EEC as regards reduced rates of VAT - Main contents

Please note

This page contains a limited version of this dossier in the EU Monitor.

dossier	COM(2003)397 - Amendment of Directive 77/388/EEC as regards reduced rates of VAT.
document	COM(2003)397
date	February 14, 2006

table>(1)The possibility of applying a reduced rate of value added tax should be granted in respect of supplies of district heating as for supplies of natural gas and electricity, for which the possibility of applying a reduced rate is already allowed in Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes — Common system of value added tax: uniform basis of assessment (3).

(2)

To achieve a better understanding of the impact of reduced rates, it is necessary for the Commission to prepare an assessment report on the impact of reduced rates applied to locally supplied services, notably in terms of job creation, economic growth and the proper functioning of the internal market.

(3)	The experiment of reduced rates for labour-intensive services should therefore be extended until 31 December 2010 and it should also be made possible for all Member States to take part in it under the same conditions.

(4)

Accordingly, Member States wishing to avail themselves, for the first time, of the option provided for in Article 28(6) of Directive 77/388/EEC and those wishing to amend the list of services to which they have applied the said provision in the past should submit a request to the Commission, together with the relevant particulars for the purpose of assessment. Such prior assessment by the Commission does not appear necessary where Member States have previously benefited from an authorisation and submitted a report on the matter to the Commission.

(5)	To ensure legal continuity, this Directive should be applicable as from 1 January 2006.

(6)	Implementation of this Directive in no way implies change in the legislative provisions of Member States,