The March edition of our International VAT Rate Round Up highlights the latest updates from Belgium, Croatia, Philippines and Romania.
Belgium
On 18 February, the Ministry of Finance announced several VAT rate increases as part of its multiannual budget agreement.
The changes are:
- An increase in the VAT rate from 12% to 21% for the supply of pesticides and phytopharmaceutical products
- An increase in the VAT rate from 6% to 12% for the provision of furnished accommodation and camping pitches.
The initial draft included changes to the VAT rates applicable to takeaway meals, non-alcoholic beverages served in restaurants and the granting of access to cultural, sporting or entertainment facilities.
However, these measures were ultimately removed from the draft.
The Royal Decree implementing the approved measures was published in the Belgian Official Gazette on 23 February and will enter into force on 1 March 2026.
To allow affected persons to take the necessary steps to comply with the new rules in a timely manner, the Tax Authority has decided to publish the following FAQs in advance:
- FAQs on services consisting of the provision of furnished accommodation and camping pitches
- FAQs on plant protection products.
Please note that Royal Decree No. 20 of 20 July 1970, which sets out the VAT rates and classifies goods and services accordingly, has not yet been formally updated to reflect these new allocations.
Croatia
On 23 February 2026, the Ministry of Finance announced a proposal to amend the VAT Act in order to extend the application of the 5% reduced VAT rate in the energy sector until 31 March 2027.
The measure applies to both individuals and businesses and covers:
- Supplies of natural gas
- Heating supplied from heating stations, including related service fees
- Supplies of firewood, pellets, briquettes and wood chips
The reduced 5% VAT rate, following previous extensions, is currently valid until 31 March 2026.
Without the proposed extension, the VAT rate would increase to 13% as from 1 April 2026.
The proposed extension aims to maintain the existing level of tax relief and to mitigate the impact of rising energy prices.
The draft Bill is currently subject to public consultation until 26 March.
Philippines
At the end of November, Bill No. 1552 was filed with the Senate of the Philippines.
The Bill proposes a reduction of the standard VAT rate from 12% to 10%.
The Bill passed its first reading in December and is currently pending before the relevant Senate Committee.
It states that the law will take effect 15 days after its publication in the Official Gazette.
Within 90 days from its implementaition, the Secretary of Finance, with the Commissioner of Internal Revenue, must issue the necessary implementing rules and regulations to ensure its proper implementation.
In parallel, a similar measure — Bill No. 4302 — was filed with the House of Representatives in September 2025.
This Bill is also pending at Committee level.
Romania
On 11 February 2026, the Romanian Tax Authority published the D300 VAT return form, including the XML structure and XSD schema, to be used starting with the declaration of tax obligations for January 2026.
- Before 2026:
- Standard rate: 19%
- Reduced rates: 9%, 5%
- From 2026:
- Standard rate: 21%
- Reduced rate: 11%
- Transitional rate: 9% (applicable only to eligible housing until 31 July 2026)
Taxpayers should use the new D300 form and ensure that all VAT reporting reflects the updated rates from January 2026 onwards.
International VAT Rate Round Up: February 2025
If you missed last month’s VAT rate announcements or VAT threshold changes, you can catch up now.
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Authors
Lisa Dowling
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 21 years VAT experience behind her, Lisa has managed VAT compliance issues and solutions globally for over 11 years. Fintua have 12,000 + corporate clients in over 109 countries and many of these are members of the Fortune 500.
