A circular by the Independent Authority for Public Revenue (IAPR) details VAT charges for various items in 2024 and explains that soft drinks consumed in store will be charged with 24% VAT while those bought via “takeaway” will be subject to a reduced VAT of 13%.

IAPR explains that, however, coffee, chocolate, and tea will have a grace period of reduced VAT at a rate of 13% regardless of whether they are consumed in store or “to-go” until June 30, 2024.

From January 1, 2024, alcoholic and non-alcoholic beverages, juices and beverages served and consumed inside the store are subject to VAT of 24%. Meanwhile, non-alcoholic beverages, juices, standardized and non-alcoholic beverages, offered through takeaway are subject to the reduced VAT rate of 13%.

The circular also clarified VAT rates for other sectors as follows:

  • General Transportation: Tickets to transport persons and their luggage on buses, trains, planes, ships, etc. have a VAT rate of 13%
  • Taxis. The reduced VAT rate of 13% to transport persons and their luggage via taxi applies until June 30, 2024
  • Zoos: The VAT rate remains permanently at 13%
  • Cinemas: The VAT rate remains permanently at 6%
  • Gyms/ dance schools: The provision of services by gyms and dance schools is permanently subject to the reduced VAT rate. 13%

Source: tovima.com

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