Liechtenstein introduced comprehensive changes to its value-added tax regime from January 1, 2018, on the basis of the law of November 10, 2017, on the amendment of the VAT law, published in the nation’s Official Gazette.
The amendment provides for a number of changes to the territory’s value-added tax rates. These mirror changes brought about from the same date in Switzerland, as Liechtenstein has effectively adopted the Swiss VAT regime albeit with its own system of VAT administration.
Liechtenstein’s headline rate was reduced to 7.7 percent from eight percent, and the reduced rate on accommodation fell by 0.1 percent to 3.7 percent. The 2.5 percent reduced rate was unchanged.
The territory also adopted the changes to the scope of the 2.5 percent rate however, to extend it to electronic newspapers, magazines, and books and it introduced margin taxation for collectors’ items.
Further the amendment introduced measures to level the playing field for domestic businesses in competition with overseas, online retailers, in line with those announced in Switzerland, to ensure that supplies to local residents are properly taxed.
Source: Tax-News.com
