January 2024 VAT and GST Changes: What you need to know

The beginning of a new year often brings changes to various tax laws and policies around the world, and 2024 will be no exception. Effective January 1, 2024, a number of countries across the globe will see changes to their Value Added Tax (VAT) or GST rates. In this blog post, we will discuss the key VAT/GST changes taking place and what you need to know to stay compliant.

Europe

Czech Republic

On November 22, 2023, the President of the Czech Republic signed the budget law that consolidates the reduced rates of 15% and 10% into a single reduced rate of 12%, effective January 1, 2024.

Estonia

On June 16, 2023, the Estonian Parliament passed a law increasing the standard VAT rate from 20% to 22%, effective January 1, 2024.

As of January 1, 2025, the reduced VAT rates for both printed and electronic press publications will rise from 5% to 9%, with the rates for accommodation services increasing from 9% to 13%.

Luxembourg

The temporary 1% VAT rate deduction on each of the standard and reduced VAT rates established by the Law of October 26, 2022 will expire at the end of the year. From January 1, 2024, the rates will return to 17%, 14%, and 8%, respectively.

Switzerland and Liechtenstein

In a referendum held on September 25, 2022, Switzerland decided to increase VAT rates as of January 1, 2024. The standard rate will increase from 7.7% to 8.1%, the reduced rate will rise from 2.5% to 2.6%, and the special rate for accommodation services will move from 3.7% to 3.8%.

Due to the common VAT system, these increases will also apply in Liechtenstein.

Asia

Singapore

On December 5, 2022, Singapore's GST (Amendment) Act was published, stipulating that the standard GST rate will increase from 8% to 9%, effective January 1, 2024.

Sri Lanka

On December 7, 2023, the Committee on Public Finance of the Sri Lankan Parliament approved an increase in the standard VAT rate from 15% to 18% with effect from January 1, 2024.

Tajikistan

In 2022, the Taxation Committee announced that the standard VAT rate will be decreased from 15% to 14% as of January 1, 2024. This rate will remain in place until January 1, 2027, when it will be reduced to 13%.

What does Fonoa offer?

To facilitate the efforts needed to determine the right tax rate that should be applied, Fonoa developed Fonoa Tax. The Fonoa Tax Engine automatically determines the correct tax treatment for sales transactions anywhere in the world. After you provide minimal transaction data input, the tax engine will determine if the transaction is taxable, what tax rate applies, and the amount of tax that you need to charge for that transaction.