European Union: Reduced VAT rates

The long wrangle over reduced rates of value added tax (VAT) reaches a (temporary) close with the publication of Council Directive 2009/47/EC of 5 May 2009 amending Directive 2006/112/EC as regards reduced rates of value added tax, in the Official Journal of the European Union (OJEU) 9.5.2009 L 116/18.

Locally produced services

Directive 2009/47 allows member states the possibility of applying reduced VAT rates to the labour-intensive services covered by the temporary provisions applicable until the end of 2010 as well as to restaurant and catering services, and it enters into force on 1 June 2009.

A few specific exemptions are included.

Consolidation

At this moment, the latest consolidated version of the VAT Directive, Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, originally published OJEU 11.12.2006 L 347/1, is of 21 January 2009.




Ralf Grahn