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It's perfectly legal to lower tax rates on certain products or services. Most EU countries already have multiple VAT rates; eg. in Austria food is taxed at 10%
by jakobegger 10y ago
It's perfectly legal to lower tax rates on certain products or services. Most EU countries already have multiple VAT rates; eg. in Austria food is taxed at 10% whereas most other stuff is taxed at 20%
- blibble 10y agoit isn't, the minimum rate is 15% EU wide. there's a lot of rates which were grandfathered in when countries joined the EU, but lowering the VAT on any new products requires unanimous approval in the council. all details are here: http://ec.europa.eu/taxation_customs/business/vat/eu-vat-rules-topic/vat-rates_en http://ec.europa.eu/taxation_customs/business/vat/eu-vat-rul... additionally, the commission wants to phase out reduced rates (see my other comment)