CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. EU Commission Proposes Two Year Extension To VAT Experiment

EU Commission Proposes Two Year Extension To VAT Experiment

by Ulrika Lomas, Tax-News.com, Brussels

15 December 2003


The European Commission has proposed a two year extension to the reduced rate of VAT applied to certain labour-intensive services, which was introduced on an experimental basis in nine member states in January 2000.

The Directive 1999/85/EC initially allowed the member states in question to apply these reduced rates for a period of two years until December 31 2002 (later extended to 2003), in order to test the impact it would have on job creation and combating the black market.

However, the Commission has proposed a further two-year extension to the experiment, as the member states concerned have yet to agree on permanent proposals advanced by the executive in July 2003 for a long term regime of reduced rates to apply throughout the Union.

The list of categories to which Member States were authorised to apply the reduced rates were:

- The repairing of: bicycles; shoes and leather goods; clothing and household linen (including mending and alteration);

- Renovation and repairing of private dwellings, excluding materials which form a significant part of the value of the supply;

- Window cleaning and cleaning in private households;

- Domestic care services (e.g. home help and care of the young, elderly, sick or disabled);

- Hairdressing.

Member States could request to apply reduced rates to two (or in exceptional circumstances three) of the five categories. In the event, nine Member States (Belgium, Greece, Spain, France, Italy, Luxembourg, the Netherlands, Portugal and the United Kingdom) requested authorisation to carry out this experiment, and submitted applications concerning the sectors from the above list to which they wanted to apply the reduced VAT rate.

TAGS: Italy

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »