25/05/2016 (Agence Europe) - Normal VAT rate is now 15% for another two years. The directive adopted by the Council of the EU on Wednesday 25 May extends normal VAT rates from 1 January 2016 to 31st of December 2017. This extension has been made to guarantee legal security, given the ongoing discussions on rules for a single VAT area in the Union (see EUROPE 11509). This 15% rate seeks to prevent any excessive drift in VAT rates applied by member states, as well as structural imbalances or distortions to competition, which could also have an impact on the situation. (MD)