As part of our series on the upcoming Recovery Tax Package, we are today going to focus on the value added tax (VAT).
The amendment to the VAT law is not extensive. A significant change is the abolition of the second reduced rate. There will only be two VAT rates again – 12% and 21%.
A range of goods or services will be subject to a higher VAT rate from 2024 (the current 10% will increase to 12%). On the other hand, the rate for goods or services that is currently 15% will decrease.
However, there are also shifts to the higher (standard) rate.
The standard 21% VAT rate will apply to:
- services of barbers and hairdressers
- draft beer including other beverages served as part of catering
- services or supplied as goods
- services of authors and artists
- fuelwood including pellets and briquettes.
The 12% VAT rate will apply to, for example:
- foods with the exception of most beverages
- public transport of persons, including ski lift transport
- construction work on completed residential buildings
- social housing
- child safety seats
- funeral services.
As for books, including electronic or electronically delivered (streamed, downloadable) ones, they will be exempt from tax starting from the beginning of 2024. However, it is important for booksellers that they will retain the right to tax deductions.
Given that we will soon be facing the settlement of advances paid to landlords, follow our website, as in one of the subsequent articles, we will address the change in rates for services paid in advance.
Another important change is planned for the VAT deduction for cars. We will dedicate one of the following articles to this issue as well, so make sure to follow our social media.
Download PDF: Recovery Tax Package for 2024 - Value Added Tax (VAT)
