VAT will go up to 19% from 18% from January 13 while lower VAT rates of 8% will go up to 9%, an announcement said yesterday.
The VAT service also said “the increase does not affect products and services which are subject to a low VAT rate of 5% or zero percentage.”
The service also reminded that in line with regulations “ individuals subject to paying VAT and affected by the change, are obliged at the end of their business working day on the eve of the day the new hike comes into force to carry out an assets inventory, including quantity counting and evaluation.”
“They also have to keep an inventory record for a period of six years,” the service added.
The VAT hike is part of the government’s austerity drive to meet its bailout loan obligations.