31 January 2018
During January 2018, the European Commission proposed new rules to give Member States more flexibility to set their own VAT rates.
Currently member states are limited on what goods and services they can apply a reduced rate of VAT to, however if agreed these new proposals will allow member states to set reduced rates at 5% or zero on a broader range of goods and services.
If agreed, these new rules will likely be introduced during 2022 and would allow member states to implement:
- Two separate reduced rates of between 5%, and the standard rate chosen by the Member States
- One exemption from VAT (or ‘zero rate’); and
- One super reduced rate set at between 0% and the reduced rates chosen by the Member State.
The press release of the Commission on the proposal can be found here while an informative Q&A sheet can be found here.
LATEST NEWS
Romania Proposes Fixed Levy on Low-Value E-Commerce...
Romania has proposed the introduction of a fixed charge on certain low-value consignments, valued under €150, entering the country from outside the European...
SEE MORE
LATEST NEWS
France Proposes €2 Customs Charge on Low-Value...
In October 2025, the French government unveiled its 2026 Finance Bill, which has been submitted to the National Assembly for debate before moving to the Senate...
SEE MORE
LATEST NEWS
Ireland to Introduce Mandatory E-Invoicing for...
Ireland has confirmed plans to implement a mandatory electronic invoicing regime for business-to-business (B2B) transactions, starting 1 November 2028. This...
SEE MORE