WRITTEN QUESTION P-0904/02 by Bill Newton Dunn (ELDR) to the Commission. VAT rates for purchases by visually-disabled people.
Date: 2002-03-25
Institutions: European Parliament, Provisional data
Subjects: EU Member State, VAT, computer equipment, physically disabled person, purchase, software, tax exemption, tax harmonisation

14.11.2002

EN

Official Journal of the European Communities

C 277 E/105

(2002/C 277 E/117)

WRITTEN QUESTION P-0904/02

by Bill Newton Dunn (ELDR) to the Commission

Subject: VAT rates for purchases by visually-disabled people

(25 March 2002)

For the visually disabled, in the United Kingdom at least, computer software and CCTV equipment are
zero-rated for Value Added Tax. Motorised contour beds are zero-rated, or incur VAT, depending on the
medical condition of the purchaser. But computer hardware incurs VAT for all categories of people,
whether having perfect eyesight or not.

What is the comparative situation in the other Member States?

Does the Commission agree that visually-disabled people throughout the European Union should enjoy
zero-rating for both hardware and software?

Answer given by Mr Bolkestein on behalf of the Commission

(23 April 2002)

Under current Community VAT legislation, the standard VAT rate should apply to computer software and
hardware. Member States may, however, apply a reduced rate under category 4 of Annex H of the Sixth
VAT Directive 77/388/EEC (1) for ‘Medical equipment, aids and other appliances normally intended to
alleviate or treat disability, for the exclusive personal use of the disabled, including the repair of such
goods, and children’s car seats.’ Member States may therefore allocate a reduced VAT rate of no less than
5 % to these goods and services. It is doubtful that computer software and hardware will generally fall
under this category, although a specific item such as a Braille keyboard and its related software could be
covered. Closed circuit television (CCTV) would not be covered.

Moreover, under the terms of Article 28(2) of the Sixth VAT Directive, only the Member States which, on
1 January 1991, applied ‘zero rates’, which are in fact exemptions with refund of the tax paid at the
preceding stage, or reduced rates, to goods or services not mentioned in Annex H, may continue to apply
such rates for a further transitional period.

The reason for this is that the zero rate is an exception to the normal rules which foresee that the standard
VAT rate should apply to any taxable transaction, independently of the nature of the purchaser, as a
general consumption tax, to avoid distortion of competition.

Current Community legislation does not make it possible to extend the scope of the zero rate.

As for the comparative situation in the other Member States, the Commission is collecting the information
requested. It will communicate its findings directly to the Honourable Member as soon as possible.

(1) Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States
relating to turnover taxes > Common system of value added tax: uniform basis of assessment, OJ L 145,
13.6.1977, Directive as last amended by Council Directive 2001/115/EC of 20 December 2001, OJ L 15,
17.1.2002, Annex H sets a list of supplies of goods and services which may be subject to reduced rates of VAT.

(2002/C 277 E/118)

WRITTEN QUESTION E-0915/02

by Stavros Xarchakos (PPE-DE) to the Commission

Subject: Construction of the Acropolis Museum

(5 April 2002)

According to reports in the Greek press, there is considerable opposition in Greece to the Ministry of
Culture’s decision to build the Acropolis Museum at the Makriyannis site. It will be recalled that this
project has been at the planning stage for the last 25 years (sic!) and that four competitions have been held