REPORT FROM THE COMMISSION TO THE COUNCIL in accordance with Article 105a(6) of Council Directive 2006/112/EC on VAT rates derogations applied by Member States
Date: 2025-10-02
Institutions: Directorate-General for Taxation and Customs Union, European Commission
Subjects: EU Member State, VAT rate, derogation from EU law, goods and services, single market, social policy, tax harmonisation, tax relief

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 2.10.2025  COM(2025) 585 final  REPORT FROM THE COMMISSION TO THE COUNCIL in accordance with Article 105a(6) of Council Directive 2006/112/EC on VAT rates derogations applied by Member States  
 
 
 rates 
Preface 

derogations 

The  Commission  presents  this  report  in  accordance  with  Article 105a(6)  of  Directive 
2006/112/EC 1  (the  VAT  Directive),  detailing  the  supplies  of  goods  and  services 
covered  by  paragraphs 1  and  3  of  Article 105a  and  by  Article 105b.  The  report 
explains how Member States apply derogations entailing reduced rates, including rates 
lower  than  the  minimum  specified  in  Article 98(1)  (super-reduced  rates),  and 
exemptions with deductibility of VAT paid at the preceding stage (zero rates). 

The details provided in this report are based exclusively on information  received from 
Member  States.  Therefore,  the  Commission  cannot  assume  responsibility  for  any 
inaccuracies  in  the  data.  Any  conclusions  or  explanations  contained  in  this  report  do 
not  necessarily  reflect  the  Commission’s  official  opinion.  Neither  the  Commission  nor 
any  person  acting  on  its  behalf  may  assume  responsibility  for  subsequent  use  of  the 
information in this report. 

1  Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ L 347, 

11.12.2006, p. 1), as amended. 

1 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table of contents 

1. 
2. 
3. 

Executive Summary .................................................................................... 4 
Context ..................................................................................................... 5 
Goods and services for which Member States apply derogations on VAT rates ...... 7 
3.1 General observations on all derogations ......................................................... 7 
3.2 Derogations for goods and services listed in Annex III ..................................... 9 
3.3 Derogations for goods and services not listed in Annex III ............................... 11 
3.4 Derogations for housing not being part of a social policy ................................. 12 
3.5 Derogations entailing choices made under Article 105a(5) ............................... 12 
4. 
Outlook .................................................................................................... 13 
Annex 1: Simplified list of derogations .................................................................. 14 
Annex 2: Simplified list of derogations by sector .................................................... 18 
Annex 3: Detailed list of derogations by Member State ............................................ 22 

List of Figures 
Figure 1: Number of derogations applied by Member States ....................................... 7 
Figure 2: Transactions covered by multiple derogations ............................................ 8 
Figure 3: Number of derogations by VAT rate type .................................................. 8 
Figure 4: Derogations by economic sector .............................................................. 9 
Figure 5: Derogations with super-reduced rate by Member State ............................... 10 
Figure 6: Derogations chosen by Member States under Article 105a(5) ....................... 13 

Glossary 

Reduced rate:  

VAT rate not lower than the minimum of 5%. 

Super-reduced rate:  

Reduced rate lower than the minimum of 5%. 

Zero rate:  

Exemption with deductibility of VAT paid at the preceding 
stage. 

Parking rate:  

Reduced rate not lower than 12%. 

Derogation:  

For the purpose of this report, ‘derogation’ means the 
application of a VAT rate lower than the standard rate 
based on Articles 105a(1), 105a(3) or 105b of the VAT 
Directive. 

2 

 
 
 
 
 
 
 
 
 
 
 
Legal Information 

This report is based exclusively on information provided by Member States in 
their communications to the VAT Committee. 

Pursuant  to  Article 105a(6)  of  the  VAT  Directive,  the  Commission  must  present,  by 
1 July 2025 and on the basis of the information provided by Member States, a report 
with  a  comprehensive  list  indicating  the  goods  and  services  referred  to  in 
paragraphs 1  and  3  of  Article 105a  and  in  Article 105b  to  which  the  reduced  rates, 
including the super-reduced rates, or the zero rates, are applied in Member States. 

