WRITTEN QUESTION P-2209/02 by Ian Hudghton (Verts/ALE) to the Commission. VAT on safety helmets and hats in the UK.
Date: 2002-07-12
Institutions: European Parliament, Provisional data
Subjects: United Kingdom, VAT rate, application of EU law, sports equipment, tax exemption, tax harmonisation

9.10.2003

EN

Official Journal of the European Union

C 242 E/11

related to housing and land tenure.
sustainable urban development, which deal with questions
The Commission is also currently associated with the World Bank/United Nations- sponsored partnership
‘Cities Alliance’, the main focus of which is supporting urban development strategies,
including slum
upgrading. Kenya is one of Cities Alliance’s target countries.

(2003/C 242 E/016)

WRITTEN QUESTION P-2209/02

by Ian Hudghton (Verts/ALE) to the Commission

(12 July 2002)

Subject: VAT on safety helmets and hats in the UK

With reference to Annex H to the Sixth Directive on goods and services which may be subject to reduced
rates of VAT and to the Commission’s document entitled VAT Rates Applied in the Member States of the
European Community, wherein the UK Government’s zero rate of VAT for motor cycle and pedal cycle
helmets is recorded, would the Commission please clarify what category in Annex H the UK Government
used to justify application of VAT at 0 % for these items?

Could the Commission further give its opinion on whether safety hats used by horse riders could be
covered by the definitions used by the UK Government to give motor cycle and pedal cycle helmets
entitlement to zero-rated VAT?

Answer given by Mr Bolkestein on behalf of the Commission

(13 September 2002)

Under Community value added tax (VAT) legislation, Article 12(3)(a) of the Sixth VAT Directive (77/388/
EEC (1)) lays down that Member States may apply a reduced VAT rate of no less than 5 % to supplies of
goods and services referred to in Annex H of that directive. As this Annex H does not cover safety
helmets, the standard VAT rate should apply to them.

In addition to this, in the course of negotiations of the Directive, or as part of their negotiations for joining
the Community, certain Member States have retained separate rules in specific areas, an example in the
United Kingdom being the zero-rates. These rules provide that Member States who applied exceptional
rates on 1 January 1991 may continue to apply such rates for a further transitional period, under the
conditions lay down in Article 28 of the Sixth VAT Directive. These rules are transitional, pending the
adoption in Council, by unanimous decision, of a definitive VAT system under which far greater
harmonisation is required. The Council has to date been reticent to adopt such changes.

As an exception to the normal rules, which foresee that the standard VAT rate should apply to any taxable
transaction as a consumption tax, to avoid distortion of competition, provisions concerning reduced rates
should be construed in the most restrictive way. For zero-rates, this applies all the more because they are
specific derogations granted to some Member States.

The Commission is of the view that the current United Kingdom zero-rates could not be extended to cover
safety hats worn by horse riders.

(1) Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of Member States relating to
turnover taxes (cid:1) Common system of value added tax: uniform basis of assessment (cid:1) OJ L 145, 13.6.1977,
Directive as last amended by Directive 2002/38/EC (cid:1) OJ L 128, 15.5.2002.