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%
