Reduction of VAT rate for certain products and services

On 21/7/2023 amending VAT Law 75(I)/2023 was published in the Official Gazette of the Republic, reducing the VAT rate of certain goods and services, previously subject to the reduced rate 5% to either 0% or 3% as follows:

Zero VAT Rate (0%)

Supplies of Goods

1.       Typewriters with Braille characters and special electronic typewriters (pocket electronic communications devises) classified under the code C.N. 84.69, and newer types of embossing typewriters classified under the code C.N. 8472 90 80 for use by persons with disabilities.

2.       Wheelchairs and other vehicles for persons with disabilities with or without a motor or other propulsion mechanism classified under the code C.N. 87.13 and solely intended for the use of persons with disabilities.

3% Reduced VAT Rate

Supplies of Goods

1. Supply of books, newspapers and magazines in hardcopy or electronic format (including brochures, prospectuses, children’s books, coloring books, printed or handwritten sheet music, hydrographic and similar maps), excluding publications which are intended wholly or mainly for advertising purposes, publications which are wholly or mainly comprised of video content or acoustic music and publications of non-profit organizations as well as any related services.

The goods outlined above are classified under codes C.N. 49.01 – C.N. 49.05

2. Talking Books for people with disabilities classified under code C.N. 84.23

3. Special lifting devices (escalators, lifts, machinery for raising and lowering of persons with disabilities), which are used for the facilitation of persons with disabilities and classified under the code C.N. 84.28.

4.  Wheelchairs and other vehicles for persons with disabilities with or without a motor or other propulsion mechanism classified under the code C.N. 87.13

5.  (i) Orthopedic devices, including medical surgical belts, bandages and crutches

(ii) Splints, supports and other goods or devices intended for fractures

(iii) Devices for the facilitation of hearing by the hearing-impaired persons, or other handheld devices, worn or introduced to the body with the purpose of alleviating an impairment or curing the disability.

Parts and accessories of the above goods are excluded.

The goods of the present section 5 are classified under code C.N. 90.21

Supplies of services

6.  Street cleaning, waste collection and waste processing services, excluding the services supplied by National and Local bodies or public interest entities.

7.  Processing and disposal of wastewater and emptying of septic and industrial tanks.

8.  Right of entry to theatre, musical and dance productions or classical works.

For any clarifications, please do not hesitate to contact our VAT team at VAT@kinanis.com