The general VAT rate will rise from 24% to 25.5% as of 1 September 2024.
In general, the VAT payable on a sale (=supply) of goods is allocated to the tax period when the goods were handed over to the buyer, i.e. delivered. If the goods are delivered on or before 31 August 2024, the VAT rate is 24% even if the buyer were to pay for the goods some time later in September.
An advance payment means that the seller has received the payment before the goods are delivered to the customer. Whether a payment is considered an advance payment depends on when the money is available to the seller. If the seller is deemed as having received the advance before the VAT changes came into force, the VAT rate of 24% is applicable.
Value-added tax on a service is allocated to the tax period when the service was given i.e. provided to the recipient. If the service performance is in an unfinished state at the time when the VAT change comes into force, the percentage rate to be applied will be the one in effect at the date when the finished service is provided. This means the date when the end result becomes available to the recipient of the service.
Continuous supply is deemed as having been supplied at the end of each period that determines the remittance of the payment. For example, if it is agreed that one single payment of rent to the property owner concerns the entire 1 June 2024–31 May 2025 period, the date when the service is provided to its recipient is 31 May 2025. In this example, the VAT rate would be 25.5% for the entire period. If the payer of rent were to make a full payment to the property owner in advance, thus covering the June 2024–31 May 2025 period fully before 1 September 2024, the rental service would be subject to 24% VAT instead.