By  7 July  2022  at  the  latest,  Member  States  had  to  communicate  to  the  VAT 
Committee the text  of the main provisions of national law and the  condition for their 
application as applied on 1 January 2021 regarding: 

• 

• 

• 

the super-reduced and zero rates referred to in Article 105a(1)2 
(goods and services listed in Annex III, excluding points 1–6 and 10c) 

the parking rates referred to in the first subparagraph of Article 105a(3)3  
(goods and services not listed in Annex III) 

the reduced rates referred to in Article 105b(1)4 
(transactions regarding housing not being part of a social policy). 

Member  States  that  were  not  applying  parking  rates,  super-reduced  rates  or  zero 
rates to the above-mentioned transactions  on  1 January 2021, but who wished to do 
so,  had  to  adopt  the  detailed  rules  governing  the  exercise  of  those  options  by 
7 October 2023. They also had to communicate to the VAT Committee the text of the 
main provisions of national law they adopted5. Those Member States must apply these 
rates  to  the  same  supplies  of  goods  or  services  and  under  the  same  conditions  as 
those  applicable  on  1 January  2021  in  the  Member  States  that  communicated,  by 
7 July 20226, their main provisions and conditions of derogations already applied. 

As  set  out  in  Article 105a(6)  of  the  VAT  Directive,  the  scope  of  this  report  only 
covers permanent derogations.  

There  are  other  derogations,  such  as  those  mentioned  in  Article 105a(2)  of  the  VAT 
Directive, covering transactions not listed in Annex III, to which Member States apply 
a  VAT  rate  lower  than  12%,  including  super-reduced  and  zero  rates.  These 
derogations  are  temporary,  as  Member  States  may  only  apply  reduced  VAT  rates 
lower  than  12%  or  super-reduced  or  zero  rates  until  1 January  2032,  or  until  the 
adoption  of  definitive  arrangements  under  Article 402  of  the  VAT  Directive.  The 
report does not refer to these temporary derogations. 

2  Article 98(2), second subparagraph, point (b) of the VAT Directive. 
3  Article 105a(3), second subparagraph, of the VAT Directive. 
4  Article 105b(2) of the VAT Directive. 
5  Article 105a(5) of the VAT Directive. 
6  Article 105a(1), fourth subparagraph; Article 105a(3) third subparagraph; Article 105b(3) of the VAT 

Directive. 

3 

 
 
 
 
 
 
 
 
 
 
 
1. Executive Summary 

This  report  reviews  how  Member  States  apply  VAT  rate  derogations,  revealing  an 
uneven  distribution.  Out  of  a  total  of  64  derogations,  Luxembourg,  Ireland  and 
Italy alone cover 75% of them. The remainder concerns seven other Member States, 
namely Malta, Cyprus, Greece, France, Portugal, Spain and Austria.  

There  are  54  distinct  transaction  types  affected,  the  application  of  10  of  which 
overlaps  in  eight  Member  States.  More  than  90%  of  the  derogations  concern  the 
application  of  super-reduced  rates  (31  derogations)  and  parking  rates  (28 
derogations).  

The  housing  and  construction  sector  dominates  derogations  at  nearly  30%, 
followed  by  sectors  such  as  culture  and  tourism,  public  services,  food  and 
hospitality and financial services, which together make up a share of 40%. Other 
sectors concerned are agriculture, animal welfare and broadcasting. 

Seven  Member  States have applied a total of 33  derogations  covering goods and 
services  listed  in  Annex III  under  conditions  set  in  Article 105a(1)  of  the  VAT 
Directive,  with  Luxembourg  alone  accounting  for  45%.  Ireland  is  unique  in 
applying zero  VAT  rates to children’s clothing and maritime services. Italy, Cyprus, 
France,  Spain  and  Greece  also  apply  derogations  of  this  category  covering  super-
reduced rates ranging from 2.1% to 4%.  

Furthermore,  28  derogations  applied  by  six  Member  States  relate  to  goods  and 
services  not  listed  in  Annex III,  which  require  a  minimum  rate  of  12%  to  remain 
permanent.  Ireland  tops  the  list  in  this  category,  having  applied  for  half  of  all  the 
derogations.  Luxembourg,  Malta,  Portugal,  Austria  and  Greece  share  the 
remaining  half  of  derogations  in  this  category.  The  parking  rates  applied  in  this 
category range from 12% to 14%.  

