Increased VAT Rates Announced in France, Italy, Spain and the Netherlands
Continuing budgetary issues within the European Union are causing many countries to consider ways in which to increase their tax income. Following the Spanish government’s decision to increase its standard VAT rate from 18% to 21% effective 1st September, three other EU states have made recent announcements concerning their own VAT rates as follows:
The Netherlands: the standard rate has been increased from 19% to 21% with effect from 1st October.
Italy: the standard rate will increase from 21% to 23% and the reduced rate from 10% to 12% in July 2013 for 6 months only. With effect from January 2014 both rates will be reduced by 1% to become 22% and 11% respectively.
France: despite an earlier announcement concerning a proposed increase in the standard VAT, the new French government has decided to maintain the existing VAT rate until further notice.
While the economic situation continues to remain fluid we advise all our customers to ensure that they keep fully up to date on all current and planned VAT rates in Europe. For further information go to: http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/how_vat_works/rates/vat_rates_en.pdf