Review of existing legislation on VAT reduced rates

Taxation

The Commission in December 2011 adopted a Communication on the future of VAT that sets out the fundamental characteristics that must underlie the new VAT regime, and priority actions needed to create a simpler, more efficient and more robust VAT system in the EU.

One of the priority actions is a review of the current VAT rates structure, based on the following guiding principles:

1. Abolition of those reduced rates which constitute an obstacle to the proper functioning of the internal market. Reduced rates justified in the past can have distorting effects today because the economic, business and legal environments have changed in the meantime;
2. Abolition of reduced rates on goods and services whose consumption is discouraged by other EU policies. This could notably be the case for goods and services harmful to the environment, health and welfare;
3. Similar goods and services should be subject to the same VAT rate and progress in technology should be taken into account in this respect, so that the challenge of convergence between the on-line and the physical environment is addressed.

The Commission services have made a first evaluation of the current VAT rates structure and the goods and services mentioned hereafter are the ones which require to be examined further in the light of the above three guiding principles.

With this public consultation, the Commission services are now seeking the opinion of stakeholders.

We welcome contributions from all parties interested.

If you are answering this consultation as an individual or an organisation not registered in the Interest Representative Register, please see the section at the bottom of the page or click on TAXUD-C1-RATES-NON-REGISTEREDec [dot] europa [dot] eu (TAXUD-C1-RATES-NON-REGISTERED[at]ec[dot]europa[dot]eu) to submit your contribution.

If you are answering this consultation in respect of an organisation registered in the Interest Representative Register – please click on TAXUD-C1-RATES-REGISTEREDec [dot] europa [dot] eu (TAXUD-C1-RATES-REGISTERED[at]ec[dot]europa[dot]eu) to submit your contribution.

Received contributions will be published on the Internet and responses from organisations not registered in the Interest Representative Register will be published separately. It is important to read the specific privacy statement attached to this consultation for information on how your personal data and contribution will be dealt with.

Directorate-General for Taxation and Customs Union,
VAT and other turnover taxes – Unit TAXUD/C1

European Commission
Directorate-General for Taxation and Customs Union
VAT and other turnover taxes – Unit TAXUD/C1
Rue Joseph II 79, Office J79 05/093
B-1049 Brussels
Belgium