Brussels, 25/04/2005 (Agence Europe) - The Commission has proposed adopting a proposal for amending directive 77/388/ECC on the new common value added tax system (VAT). It wants to extend the minimum rates applicable to VAT for a fourth period (as opposed to reducing taxes). The threshold is therefore set at 15% from 1 January 2006 to 31 December 2010.
EU enlargement of ten new Member States has not changed the situation regarding normal VAT rates, which still vary between 15% and 25% in 25 Member States. Cyprus and Luxembourg apply rates of 15% and Denmark, Hungary and Sweden, rates of 25%. The other Member States are in the middle of this bracket.