Reduction of VAT on agricultural machinery (from 24 to 13%) and on work to remove barriers to access for people with disabilities to buildings, to 4%, provides for an amendment tabled in Parliament.

The new VAT rates will apply immediately from 1 November 2023 and are expected to lead to a reduction in prices for the respective goods and services.

In particular, the provisions introduced:

VAT is reduced from 24 to 13% for the following agricultural machinery: Agricultural and forestry tractors, agricultural machines, appliances and tools, liquid pumps, mobile silos, greenhouses, which by their nature and characteristics are intended primarily or exclusively for agriculture, animal husbandry or forestry. Livestock farming includes any activity involving the rearing of animals, birds or insects. Water storage tanks, which may be used in the storage of water for irrigation or drainage or fire-fighting or in fish farming. Parts and accessories of the above goods are excluded.
Establishes a new 4% overage rate for work intended solely for the crossing or removal of architectural features and other fixed and non-fixed barriers that limit the mobility of persons with disabilities, in public or private buildings or buildings serving a public interest. The VAT for these services is set at 3% in the islands, where a reduced rate of 30% applies.