EU VAT trends March 2023

Belgium:

Reduced VAT rate of 6% to apply to electricity and gas on a permanent basis

In March 2022 Belgium introduced a temporary reduction of VAT from 21% to 6% on electricity and gas. The aim of this was to ease the burden on customers due to the sharp increase in energy prices as a result of rising inflation and the war in Ukraine.

From 1st April 2023 the reduced VAT rate of 6% on electricity and gas is expected to become permanent. The final stages to pass this legislation into law and make the VAT rate of 6% permanent, are currently in progress.

Lithuania:

Increase in VAT registration threshold to EUR 65,000

The VAT registration threshold for taxpayers established in Lithuania will be raised to EUR 65,000, with effect from 1st January 2024.

In order to avail of the EUR 65,000 certain conditions apply.

This amendment to VAT law has been adopted by Parliament of the Republic of Lithuania.