WRITTEN QUESTION E-0913/01 by Dominique Vlasto (PPE-DE) to the Commission. VAT on restaurants.
Date: 2001-03-28
Institutions: European Parliament, Provisional data
Subjects: VAT, catering industry, tax harmonisation, tax relief

18.9.2001

EN

Official Journal of the European Communities

C 261 E/217

(2001/C 261 E/246)

WRITTEN QUESTION E-0913/01

by Dominique Vlasto (PPE-DE) to the Commission

(28 March 2001)

Subject: VAT on restaurants

Traditional and fast food restaurants are subject to different VAT rates in the various Member States.

In the European Union as a whole, 8 out of 15 countries now apply reduced rates to traditional
restaurants equivalent to those applicable to fast food outlets.

In France demonstrations are currently being held to call for a reduced VAT rate to be applied to
traditional restaurants as well as to fast-food catering.

The retention of a high VAT rate would harm traditional restaurateurs, their staff and their customers,
while a reduced rate would permit this dynamic, job-creating sector to develop.

Does the Commission envisage taking any action in this area? Why not propose a directive seeking to
apply a reduced rate of VAT to traditional restaurants as well as to fast food outlets in all the Member
States?

Answer given by Mr Bolkestein on behalf of the Commission

(27 April 2001)

Under current Community law in this matter the standard minimum VAT rate of 15 % is applicable to
restaurant services (see Article 12(1) of the Sixth Council Directive 77/388/EEC of 17 May 1977 on the
harmonization of the laws of the Member States relating to turnover taxes (cid:129) Common system of value
added tax: uniform basis of assessment (1)).

Member States also have the option of applying a lower rate of not less than 5 % to food supplies. This is
the basis on which fast food outlets are allowed to charge less VAT on take-away meals.

However, some provisions of the Directive (Article 28(2)) set out derogations which allow Member States
to apply a lower VAT rate to restaurants for a transitional period, subject to certain conditions.

Member States where this applies are those which were required to raise their standard rate of VAT by
more than 2 % on 1 January 1991 and those which were already applying a lower rate to restaurants at
that date. They may apply or go on applying a lower rate to this sector.

It should also be noted that restaurant services would have been eligible for a lower VAT rate if, when
Directive 1999/85/EC on labour-intensive services (2) was being negotiated, the Council had not amended
the Commission(cid:146)s proposal. It was the Council that limited the scope of the proposal to an exhaustive list
of eligible services, excluding restaurants.

As provided for in the Commission(cid:146)s communication on a new VAT strategy (3), re-examination of the
temporary derogations from VAT rates and the period of their application will be among the points
considered in connection with the rationalisation of VAT rates which is to follow the review scheduled for
2002 of the experiment with labour intensive services.

(1) OJ L 145, 13.6.1977. Latest amendment: Council Directive 2001/41/EC of 19 January 2001, plus corrigendum in

OJ L 22, 24.1.2001 OJ L 26, 27.1.2001.

(2) OJ L 277, 28.10.1999.
(3) COM(2000) 348 final.