The July edition of our International VAT Rate Round Up highlights the latest VAT rate updates from Jamaica, Japan, Poland, Switzerland and Vietnam

Jamaica

Jamaica has approved new indirect tax measures as part of its 2026/2027 financial year budget, with a clear focus on the tourism sector.

Two key changes to General Consumption Tax (GCT) have been announced:

  • Short-term rentals brought into scope: GCT will be extended to cover short-term accommodation rentals, including those offered through platforms like Airbnb and similar digital services.
  • Higher rate for tourism activities: the GCT rate for tourism-related activities will increase from 10% to 15%.

Both measures are scheduled to take effect on 1 April 2027.

Japan

Japan is currently discussing a temporary reduction to its consumption tax rate on food but there’s no confirmed change yet.

The current proposal being discussed in Parliament would:

  • Reduce the consumption tax rate on food from 8% to 1%
  • Apply for a two-year period, from 1 April 2027 to 31 March 2029

However:

  • The proposal has not been formally introduced or approved
  • No legislation has been enacted
  • The existing 8% rate remains in place

This is not the first attempt to reduce the rate. An earlier proposal, introduced under Bill No. 1 of the 219th National Assembly, aimed to cut the consumption tax on food and beverages to 0% between 1 October 2026 and 30 September 2027. That bill did not progress and was not enacted.

For now, businesses should continue applying the current 8% rate on food. While a reduction is being actively discussed, the outcome and timeline remain uncertain until formal legislation is passed.

Poland

Poland has confirmed a temporary extension of its reduced VAT rate on motor fuels, providing short-term relief for fuel prices.

The reduced 8% VAT rate (down from the standard 23%) will apply until 30 June 2026 to:

  • petrol
  • diesel
  • biocomponents treated as independent fuels.

This measure forms part of the government’s CPN programme, which is designed to support price stability in the domestic fuel market.

After 30 June 2026, the VAT rate is expected to return to the standard 23%, unless a further extension is announced.

In a related change, reduced excise duty rates on certain motor fuels ended on 16 June 2026. As a result, standard excise duty rates now apply to those fuel categories.

What this means

Businesses in Poland’s fuel supply chain should prepare for the planned return to the 23% VAT rate, while also factoring in the increase in excise duty already in effect.

Switzerland

Switzerland is planning a potential increase in VAT rates to help fund its Old-Age and Survivors’ Insurance (AHV), but nothing is final yet.

In June 2026, the Swiss Parliament approved a measure aimed at partially financing the 13th AHV payment through an increase in VAT rates. The proposal is subject to a nationwide referendum, with a public vote scheduled for 29 November 2026.

As a result, the VAT changes are not expected to enter into force before 2028, pending voter approval.

If approved by voters, the following changes to Swiss VAT rates would apply:

  • Standard rate: Increase from 8.1% to 8.5% (+0.4 percentage points)
  • Special accommodation rate: Increase from 3.8% to 4.0% (+0.2 percentage points)
  • Reduced rate: Remains unchanged at 2.6%

For now, there are no changes to current VAT rates in Switzerland. Businesses should keep an eye on the outcome of the November 2026 referendum, as a ‘yes’ vote would set these increases in motion, with implementation expected from 2028 at the earliest.

Vietnam

Vietnam has extended a range of tax relief measures aimed at easing pressure from rising fuel prices.

Under Resolution No. 34/2026/NQ-CP, issued on 30 June 2026, the government has prolonged the application of:

  • Preferential import duty rates
  • Reduced environmental protection tax
  • VAT relief

These measures apply to gasoline, diesel, raw materials used in the production of gasoline and diesel and aviation fuel.

Under the original measure, these tax reliefs applied from 26 March to 15 April 2026.

The relief period was subsequently extended to 30 June 2026 and has now been further extended until 30 September 2026.

Businesses operating in fuel supply and related sectors can continue to benefit from reduced tax costs in the short term. However, with the relief currently set to end on 30 September 2026, it’s important to plan for a potential return to standard tax rates unless further extensions are announced.

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Authors

101094International VAT Rate Round Up: July 2026

Lisa Dowling

Chief Tax & Compliance Officer at Fintua

Specialising in International VAT Compliance solutions, Lisa brings a wealth of knowledge and insight in her dealings with a host of international clients ranging from start-ups through to multinationals. With 24 years VAT experience behind her, Lisa has managed VAT compliance issues and solutions globally for over 14 years. Fintua have 12,000 + corporate clients in over 109 countries and many of these are members of the Fortune 500.