / Constitutional Court, C-431/25

Algeria
The temporary reduced 9% VAT rate for tourism, hotel and thermal activities, classified tourist restaurants, travel services and tourist vehicle rental is extended through 31 December 2027. Deloitte Société d’Avocats

Belgium
The temporary 6% rate for qualifying heat pumps supplied with installation in dwellings less than 10 years old ends, returning to 21%. The separate renovation relief for older dwellings remains available subject to its conditions. Belgisch Staatsblad / Moniteur belge

Bulgaria
The temporary reduced VAT rate on restaurant and catering services ends, and the rate returns from 9% to 20%. The temporary zero rate on bread and flour also ends, and these products return to 20%. Bulgarian Ministry of Finance

Denmark
Passenger air transport moves to the exemption with input VAT deduction in section 34, including domestic flights. Accompanied luggage and related services qualify under the statutory conditions. This changes the type of exemption; it is not a reduction from 25%. Act No. 1693 of 30 December 2024, sections 1 and 4 (Retsinformation)

Estonia
The VAT rate on accommodation services increases to 13% from 9%. The VAT rate for press publications increases to 9% from 5%. Estonian Tax and Customs Board

Finland
The VAT relief for small businesses is no longer available. The turnover threshold for small businesses increased from EUR 15000 to EUR 20000. Finnish Tax Administration, Act 448/2024, section 3, repeal of chapter 14 a and entry into force, Finnish Tax Administration: Small-scale activity exempt from VAT, introduction and 1.1

Finland
Almost all goods and services subject to the 10% tax rate were raised to the 14% tax rate. Newspapers and periodicals, as well as the VAT on Yleisradio, remained at 10%. Menstrual and incontinence products and children's diapers were moved from the general tax rate of 25.5% to the reduced rate of 14%. Finnish Tax Administration, Act 691/2024, sections 85–85 a and entry into force

France
The reduced 5.5% VAT rate is extended to qualifying sales of works of art, collectors’ items and antiques under the normal VAT rules. The reduced rate cannot be combined with the margin scheme. BOFiP, French tax administration

Germany
The reduced 7% VAT rate is reintroduced for qualifying works of art and collectors’ items. Under the margin scheme, however, the margin remains subject to the standard 19% rate. German Federal Ministry of Finance (PDF)

Guinea-Bissau
Guinea-Bissau introduces VAT. It replaces previous 19% Sales Tax. Standard VAT is 19% and reduced rates 10% and 5% (for businesses with a turnover of up to FCFA 40 million). Alfândegas da Guiné-Bissau

Indonesia
The 12% rate applies to luxury goods. For sales to final consumers, the effective rate remained at 11% throughout January 2025 and increased to 12% on 1 February 2025. An increase in the standard rate was also initially planned, but this was abandoned. Direktorat Jenderal Pajak

Israel
The standard VAT rises to 18% from 17%. Israeli Government Decision 1270

Luxembourg
The reduced 8% VAT rate is extended throughout the normal VAT chain to qualifying works of art, collectors’ items and antiques. Where these goods are sold under the margin scheme, the reduced rates cannot be used and the margin is subject to the standard 17% rate. Luxembourg VAT Act at 1 January 2025

Montenegro
Montenegro introduces new reduced rate of 15% in addition to existing 7% rate. KPMG Montenegro

Morocco
The second stage of the VAT rate reform takes effect. Electricity rises from 16% to 18%, electricity meter rental from 11% to 15% and other passenger and freight transport from 16% to 18%. Urban and road passenger and freight transport falls from 13% to 12%, renewable-source electricity and specified insurance intermediary services from 12% to 10%, while refined sugar rises from 8% to 9%. Moroccan Ministry of Economy and Finance – VAT reform 2024–2026

Slovakia
The standard VAT rate rises from 20% to 23%. The 10% rate is abolished, with most supplies previously covered moving to 5%, including accommodation and food served in restaurants. The new 19% rate applies to electricity, other qualifying food and beverages, and drinks served in restaurants containing no more than 0.5% alcohol. Drinks containing more than 0.5% alcohol are taxed at 23%. Financial Directorate (PDF)

