Amendments to the Value Added Tax Act

The Act on Amendments to the Value Added Tax Act was published on March 24, 2023, in the Official Gazette no. 33 and entered into force on April 1, 2023. It extends the application of the lower VAT rate of 5% to the supply of natural gas, heating from thermal stations, and firewood, pellets, briquettes and wood chips until March 31, 2024.

Extension of the lower VAT rate

In 2022, amendments to the VAT Act (Off. Gaz. no. 39/22) have introduced a significant change. Natural gas deliveries from April 1, 2022, to March 31, 2023, were subject to a reduced VAT rate of 5%. But that’s not all. Further changes have been made to extend the same rate to heating deliveries from thermal stations and related fees, along with the delivery of firewood, pellets, briquettes, and wood chips.

With the latest amendment to the VAT Act, the prescribed VAT rate of 5% is extended and applied to the specified deliveries until March 31, 2024.

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