EU: Minimum standard VAT rate set at 15%
6th July 2019: The European Union’s minimum standard VAT rate has been set.
The EU’s Economic and Financial Council (ECOFIN) has adopted a directive, permanently fixing the minimum standard VAT rate throughout the EU at 15%.
The minimum rate has been maintained at 15% since VAT rules for the EU single market were applied in 1993. It was the last extended in May 2016 for 2 years.
The rate is aimed at preventing excessive divergence in VAT rates in the EU Member States. This reduces the risk of distortions of competition through lower VAT rates in some Member States that might impact cross-border shopping and trade.
Recently, the EU drafted new law amendments, impacting VAT legislation.
We know that Indirect taxes such as VAT and GST can have a huge effect on your business. As VAT rates change sporadically keeping yourself informed can be difficult. Compliance is always crucial. That’s why our Indirect Tax Experts share their hand-picked news stories every day that you need to know. From breaking news to VAT changes and new EU legislation. We know that relevant information means better decision making. We aim to be your number 1 source for VAT and GST news.
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