Spain
The temporary VAT rates of 2% and 7.5% end. Olive oil permanently moved to the 4% rate. Seed oils and pasta returned to 10%. European Commission

Switzerland
Menstrual hygiene products move to the reduced 2.6% VAT rate. A wider VAT reform also introduces platform taxation for qualifying online marketplaces, new VAT exemptions including certain resold travel services, and the option for eligible businesses to file VAT annually. Swiss Federal Tax Administration

Tunisia
VAT on low-voltage electricity for domestic use is reduced from 13% to 7% when monthly consumption does not exceed 300 kWh. Consumption above 300 kWh remains subject to 13%. Tunisian Ministry of Finance – Finance Act 2025, Art. 31

Tunisia
VAT on residential property built and sold by property developers is revised. Qualifying dwellings priced at no more than TND 400,000 excluding VAT become subject to 7%. Other such residential property becomes subject to the standard 19% rate instead of the previous 13%, subject to the statutory exemptions. Tunisian Ministry of Finance – Finance Act 2025, Art. 64

United Kingdom
The VAT exemption for private school tuition fees ends. Education, boarding services and vocational training provided by private schools are taxed at a rate of 20%. Other education remains tax-exempt. HM Revenue & Customs

Portugal, Madeira
The reduced rate falls from 5% to 4%. The intermediate 12% and standard 22% rates are unchanged. AT circular 25045/2024 (PDF); Regional Decree 6/2024/M, art. 21

Spain
The temporary zero VAT rate for some basic foodstuffs increases to a temporary 2%. The temporary 5% VAT rate for seed oils and pasta increases to a temporary 7.5%. Spanish Ministry of Finance

Ethiopia
Following the removal of the general VAT exemption for electricity and water, Directive 1021/2024 limits the household exemption to the first 200 kWh of electricity and 15 cubic metres of water per month. Consumption above these limits and supplies for commercial use are subject to 15% VAT. Bottled water is not covered by the exemption. Ministry of Finance, Directive 1021/2024, Article 2

Finland
The general tax rate rose to 25.5% from 24%. Finnish Tax Administration, Act 462/2024, section 84 and entry into force

Bulgaria
The temporary 9% rate for the use of sports facilities and qualifying general tourist services ends and the standard 20% rate applies. Bulgarian Ministry of Finance

Greece
The rate for coffee, cocoa, tea, chamomile tea and other infusions served for on-site consumption, as well as for taxis, rises from 13% to 24%. On qualifying islands the corresponding rates are 9% and 17%. Non-alcoholic drinks sold for takeaway or delivery without an on-premises catering service remain at the reduced rate. AADE, Ε.2047/2024 (Forin.gr)

Greece, Aegean Islands
The rate for coffee, cocoa, tea, chamomile tea and other infusions served for on-site consumption, as well as for taxis, rises from 13% to 24%. On qualifying islands the corresponding rates are 9% and 17%. Non-alcoholic drinks sold for takeaway or delivery without an on-premises catering service remain at the reduced rate. AADE, Ε.2047/2024 (Forin.gr)

Pakistan
Several reduced and exempt regimes are revised. Imported laptop and personal computers move from 5% to 10%. Specified stationery, tractors, animal feed and seed meals and certain food products move from exemption to 10%. Most mobile phones move to the standard 18% regime, while imported mobile phones valued above USD 500 remain subject to 25%. Federal Board of Revenue, Finance Act 2024 explanatory circular

Pakistan, Sindh
The standard Sindh sales tax on services rate increases from 13% to 15%. A reduced 8% rate is introduced for restaurant services paid by debit or credit card, mobile wallet or QR scanning, without input tax adjustment. EY, Pakistan adopts changes to Provincial sales tax laws

Tanzania
Supplies of gold to the Bank of Tanzania and to licensed refineries in Mainland Tanzania become zero-rated. Several new sector-specific VAT exemptions are also introduced. EY, Tanzanian Finance Act 2024

