| Author (Corporate) | European Commission: Press and Communication Service |
|---|---|
| Series Title | Press Release |
| Series Details | IP/99/1002 (20.12.99) |
| Publication Date | 20/12/1999 |
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From 1 January 2000 to 31 December 2002 Member States will be authorised to apply a reduced rate of Value Added Tax (VAT) to specific labour-intensive services such as hairdressing, window-cleaning and small repairs under a proposal for a Council Decision just put forward by the European Commission. The proposal is based on requests received from Member States in accordance with a Directive adopted by the EU's Council of Ministers on 22 October 1999. The Directive was requested by the December 1998 Vienna European Council as part of initiatives to tackle unemployment. 'This measure will be of immediate and direct benefit to job creation by allowing lower VAT, and so lower prices, on specific labour-intensive services', commented Taxation Commissioner Frits Bolkestein. 'I am delighted that this initiative can be implemented just one year after the idea was agreed at the Vienna European Council, demonstrating the ability of the Commission, and indeed the European Union, to act quickly'. The UK has chosen not to use the facility. |
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| Source Link | http://europa.eu/rapid/pressReleasesAction.do?reference=IP/99/1002&format=HTML&rapid=0&language=EN&guiLanguage=en |
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| Subject Categories | Employment and Social Affairs, Taxation |
| Countries / Regions | Europe |
