Change in European VAT Rates

There have been some recent announcements with regards to changes of VAT rates in the EU, these include;

  • The standard rate of VAT in Romania is set to decrease from 24% to 19%. The original proposal of a standard rate of 20% has been revised due to the economic growth of the country taking place at a quicker pace than expected. This change in VAT rate is due to come into place by January 2016.
  • Poland’s current standard rate of VAT is also set to be reduced from the current 23% to 22% from 1 January 2016. The restoration of the 22% VAT rate has been brought forward from 2017 due to the after the strong recovery made by the economy after the global financial crisis.
  • As a result of the bailout discussions, Greek VAT rates on some goods and services will change with immediate effect. The reduced-rate of VAT (13%) applicable to milk, fruit and fish is due to rise to the standard rate of 23% while the VAT rate of books and medicines will fall to 6% from 6.5%.

If you or your client are involved in transactions with the above countries and they are deemed to be the place of supply, the supply may be susceptible to the new VAT rates. If you have any queries relating to place of supply and VAT rates in other EU member states please call out free VAT helpline.

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