Eurozone energy inflation 38% April 2022; temporary VAT subsidies for domestic power, foods and other basics A fast-growing queue of European countries are emerging to cut their already reduced VAT rates on domestic energy, petrol and foods. Eurozone headline inflation hit 7.5% in April 2022, up
Temporary tax breaks on domestic fuel and basic foodstuffs The Bulgarian government has proposed temporarily reducing the Value Added Tax rate on domestic heating and bread. The National Statistical Institute said that Bulgaria’s consumer prices rose by annualised inflation rate of 14.4% (12.4% in March).
Warsaw government considering rolling over VAT cuts Mateusz Morawiecki, Poland’s prime minister, has confirmed Poland is likely to rollover a number of temporary VAT rate cuts as inflation hit 12.3% in April 2022 (March, 10.9%). This is the highest rate since 1998. The current cuts,
Harmonisation of VAT on electronic and paper-based books and periodicals Moldova has followed the example of the EU, and synchronised the Value Added Tax rate on electronic books and periodicals with those on their printed equivalent. The measure, which exempts electronic publications from VAT, was
ECOFIN ministers adopt reduced VAT rate freedoms into EU law – member states may now implement On 5 April 2022, EU Finance Ministers (ECOFIN) formally adopt changes to the EU VAT Directive to give member states wider rights to use reduced VAT rates, including an
12.4% inflation prompts cut in fuel VAT rates 30 April 2022 Estonia is the latest country to turn to a temporary Value Added Tax rate cut to help combat spiking prices on the global energy markets. VAT on petrol, diesel, heating oil and gas will
Inflation hits 62% in March prompts more VAT rate cuts On 28 March, the Turkey President, Tayyip Erdogan, announced a cut from 18% to 8% for a range of goods including: bathroom supplies such as soap and detergents, napkins and toilet paper baby nappies. restaurant
Russia cuts VAT for tourism services and investment for five years in acknowledgement of surplus in industry following Ukraine invasion The Russian government has cut the Value Added Tax rate for investors in tourist and hospitality facilities to zero. This will apply from the opening
Chancellor’s Spring Statement cuts on green VAT and Fuel Duty as inflation hits 6.2% – 30 year high The UK Chancellor, Rishi Sunak, delivered his annual Spring Statement. This included a number of indirect tax measures: The supply with installation of domestic insulation, solar panels
Third extension of COVID-related VAT subsidy for hotel and restaurant services Moldova has extended for the third time its application of the reduced 6% VAT rate on hotel and restaurant services until 24 April 2022. It was due to run out on 15 March 2022.
