Key takeaways
- Widespread VAT adjustments across Europe: Many countries, including Estonia, Finland, and Romania, increased VAT rates in 2024 to boost public finances or align tax structures.
- Support measures for key sectors: Several nations—like Bulgaria, Greece, and Poland—extended reduced or zero VAT rates on essentials such as food, energy, and tourism to ease inflationary pressure.
- Higher registration thresholds and digital reforms: Countries such as Ireland and Latvia raised VAT thresholds, while Hungary introduced its new eVAT reporting system to modernize compliance.
In short: Many countries changed their VAT rates and rules in 2024. Estonia raised its standard VAT rate to 22%, Switzerland to 8.1%, and Singapore's GST rose to 9%. Germany restored 19% VAT on restaurant food. Ireland and Latvia raised registration thresholds, and Hungary launched its eVAT system.
A number of countries made changes to their VAT rates and rules in 2024. Here is a rundown of the main VAT changes and updates put in place that year. For a closer look, see VAT Updates August 2025: Romania Implements Major VAT Rate Changes.
Bulgaria
The Bulgarian government extended the reduced VAT rate of 9% for some services until December 2024. Bulgaria first brought in the 9% rate as a temporary measure during the COVID-19 pandemic. The extension aimed to support sectors like restaurants, tourism, and gyms by keeping the cut from the standard 20% rate.
The reduced rate applied to services such as catering, tourism, books and textbooks, baby foodstuffs and supplies, sports facilities, and gyms. The extension reflected ongoing efforts to support these industries after the pandemic. For a real-world example, read our Amer Sports case study.
Cyprus
Cyprus applied a zero VAT rate on meat and vegetables from December 1, 2023, to May 31, 2024. The zero rate covered fresh, chilled, or frozen meat, including beef, pork, lamb, goat, poultry, and rabbit, plus edible offal products. It also covered many fresh or chilled vegetables, such as tomatoes, onions, cabbage, lettuce, carrots, cucumbers, and legumes.
Czech Republic
The Czech president signed a budget consolidation package to stabilize public finances and reduce the national deficit. A key change in the package was merging the two reduced VAT rates into a single reduced VAT rate of 12%.
Food was mainly taxed at the lower 12% rate, while some services and draft beer moved to the higher 21% rate. VAT also rose from 10% to 12% for public transport, magazines, some medicinal drugs, and tickets to cultural and sports events. The package also brought in a zero VAT rate for books. It was expected to have major economic effects. Supporters said it would raise public finances, while critics argued it would burden citizens and harm the economy.
Estonia
The standard Estonian VAT rate rose from 20% to 22%. The change came into effect on January 1, 2024. The increase aimed to balance the state budget by raising more tax revenue. Read more in our guide: VAT & Sales Tax Updates: October 2025.
Finland
As part of the Ministry of Finance's 2024 budget proposal, the Finnish government moved many supplies to higher VAT rates from January 1, 2024.
For example, books, hotel services, public transport, pharmaceuticals, and entry to cultural events, among others, went from a 10% VAT rate to 14%. Items like tampons and nappies had their VAT rate cut from 24% to 14%. The changes aimed to simplify and rebalance tax burdens.
Germany
The German government coalition raised VAT on food in restaurants from 7% back to 19%. It had cut the rate during the energy crisis and the COVID-19 pandemic. The change came into effect on January 1, 2024.
Germany also had a temporary cut in domestic energy VAT from 19% to 7%, due to end on December 31, 2023. It was extended to March 1, 2024. The VAT subsidy was a response to the Russian invasion of Ukraine and the rise in energy prices that followed.
Greece
Greece extended its temporary VAT cut for some basic supplies until June 30, 2024. The cut was first brought in as a response to COVID-19. It included a reduced VAT rate of 13% on taxis and self-serve coffees.
The Greek government also made the VAT cut permanent for urban and suburban transport, rail transport, tour packages, gyms, health supplies, cinemas, and theater tickets. However, the higher VAT rate of 24% returned for soft drinks.
Greece also planned to apply VAT automatically to home rentals in the sharing economy in 2024. The rule targeted providers who offer three or more properties. At the time, the VAT rate for accommodation services in Greece was 13%.
Hungary
Hungary launched the eVAT system, its new VAT reporting portal, on January 1, 2024. The system was set to become available to all VAT-registered taxpayers in Hungary, both established and non-established. It was not mandatory during 2024, and possibly will not be until at least 2026.
