The European Commission has officially asked France to ensure that certain “personal services” should be subject to the normal VAT rate. The issue arises in the context of the reduced rate of VAT applicable to domestic care services such as home help and care of the young, elderly, sick or disabled.

France applies a reduced VAT rate to “personal services”, which in the Commission's view is a much broader category of services than the domestic care services. According to the Commission, France is applying the reduced rate to personal services including gardening, home lessons (different from school support), computer and internet assistance at home, maintenance services, and maintenance and temporary guarding of main and secondary residences. This rate also applies to the services of intermediaries operating in the sector.

The request takes the form of a reasoned opinion, which is the second stage of an infringement procedure. If the rules are not brought into compliance within two months, the Commission may refer the matter to the Court of Justice of the European Union.