VAT Exemption At Risk??

G-MIKI

This could be a concern.

http://www.freshbusinessthinking.com/news.php?NID=15522&Title=EU+VAT+changes+could+have+negative+impact+on+the+UK

rogerblack

http://ec.europa.eu/taxation_customs/common/consultations/tax/2012_vat_rates_en.htm

JasonLVC

It'll not threaten the UK's zero rating unless the UK allows it. The zero rating is a UK spcific derogation (deviation from the law) which was part of the UK entriey to the VAT system back in 1973.

The reduced rates may be at risk as these are EU generic and are supposed to be only applied to 'social' aspects of the economy. The UK has already changed the VAT treatmenbt of reduced rating on energy saving materials when installed by a charity (but not by an individual on the logic that a person is gaining a social bebenfit but a corporate charity less so).

I think the consultation on the other reduced rates will find resistance from most EU member states so this will take quite some time (many any years) to come to fruitiion if at all. Take notice of who your local MEP's are and at elections vote for the party that will fight these changes, don't vote for the party based on colour of their logo.