Ireland
Ireland raised its VAT registration thresholds for resident businesses. The new thresholds were €40,000 for services (up from €37,500) and €80,000 for goods (up from €75,000). These changes took effect on January 1, 2024. They aimed to give more flexibility to small businesses close to the old thresholds. You can also read VAT & Sales Tax Updates: November 2025.
From January 1, 2024, Ireland moved electronic books and audiobooks to the zero VAT rate. Ireland also extended its temporary VAT cut on domestic gas and electricity, from 13.5% to 9%, until October 31, 2024. This measure, first brought in in May 2022, aimed to ease financial pressure during high inflation.
Latvia
Latvia raised its VAT registration threshold for resident businesses from €40,000 to €50,000 per year, starting on January 1, 2024. The threshold for non-resident businesses stayed at nil. The VAT rate for fruits, vegetables, and berries rose to 12% on January 1, 2024, for one year.
Luxembourg
Because of high inflation, Luxembourg's government agreed to cut the standard VAT rate from 17% to 16% for 2023. This temporary cut also lowered two of the three reduced VAT rates.
Luxembourg's temporary VAT cuts for 2023 ended on January 1, 2024. The new VAT rates for 2024 were as follows:
Standard rate: from 16% to 17%
Intermediate reduced rate: from 13% to 14%
Reduced rate: from 7% to 8%
Super reduced rate (unchanged): 3%
Malta
Malta introduced a new 12% reduced VAT rate, adding to its existing 7% and 5% reduced rates. This change took effect on January 1, 2024, and did not affect the standard VAT rate of 18%. The 12% rate applies to some services. These include hiring pleasure boats, some healthcare services, custody of securities, and some credit and credit guarantee management services.
Poland
Poland extended its zero VAT policy on food into 2024. Poland first brought in the measure in February 2022 to fight surging inflation. Polish lawmakers also voted to extend the energy price freeze for the first half of 2024.
Romania
The Romanian government raised the VAT rate from 9% to the standard 19% for some services and products. These include sugary non-alcoholic drinks, sugary foods, tourist passenger transport, and entry fees to sports facilities. The reduced VAT rate also rose from 5% to 9% for social buildings, smaller homes, amusement parks, cinemas, and cultural events. The changes took effect on January 1, 2024.
Singapore
From January 1, 2024, the Goods and Services Tax (GST) in Singapore rose to 9%, up from 8% in 2023. The update included guidance for businesses on applying the correct GST rate during the transition period. It also dealt with concerns that businesses might profiteer from the change, and stressed the need for clear pricing.
Slovakia
The Slovakian government raised the VAT rate on alcoholic beverages to 20%, up from 10%. Slovakia's annual VAT registration threshold applies to resident businesses. Most non-resident businesses must register for VAT from their first taxable supply.
Spain
Spain planned to gradually bring back a 21% VAT rate on energy bills over the following six months. Spain had earlier cut this VAT to 5% to soften the impact of inflation.
Switzerland
The Swiss government had announced that its VAT rates would rise, which also affected Liechtenstein's VAT regime. From January 1, 2024, the standard, reduced, and special VAT rates in Switzerland rose as follows:
Standard rate: from 7.7% to 8.1%
Reduced rate: from 2.5% to 2.6%
Special rate (for accommodation): from 3.7% to 3.8%
United Kingdom
From January 1, 2024, the UK extended the zero rate for women's sanitary products to reusable period underwear ("period pants"). From February 2024, the zero VAT rate for installing energy-efficient materials covered more technologies, including water-source heat pumps. This zero rate also applies to systems installed in buildings used only for significant charitable activities.
How Taxually handles this
Taxually’s CrossTax handles VAT registration, VAT, OSS and IOSS returns and fiscal representation in the countries you sell into, and checks your sales data against 250+ validation rules before each filing. OneTax then pays every tax authority with one bulk payment in your chosen currency.
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Frequently asked questions
Which countries have increased their VAT rates in 2024?
Several countries, including Estonia, Finland, Romania, Switzerland, and Singapore, have raised their VAT or GST rates to strengthen public finances. Estonia’s standard VAT rose to 22% in 2024, and Singapore’s GST rose to 9%.
Are there any countries offering VAT reductions or extensions?
Yes. Bulgaria, Greece, and Poland have extended temporary VAT reductions to support key sectors such as food, tourism, and energy. Cyprus and Ireland have also applied zero VAT rates on essentials like meat, vegetables, and e-books.
Have VAT registration thresholds changed in any countries?
Yes. Ireland and Latvia have raised their VAT registration thresholds to ease compliance for small businesses, providing greater flexibility for local enterprises.
