WRITTEN QUESTION P-1396/03 by Margie Sudre (PPE-DE) to the Commission. Uniform application of a reduced rate of VAT in the restaurant sector.
Date: 2003-04-10
Institutions: European Parliament, Provisional data
Subjects: VAT rate, catering industry, drafting of EU law, hotel industry, job creation, tax harmonisation, tax incentive

3.4.2004

EN

Official Journal of the European Union

C 84 E/721

Answer given by Mr Fischler on behalf of the Commission

(24 April 2003)

The Honourable Member’s question concerns the use of
Guarantee Fund by the municipality of Terni.

the European Agricultural Guidance and

In Umbria, the Guidance Section of the European Agricultural Guidance and Guarantee Fund (EAGGF)
provides part-financing for the Leader+ programme, which was covered in the reply to Written Question
No 1046/03 asked by Ms Angelilli (1).

The Guarantee Section of the EAGGF provides part-financing for the Rural Development Plan for the
region of Umbria for 2000/06, which the Commission approved by Decision C(2000) 2158 of 20 July
2000.

Here it should be noted that implementation of the aid part-financed at Community level under this
programme is a matter for the Italian national and regional authorities. The Commission is responsible for
monitoring and inspecting the programme, but it is not responsible for on-the-spot management of the
various measures. In the context of this monitoring, the annual reports made under Regulations (EC)
Nos 1257/1999 (2) and 445/2002 (3) do not show whether the municipality of Terni has submitted projects
under the EAGGF Guarantee Section.

As a result, the ‘Assessorato all’Agricoltura’ of the Umbria region, which is the authority responsible for
managing the programme, could provide specific details of the various beneficiaries and the deadlines for
the calls issued by the region, including those specifically for the municipality of Terni.

(1) See page 719.
(2) Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European
Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations, OJ L 160,
26.6.1999.

(3) Commission Regulation (EC) No 445/2002 of 26 February 2002 laying down detailed rules for the application of
Council Regulation (EC) No 1257/1999 on support for rural development from the European Agricultural Guidance
and Guarantee Fund (EAGGF), OJ L 74, 15.3.2002.

(2004/C 84 E/0810)

WRITTEN QUESTION P-1396/03

by Margie Sudre (PPE-DE) to the Commission

(10 April 2003)

Subject: Uniform application of a reduced rate of VAT in the restaurant sector

In its resolution of 14 May 2002, the European Parliament called on the Commission to ‘draw up at the
earliest opportunity proposals to include the restaurant sector, and possibly other as yet ineligible tourist
services, on the list of sectors of activity entitled to a permanent reduction in the VAT rate, so as to boost
employment and modernisation in the industries concerned and make European tourism better equipped
to deal with international competition’.

This reduced rate of VAT for the restaurant sector and other tourism services would enable the strong
job-creation potential of tourism enterprises to be swiftly harnessed, and would constitute a vital asset for
European tourism and economic activity in general.

The Commission’s work programme for 2003 indicates that a proposal for a directive on the structure of
reduced VAT rates, which aims to review the relevant rules so that a simpler and more harmonised
structure can be introduced in the European Union, is scheduled for publication in June 2003.

Can the Commission confirm its intended timetable for this proposal for a directive?

C 84 E/722

Official Journal of the European Union

EN

3.4.2004

Will the simplification and more uniform application of the Community VAT system which this proposal
aims to put into effect satisfy the expectations expressed by the European Parliament (and in particular by
France) that a reduced rate of VAT for tourism services be applied more broadly, and in particular in the
hotel and restaurant sector?

Answer given by Mr Bolkestein on behalf of the Commission

(7 May 2003)

As announced in its communication on the new VAT strategy (1) and mentioned in its report on reduced
rates adopted in October 2001 (2), the Commission intends to carry out a comprehensive review of the
structure of reduced rates in the first half of 2003. As part of this exercise, an examination will be made of
the restaurant sector and all reduced rate applications from other categories. Several other sectors too have
frequently expressed an interest in the use of tax incentives.

The Commission is currently conducting an evaluation, based mainly on reports by the Member States, of
the experimental application of reduced rates on labour-intensive services. The participating Member
States’ evaluations were unable to clearly establish the link between a lower rate of VAT on labour-
intensive services and job creation or a reduction in the underground economy.

The Commission confirms its intention to submit a proposal for a directive in mid-2003 which will
comprehensively review reduced rates with a view to the simplification and more uniform application of
VAT. The basic aim of this proposal is to improve the way the internal market operates by rationalising
the use of reduced rates by Member States, avoiding potential distortions of competition by allowing
Member States equal opportunity to apply reduced rates.

No decision has yet been taken on the review to be undertaken. Nevertheless, the Commission would draw
the Honourable Member’s attention to the fact that hotel services are already included in the list of goods
and services eligible for a reduced rate (Annex H, category 11). Restaurant services, however, only qualify
for the reduced rate in eight Member States, on the basis of special derogations granted to them.

(1) COM(2000) 348 final.
(2) COM(2001) 599 final.

(2004/C 84 E/0811)

WRITTEN QUESTION P-1398/03

by Arie Oostlander (PPE-DE) to the Commission

(11 April 2003)

Subject: Publication of the fortnightly newsletter Europa van Morgen

The fortnightly newsletter Europa van Morgen (Tomorrow’s Europe) produced by the Commission
Representation in the Netherlands has not appeared since the end of February 2003. As I understand it,
this is because of an administrative slip-up. This newsletter is greatly appreciated by readers because it is
accessible and provides a starting point for obtaining further information. In view of the forthcoming
European elections, in particular, will the Commission make interim arrangements as soon as possible to
enable publication of the newsletter to continue until such time as the new tender procedure is organised.

Answer given by Mr Prodi on behalf of the Commission

(21 May 2003)

The Commission is grateful to the Honourable Member for his positive comments on the newsletter
‘Europa van Morgen’.