VAT Increase

Nigeria confirm VAT rise

Nigeria to raise VAT to 10%

Nigeria have confirmed plans to increase the VAT rate to 10%, making it double the current 5% VAT rate, with changes expected to come into affect later in the year.

This increase is due to the recent slide in oil prices that has seen the price drop 100% in the last 14 months alone, this drop has had a big impact on the Nigerian economy as 80% of the governments income comes from petroleum exports, the current war with Boko Haram is also proving costly to the country. This was recently confirmed after talks with stakeholders took place earlier this year, see our previous post  Nigeria propose VAT increase.

Austrian budget announces increased reduced rate

Austrian budget announces increased reduced rate

Austria has announced that it will increase its reduced rate of 10% to 13%. Most goods and services – including livestock, seeds, cultural services, museums, zoos and hotels – will see the rate go up to 13%, from the current 10%. However Pharmaceuticals and food will still be subject to the 10% rate, essentially meaning that they will have two reduced rates.

The changes will take effect from 1 January 2016; VAT on hotel accommodation will increase from either 1 April or 1 May 2016.

The change was announced in Austria’s 2016 budget, precise details of the Budget measures are not yet known, it is expected that certain anti-fraud measures will also be introduced; mandatory electronic cash registers for small businesses, as well as other unspecified measures to combat VAT fraud in general and specifically in the case of distance sales.