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2021 global VAT & GST rate changes

  • Dec 15, 2020 | 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 Czech Reduced 10% 15% Ending of temporary VAT cut on accomodation; sporting & cultural events
01/01/2021 Japan Reduced 8% 5% Proposed on reduced VAT rate
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 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 
01/01/2022 Austria Reduced 5% 20% 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

China

Rollout of special e-invoices

01/01/2021

France

Postponed Accounting, deferred import VAT

01/01/2021

Greece

E-invoice and e-book regime implementation

01/01/2021

India

Extends mandatory e-invoices to all businesses (B2C)

01/01/2021

Italy

SDI documentation update

01/01/2021

Portugal

Certified invoicing software for resident businesses

01/01/2021

Russia

Proposes VAT on digital currencies

01/01/2021

UK

Brexit: UK leaves EU VAT regime

01/01/2021

UK

UK services ecommerce reforms

01/03/2021

UK

Domestic reverse charge on construction services

01/04/2021

UK

Making Tax Digital phase 2, digital links

01/07/2021

Canada

Imposed 5% GST on foreign digital services

01/07/2021

EU

EU ecommerce package reforms

01/01/2022

Norway

Mandatory SAF-T replaces VAT Return

01/01/2022

EU

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.