I'm confused for a change

[meellis]

In my industry, plumbing and heating, we are being told that the Eu are stopping us being able to charge 5% VAT on certain energy efficient upgrades and products. This was introduced a few years ago to try and get consumers to invest in energy saving measures and the Eu are saying that it has to return to 20% in line with everything else. I am sure a lot of people believe or have been led to believe that the EU have a say in our VAT system, I know I have. Now the confusing bit, I have just been watching the news and Greece are complaining because they have just had to raise VAT from 13% to 23%. They are not happy because they fear they are going to lose tourists because Spain and Turkey are only charging 6% VAT, so much for the EU giving us all a level playing field to trade in.

[des8]

Re: I'm confused for a change

The EU sets the broad VAT rules through directives. Minimum standard rate is 15%, but Countries can set higher rates. Each Country is allowed two reduced rates, the lowest allowed being 5%,
At least that's what is was when I was last interested!

[meellis]

Re: I'm confused for a change

That sounds like a great EU policy Des doesn't it, we use a low rate to encourage energy saving measures and other countries use it for their general rate by the sounds of it.

[des8]

Re: I'm confused for a change

If you want to plan your holidays around VAT rates see here: http://ec.europa.eu/taxation_customs...t_rates_en.pdf
I always (mistakenly apparently) understood that reduced rates were allowed on two categories ................. Greece seems to have had about 30!

[meellis]

Re: I'm confused for a change

I cant afford holidays let alone plan them around VAT, but seriously this is one of the reasons that people have against the EU we seem to comply with everything when the others don't.