EU
launches consultation into effects of reduced VAT rates
on internal market
The
European Commission said it is launching an online
consultation to gather stakeholders'' views on the
current EU VAT legislation on reduced rates and possible
changes.
The
EU''s VAT directive provides for the application of a
minimum 15 pct VAT rate all over the bloc but also sets
out a restricted list of goods or services for which
member states have the possibility to apply a reduced
rate.
The
commission said certain member states are granted some
derogations which allow them to apply reduced rates on
other goods or services, thereby preventing coherent EU
legislation.
The
commission said it is seeking stakeholders'' opinions
and evidence on the impact that applying reduced VAT
rates on different categories of goods or services has
on prices, demand, employment, environment and on any
factor which could distort the smooth functioning of the
internal market.
It
invites that comments are submitted by May 12 and said
it will take into account the opinions and views in its
legislative proposal planned for July.