Italy  is  the  only  country  that  applies  the  third  category  of  derogations  relating  to 
non-social housing. It uses a 10%  VAT rate for various transactions related to the 
construction  and  renovation  of  buildings,  and  this  may  continue  beyond  1 January 
2042 if the requirement of a minimum rate of 12% is met. 

The  option  to  choose  from  the  derogations  applied  by  other  Member  States  on 
1 January  2021  has  been  very  little  used.  One  plausible  reason  for  this  is  that  the 
Member  States  concerned  have  not  always  considered  the  specific  application 
conditions to be  suited to their needs. Only Cyprus,  Greece  and  Malta opted into a 
total of nine derogations applied by six other Member States, with these derogations 
quite evenly split between super-reduced and parking rates. 

4 

 
 
 
 
 
2. Context 

The Sixth VAT Directive7 of 1977 paved the way for a common VAT system in the EU. 
It harmonised key aspects such as the tax base and liability, but gave Member States 
considerable  leeway  in  setting  VAT  rates.  Diverse  national  practices  emerged  as  a 
result,  including  multiple  reduced  and  zero  rates,  frequently  maintained  through 
transitional measures granted to new Member States on accession. 

The  completion  of  the  single  market  in  1993  made  closer  approximation  of  VAT 
systems necessary due to the removal of fiscal borders. To this end,  the introduction 
of transitional rules involving an exemption for intra-Community supplies of goods and 
the  corresponding  taxation  of  acquisitions  at  destination  ensured  that  transactions 
were subject to VAT in the Member State of consumption, thereby reducing the risk of 
trade  distortions  due  to  differing  VAT  rates8.  New  simplification  measures  supported 
the  change 9 ,  with  the  scope  of  application  for  VAT  rates  amended  to  include  a 
minimum standard rate of 15% as well as one or two reduced rates of at least 5% for 
items listed in Annex III10. 

However, under certain derogations, Member States could retain reduced or zero rates 
introduced  prior  to  1991.  Initially,  these  derogations  should  have  been  temporary, 
pending  the  introduction  of  a  definitive  VAT  system,  but  they  persisted  for  decades. 
Over  time,  the  accumulation  of  individual  exceptions  resulted  in  a  fragmented  and 
complex VAT landscape, making compliance difficult, and creating legal uncertainty in 
the  single  market.  The  transition  to  a  destination-based  VAT  system,  progressively 
extended  to  services,  paved  the  way  for  greater  flexibility  in  setting  rates.  With  VAT 
now  payable  in  the  Member  State  of  consumption,  differences  in  national  VAT  rates 
have become less likely to distort cross-border trade. 

This  report  marks  an  important  milestone  following  the  first  major  reform  of  VAT 
rates in the EU since the early 1990s. Based on this reform, new rules on VAT rates 
took effect on 6 April 202211. 

The  reform  provides  increased  flexibility  for  Member  States  and  aligns  VAT  rates 
with  broader  European  objectives,  including  public  health,  digital  transformation  and 
environmental  sustainability.  The  new  rules  allow  Member  States  to  apply  up  to  two 
reduced VAT rates of at least 5% to goods and services listed in the revised Annex III 
to the VAT Directive. They also have the option of applying a reduced rate of less than 
5%  (super-reduced  rate)  or  a  zero  VAT  rate  (exemption  with  deductibility  at  the 
preceding stage) to specific essential goods and services, such as food and medicines, 
but  also  solar  panels.  Additionally,  it  establishes  deadlines  for  the  phase-out  of 
reduced  rates  for  environmentally  harmful  products  such  as  fossil  fuels  and  chemical 
pesticides by 2030 and 2032, respectively. 

7  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, p. 1. 

8  Council Directive 91/680/EEC of 16 December 1991 supplementing the common system of value added tax 
and amending Directive 77/388/EEC with a view to the abolition of fiscal frontiers, OJ L 376, 31.12.1991, 
p. 1. 

9  Council Directive 92/111/EEC of 14 December 1992 amending Directive 77/388/EEC and introducing 

simplification measures with regard to value added tax, OJ  L 384, 30.12.1992, p. 47. 

10  Council Directive 92/77/EEC of 19 October 1992 supplementing the common system of value added tax and 

amending Directive 77/388/EEC (approximation of VAT rates), OJ L 316, 31.10.1992, p. 1. 

