UK suggests compromise on reduced VAT scheme - BikeBiz

UK suggests compromise on reduced VAT scheme

A three-year experiment allowing some EU countries to charge a lower VAT rate on labour-intensive services such as hairdressing - and bicycle repairing - ends on December 31st. Germany wants the experiment to die but France and other countries want an extension through 2015. The UK has suggested a compromise solution even though the UK government doesn't like the scheme....
Author:
Publish date:

Belgium, Greece, Spain, France, Italy, Luxembourg, the Netherlands, and Portugal currently apply reduced VAT rates to window cleaning, hairdressing and the repairing of bicycles, among other services.

But other countries – notably Germany, which has a low overall VAT rate – are concerned about extending the scheme to other sectors, reports the EUpolitix website.

With an agreement needed from all 25 member states, the UK presidency has agreed to a compromise proposal that would allow an extension of the reduced rate scheme to the new member states – Poland and the Czech Republic have already expressed an interest – but would also limit the number of sectors where the rates would apply.

However, Britain has warned that it will not accept any moves to force it to scrap its zero VAT rate on children’s clothing – a move backed by both Ireland and Luxembourg.

The European Commission' Council of Economic and Finance Ministers (ECOFIN) is meeting this week to discuss this and other issues but no deal is expected until the end of the year.

For the existing UK stance on reduced rates of VAT for bicycle repairing and hairdressing and so on, click the link below...

Featured Jobs

cycles service promo

Shop Manager/ Head Mechanic

Cycleservice Limited I Sidmouth, East Devon I Salary: £22,000 Plus Share Incentives Available I Date Published Wednesday 30th May 2018

Giant St Paul Logo

Bike Fitter / Sales Person

Giant St Pauls I City of London I Salary: Negotiable Dependent on Experience I Date Published Thursday 21st June 2018

Sigma-Sports

Social Media Executive

Sigma Sports I Hampton Wick, Surrey I £22,000 to £24,000 per year I Date Published Monday 4th June 2018