As from 1 January 2024, a reduced VAT rate of 12% shall be applicable to the following services:
- Custody (unless the said services qualify as VAT-exempt) and
management of securities;
- Management of credit and credit guarantees by a person or body
other than those who granted the credit;
- Hiring of a pleasure boat to a person according to an agreement
for any term of part of a term that, when added to the term of a
previous hiring, of the same goods or of other goods of the same
kind, to the said person during the previous twelve months ending
on the date of the beginning of the existing hiring, does not
exceed five weeks;
- Services consisting of the care of the human body required to be delivered by a person in the exercise of any profession regulated by the Health Care Professions Act (Cap.464), including services supplied in the course of a health studio business of similar business, but not including exempt supplies referred to in item 11 of Part Two of the Fifth Schedule.
The introduction of these rates is pursuant to the adoption of Council Directive (EU) 2022/542 of 5 April 2022 amending Directives 2006/112/EC and (EU) 2020/285 as regards rates of value added tax.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.