EU: VAT Reduced Rates
The European Commission has launched a debate on the simplification and rationalisation of the current VAT rates structure, in particular the reduced VAT rates. Also, the Commission proposes to extend until the end of 2010 derogations for reduced rates granted to Member States which joined the EU before 1 January 1995.
The Commission believes that there is a place for more flexibility which would allow Member States to apply VAT reduced rates to local supplies.
Further information is available at http://europa.eu/rapid/pressReleasesAction.do?reference=IP/07/1017&format=HTML&aged=0&language=en&guiLanguage=en.