Reduced rates of value added tax * European Parliament legislative resolution of 19 February 2009 on the proposal for a Council directive amending Directive 2006/112/EC as regards reduced rates of value added tax (COM(2008)0428 – C6-0299/2008 – 2008/0143(CNS))
Date: 2009-02-19
Institutions: Committee on Economic and Monetary Affairs, Committee on the Internal Market and Consumer Protection, European Parliament
Subjects: VAT, basis of tax assessment, delivery, distributive trades, provision of services, tax exemption, tax harmonisation, tax on consumption, tax relief








CE2010076EN.01011002.xml










25.3.2010   


EN


Official Journal of the European Union


CE 76/110





Thursday 19 February 2009Reduced rates of value added tax *
P6_TA(2009)0072
European Parliament legislative resolution of 19 February 2009 on the proposal for a Council directive amending Directive 2006/112/EC as regards reduced rates of value added tax (COM(2008)0428 – C6-0299/2008 – 2008/0143(CNS))
2010/C 76 E/24
(Consultation procedure)

The European Parliament,
having regard to the Commission proposal to the Council (COM(2008)0428),
having regard to Article 93 of the EC Treaty, pursuant to which the Council consulted Parliament (C6-0299/2008),
having regard to Rule 51 of its Rules of Procedure,
having regard to the report of the Committee on Economic and Monetary Affairs and the opinion of the Committee on the Internal Market and Consumer Protection (A6-0047/2009),






1.


Approves the Commission proposal as amended;










2.


Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty;










3.


Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;










4.


Asks the Council to consult Parliament again if it intends to amend the Commission proposal substantially;










5.


Instructs its President to forward its position to the Council and the Commission.










TEXT PROPOSED BY THE COMMISSION


AMENDMENT





Amendment 6






Proposal for a directive – amending act


Recital 4











(4)


In that Communication, it was concluded that different VAT rates applied to locally supplied services pose no 
real detriment
 to the smooth functioning of the internal market. It is therefore appropriate to allow all Member States the possibility to apply reduced VAT rates to services such as labour-intensive services covered by the temporary provisions applicable until the end of 2010, services related to the housing sector and to 
the
 personal care and restaurant services. 
These changes will make it possible for
 Member States 
to apply
 reduced VAT rates 
to renovation and repair work aiming at increased energy-saving and efficiency
.












(4)


In that Communication, it was concluded that different VAT rates applied to locally supplied services pose no 
major risk
 to the smooth functioning of the internal market 
and could have positive effects in terms of job creation and the fight against the underground economy
. It is therefore appropriate to allow all Member States the possibility to apply reduced VAT rates to services such as labour-intensive services covered by the temporary provisions applicable until the end of 2010, 
to
 services related to the housing sector and to personal care and restaurant services. 
Reduced VAT rates in these areas would have a positive impact in reshaping many service sectors as they would reduce the level of undeclared work.
 Member States 
should provide clear and accessible guidance to undertakings on the scope of
 reduced VAT rates.









Amendment 7






Proposal for a directive – amending act


Recital 4 a (new)





 










(4a)





With regard to the housing sector, this Directive also makes it possible for Member States to apply reduced VAT rates to renovation and repair work aimed at increased energy savings and efficiency.










Amendment 2






Proposal for a directive – amending act


Annex - point 5 a (new)


Directive 2006/112/EC


Annex III - point 11





 










(5a)





Point (11) is replaced by the following:









‘(11)





supplies of goods and services of a kind normally intended for use in agricultural production, including machinery, with the exception of capital goods, such as buildings.’














Amendment 5






Proposal for a directive – amending act


Annex – point 7


Directive 2006/112/EC


Annex III – point 16











(16)


supply of funeral undertaking services or cremation services, and the supply of goods related thereto;












(16)


supply of funeral undertaking services or cremation services, and the supply of goods related thereto, 
such as monuments and gravestones and the care thereof
;









Amendment 4






Proposal for a directive – amending act


Annex - point 7 a (new)


Directive 2006/112/EC


Annex III - point 18 a (new)





 










(7a)





The following point is added:









‘(18a)





children’s clothing, children’s footwear;’