Press Release: Judgment in Case C-161/14 Commission v United Kingdom

The European Court of Justice judged on 4 June 2015 that the United Kingdom cannot apply, with respect to all housing, a reduced rate of VAT to the supply and installation of energy-saving materials, since that rate is reserved solely to transactions relating to social housing.

Following the court's ruling, the European Commission held discussions over the possibility to relax VAT rules for energy efficiency in buildings. It was energy commissioner Miguel Arias Cañete's opinion that the court ruling would become an investment barrier.

• Primary Source

ESO: Background information: Taxation: Commission takes the UK to Court over reduced VAT rate http://www.europeansources.info/record/press-release-taxation-commission-takes-the-uk-to-court-over-reduced-vat-rate/

EurActiv, 04.06.15: UK’s Green VAT ruled illegal by EU judges http://www.euractiv.com/sections/energy/uks-green-vat-ruled-illegal-eu-judges-315143

The Telegraph, 04.06.15: Households must pay higher VAT on insulation and solar panels, EU rules http://www.telegraph.co.uk/news/earth/energy/11652827/Households-must-pay-higher-VAT-on-insulation-and-solar-panels-EU-rules.html

EurActiv, 15.07.15: Commission mulls relaxing VAT rules for energy efficiency in buildings http://www.euractiv.com/sections/energy/commission-mulls-relaxing-vat-rules-energy-efficiency-buildings-316313

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