EU considering more flexibility in reducing VAT rates

Posted on: 18/01/2018

The European Commission is considering granting much more flexibility to EU member states in setting their reduced VAT rates.  The proposals could be implemented in 2022.

In a proposal potentially due out later this week, states could set reduced rates at 5% or zero on a broader range of goods and services. Only a small range of goods or services would be excluding from the new, reduced rates option. These could include oil and gas, plus alcohol and tobacco.

Currently, only listed rate derogations for goods or services granted in the EU VAT Directive, or those negotiated on states’ accessions, may be applied. The new proposals include:  READ MORE


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