From 1 January 2026, a new system of applying the VAT rates to individual activities, agriculture and other personal income will come into force.
INDIVIDUAL BUSINESS (without a business licence)
-General rate of 20% but a tax credit is applied to reduce the amount payable.
-The real rate starts at 5% for low-income earners.
PROGRESSIVE GDP FOR ALL INCOMES
The progressive GPT applies to annual income, excluding dividends, gains on the disposal of shares, income from an investment account, insurance and pension benefits (up to the amount of contributions paid), sickness, maternity, paternity and parental benefits.
AGRICULTURAL ACTIVITIES
A clear distinction needs to be made between agricultural income and other income, such as the disposal of fixed assets.
