EU finance ministers did not make any significant breakthrough on Friday 18 June in Luxembourg on the European Commission’s 2018 proposal to give Member States the freedom to set reduced, super-reduced and zero VAT rates (EUROPE B11940A15).
“There is this question which remains on how to find the right compromise of ensuring equal treatment and at the same time avoiding too much proliferation of derogations”, concluded Portuguese Finance Minister João Leão after the meeting.
Comments Accountancy Europe
There was no meaningful progress on the proposed VAT rates reform at the 18 June meeting of EU finance ministers. The rates reform would grant EU Member States more freedom in setting their national VAT rates.
The Portuguese Presidency proposed to include a ‘standstill clause’ that would allow all Member States to continue to apply their current VAT derogations on reduced, zero and super-reduced rates, save those harmful to the environment.
Belgium, Estonia, Ireland, Greece, Spain, Croatia, Slovenia, Lithuania, Finland, Slovakia, Poland, the Czech Republic, Bulgaria, Romania and Luxembourg showed their support for this Presidency compromise. But notably France, Germany and Sweden objected, fearing it would open the door for new derogations.
Most Member States supported Portugal’s proposal of phasing out environmentally harmful goods from reduced rates, including pesticides, chemical fertilisers, firewood and natural gas.
Source AgenceEurope
