On Wednesday 26 April, the ambassadors of the member states to the EU (Coreper) made considerable progress on the legislative proposal to align reduced rates of value-added tax (VAT) applicable to online publications and hard-copy publications (see EUROPE 11750).
We are “very close” to an agreement, although two or three countries still have a few objections, a diplomatic source told us. The Maltese Presidency of the Council of the EU is aiming to reach a unanimous agreement of the Ecofin Council, by June at the latest.
According to our information, the Czech Republic is reluctant to get behind the compromise proposal as it is linking this dossier to obtaining the Council's blessing to carry out a pilot project for a VAT reverse charge mechanism (see EUROPE 11742). Hungary reportedly also wants the option of being able to apply reduced VAT rates to online services. The United Kingdom is said to be returning to the attack in its quest for a reduced rate of VAT on certain sanitary products (feminine hygiene products). As for Austria, it remains staunchly opposed to the very principle of reduced indirect taxation. (Original version in French by Mathieu Bion with Élodie Lamer)