The upcoming VAT changes, effective from October 1, 2023, will have a direct impact on various sectors and services. These legislative amendments will introduce different VAT rates and new taxation methods. Below are the key points and the newly established rates:

Updated VAT Rates

• The VAT rate for immovable properties up to 300 square meters has been changed to 5%.
• For immovable properties with a covered area exceeding 300 square meters, the VAT rate is now 10%.
• Ships and waterborne vehicles, excluding leisure and sports boats, now have a VAT rate of 5%.
• Exclusive lodging services and bicycle rental services related to tourism activities are now taxed at 5%.
• Passenger vehicles with a seating capacity of up to eight people (excluding those with a "T" passenger transport permit) and ATVs, UTVs, motor caravans, and motorcycles with an engine capacity over 200cc will be taxed at 20%.
• Rental services for motor vehicles and watercraft (excluding aircraft) are now taxed at 10%.
• Sports boats, yachts, and similar leisure watercraft, excluding commercial and fishing boats, now have a VAT rate of 20%.

Effective Date

The new rates will come into effect on October 1, 2023. 

Preparation Suggestions

• Information Update: First, update existing customer and supplier information.
• Invoice and Contract Review: Update existing invoices and contracts to reflect the new VAT rates.
• Accounting Software Update: If you're using accounting software, make sure to update it to reflect the new VAT changes.

Legislative changes often bring new responsibilities and opportunities for business owners, accountants, and financial planners. Conducting a detailed analysis to understand the impact of such changes on your company and developing appropriate strategies is crucial.