Tanzania, Zanzibar
Insurance and digital services move from the standard 15% VAT rate to the higher 18% rate. New VAT provisions also strengthen the rules for non-resident businesses and imported services. Deloitte: Zanzibar Finance Act 2024

Costa Rica
Private higher education covered by the statutory exemption becomes VAT-exempt instead of being subject to the reduced 2% rate. PGR/SINALEVI – Law 10479

Ecuador
The standard VAT rises from 12% to 15% by executive decree. A 5% rate is introduced on local transfers of construction materials. Servicio de Rentas Internas

Germany
The temporary reduced VAT rate on natural gas supplied through the gas network and heat supplied through a heating network ends. The rate returns from 7% to 19%. German VAT Act, § 28(5)–(6) UStG

Spain, Ceuta
A 0.5% rate for transactions under designated strategic projects and reverse charge for the relevant construction works entered into force. The amendment takes effect from the start of the project’s execution. BOCCE

Spain, Ceuta
Rates for the expressly listed tariff headings were halved: examples include perfumes, clothing and jewellery from 10% to 5%, and footwear and specified office equipment from 7% to 3.5%. BOCCE

Italy
VAT on wood pellets rises from the temporary rate of 10% to 22%. Italian Revenue Agency, Circular 3/E/2024

Malaysia
The general service tax rate rises from 6% to 8%. Food and beverage services, telecommunications, parking and logistics are subject to 6%. The fixed RM25 card tax is unchanged. Federal Gazette — P.U. (A) 64/2024

Czech Republic
The reduced rates of 15% and 10% are being merged into a reduced rate of 12%. Most beverages (including draught beer), hairdressing services, cut flowers, firewood, household cleaning, shoe and bicycle repairs, air transport and municipal waste collection are moving to the standard rate of 21%. Books are exempt from VAT with the right to deduct input tax. General Financial Directorate (PDF, in Czech)

Germany
The temporary reduced VAT rate on food supplied as part of restaurant and catering services ends. The rate returns from 7% to 19%; drinks were already subject to 19%. German Federal Ministry of Finance (PDF)

Hungary
A new 0% VAT rate for daily newspapers published at least four times a week. NAV (in Hungarian)

Italy
VAT on sanitary pads, tampons, menstrual cups, infant formula, baby food and children's diapers rises from 5% to 10%. VAT on child car seats rises from 5% to 22%. Italian Revenue Agency, Circular 3/E/2024

Italy
The temporary 5% VAT rate on natural gas for household and industrial use ends. The rates return to 10% (household use up to 480 m³ a year) and 22%. Il Sole 24 Ore

Luxembourg
The temporary VAT reduction ends. The standard rate returns from 16% to 17%, the intermediate rate from 13% to 14%, and the reduced rate from 7% to 8%. The super-reduced rate remains 3%. Luxembourg VAT Authority – Circular No. 812-1

Morocco
A three-year VAT rate reform begins. Electricity moves from 14% to 16%, electricity meter rental from 7% to 11%, renewable-source electricity from 14% to 12%, urban and road passenger and freight transport from 14% to 13%, other passenger and freight transport from 14% to 16%, and refined sugar from 7% to 8%. Services provided to insurance companies by insurance agents or brokers move from 14% to 12%. Economy cars and non-domestic water supplied through public networks move from 7% to 10%. Several basic products also become VAT-exempt. Moroccan Ministry of Economy and Finance – Finance Act 2024

Switzerland
The standard VAT rate increases from 7.7% to 8.1%, the reduced rate from 2.5% to 2.6%, and the special accommodation rate from 3.7% to 3.8%. Swiss Federal Tax Administration

Greece
A 4% rate is introduced for contracted services exclusively intended to overcome or remove architectural barriers for persons with disabilities. On islands qualifying for the 30% reduction, the corresponding rate is 3%. Law 5057/2023, Article 31 (TaxHeaven)

Greece, Aegean Islands
A 4% rate is introduced for contracted services exclusively intended to overcome or remove architectural barriers for persons with disabilities. On islands qualifying for the 30% reduction, the corresponding rate is 3%. Law 5057/2023, Article 31 (TaxHeaven)

