Reduced VAT rate of 9% will apply to the following goods and services: Restaurant and catering services, Books, Baby foods and diapers.
The temporary reduction of the VAT rate as a relief measure in response to the coronavirus (COVID-19) pandemic and intends to support the affected businesses sectors.
The reduced VAT rate will apply until 31 December 2021.
Restaurant and catering services
The reduced VAT rate applies to restaurant and catering services consisting of prepared and unprepared food supplied at the supplier’s premises (restaurants, buffet foods, food courts). The reduced VAT rate will not apply for alcoholic beverages (beer, wine, and spirits). Furthermore, the reduced VAT rate would not apply to carry out food and other supplies of foods. All supplies of alcoholic drinks, including beer and wine and carry out of food will be taxed with the standard 20% VAT rate
Books and textbooks
The reduced VAT rate applies to supplies of books supplied in hardcopy or electronically. The reduces rate apply also to textbooks, books without text (coloring books and books with illustrations). The reduced rate will not apply to marketing and advertising materials and to publications with video and audio content. Periodicals, newspapers and magazines are also excluded from reduced rate.
Baby foods and diapers
This group covers baby foods, diapers, and other similar hygiene items, listed in the new Appendix N 4 of the VATA.