7% VAT rate extended for another year
08 October 2017
The current economic situation has led to an extension of the 7% VAT rate for another year until 30 September 2018.
Most goods and services are subject to VAT, including imported goods. Over the years, the 7% VAT rate has been implemented by a series of Royal Decrees issued under the Revenue Code, with the latest one expiring on 30 September 2017. Hence the government was required to issue another Royal Decree to maintain the VAT rate at 7% (the default rate under the Revenue Code is 10%).
The government announced that it extended the 7% VAT rate for another year in order to promote domestic consumption, reduce the cost of living and stimulate investment.