EUROPEAN BUILDERS CONFEDERATION REDUCED VAT RATESThe finance ministers of the 27 EU Member States have reached a permanent agreement on reduced VAT rates for labour intensive services. Member States that wish to do so cab thus apply a reduced VAT rate on maintenance and improvement works of housing on a permanent basis."Today is a historic day for craft and SME of the construction sector. Reduced VAT is the best tool at our disposal to fight undeclared work and foster job creation in the construction sector.
At a time when the construction sector and its SMEs are strongly hit by the economic crisis, recovery measures targeting the construction sector are needed more than ever. Reducing VAT Rates in the construction sector is one such measure" said Andrea Marconi, EBC President.The ECOFIN council has solved the reduced VAT issue, with a view to allowing the member states that wish to apply reduced VAT rates in certain sectors.
Today 18 Member States have chosen to apply reduced VAT rates to labour intensive services: Belgium, Czech Republic, Greece, Spain, France, Italy, Cyprus, Latvia, Luxemburg, Hungary, Malta, Netherlands, Poland, Portugal, Slovenia, Finland, United Kingdom (Isle of Man only).