Gibraltar

At the end of June 2025, the Chief Minister, during the presentation of Budget 2025, announced the introduction of a new Transaction Tax.

  • Standard rate: 15% at the time of introduction
  • Planned increases:
    • +1% in the second year
    • +1% in the third year, reaching 17% overall

As with the European VAT model, the Transaction Tax will include reduced and zero-rated categories

  • Reduced rate – 5%
    • Applies to:
      • Children’s clothing
      • Works of art
      • Antiques
      • Bicycles
  • Zero rate – 0%
    • Applies to essential goods and services, including:
      • Food
      • Water supply
      • Pharmaceutical products
      • Medical equipment
      • Books, newspapers, and periodicals
      • Electricity
      • Solar panels
  • Exemptions from Transaction Tax
    • The following will be fully exempt from the tax:
      • Fuel supply for vessels used for bunkering
      • Ship supplies
      • Supply, hiring, repair, and maintenance of equipment for commercial vessels
      • Goods for fuelling and provisioning of aircraft used by commercial airlines

Further details, including implementation timelines and administrative guidance, are expected to follow in the coming months.

Stakeholders are advised to begin assessing potential impacts and prepare for compliance.

Kazakhstan

On 18 July 2025, the President of Kazakhstan signed Law No. 214-VIII, amending the Tax Code and introducing several significant changes to the country’s VAT regime.

Some of the key VAT amendments include:

  • Standard VAT Rate increase
    • The standard VAT rate will rise from 12% to 16%
  • New reduced VAT rate
    • A 5% reduced VAT rate will be introduced for specific medical-related goods and services
    • This rate will increase to 10% from January 2027

The changes in VAT rate applies to:

  • Medicines
  • Medical products and components, including technical aids
  • Medical services

All changes will come into force on 1 January 2026.

Companies should review pricing, contracts and systems to align with the new rates. Financial institutions will need to adjust VAT treatment on previously exempt services.

Tanzania

The Tanzania Revenue Authority (TRA) has announced the introduction of a new VAT rate of 16%, effective 1 September 2025.

The 16% VAT rate applies when all of the following conditions are met:

  • The supply is taxable at the standard rate
  • The supply is made in Mainland Tanzania
  • The recipient is not VAT registered
  • The payment is made via a bank or electronic payment system approved by the Commissioner General

The general VAT rate in Tanzania remains at 18%.

This new 16% rate is a preferential rate applicable only under specific conditions, aimed at encouraging electronic payments and enhancing tax compliance

Work with indirect tax experts

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