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COVID-19 VAT rate cuts

  • Jul 7, 2020 | Richard Asquith

Covid-19 VAT rate cuts

Most countries around the world have looked to VAT / GST measures to help support businesses and consumers during the Coronavirus pandemic crisis. Below is a live list of major VAT rate cuts announced since March 2020. This excludes reductions on rates of COVID-related medicines and equipment supplies.

Country Supply Old rate New rate Implementation date End date
Austria Non-Alcoholic beverages 20% 10% 01 Jul 2020 31 Dec 2020
Austria Hospitality, Culture, some print 10% 5% 01 Jul 2020 31 Dec 2020
Belgium Hospitality, restaurants, cafes and publishing 12% 6% 8 Jun 2020 31 Dec 2020
Bulgaria Hospitality, restaurants, cafes and books 21% 10% 01 Jul 2020 31 Dec 2020
Colombia Hospitality, restaurants, cafes 8% 0% 25 May 2020 31 Dec 2020
Costa Rica Standard rate 13% 9% TBC TBC
Costa Rica Live and cultural event tickets 13% 7% TBC TBC
Costa Rica Tourism 13% 0% 1 Jul 2020 30 Jun 2021
Croatia Basic foodstuffs 25% 13% TBC TBC
Cyprus Hotels, accommodation, hospitality, restaurants, cafes and public transport 9% 5% 01 Jul 2020 10 Jan 2021
Czech Republic Accommodation; sports and cultural activities 15% 10% 01 Jul 2020 31 Dec 2020
Germany Standard rate 19% 16% 01 Jul 2020 31 Dec 2020
Germany Reduced rate 7% 5% 01 Jul 2020 31 Dec 2020
Germany Hospitality, restaurants, cafes 7% 5% 01 Jul 2020 1 Jul 2021
Greece Public transport, taxis, ferries 24% 13% 01 Jun 2020 31 Oct 2020
Greece Transport, coffee, non-alcoholic beverages, cinemas and tourist services 24% 13% 01 Jun 2020 31 Apr 2021
Ireland Standard rate 23% 21% 01 Sep 2020 28 Feb 2021
Ireland Tourism and hospitality services 13.5% 9% 01 Nov 2020 31 Dec 2021
Jamaica Standard rate 16.5% 15% 01 Apr 2020 31 Mar 2021
Kenya Standard rate 16% 14% 01 Apr 2020 -
Lithuania Hospitality, restaurants, cafes 21% 9% TBC 31 Dec 2020
Malaysia Service Tax on Hotels 6% 0% 30 Mar 2020 30 Jun 2021
Malaysia Tourism Tax RM10 RM0 01 Jul 2020 30 Jun 2021
Mexico Standard rate 16% 10% TBC TBC
Moldova Hospitality, restaurants, cafes 20% 15% 01 May 2020 31 Dec 2020
Montenegro Restaurants, cafes and catering services 21% 7% 04 Aug 2020 31 Aug  2021
Norway Cinema, hotels, public transport 12% 6% 01 Apr 2020 31 Dec 2020
Poland Change in VAT reporting matrix - - 01 Jul 2020 -
Saudi Arabia Standard Rate 5% 15% 01 Jul 2020 -
Turkey Hotels, accommodation, domestic flights 18% 1% 01 Apr 2020 30 Nov 2020
UK E-books and online journals 20% 0% 01 May 2020 -
UK Hospitality and tourism including restaurants; cafes; pubs (ex alcohol); hospitality; hotels; B&B's; home rental; caravan and tent sites; hot take away food; theatres; circuses; amusement parks; concerts; museums; zoos; cinemas; and exhibitions. Note: served alcoholic drinks will not benefit from the cut. 20% 5% 15 Jul 2020 31 Mar 2021
Ukraine Cultural events, domestic electricity 20% 10% 17 Mar 2020 31 Dec 2020

Follow Avalara’s live global coronavirus Covid-19 VAT tracker for details of all indirect tax measures.

Explore more content like this in our Building for COVID-19 recovery hub

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is the former VP Global Indirect Tax at Avalara
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