Important VAT News

VAT changes are important for your cost of doing business abroad.

It may be helpful to share that VAT information with your staff members in A/P, A/R, Sales and colleagues who handle long term contracts (suppliers and clients) for your company.

Call us toll-free at 1-866-332-4777 (Canada/USA) or use this form for more information.


    Effective January 1, 2010 the VAT rate will go back up from 15 % to 17.5 %.


    The newly elected German Government has announced that it plans to reduce the standard VAT rate of 19 % for hotel and restaurant invoices (ONLY) to the reduced rate of 7 % to support the hospitality industry.

    Other changes in 2009:

  • European Community

    • Hungary has increased the standard VAT rate from 20 % to 25 % effective July 1, 2009!
      • Reduced VAT rates are now 18 % and 5 %.
    • Estonia has increased the standard VAT rate from 18 % to 20 % effective July 1, 2009!
    • France has a reduced VAT rate of 5.5 % for Restaurant Services effective July 1, 2009!

    Please review invoices for goods and services from these countries and contracts with suppliers and customers if necessary.


  • Important VAT rule changes for all 27 European Community countries will become effective:

    • January 1, 2010
    • January 1, 2011
    • January 1, 2013
    • January 1, 2015

    If you are doing business in Europe or with European companies or customers you have to know what to do.


  • European Community

    The Irish Government has made an unusual move compared to other countries who reduced their VAT rate to support the economy (UK from 17.5 % to 15 %) or postponed plans to increase their VAT rate from 19 % to 20 % (Netherlands) or from 5 % to 7 % (Japan).

    The standard VAT rate in Ireland has been increased from 21 % to 21.5 % effective December 1, 2008 !

  • United Kingdom

    UK VAT RATE REDUCTION to support companies in UK and foreign companies doing business in UK

    The British government has decided to act swift and fast by announcing a reduction of their VAT rate from

    • 17.5 % to 15 % effective December 1, 2008

    The VAT rate reduction will last until December 31, 2008 and the rate will go back to 17.5 % effective Jan. 1, 2008.

  • European Community

    Portugal has changed the standard VAT (IVA) rate from 21 to 20 % effective July 1, 2008.

    The European government will implement new VAT rules effective January 1, 2010 for the 27 member countries:

    • Place of supply for business-to-business supplies of services (taxpoint).
    • New fully electronic filing procedure for VAT refund claims from EU based businesses.


  • United Kingdom

    The UK VAT authority will implement new online filing procedures for VAT refund claims from foreign businesses.


  • Germany

    The German VAT authority only accepts VAT refund claims from foreign businesses with claim forms signed by the CEO, CFO or Managing Partner.


  • Europe

    The European Community has two new member states bringing up the number of member states to 27.

    Romania (standard VAT rate 19%) and Bulgaria (standard VAT rate 20%) both joined the EC effective January 1, 2007.

  • The new German government will be increasing the standard VAT rate from 16% to 19% on January 1, 2007.

    Make sure your German suppliers provide you with a clear cut off date for the correct time of delivery and with invoices that have 16% VAT rate rather than the new 19% VAT rate!