Effective January 1, 2010 the VAT rate will go back up from 15 % to 17.5 %.
The newly elected German Government has announced that it plans to reduce the standard VAT rate of 19 % for hotel and restaurant invoices (ONLY) to the reduced rate of 7 % to support the hospitality industry.
Other changes in 2009:
- CROATIA changed the standard VAT rate from 22 % to 23 %
- ESTONIA changed the standard VAT rate from 18 % to 20 %
- HUNGARY changed the standard VAT rate from 20 % to 25 %
- ICELAND changed the reduced rate on some food items from 7 % to the standard rate of 24.5 %
- ISRAEL changed the standard VAT rate from 15.5 % to 16.5 %
You may want to review long term contracts and invoices from suppliers and to clients and adjust your accounting if applicable.