During its meeting of June 22, 2018 the Economic and Financial Affairs Council (ECOFIN) adopted a Council Directive amending Directive 2006/112/EC on the common system of value added tax as regards the obligation to respect a minimum standard rate. By doing so ECOFIN is making the 15% minimum standard rate a permanent feature of a new VAT system.

 

A 15% minimum standard rate has been maintained on a provisional basis since VAT rules for the EU single market were first applied in 1993. It was last extended in May 2016 for two years, expiring on December 31, 2017.

Proposals aimed at replacing the current ‘transitional’ VAT arrangements with a definitive VAT system and reforming VAT rates are meanwhile under discussion. The Commission issued proposals in January and May 2018.

Click here to be forwarded to the text of the Council Directive amending Directive 2006/112/EC on the common system of value added tax as regards the obligation to respect a minimum standard rate as available on the website of the European Council/the Council of the European Union.

 

 

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