Finland
As we announced in our July Newsletter, the Finnish Government is considering a half percent cut of the reduced VAT rate (14%), starting in 2026.
13.5% VAT will apply to:
- Foods
- Restaurant and catering services
- Feed materials
- Passenger transport
- Accommodation and guest harbour operations
- Medicines
- Cultural and sports activities, such as books, sports services and tickets to cultural and sports events.
- Public broadcasting to which 10% VAT currently applies
The change is included in the draft Budget 2026.
Fiji
12.5% VAT rate from 1 August 2025, cut from the previous 15%
The standard VAT rate becomes 12.5%, cut from the previous 15%. The change is part of the Budget 2025-2026 and enters into force on 1 August 2025.
This policy is part of the Government’s broader intention to ease the cost of living and ensure economic relief.
Ghana
VAT rate cut and registration threshold increase
In a speech, presented to the Parliament at the end of July, the Ghanaian Minister of Finance announced, among other reforms, VAT-related changes:
- A reduction in the effective VAT rate
- An increase in the VAT registration threshold to exempt small and micro businesses.
The topic of the speech was Mid-Year Fiscal Policy Review of the 2025 Budget Statement and Economic Policy.
The reforms are not yet officially drafted, and further details are to be expected.
This new 16% rate is a preferential rate applicable only under specific conditions, aimed at encouraging electronic payments and enhancing tax compliance
International VAT Rate Round Up: August 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.