Costa Rica
The transitional regime for specified engineering, architecture, surveying and civil-construction services ends. The rate rises from 8% to the standard 13% rate. PGR/SINALEVI – Law 9635, Transitional provision V bis

Costa Rica
The transitional regime for tourism services supplied by providers registered with the ICT ends. The rate rises from 8% to the standard 13% rate. PGR/SINALEVI – Law 9882

Pakistan, Islamabad Capital Territory
A reduced 5% rate is introduced for restaurant services paid by debit or credit card, mobile wallet or QR scanning, without input tax adjustment; other payment methods remain subject to 15%. IT and IT-enabled services are brought under the 15% Table-1 rate, while services provided by software or IT-based system development consultants retain a 5% rate under Table-2 without input tax adjustment. Federal Board of Revenue, Islamabad Capital Territory (Tax on Services) Ordinance 2001

Tanzania, Zanzibar
Banking, postal and telecommunication services become subject to the higher 18% VAT rate instead of the standard 15% rate. The normal annual VAT registration threshold increases from TZS 50 million to TZS 100 million. ZRA, Finance Act 2023/24

Pakistan
A special 25% sales tax rate is introduced for specified luxury and high-value goods, including designated imported goods and vehicles. Federal Board of Revenue, SRO 297(I)/2023

Pakistan
The standard federal sales tax rate on goods increases from 17% to 18%. Federal Board of Revenue, Finance (Supplementary) Act 2023

Andorra
A 3.5% specific rate is introduced for qualifying property acquisitions for permanent residential letting by purchasers who are not businesses for IGI purposes, subject to a minimum five-year letting. Qualifying administrative grants of use of protected public housing are zero-rated. Llei 41/2022, article 5 i disposició final catorzena

Argentina
Law 27,701 replaces the journalistic advertising scales with four bands: 2.5%, 5%, 10.5% and 21%. From 1 January 2024, turnover thresholds are indexed to changes in the statutory limit for medium-sized services businesses, Tier 2. Argentina.gob.ar: national legislation

Germany
A new 0% VAT rate is introduced for qualifying photovoltaic systems, including specified essential components, electricity storage systems and installation. German Federal Ministry of Finance

Luxembourg
For 2023, Luxembourg temporarily reduces the standard VAT rate from 17% to 16%, the intermediate rate from 14% to 13%, and the reduced rate from 8% to 7%. The super-reduced 3% rate remains unchanged. Luxembourg VAT Authority – Circular No. 812

Luxembourg
Qualifying solar panels and their installation become subject to the super-reduced 3% rate. Bicycles, including qualifying e-bikes, and their rental and repair, as well as repairs of specified household goods, move to the reduced VAT rate. Luxembourg VAT Authority – Circular No. 816

Tunisia
VAT on services provided by certain liberal professions, including lawyers, bailiffs, accountants and chartered accountants, increases from 13% to 19%. Tunisian Ministry of Finance – General Note No. 5/2023, Finance Act 2023, Art. 44

Costa Rica
A reduced 0.5% rate is introduced for specified certified organic agricultural and agro-industrial products and for qualifying equipment, machinery and inputs used in their production and agro-industrial processing. Legislative Assembly – Law 10256

Andorra
Sanitary pads, tampons, nappies and similar articles move to the 1% reduced rate. Llei 17/2022, disposicions finals primera i cinquena

Pakistan, Islamabad Capital Territory
The standard sales-tax rate on services is reduced from 16% to 15%. Federal Board of Revenue, Islamabad Capital Territory (Tax on Services) Ordinance 2001

Honduras
The list of essential popular-consumption goods exempt from ISV is expanded to include green coffee, dry parchment coffee, wet parchment coffee and coffee cherries. The measure is subsequently ratified by Decree 59-2022. SAR — Executive Agreement 352-2022 / Decree 59-2022

El Salvador
From 23 March through 4 April 2022, VAT rates on specified fuels are temporarily reduced: premium gasoline to 4.75%, regular gasoline to 5% and diesel to 1.75%. The standard 13% rate applies again after the temporary measure expires. Ministry of Finance of El Salvador — Legislative Decree 321

