The Charity Tax Group has been working with the European Charities’ Committee on VAT (ECCVAT) in support of their response to a consultation on the European Commission’s proposals to give Member States more flexibility when setting VAT rates. The ECCVAT’s full response can be read here .
The CTG has summarised the proposals as keeping a standard VAT rate of minimum 15% with Member States now able to put in place:
- two separate reduced rates of between 5% and the standard rate chosen by the Member State
- one reduced rate set at between 0% and the reduced rates
- one zero rate