ARTICLE · 15 JULY 2021

VAT Rate Reduction For Certain Sectors

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As of July 1, 2020, with a change in the Value Added Tax Act (VAT), the introduction of a temporary differentiated VAT rate was adopted for some sectors that are most affected by the economic crisis in connection with COVID-19.

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As of July 1, 2020, with a change in the Value Added Tax Act (VAT), the introduction of a temporary differentiated VAT rate was adopted for some sectors that are most affected by the economic crisis in connection with COVID-19. The differentiated rate is part of the anti-crisis measures for temporary support of specific branches in the situation of coronavirus. The change applies to restaurant and catering services, books on physical and electronic media, baby food and baby hygiene materials. According to the adopted changes, the rate is introduced as of 01.07.2020 and will continue until 31.12.2021 amendment of Article 66, paragraph 2 of the VAT Act, published with SG, issue 55 of 19.06.2020 of the VAT Act .

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