The standard VAT rate of 6.5% will be increased to 7.5% with effect from January 1 1999. Furthermore, the reduced rate VAT tariffs of 2% and 3% will be increased to 2.3% and 3.5% respectively. These changes will necessitate amendments in VAT payers' contracts, systems and invoicing procedures. This is the first increase after the introduction of VAT in 1995. Companies are, therefore, not yet used to handling such changes.
May 31 1998