Czech Republic- Reduced VAT rates of 10% and 15% to be merged under new VAT rate of 12%

The Czech government recently announced a recovery package to reduce the national debt, included in the package is a proposal to replace the two reduced VAT rates of 10% and 15% VAT,  with a single reduced VAT rate of 12%.

If approved this change will apply from 1st January 2024.

Poland - Possible extension of 0% VAT rate on food into 2024

The Polish Prime Minister announced that 0% VAT rate on certain food product may be extended into 2024 if inflation persist. Decision is to be made once inflation data for 2023 and the forecast for 2024 is available. At this moment 0% VAT rate is applicable until 30th June 2023. 

Hungary - Increase in VAT exception threshold: 

The request made by Hungary to increase its VAT exemption threshold from EUR 48,000 to EUR 71,500 has been approved by the European Union Council. This means that companies with an annual turnover not exceeding this threshold will be exempted from VAT until 31st December 2024.

Proposal to increase VAT registration threshold in Lithuinia.

The Lithuinian Minister of Finance has proposed an increase to the VAT registration threshold from €45,000 to EUR 55,000. If approved, the new threshold will apply from 2024.

If you have any questions on the impact of the above changes on your business, please contact us here