23% VAT rate until 2016
The 23% VAT rate has been constant since 2011
From January 1, 2011, the basic VAT rate of 22% was increased by 1 percentage point - to 23% and, as expected, was to apply for a period of 3 years, i.e. until the end of 2013. After this period, the VAT rate was to return to the previous, lower level.
However, the standard rate of VAT until the end of 2016
At present, it is already known that VAT will remain at 23% until the end of 2016, as announced by the Ministry of Finance in the published bill. Maintaining the increased VAT rate for the next 3 years is due to the need to increase this year's budget deficit due to the lack of a real improvement in the financial situation of the state. At the same time, the amendment is to remove the provision that determines the increase in the VAT rate in the event of exceeding the second prudential threshold - 55% of the public debt to GDP ratio.
You can forget about the reduction of the VAT rate in 2016
Therefore, there is no chance of a return to the lower VAT rate from 2016, however, there is also no risk of an increase in the tax burden, and the amendment is to exclude the possibility of an increase in the near future. As VAT rates, according to the draft act, which is to enter into force as soon as possible, remain unchanged, they will not affect the market or household incomes in any way.