European VAT changes

European VAT Rate Changes


As part of a range of austerity measures, a number of VAT rate changes have been introduced across Europe.  It is important for businesses to be aware of these changes, in order to update their accounting systems, to ensure compliance.  




Irish                                                IRELAND         

A second reduced VAT rate of 9% has been temporarily introduced in respect of certain goods and services supplied mainly within the tourism sector. The temporary rate will remain in place from 1 July 2011 to 31 December 2013, with a review in 2012.Examples of goods and services falling under the new rate are as follows: provision of food and drink; holiday/hotel accommodation; event admissions; hairdressing services and supplies of newspapers. The rate has been introduced to boost tourism in Ireland

italy-flag                                                ITALY

The Italian government agreed to increase the standard rate of VAT from 20% to 21%.  The new VAT rate came into effect on 17 September 2011.

German-flag                                               GERMANY

Retailers who sell theatre tickets can now apply the reduced VAT rate of 7%. This had previously been restricted to sales by the organiser of the event.Sale of tickets at the box office and by a tour organiser for a theatre troupe can also apply the reduced VAT rate. 

greek-flag                                               GREECE

The VAT rate on ‘prepared food for immediate consumption’ in restaurants; canteens etc. has been increased from 13% to 23% from 1 September 2011. Examples of some supplies that are now taxed at 23% include: non-alcoholic beverages; prepared food for immediate consumption at restaurants and take away shops, etc.  Educational institutions and hospitals supplying these services should continue to charge the reduced VAT rate of 13%.