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New VAT rates 2018

As of 01.01.2018, new reduced VAT rates have come into force, according to the September 24th 2017 vote.

VAT rates for the effective method

The accounting templates available on our website already contain the new VAT codes, with both the rates before and after the 2017 vote.

  Normal rate Special rate for the hotel sector Reduced rate
Current VAT rates 8.0% 3.8% 2.5%
- Additional funding from AI limited up to 31.12.2017 -0.4% -0.2% -0.1%
+ TVAT rates increase for FAIF 01.01.2018 - 31.12.2030 0.1% 0.1% 0.1%
VAT rates from 01.01.2018 7.7% 3.7% 2.5%

Billing

  • Bills issued in 2017:
    • For sales, services or supplies concerning 2017, that year's rates are used (8% normal rate, 3.8% for hotel sector, 2.5% reduced).
    • For sales, services or supplies concerning 2018, that year's rates are used (7.7% normal rate, 3.7 for hotel sector, 2.5% reduced). 
  • Bills issued in 2018:
    • For sales, services or supplies concerning 2017, that year's rates are used (8% normal rate, 3.8% for hotel sector, 2.5% reduced).
    • For sales, services or supplies concerning 2018, that year's rates are used (7.7% normal rate, 3.7 for hotel sector, 2.5% reduced).

New VAT Codes 2018

At the end of 2017 and for 2018 the different rates should be used in parallel.

  • The VAT Codes table already contains the VAT codes with the relative rates for both 2017 and 2018.
    Simply import the VAT codes into your accounting.
  • At the latest, when starting the 2018 fiscal year, the new VAT codes must be imported

Flat rate method

The list of VAT codes is already provided with the relative codes for the final rates.

  • F1 and F2 VAT Codes remain unchanged and relate to services invoiced with the 2017 rates.
  • F3 and F4 VAT Codes must be set up for services invoiced with 2018 rates.

Two methods are used for calculation:

Further information is available at the following link: reduced VAT rates as per 1st of January 2018.

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