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
Emergency VAT measures to combat the financial impact...
Due to the negative financial impact that the coronavirus pandemic is having on businesses all over the world, a number of tax authorities have implemented...
SEE MORE
LATEST NEWS
UK cuts hospitality and tourism VAT to 5% until...
From 15 July 2020 to 12 January 2021, the UK will cut the VAT rate applicable on hospitality services from the standard rate of 20% to the reduced rate of...
SEE MORE
LATEST NEWS
Portugal extends VAT return deadlines
The May and June monthly VAT returns due on 12 July and 12 August respectively are now due on 17 July and the 17 August. The deadline for the March to June...
SEE MORE