ECONOMY - FINANCE - BUSINESS / (ae) taxation

France not allowed to levy VAT of under 5%

Brussels, 29/02/2012 (Agence Europe) - On Tuesday 28 February 2012, the European Court of Justice found France guilty of reapplying from 1 January 2007 onwards 2.1% VAT on income generated by the first performances of concerts where food and drink are available on an optional basis, despite the ban on applying VAT of under 5% (introducing a 5.5% VAT rate) in June 1997.

In this ruling in Case C-119/11, the Court recognises the validity of the European Commission's argument (which appealed...