EU ministers divided over change to VAT directive

After a meeting between EU finance ministers in Nice on Saturday, German finance minister Peer Steinbrueck said Germany was ‘downright sceptical’ about the proposal to enable member states to lower
the VAT rate permanently on certain labour-intensive and locally supplied services such as restaurants and hairdressers.

Austria and Denmark have also come out in opposition to the plan, Tax-News.com reports.

The proposal to amend the EU VAT directive was introduced by taxation commissioner Laszlo Kovacs in July in an effort to reduce VAT on these services.

The aim of the proposal is to make rates below the 15% EU standard, already enjoyed by 18 member states for a limited period up to 2010, permanent and open to all member states.

Further reading:

Germany slates EU VAT plan

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