Topics discussed:
VAT rates
- Ministers exchanged views on the proposal for a Council directive on the common system of value added tax (VAT) as regards VAT rates.
- The Commission submitted the proposal in 2018. It aims to create a level playing field and grant member states more flexibility in the application of reduced and zero VAT rates. Ministers were invited to give further guidance on the way forward, on the basis of the presidency
progress report.
Unofficial report:
- No consensus was reached
- Reduced VAT rates on products with ecological impact as firewood, pesticides, etc would be abolished by 2035
- Current deogations would become available to all Member States
- Reduced/zero VAT rates would only be possible for primary products & public policies
VAT exemption for imports and other Union operations in the public interest
- Ministers held a policy debate on the proposal for VAT exemption for imports and other Union operations in the public interest.
- The aim of the proposal is to make it easier for the Commission and EU agencies to buy goods and services in order to distribute them free of charge to member states according to their emergency needs. Currently VAT is due in every member state where EU bodies donate goods.
- Ministers were invited to give further guidance on the way forward. Proposal for a Council directive on exemptions on importations and on certain supplies, in respect of Union measures in the public interest (European Commission) Proposal for a Council directive on exemptions on importations and on certain supplies, in respect of Union measures in the public interest (policy debate)
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