Brussels, 01/02/2007 (Agence Europe) - On Tuesday 30 January, the EU finance ministers adopted three decisions on implementation of the value added tax (VAT) in six member states.
Reduced rates. Romania was authorised to apply a reduced VAT rate (9%) for repairs to clothing and household linen as well as to home help and care. Romania is the 18th member state to apply reduced VAT rates to certain services with a high degree of labour intensity (see EUROPE 9322). Results of the Commission study on the impact that such rates have on the internal market are expected in the spring, Commissioner Kovács recently pointed out (see EUROPE 9351).
Right of deduction. The Ecofin Council authorised Estonia, Slovenia, Sweden and the United Kingdom to postpone the right of deduction of the input tax of taxable persons, until the input tax has been paid to their suppliers. The taxable persons concerned must use a scheme whereby they account for the output VAT for their supplies when they have received the payments from their customers. They must have an annual turnover not higher than €208,646 for Slovenia, SEK 3,000,000 for Sweden and GBP 1,350,000 for the United Kingdom, or, in the case of Estonia, must be registered as a sole proprietor.
Oresund Bridge. The Ecofin Council extended until 31 December 2013 the authorisation granted to Denmark and Sweden allowing taxable persons to recover from a single administration the VAT paid at the toll for crossing Oresund Bridge. (mb)