Extension of the reduced value-added tax rate

Currently, the value-added tax (VAT) rate is reduced from the normal rate of 10% to 7%. This reduction was set to expire after 30 September 2020, unless another law was passed extending the reduced VAT rate. In its meeting on 25 August 2020, the Cabinet approved a draft Royal Decree extending the reduced VAT rate of 7% for another year, from 1 October 2020 to 30 September 2021.