Press Release: Minimum VAT rate extended for two years

On 25 May 2016, the Council of the European Union adopted a directive maintaining for a further two years the minimum standard VAT rate at 15%.

In view of on-going discussions on definitive rules for a single European VAT area, the directive extended the minimum standard rate for a period long enough to ensure legal certainty. It maintained the rate at 15% from 1 January 2016 until 31 December 2017.

• Primary Source

ESO: Background information: Economic and Financial Affairs Council, 25 May 2016 http://www.europeansources.info/record/economic-and-financial-affairs-council-25-may-2016/

ESO: Background information: Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee on an action plan on VAT. Towards a single EU VAT area - Time to decide http://www.europeansources.info/record/communication-on-an-action-plan-on-vat-towards-a-single-eu-vat-area-time-to-decide/

---