PURPOSE: to set the minimum standard rate of VAT at 15% on a permanent basis.
LEGISLATIVE ACT: Council Directive (EU) 2018/912 amending Directive 2006/112/EC on the common system of value added tax as regards the obligation to respect a minimum standard rate.
CONTENT: this Directive amends Directive 2006/112/EC in order to maintain the current minimum standard rate at its current level of 15 % and to make it permanent.
A 15% minimum standard rate has been maintained on a provisional basis since VAT rules for the EU single market were first applied in 1993. It was last extended in May 2016 for two years, expiring on 31 December 2017.
The application of a standard rate of value added tax (VAT) ensures the proper functioning of the common VAT system and should therefore be maintained.
ENTRY INTO FORCE: 17.7.2018.
TRANSPOSITION: no later than 1.9.2018.