VAT changes in Czech Republic, Malta, Estonia, Austria from 2024
VAT changes in Czech Republic, Malta, Estonia, Austria from 2024
Czech Republic
As a result of a legislative amendment, a uniform reduced VAT rate of 12% will come into force from January 1, 2024, replacing the previous two reduced tax rates of 10% and 15%.
The reduced tax rate will no longer apply to many existing services. The amount of input tax deductible for cars will be limited.
A new feature is the introduction of a zero tax rate for books. They can be supplied tax-free, whereby the input tax deduction is to remain permissible.
The standard VAT rate remains at 21%.
Malta
Malta will introduce a new reduced VAT rate of 12% on January 1, 2024.
The new tax rate of 12% applies to the rental of pleasure craft, selected healthcare services, the safekeeping of securities and certain services in connection with the administration of loans and loan guarantees.
The standard tax rate of 18% remains unchanged.
Estonia
The standard VAT rate will be increased from 20% (until December 31, 2023) to 22% (from January 1, 2024).
Supplies and services that do not take place until 2024 must be invoiced at the higher tax rate, even if the payment was received in the previous year.
Austria
With effect from January 1, 2024, Austria is introducing a zero tax rate for photovoltaic systems (PV systems) based on the German tax model.