What’s new in the world of international VAT this month? Our June edition of the International VAT Rate Round Up highlights the latest updates from Finland and Peru.
Finland
Reduced VAT Rate adjustment announced on the 30 April 2025.
The Finnish government has proposed a reduction in the reduced VAT rate from 14% to 13.5%, effective from 2026.
The 13.5% VAT rate will apply to goods currently taxed at 14%, including:
- Food
- Medicine
- Other qualifying essential goods
This change is a part of a broader strategy to:
- Stimulate economic growth
- Strengthen purchasing power
- Improve work incentives
Peru
On 19 May 2025, the Congress of the Republic of Peru published Bill No. 11228/2024-CR, which proposes a temporary reduction of the General Sales Tax (IGV) to stimulate economic activity and investment across all productive sectors.
Key Provisions of the Bill include a reduced IGV rate of 15% effective 1 January 2026 and then a gradual increase per year until 2028
- Beginning Fiscal Year 2026: 15%
- Beginning Fiscal Year 2027: 16%
- Beginning Fiscal Year 2028: 17%
The preferential IGV rate would apply from 1 January 2026 through 31 December 2030.
The bill has been referred to the Commissions of Economy, Banking, Finance and Financial Intelligence for further study and opinion.
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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 for over 11 years. Fintua have 12,000 + corporate clients in over 109 countries and many of these are members of the Fortune 500.
