VAT rate reduced from 14% to 13.5%

The 14% VAT rate will be reduced to 13.5%. The change is intended to take effect as early as January 1, 2026. The change will apply broadly to consumer services and products that are currently subject to a 14% tax rate. The aim is to reduce taxation and support domestic consumption.

Which products and services will be affected by the change?

The tax reduction will apply to the following, among other things:

• Food and restaurant services
• Animal feed
• Sports and cultural services, such as use of sports facilities and event tickets
• Books (printed and electronic)
• Medicines
• Passenger transport (e.g., buses, trains, taxis, domestic flights)
• Accommodation services
• Fees paid to performing artists and athletes, if they are liable for VAT

When will the new tax rate apply?

The date of delivery or performance is decisive for the application of the tax rate:

• If the goods are delivered or the service is performed before January 1, 2026, the old 14% tax rate applies.
• If the delivery or performance takes place on or after January 1, 2026, the new 13.5% tax rate applies.

For advance payments, the decisive factor is the date on which the payment is accrued: if the payment is accrued before the change in the law, the tax rate in force at the time of payment will apply.

Read more on the Tax Administration's website.