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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 Oct 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 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 2019 Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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