11  Council Directive (EU) 2022/542 of 5 April 2022 amending Directives 2006/112/EC and (EU) 2020/285 as 

regards rates of value added tax, OJ L 107, 6.4.2022, p. 1. 

5 

 
 
 
 
The  reform  of  VAT  rates  also  ensured  more  equal  treatment  insofar  as  it  allowed 
Member  States  to  opt  for  and  benefit  from  certain  exemptions  or  reduced  rates  that 
other Member States were granted at the time of accession to the EU and which were 
not offered to Member States that joined more recently.  

Within  this  framework,  this  report,  drafted  in  accordance  with  Article 105a(6)  of  the 
VAT  Directive,  provides  an  overview  of  the  permanent  VAT  rate  derogations 
currently applied by Member States. These derogations are spread over three groups: 
one  relating  to  goods  and  services  listed  in  Annex III;  one  relating  to  goods  and 
services  not  listed  in  Annex III;  and  one  relating  to  non-social  housing 
transactions. 

The report provides valuable information that can be used to conduct further analysis 
and  reach  additional  conclusions  regarding  how  these  derogations  align  with  and 
support the broader objectives of the revised EU VAT framework. 

6 

 
 
 
3. Goods  and  services  for  which  Member  States  apply 

derogations on VAT rates 

3.1 General observations on all derogations 

The  application  of  VAT  rate  derogations  is  uneven.  Information  provided  by  10 
Member  States  shows  that  they  apply  a  total  of  64  derogations.  Luxembourg 
applies the highest number of derogations (21), representing almost one third  of the 
total.  Ireland  follows  with  16,  and  Italy  with  11.  Together,  these  three  Member 
States cover 48 derogations, or 75% of the total number. 

The  remaining  16  derogations  representing  25%  of  the  total  relate  to  Malta  (4), 
Cyprus (3), France (2), Greece (2), Portugal (2), Spain (2) and Austria (1). 

Only  Malta,  Cyprus  and  Greece  have  indicated  that  they  opted  to  apply  the 
particular  derogations  applied  by  other  Member  States 
in  accordance  with 
Article 105a(5) of the VAT Directive.  

Figure 1:  

Annex 1 provides a  simplified  list of all derogations, broken down according to the 
respective articles of the VAT Directive. 

Annex 3  provides  a  detailed  list  of  all  derogations,  specifying  the  transactions  and 
conditions applied by Member States. 

There is a total of 64 derogations in place; in some cases, more than one derogation 
applies to the same transaction, i.e. the same type of supply of goods or services. The 
overlap  results  in  a  total  of  54  types  of  transactions  benefiting  from 
derogations.  Consequently,  10  types  of  transactions  are  the  subject  of  derogations 
applied  by  two  Member  States,  namely  Ireland,  Luxembourg,  Cyprus,  France, 
Greece, Italy, Malta and Portugal. 

Nine  of  these  double  applications  result  from  Member  States  exercising  the  option 
provided for under Article 105a(5) of the VAT Directive, which allows them to select a 
derogation from the measures applied by other Member States.  

7 

 
  
 
 
 
 
 
The  remaining  transaction  relates  to  Ireland  and  Luxembourg;  they  both  applied 
zero and super-reduced rates respectively on 1 January 2021 to children’s clothing and 
footwear. 

Figure 2:  

Of the different types of VAT rates, the super-reduced rate accounts for the largest 
share,  with  31  derogations  representing  almost  half  of  the  total  (48.4%).  Parking 
rates follow closely with 28 derogations, accounting for 43.8%. 

The  remaining  group  of  derogations  relates  to  Italy  and  Ireland,  covering  the 
application of reduced rates and zero rates, respectively.  

Figure 3:  

In terms of the economic sectors concerned, the housing  and  construction  sector 
clearly  dominates,  representing  almost  30%  of  all  derogations.  The  culture,  sports 
and  tourism  sector  comes  second  at  around  15%,  followed  by  public  services  at 
around 10%. 

8 

 
  
 
 
 
 
 
Food  and  hospitality,  together  with  financial  services,  cover  another  14%  of 
derogations.  The  social  sector,  farmers  (which  includes  agriculture),  animal  welfare 
and broadcasting together account for less than 19%, with three derogations each. 

