SLOVAKIA: VAT to be reduced starting 2016 | Progresiv

Slovakia will reduce value added tax (VAT) effective January 1^st 2016. Slovakia signed a memorandum of dual pricing of goods in stores starting 31 December 2015. The memorandum was agreed by the Slovakia’s Prime Minister, Robert Fico and representatives of farmers, food producers and retailers.

Starting January 2016, the rate of VAT on bread, milk, meat and fish will fall from 20% to 10%. Prices on food will be more than 8% cheaper. Dual price tags will show the price of the products before and after VAT reduction. The dual pricing system will be on display until the end of June 2016.

The reduction of VAT aims at encouraging local producers. (www.kantarretailiq.com)