Global VAT Rate Changes Ahead

Tuesday 18th August, 2026

This autumn and ahead sees a raft of global VAT rate changes, some of which are highlighted below: 

7 – 31 August 2026
Poland  — Final – adopted, published in the Journal of Laws (temporary). Motor fuels cut from 23% → 8% for 17–31 August 2026 (specified petrol, diesel and qualifying biocomponents by CN code), alongside daily maximum fuel prices. Rate reverts to 23% after 31 August 2026. 

United Kingdom  — Final – announced 21 July 2026 (temporary to 31 March 2027). Domestic electricity cut from 5% → 0%. Great Britain only (Northern Ireland stays at 5% under the Windsor Framework). Also benefits eligible small businesses, charities and residential care homes. 

1 January 2027 
Denmark  — Draft – re-tabled by government, pending Folketing approval. Books (printed books, e-books and audiobooks) cut from 25% → 0%, aligning with the existing zero rate for newspapers. Enabled by Council Directive (EU) 2022/542. 

1 April 2027 1 April 2027 

Croatia  — Final – reversion (5% relief enacted only to 31 March 2027). Energy supplies revert from 5% → 13% unless further extended. Covers natural gas, district heating (incl. related fees) and wood fuels (firewood, pellets, briquettes, wood chips). 

Moldova  — Final – tiered reform replacing the planned flat 20% hike.Tiered energy rates take effect. Under the wider reform, essentials are taxed at 8% and agri-food, HoReCa and tourism at 12%, in place of the previously planned flat 20% VAT. 

United Kingdom  — Final – scheduled reversion (extension to be reviewed at Autumn Budget). Domestic electricity reverts from 0% → 5% at the end of the 2026–27 financial year, unless extended.