The remaining 10% include various transactions of a different economic nature. 

Figure 4:  

Annex 2 provides a simplified list of derogations, broken down by economic sector. 

3.2 Derogations for goods and services listed in Annex III12 

The  derogations  in  this  category  relate  to  the  supply  of  goods  and  services  listed  in 
Annex III  to  the  VAT  Directive,  except  points 1-6  and  10c.  The  standard  rules  set 
out  in  Article 98(2)  of  the  VAT  Directive  do  not  allow  for  the  application  of  super-
reduced or zero VAT rates to these goods and services. This is only possible under the 
conditions set out in Article 105a(1).  

These derogations are permanent. Member States that apply them can continue to 
do so after 1 January 2032, and even after the adoption of definitive arrangements set 
out in Article 402 of the VAT Directive. 

In this category, seven Member States apply a total of 33 derogations. 

Luxembourg  accounts  for  the  largest  share  (45%)  in  this  category,  with  15 
derogations, followed by Italy, with eight derogations (24%). 

Ireland  is  the  only  Member  State  to  apply  a  zero  VAT  rate  to  two  derogations, 
namely  children’s  clothing  and  footwear,  and  the  operation  of  lightships,  lighthouses 
and lifeboats. 

The  remaining  31  derogations  cover  the  application  of  super-reduced  rates 
ranging from 2.1% to 4%.  

12 Article 105a(1) of the VAT Directive. 

9 

 
  
 
 
 
 
 
 
Figure 5:  

With  12  derogations  shared  by  four  Member  States,  the  housing  and 
construction sector is the one with the most derogations. 

Luxembourg  applies  a  super-reduced  rate  of  3%  to  the  self-supply  of  new  and 
renovated private dwellings, including their use, as well as to the renovation of private 
dwellings. 

Italy applies a super-reduced rate of 4% to the supply and construction of non-luxury 
housing,  the  allocation  of  housing,  the  supply  and  construction  of  farmers’  housing, 
the  construction  of  certain  mixed-use  buildings  and  facilities  in  building  construction, 
and the removal of architectural barriers. Greece also has a super-reduced rate of 4% 
in place for the latter. 

Spain applies a super-reduced rate of 4% to housing under public protection. 

In the areas of culture, sports and tourism, Luxembourg has derogations covering 
a super-reduced rate of 3% for services provided by writers and composers, access to 
events, museums and sports facilities, and short-term accommodation. 

France and Cyprus apply super-reduced rates, of 2.1% and 3% respectively, to first 
theatrical performances. 

Both Luxembourg and Cyprus apply a super-reduced rate of 3% to public services 
such  as  waste  collection,  waste  treatment,  sewage  disposal  and  sewage  treatment. 
Luxembourg also applies this rate to undertaker and cremation services. 

As already mentioned, Ireland is the only Member State with a zero VAT rate, applied 
to the operation of lightships, lighthouses and lifeboats. 

In  terms  of  social  policy,  Ireland  also  applies  a  zero  VAT  rate  to  the  supply  of 
children’s clothing and footwear, whereas Luxembourg applies a reduced rate of 3%. 
In Spain, services relating to the care of dependent individuals are subject to a super-
reduced rate of 4%. 

10 

 
  
 
 
 
 
 
France, Italy and Luxembourg have set super-reduced rates for certain transactions 
concerning radio or television broadcasting. These rates are 2.1% in France, 3% in 
Luxembourg and 4% in Italy. 

As  regards  the  food  and  hospitality  sector,  Luxembourg  applies  a  super-reduced 
rate of 3% to restaurant and catering services. In  Italy, food and drinks in canteens 
are subject to a rate of 4%. 

For  activities  performed  by  farmers,  Luxembourg  has  established  a  super-reduced 
rate of 3% on agricultural inputs. 

3.3 Derogations for goods and services not listed in Annex III13 

The derogations in this category relate to the supply of goods and services not  listed 
in  Annex III. The standard rules set out in Article 98(1) of the VAT Directive do not 
permit  the  application  of  reduced  VAT  rates  to  these  goods  and  services.  It  is  only 
possible to do this if the conditions set out in Article 105a(3) of the VAT Directive are 
fulfilled. Article 105a(3) requires that the VAT rate be no lower than 12%. 

