Monaco has just changed its tax rules by adopting a Sovereign Order No. 9.821, published in the Official Journal No. 86-34 on 17 March 2023. This change relates to value added tax (VAT) and makes amendments to the turnover tax code.
The changes made by this law mainly concern the application of the amendment to Article 52-0 of the same code for the purpose of applying a reduced rate of 5.5% for certain operations. These operations are the following:
- The sale of foodstuffs intended for consumption by food-producing animals intended for human consumption, as well as products used to prepare such foodstuffs or to supplement them.
- Installation, maintenance and servicing of charging infrastructure for electric vehicles meeting certain criteria.
- Energy renovation services for buildings intended for residential use and completed at least 2 years ago. This includes the installation, adaptation or maintenance of materials, equipment, devices or systems to save energy or to use renewable energy sources.
In order for the reduced rate of 5.5% to apply to the three types of services listed above, the customer of the service must certify in writing that all the conditions are met and will be held jointly and severally liable for the additional payment if the statements made prove to be inaccurate.
Remember that these new tax rules can have a significant impact on your finances, so make sure you understand them and follow them correctly.
Source: Official Journal of the Principality of Monaco (in French)
