The European Commission has stated its wish to restrict the use of reduced VAT rates and has opened a period of consultation focusing on three specific areas. First, whether any current reduced rate distorts competition within the Single Market. Secondly, whether certain reduced VAT rates now contradict EU policy objectives. Finally, the consultation asks how similar goods and services should be treated for VAT purposes, taking into account technological developments.

The public consultation will run for 12 weeks and is available on: http://ec.europa.eu/taxation_customs/common/consultations/tax/index_en.htm

The results of the consultation will feed into the preparation of new proposals on VAT rates, which the Commission will present next year.

For further details see http://europa.eu/rapid/press-release_IP-12-1079_en.htm?locale=en