The rates of some value added tax (VAT) will be reduced effective 1 January 2018. Tax payers should prepare themselves for this change.
In a vote connected to the reform of the pension scheme law, the voters rejected a 0.3% VAT surcharge for pension funds. As a result, the existing surcharge expires 31 December 2017. VAT rates will be reduced to 7.7% (normal rate) and 3.7% (special rate for accommodation) as of 1 January 2018.
The “reduced rate” of 2.5% will stay the same.