Tax subsidies for domestic power and foodstuffs as inflation hits new highs A fast-growing queue of European countries are emerging to cut their already reduced VAT rates on domestic energy. Energy price rises in January 2022 were the biggest contributor to the rise in Eurozone inflation
VAT cut may be announced prior to 7 Feb price cap rise The UK government is coming under pressure to cut the reduced VAT rate on domestic fuel from 5% to zero as inflation hits a 30-year high. Any change is likely to be announced
VAT reduction to 7% on supplies in hotels, cafes and restaurants The east European state of Montenegro has cut the Value Added Tax rate on food and non-alcoholic drinks served at cafes, hotels and restaurants. Since 8 January 2022, the rate has been reallocated from
Moldova has extended for the second time its application of the reduced 6% VAT rate on hotel and restaurant services until 15 March 2022. It was previously at the 12% reduced rate. Reduced rate first introduced in June 2021 Moldova first cut Value Added Tax
Parliament calls for additional supplies to be added to 1 February reduced VAT cuts On 20 January 2022, the Polish Parliament voted to add further goods to the list to enjoy VAT rates cuts to 8% from 1 February 2022. These include: Coal and coke
Inflation hits 8.2% prompting food VAT cut following domestic electricty reduction Inflation in Romania has now hit a 10-year record at 8.2% in December. It started the year at 3%. The government is therefore discussing cutting VAT on basic foodstuffs from 9% reduced rate to
Polish Ministry of Finance issues “Anti-Inflation Shield 2.0” – food and energy VAT rate cuts The Polish Finance Minister has won Parliamentary approval to cut to zero that VAT rate on basic foods due to concerns over inflation. This would be introduced between 1st February
23% domestic electricity inflation forces extended tax subsidy The Romanian government is considering an extended reduced VAT rate on domestic energy prices for low-volume consumers. This would maintain the reduced Value Added Tax rate at 5% instead of the 19% standard VAT rate between April
Russia is to exempt providers of catering services from Value Added Tax from 1 January 2024. This includes the following service groups: Restaurants Cafes Hotel (non-accommodation related) Canteens and refectories Sign-up for our free VAT & GST news updates The following requirements will have to
