09/03/2022 (Agence Europe) – The European Parliament adopted on Wednesday 9 March in plenary session the report by Marek Belka (S&D, Poland) for opinion on the EU Council agreement on reduced rates of value added tax (VAT) (see EUROPE 12848/8). Adopted by a very large majority (612 votes in favour, 14 against and 71 abstentions), the report provides for the existing derogations for some Member States allowing preferential VAT rates to be applied to a limited list of products and services to be opened up to all Member States. Elimination periods are introduced for reduced rates applied to products with a negative impact on the environment, including fossil fuels, pesticides and chemical fertilisers. The report recalls that “there is however an urgent need to move to a definitive VAT system based on the principle of taxation in the country of destination”. (AD)