The EU Council has reached agreement on use of reduced VAT rates in certain sectors. The agreement means that all Member States, by amending the VAT directive 2006/112/EC, should have the option to apply reduced VAT rates on a permanent basis to a number of supplies, including restaurant services and hairdressing.

Other supplies include:

• Minor repairing of bicycles, shoes and leather goods, clothing and household linen (including mending and alteration);
• Window-cleaning and cleaning in private households;
• Domestic care services such as home help and care of young, elderly, sick or disabled;
• Renovation and repairing of private dwellings, excluding materials which account for a significant part of the value of the service supplied.

Further information is available at http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/106576.pdf