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European VAT News

European VAT News

By November 18, 2022No Comments


The Irish government recently confirmed the following VAT rate changes during its budget announcement for 2023.

  • An extension to the 9% VAT rate that applies to gas and electricity until 28 February 2023. This rate was due to revert to 13.5% on 1 November 2022.

  • From January 2023, the VAT rate that applies to newspapers and defibrillators will be reduced from 9% and 23% respectively, to 0%.


The Lithuanian government has confirmed that it will extend the VAT rate cut to 9% on hospitality, sporting, and cultural services to 31 December 2023.

The VAT rate on these services was reduced from 21% to help the Lithuanian hospitality sector recover from the impact of COVID-19 back in 2021.


The Luxembourg government has announced that it will reduce most VAT rates in the country by 1% from 1 January 2023.

This reduction is being introduced to fight high rates of inflation in the country, and means that the:

  • Standard VAT rate will drop from 17% to 16%

  • Reduced VAT rates will drop from 14% and 8% to 13% and 7%


The Portuguese tax authorities have confirmed that from 1 January 2023, non-resident businesses VAT registered in the country will be required to:

  • Produce invoices via certified invoicing software that can allocate a unique ATCUD code – This is a unique eight-digit code that is allocated by the Portuguese tax authorities prior to them being issued.

  • Include a QR code on their paper or PDF invoices – This is a unique two-dimensional bar code.

  • Report invoices monthly via a SAF-T Billing file – This contains full details of the invoice and will either have to be submitted manually via an interface or a webservice, or automatically via the electronic invoicing software provider.

It’s hoped that the introduction of these requirements on non-resident companies will help to monitor VAT invoices and prevent fraud.


From 1 January 2024, the Swiss tax authorities will increase the VAT rates in the country as follows:

  • Standard rate – 7.7% to 8.1%

  • Reduced rate – 2.5% to 2.6%

  • Special VAT rate for accommodation – 3.7% to 3.8%

This is being implemented to try to raise funds to cover the pension deficit caused by the ‘baby boomer’ generation.

The above information was kindly provided by Fiscal Solutions (UK),; contact: [email protected].