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The VAT changes you need to know about in 2012

06 January 2012

Salman Shaheen - ITR


This month will be an uncomfortable one for taxpayers as VAT hikes come into force around the world. Here are the changes you need to be aware of.

In Hungary, the standard VAT rate increased from 25% to 27%, bringing it to the highest in Europe and above the informal EU maximum of 25%.

While Ireland has remained steadfast in its refusal to raise its 12.5% corporate tax rate to raise much needed revenue, it has hiked VAT from 21% to 23%.

In the Czech Republic, the reduced rate increased from 10% to 14%, while in France, there is a new reduced rate of 7% covering most of what was covered by the 5.5% rate (still existing but with reduced scope) was introduced.

In Finland, subscriptions to newspapers and periodicals are now subject to a reduced VAT rate of 9% if the subscription lasts for at least one month. Subscriptions were previously zero-rated.

Luxembourg has now included electronic books in its super-reduced 3% VAT.

In Portugal, certain goods and services are no longer subject to the...



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