VAT and Other Indirect Tax Rate Changes for 2026
(unless otherwise noted, the changes apply as from 1 January 2026)
|
Jurisdiction |
Rate |
Comments |
|
Belgium |
Various |
Various VAT rate changes will apply as from 1 March 2026 (see the article in this issue). |
|
Bhutan |
5% |
A GST regime that replaces the sales tax applies as from 1 January 2026. |
|
Cabo Verde |
8% |
The VAT rate for the transmission of electricity and water to final consumers is reduced to 8%. |
|
Cyprus |
5% |
A decree that applies as from 5 December 2025 introduces a VAT rate of 5% for construction and renovation work carried out on buildings used for VAT-exempt educational purposes. A separate decree extends the temporary zero VAT rate on basic goods to 31 December 2026, covering specific food and goods. |
|
Denmark |
0% (books) |
The 25% VAT on books is abolished and replaced with a 0% rate. |
|
Ecuador |
15% |
Ecuador is retaining the increased standard VAT rate of 15% (from 13%) through 2026. The higher VAT rate was originally introduced in 2024 and retained during 2025. |
|
Finland |
13.5% reduced rate |
The reduced VAT rate on items such as food, medicine, books, transport and accommodation) drops from 14% to 13.5% (see the article in this issue). |
|
Germany |
7% reduced rate |
The 7% reduced rate on restaurant and catering services is made permanent. |
|
Ghana |
20% |
The effective VAT rate dropped from 21.9% to 20% and the VAT registration threshold increased from GHS 200,000 to GHS 750,000 according to a public notice published by the tax authorities. |
|
Greece |
See comments |
The VAT rates on goods and services supplied to several Greek islands have been reduced by 30% to alleviate the cost of living (subject to certain conditions), with the standard VAT rate dropping from 24% to 17% and the reduced rate from 13% to 9%. The rate reduction that applies to Chios, Kos, Lesvos and Samos continues in effect. |
|
Ireland |
23% |
The standard rate applies to the hire of rooms in hotels and guesthouses for use other than as accommodation. |
|
Kazakhstan |
16% |
The standard VAT rate increases from 12% to 16% and the 5% reduced rate will jump to 10% on 1 January 2027. |
|
Latvia |
12% (reduced rate) |
A reduced rate of 12% will apply to basic foods (e.g., such as milk, bread, poultry and eggs) during the period 1 July 2026 through 30 June 2027. |
|
Liberia |
13% |
Parliament adopted an increase in the standard GST rate from 12% to 13%. The measures—found in the budget for 2026—still must be approved by the president. A VAT regime will replace the GST regime on 1 January 2027. |
|
Lithuania |
12% reduced rate |
The 9% reduced rate is increased to 12% rate. Affected supplies include certain passenger transport services, accommodation services, catering, and admission to art and cultural institutions and cultural events. The rate on certain items subject to the 9% rate (e.g., medicine, books, publications) drops to 5%. |
|
Malawi |
17.5% |
The standard VAT rate increased from 16.5% to 17.5%. |
|
Netherlands |
21% short-stay accommodations |
The VAT rate on short-stay accommodations increases from 9% to the 21% standard rate. |
|
Romania |
Standard rate 21% (from 19%) and reduced rate 11% (from 5% and 9%) |
The rate changes apply as from 1 August 2025. |
|
Slovak Republic |
23% |
The standard VAT rate of 23% applies to high sugar and high salt foods. |
|
Sri Lanka |
18% on digital services provided by nonresidents |
The introduction of an 18% VAT on digital services provided by nonresidents that was due to apply as from 1 October 2025 (and then 1 April 2026) has been postponed to 1 October 2026 to give taxpayers additional time to prepare. |
|
Switzerland |
8.1% |
The proposed increase in the standard VAT rate from 8.1% to 8.8% has been postponed, likely to 2028. |
|
Zimbabwe |
15.5% |
The standard VAT rate was increased from 15% to 15.5% in the 2026 budget. |