Contrary to those  falling under  Article 105a(2), these  derogations  are  permanent, 
as they respect the minimum VAT rate of 12%. Consequently, Member States applying 
them  can  continue  to  do  so  after  1 January  2032,  and  even  after  the  adoption  of 
definitive arrangements set out in Article 402 of the VAT Directive. 

Six Member States have applied a total of 28 derogations under Article 105a(3) of 
the VAT Directive. 

With 14 derogations, Ireland covers 50% of this category, followed by Luxembourg, 
with six derogations (21%), and Malta, with four derogations (14%). 

The  parking  rates  applied  in  this  category  range  from  12%  in  Malta  to  14%  in 
Luxembourg. 

In  the  housing  and  construction  sector,  Ireland  applies  a  13.5%  parking  rate  to 
the supply of certain immovable property, concrete works and mobile homes used as 
residences. 

In the areas of culture,  sports  and  tourism, Malta and Ireland respectively apply 
parking rates of 12% and 13.5% to the short-term hire of certain means of transport. 
Ireland also applies this rate of 13.5% to jockey and tour guide services. 

The custody and management of securities, as well as the management of credits and 
credit guarantees, are financial  services that are subject to parking rates of 12% in 
Malta and 14% in Luxembourg. 

Certain  supplies  relating  to  wine  in  the  food  and  hospitality  sectors  are  subject  to 
parking rates of 13% in Austria and Portugal, and 14% in Luxembourg. 

Ireland  has  a  parking  rate  of  13.5%  for  transactions  relating  to  animals,  including 
veterinary services and the supply and insemination of greyhounds. 

Portugal and Greece apply derogations covering transactions for farmers, namely a 
parking rate of 13% for agricultural tools and equipment. 

In  public  services,  Luxembourg  applies  a  parking  rate  of  14%  to  the  supply  of 
heat, cooling and steam. 

13  Article 105a(3) of the VAT Directive. 

11 

 
  
 
 
 
 
 
This  category  covers  quite  a  few  other  derogations  relating  to  a  variety  of 
transactions.  For  instance,  Malta  and  Ireland  apply  VAT  rates  of  12%  and  13.5% 
respectively  to  bodycare  services.  Ireland  also  applies  a  13%  rate  to  photographic 
and  related  supplies,  certain  repair  services,  and  driving  instructor  services. 
Luxembourg  applies  a  VAT  rate  of  14%  to  the  supply  of  washing  and  cleaning 
services, and to printed advertising material. 

3.4 Derogations for housing not being part of a social policy14 

This  category  covers  derogations  regarding  the  application  of  reduced  VAT  rates  no 
lower  than  the  minimum  of  5%  to  housing  transactions  that  are  not  part  of  a 
social  policy. Member States that applied these reduced rates in accordance with EU 
law on 1 January 2021 may continue to do so. 

However,  these  derogations  will  only  remain  permanent  if  Member  States  ensure 
that, as  of  1 January  2042, the reduced VAT rates applied to these transactions do 
not fall below 12%, as required under Article 105b(1) of the VAT Directive. 

Italy  is  the  only  Member  State  in  this  category,  applying  a  reduced  VAT  rate  of 
10% to certain transactions in the housing  and  construction sector. These include 
the supply and construction of non-luxury private dwellings and renovation works, as 
well as the supply of renovated buildings. 

3.5 Derogations entailing choices made under Article 105a(5) 

Article 105a(5)  of  the  VAT  Directive  provided  Member  States  with  an  opportunity  to 
select from the derogations applied by other Member States on 1 January 2021. To 
retain  derogations,  Member  States  had  to  communicate  these  to  the  VAT  Committee 
by  7 July  2022.  Member  States  wishing  to  exercise  these  options  had  to  adopt  the 
detailed rules governing them by 7 October 2023. They also had to communicate the 
text of the main provisions of national law they had adopted to the VAT Committee. 

The Commission has received such communications from Cyprus, Greece and Malta. 
These  three  Member  States  have  made  choices  relating  to  nine  derogations  that 
five other Member States initially applied. 

Cyprus  has  decided  to  apply  a  super-reduced  rate  of  3%  to  first  theatrical 
performances, chosen from France15, as well as to waste collection and treatment and 
sewage disposal and treatment, chosen from  Luxembourg, which has the same rate 
of 3% in place. 