Spain, Melilla
The new import ordinance and tariff take effect. They regulate, among other matters, postal H7 consignments below EUR 150: 10% without a declared tariff heading, or the rate for the declared heading. They do not create a general exemption for these consignments. BOME — Ciudad Autónoma de Melilla

Mexico
Sanitary pads, tampons and menstrual cups move from 16% to the 0% rate. Mexican federal legislation

Pakistan, Islamabad Capital Territory
Exports of services become subject to a statutory 0% sales tax rate. Federal Board of Revenue, ICT Tax on Services Ordinance

Portugal, Azores
The standard VAT falls from 18% to 16%, as part of a 30% reduction of the national rates. AT circular 25045/2024 (PDF)

Spain, Ceuta
A 10% rate was introduced for low-value consignments whose simplified import declaration does not give at least the first four tariff classification digits. This is not a general low-value exemption. BOCCE

Spain, Melilla
The amended domestic ordinance takes effect, listing hire of means of transport among services taxed at 0.5%. BOME — Ciudad Autónoma de Melilla

Mexico
The VAT incentive begins in the designated southern border municipalities. Qualifying transactions can use an effective 8% rate through the tax credit. Mexican federal legislation

Nicaragua
The special 7% VAT rate for residential electricity bills with monthly consumption of 151–300 kWh ends; the 15% rate applies from this date. Bills for consumption of up to 150 kWh remain VAT-exempt. Nicaraguan Energy Institute – Law 971

Tanzania, Zanzibar
The standard VAT rate is reduced from 18% to 15%. The VAT registration threshold for a twelve-month period increases from TZS 30 million to TZS 50 million. PwC: Zanzibar Tax & Regulatory Update

Algeria
The 0% VAT rate, which had applied since 1 April 2020 to qualifying purchases by companies under the Directorate of Large Enterprises, is abolished before its planned nationwide extension from 1 January 2021. VAT exemption and VAT-free purchasing certificates are reinstated. EY – Worldwide VAT, GST and Sales Tax Guide 2021

Algeria
A 0% VAT rate is introduced for qualifying purchases of goods and services that previously benefited from VAT exemption or the VAT-free purchasing regime, initially for companies under the Directorate of Large Enterprises. EY – Worldwide VAT, GST and Sales Tax Guide 2021

Spain, Ceuta
Professional, artistic and business activities listed in Annex 3 ceased to be taxed at 6% and moved to the general services rate of 4%. The 6% rate was kept for IAE division 75. BOCCE

Nicaragua
The special 7% VAT rate for residential electricity bills with monthly consumption of 301–1,000 kWh ends; the 15% rate applies from this date. Nicaraguan Energy Institute – Law 971

Puerto Rico
Authorised restaurants and other qualifying businesses may apply the reduced 7% rate instead of 11.5% to specified prepared food, carbonated beverages, bakery products and candy. Alcoholic beverages remain at 11.5%. Puerto Rico Department of Treasury – DA 19-03

Costa Rica
VAT enters into force, replacing the former general sales tax and extending taxation to services. The standard rate is 13%, with reduced rates of 4%, 2% and 1%. PGR/SINALEVI – Law 9635

Denmark
Zero-rating is extended to qualifying electronic newspapers. Printed newspapers already qualified. Act No. 591 of 13 May 2019, sections 2–3 (Retsinformation)

Argentina
The exemption covers the sale of newspapers, magazines, periodicals and digital news subscriptions throughout the supply chain, regardless of medium. Advertising follows its own scale; distribution services supplied to publishers are taxed at 10.5%. Argentina.gob.ar: national legislation

Australia
Specified menstrual products, including tampons, pads, menstrual cups and menstrual underwear, become GST-free. ATO

Mexico
The northern border VAT incentive begins: a 50% tax credit produces an effective 8% rate instead of 16% for qualifying transactions. Mexican federal legislation

