Your Essential Guide to the Latest VAT Changes for 2024

Time to read: 3-4 minutes

2024 is ready to be ushered in, as well as some VAT rate changes. Kindly note the below VAT rate changes will be in effect as of the 1st of January 2024.

*Please note the countries and changes marked with an (*). These changes are proposed to start on the 1st of January 2024; however, the changes are still subject to Government sign off.

Country  Description 
Canada*  A 3% Digital Services Tax on in-scope digital services revenues from customers based in Canada. It will also be applied retrospectively for two years. Kindly note that this tax will only be applicable to certain large businesses. 
Cyprus  On the 13th of September 2023 the temporary application of the 0% VAT Rate on certain essential goods was extended to cover coffee and sugar. This temporary application of the 0% VAT rate to certain essential goods has been extended to the 30th of April 2024.  

The cut includes milk, bread, eggs, baby food, diapers, and feminine hygiene products.  

Czechia*  A new reduced VAT rate of 12% will replace the current reduced rates of 15% and 10%. 

Alcohol, and draft beer and some services such as hairdressing will increase to the standard VAT rate: 21%  

Books will be VAT exempt, reducing from the current 10%.  

Estonia  2% increase in VAT rate; the new standard VAT rate 22%. 

Kindly note there is an exception applicable to invoices issued under the cash accounting system, and certain long-term contracts please contact us for more information.  

Finland**  Finland will be recategorizing certain goods. The below items VAT will increase from 10% to 14%: 

  • Books, 
  • Hotel Services, 
  • Film Screenings, 
  • Public Transport and 
  • Television and Radio Royalties 

Tampons and Nappies will decrease from 24% to 14% 

**Kindly note it has been proposed to push this amendment out to 2025.  

Germany  Restaurants, cafes, and catering increases to 19%; bringing an end to the temporary cut in VAT for hospitality sector.  

The temporary reduction of the VAT rate from 19% to 7% for domestic energy is scheduled to end on the 31st of March 2024.  

Greece  Non-alcoholic drinks, transport and tourism services will increase back to the standard VAT rate: 23%. There is a proposed exception to coffee and taxi services. *  

It has been proposed that the reduced VAT rate of 13% applicable during COVID-19 pandemic for certain transport services, gyms, dance schools and various health related products be made permanent. *  

Ireland*   Electronic and audio books are reclassified to 0% VAT.  
Liechtenstein  Standard VAT rate will increase from 7.7% to 8.1%. 
Lithuania  Temporary reduced rate of 9% is set to end for catering services, certain take aways. Kindly note there is an exception for alcoholic beverages and services related thereto.  
Luxembourg  Standard VAT rate will return to 17%. 

Intermediate reduced rate to 14%. 

Reduced rate to 8%. 

Super Reduced rate to 7%.  

Malaysia  Online retailers who sell low value imported goods for under RM 500 will be required to charge 10% Sales Tax. 
Malta  Introducing an extra reduced VAT rate of 12%; the current 7% and 5% reduced VAT rates in will remain in operation. 
Poland   Temporary reduced VAT rate on basic foods products to 0% is scheduled to end.  
Romania  Most of the goods and services subject to 5% VAT rate will be subject to the standard VAT Rate 19%.  

Certain supplies on the reduced VAT rates of 5% and 9% are schedule to increase, please contact us for details.  

Singapore  GST will rise from 8% to 9%. 
Spain  The temporary reduction of VAT rates of basic foods (0%); and oil and pasta (5%) are scheduled to end.  
Sri Lanka  Standard VAT rate will increase from 15% to 18%. 
Switzerland  The standard rate of VAT will rise from 7.7% to 8.1%, while the reduced rate will increase from 2.5% to 2.6%. 

Please do not hesitate to contact us with any queries. Our team of consultants are ready to help you navigate the VAT rate changes to ensure your business stays compliant.