A reduction of the VAT on agricultural machinery (from 24 to 13%) as well as on works to remove obstacles to the access of people with disabilities to buildings, to 4%, provides for an amendment submitted to the Parliament.

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

In particular with the provisions introduced:

– Decreases from 24 to 13% the VAT for the following farm machinery: Agricultural and forestry tractors, agricultural machinery, apparatus and implements, liquid pumps, mobile silos, greenhouses, which by their nature and characteristics are intended mainly or exclusively for agriculture, animal husbandry or forestry.

In livestock any animal, bird or insect rearing activity is included. Water storage tanks, which can be used to store water for irrigation or drainage or fire fighting or fish farming. Parts and accessories of the above goods are excluded.

– A new super-reduced rate of 4% is established for the execution of works intended exclusively for the overcoming or removal of architectural elements and other fixed and non-obstacles that limit the mobility of people with disabilities, in public or private or buildings that serve the public interest. The VAT for these services is set at 3% on the islands, where a reduced rate of 30% is applied.