Venezuela
The standard VAT rate increases from 12% to 16%. Orbitax

Pakistan, Islamabad Capital Territory
The sales tax rate on qualifying information-technology and IT-enabled services is reduced from 16% to 5%. Federal Board of Revenue

Tunisia
The VAT rates increase: the standard rate from 18% to 19%, the intermediate rate from 12% to 13%, and the reduced rate from 6% to 7%. Tunisian Ministry of Finance – Finance Act 2018, Art. 43

Andorra
Cable transport and its sale, as well as the sale of tickets granting access to facilities at animal theme parks and thermal leisure centres, return to the standard rate of 4.5%, replacing the 2.5% rate. Llei 3/2017

Algeria
The standard VAT rate increases from 17% to 19% and the reduced rate from 7% to 9%. Deloitte Société d’Avocats

Colombia
The standard VAT rate rises from 16% to 19%. Liquors, wines, aperitifs and similar products subject to the consumption tax or participation system become subject to VAT at 5%. DIAN, Tax Statute / Law 1819 of 2016

Greece
The standard VAT rate increases to 24%. AADE

Dominican Republic
The reduced ITBIS rate increases from 13% to its current 16%. The standard rate remains 18%. DGII

Puerto Rico
The special 4% state IVU takes effect for designated professional services and specified services supplied to other merchants. Municipal IVU is not added. Puerto Rico Department of Treasury – DA 15-17

Puerto Rico
The state IVU rate rises from 6% to 10.5%. The municipal portion remains 1%, increasing the combined rate to 11.5%. Puerto Rico Department of Treasury – DA 15-10

Dominican Republic
The reduced ITBIS rate increases from 11% to 13%. The standard rate remains 18%. DGII: Notice 28-14

Andorra
A 2.5% special rate is introduced, including for passenger transport and specified cultural services. Special schemes for investment gold and the financial sector are introduced. Llei 10/2014

Dominican Republic
The reduced ITBIS rate for the specified goods increases from 8% to 11%. DGII: Law 253-12

Honduras
The standard ISV rate increases from 12% to 15%. The rate on beer, aguardiente, compound liquor, other alcoholic beverages and cigarettes increases from 15% to 18%. Secretariat of Finance — Decree 278-2013

Bolivia
Law No. 366 introduces zero-rating for sales of printed books and official publications and exempts imports of printed books, newspapers and magazines. Sales of non-official newspapers and magazines are not included in the zero rate. SIN: Ley Nº 366, artículo 8

Andorra
IGI takes effect with a 4.5% standard rate, a 1% reduced rate, a zero super-reduced rate and a 9.5% increased rate for taxable banking and financial services. Llei 11/2012

Dominican Republic
The standard ITBIS rate increases from 16% to 18%. A reduced 8% rate is introduced for specified goods that had previously been exempt. DGII: Law 253-12

Panama
The standard ITBMS rate increases from 5% to 7%. Domestic and international passenger air transport becomes expressly taxable and public hotel and accommodation services become subject to the special 10% rate. A number of exemptions are also amended. Dirección General de Ingresos – ITBMS / Law 8 of 2010

Philippines
The standard VAT rate rises from 10% to 12%. National Tax Research Center / PIDS

Bolivia
International road freight supplied by authorised Bolivian businesses becomes zero-rated. This treatment does not constitute a service export eligible for an input VAT refund. SIN: Ley Nº 3249; D.S. Nº 28656; RND Nº 10-0012-06

Nepal
The standard VAT rate increases from 10% to 13%. Economic and Commercial Office of the Chinese Embassy in Nepal, Nepal's tax system (2005)

Guatemala
The standard VAT rate increases from 10% to 12%. Congress of the Republic of Guatemala — Decree 32-2001

Australia
GST is introduced at 10%. Goods and Services Tax

El Salvador
The standard VAT rate increases from 10% to 13%. Judicial Branch of El Salvador — Legislative Decree 370

El Salvador
VAT enters into force with a standard rate of 10%, replacing the previous stamp tax on invoices. Ministry of Finance of El Salvador

Denmark
The standard VAT rate rises from 22% to 25%. Skattestyrelsen, Legal Guide