Press Release: VAT – Reduced rate on horses: Commission opens second stage of infringement proceedings against the Netherlands and investigates the situation in Austria, the Czech Republic, France, Germany, Ireland, Italy and Luxembourg

The European Commission has formally requested the Netherlands to amend its legislation with regard to the reduced VAT rate it applies to certain live animals, and in particular horses. According to the Commission, the rate to be applied should be the standard rate. The request is in the form of a reasoned opinion which is the second stage of the infringement proceedings provided for in Article 226 of the Treaty. If the Netherlands fails to comply with the reasoned opinion within two months, the Commission may refer the matter to the Court of Justice of the European Communities. At the same time, the Commission has sent requests for information in the form of letters of formal notice to seven other Member States inviting them to submit their observations within two months.

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