Taxes are emotion; this certainly also applies to VAT and its rates. In particular, the question of whether or not a low rate should be applied to certain products makes emotions run high. Member States are, incidentally, bound by the reasonably dated rules of the VAT Directive. These tariff rules will soon be considerably relaxed, so that the Member States can set their (low) VAT rates (even) more at their own discretion. Yet the EU’s direction is not completely abandoned. For example, products designated as harmful will eventually be excluded from any reduced rate. It is also striking that the regulations believe that the Member States must protect the Member States against overly compelling emotions on the part of their own citizens. All in all, new rules that will undoubtedly stir up the necessary emotions.
Source: ndfr.nl
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