2021 global VAT & GST rate changes
- Jan 1, 2021 | Richard Asquith
Below are the scheduled 2021 VAT rate changes around the world. Sign-up for your regular VAT newsletter or our monthly VAT blog, VATVoice.
1. 2021 VAT rate changes
| Date | Country | Rate | Current rate | New Rate | Comments |
| 01/01/2021 | Germany | Standard | 16% | 19% | Ending of temporary VAT cut for COVID |
| 01/01/2021 | Belgium | Reduced | 6% | 12% | Ending of temporary VAT cut on hospitality for COVID |
| 01/01/2021 | Colombia | Reduced | 0% | 8% | Ending of temporary VAT cut for COVID hospitaliy |
| 01/01/2021 | Costa Rica | Reduced | 1% | Proposed on basic goods | |
| 01/01/2021 | Kenya | Standard | 14% | 16% | Ending of temporary VAT cut for COVID |
| 01/01/2021 | Kenya | Turnover Tax | 1% | 3% | Ending of temporary VAT cut for COVID |
| 01/01/2021 | Lithuania | Reduced | 9% | 21% | Ending of temporary VAT cut on tourism and hospitality for COVID |
| 01/01/2021 | Mexico | Reduced | 16% | 8% | VAT at Southern and Northern border regions |
| 01/01/2021 | Moldova | Reduced | 15% | 12% | Hospitality proposed |
| 01/01/2021 | Romania | Reduced | 20% | 5% | Residential properties ( |
| 01/01/2021 | Russia | Reduced | 20% | 10% | eBooks proposed |
| 01/01/2021 | Spain | Reduced | 10% | 21% | Sugar-heavy drinks |
| 01/01/2021 | UK | Reduced | 5% | 0% | Tampons |
| 09/01/2021 | Greece | Reduced | 5% | 9% | Ending of temporary VAT cut for COVID hotels, restaurants, passenger transport |
| 10/01/2021 | Cyprus | Reduced | 5% | 9% | Ending of temporary VAT cut for COVID hotels, restaurants, passenger transport |
| 08/02/2021 | Hungary | Reduced | 5% | 27% | Ending of temporary VAT cut for COVID on take-away food |
| 01/03/2021 | Ireland | Standard | 21% | 23% | Ending of temporary VAT cut for COVID |
| 01/04/2021 | Jamaica | Standard | 15% | 16.5% | Ending of temporary VAT cut on hospitality for COVID |
| 01/04/2021 | Botswana | Standard | 12% | 14% | Raise in standard VAT rate |
| 01/04/2021 | Oman | Standard | 0% | 5% | Introduction of VAT |
| 01/04/2021 | UK | Reduced | 5% | 20% | Ending of temporary VAT cut on tourism and hospitality for COVID |
| 04/04/2021 | Uruguay | Reduced | 13% | 22% | Café and restaurtant services ending of temporary VAT cut for COVID |
| 30/04/2021 | Greece | Reduced | 13% | 24% | Ending of temporary VAT cut for COVID transport; non-alcholic drinks |
| 01/06/2021 | Norway | Reduced | 6% | 12% | Further extension??? |
| 01/07/2021 | Germany | Reduced | 7% | 19% | Ending of temporary VAT cut for COVID resturants; catering |
| 01/07/2021 | Greece | Reduced | - | - | Holiday islands lose discounted VAT rate |
| 01/07/2021 | Turkey | Reduced | 8% | 18% | Ending of temporary VAT cut on hotels, accomodation, domestic flights |
| 01/07/2021 | Malaysia | Reduced | 0% | 6% | Ending of temporary VAT cut on tourism |
| 16/08/2022 | Czech | Reduced | 10% | 15% | Ending of temporary VAT cut on accomodation; sporting & cultural events |
| 01/01/2022 | Austria | Reduced | 5% | 10% | Ending of temporary publications VAT cut |
| 01/01/2022 | Austria | Reduced | 5% | 10% | Ending of temporary restaurant VAT cut |
| 01/01/2022 | Bulgaria | Reduced | 9% | 20% | Ending COVID temporary catering, books and wine VAT cut |
| 01/01/2022 | Ireland | Reduced | 9% | 13.5% | Ending of temporary VAT cut on tourism and hospitality for COVID |
| 01/01/2022 | Moldova | Reduced | 12% | 20% | Ending of temporary VAT cut on hospitality for COVID |
2. 2021 VAT measure changes
| Date | Country | VAT reforms |
01/01/2021 |
Rollout of special e-invoices |
|
01/01/2021 |
France |
Postponed Accounting, deferred import VAT |
01/01/2021 |
Extends mandatory B2B e-invoices to businesses with turnover above Rs 100 Crore |
|
01/01/2021 |
Italy |
SDI documentation update |
01/01/2021 |
Portugal |
Certified invoicing software for resident businesses |
01/01/2021 |
Proposes VAT on digital currencies |
|
01/01/2021 |
Brexit: UK leaves EU VAT regime |
|
01/01/2021 |
UK services ecommerce reforms |
|
01/03/2021 |
UK |
Domestic reverse charge on construction services |
01/04/2021 |
Making Tax Digital phase 2, digital links |
|
| 01/04/2021 | Greece | E-invoice and e-book regime implementation |
| 01/04/2021 | India | Extends mandatory e-invoices to all businesses (B2C) |
01/07/2021 |
Imposed 5% GST on foreign digital services |
|
01/07/2021 |
EU ecommerce package reforms |
|
01/01/2022 |
Mandatory SAF-T replaces VAT Return |
|
01/01/2022 |
Progress on Tax Package measures |
VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax
Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
