NEW RULES ON VAT RATES OFFER MEMBER STATES MORE FLEXIBILITY
The Commission welcomes the agreement reached by EU finance ministers today to update the current rules governing value-added tax (VAT) rates for goods and services. These new rules will provide governments with more flexibility in the rates they can apply and ensure equal treatment between EU Member States. At the same time, the updated legislation will bring VAT rules into line with common EU priorities such as fighting climate change, supporting digitalisation and protecting public health. The European Parliament must now be consulted on this final text.
Paolo Gentiloni, Commissioner for Economy, said: “Today's unanimous agreement to modernise the rules governing VAT rates is excellent news. The result of marathon negotiations, it shows that where there is a will, there is a way – a European way forward. Member States will have more flexibility to make their VAT systems reflect national policy choices, while ensuring coherence with common European priorities: the green and digital transitions and of course the protection of public health.”