Malta  has  chosen  to  apply  a  parking  rate  of  12%  to  the  short-term  hiring  of  certain 
means  of  transport  and  bodycare  services,  as  does  Ireland 16 ,  as  well  as  to  the 
custody  and  management  of  securities  and  management  of  credits  and  credit 
guarantees, as does Luxembourg17. 

Greece has decided to apply the same super-reduced VAT rate of 4% to the removal 
of architectural barriers as  Italy, and the same parking rate of 13% to the supply of 
agricultural tools and equipment as Portugal. 

14  Article 105b of the VAT Directive. 
15  VAT rate applied in France: 2.1%. 
16  VAT rate applied in Ireland: 13.5%. 
17  VAT rate applied in Luxembourg: 14%. 

12 

 
  
 
 
  
 
  
 
Figure 6:  

4. Outlook 

Following the reform of VAT rates in 2022, this report provides valuable information on 
the derogations applied by Member States beyond the normal rules, such as those set 
out  in  Annex III  to  the  VAT  Directive.  This  contributes  to  greater  transparency 
regarding VAT rates. 

The  review  of  derogations  across  Member  States  indicates  a  varied  and  uneven 
distribution  in  their  application,  with  a  notable  concentration  in  just  a  few  Member 
States and a preference for specific economic sectors. 

These  observations,  along  with  many  others,  will  be  useful  for  the  2028  report  on 
the scope of  Annex III, in accordance with Article 100 of the VAT Directive, and for 
any proposals that may accompany the report. 

13 

 
  
 
 
 
  
Annex 1: Simplified list of derogations 

Derogation/transaction 

Member 
State 
applying 

Chosen from 
Member State 
Art. 105a(5) 

Article 

Rate 
type 

Children’s clothing and footwear 

Ireland 

Operation of lightships, lighthouses, lifeboats etc. 

Ireland 

105a(1) 

105a(1) 

ZR 

ZR 

Rate 

0.0% 

0.0% 

1 

2 

3 

4 

5 

6 

7 

8 

9 

First theatrical performance 

Public broadcasting contribution 

Agricultural inputs 

Children’s clothing and footwear 

Restaurant and catering services 

Short-term accommodation 

Access to events and museums 

10 

Access to sports facilities 

France 

France 

Luxembourg 

Luxembourg 

Luxembourg 

Luxembourg 

Luxembourg 

Luxembourg 

105a(1) 

SRR 

2.1% 

105a(1) 

SRR 

2.1% 

105a(1) 

SRR 

3.0% 

105a(1) 

SRR 

3.0% 

105a(1) 

SRR 

3.0% 

105a(1) 

SRR 

3.0% 

105a(1) 

SRR 

3.0% 

105a(1) 

SRR 

3.0% 

11  Waste collection and treatment 

Luxembourg 

Italy 

105a(1) 

SRR 

3.0% 

12 

Sewage disposal and treatment 

13 

Undertaker and cremator services 

14 

Services by writers and composers 

Luxembourg 

Luxembourg 

Luxembourg 

105a(1) 

SRR 

3.0% 

105a(1) 

SRR 

3.0% 

105a(1) 

SRR 

3.0% 

15 

Radio and television broadcasting services 

Luxembourg 

105a(1) 

SRR 

3.0% 

16 

Self-supply of new and renovated private dwellings 

Luxembourg 

105a(1) 

SRR 

3.0% 

17 

Use of new and renovated private dwellings 

Luxembourg 

105a(1) 

SRR 

3.0% 

14 

 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derogation/transaction 

Member 
State 
applying 

Chosen from 
Member State 
Art. 105a(5) 

Article 

Rate 
type 

Rate 

18 

Renovation of private dwellings used by owner 

Luxembourg 

105a(1) 

SRR 

3.0% 

19 

Renovation of private dwellings used by others than the 
owner 

Luxembourg 

105a(1) 

SRR 

3.0% 

20 

First theatrical performance 

Cyprus 

France 

105a(1) 

SRR 

3.0% 

21  Waste collection and treatment 

Cyprus 

Luxembourg 

105a(1) 

SRR 

3.0% 

22 

Sewage disposal and treatment 

Cyprus 

Luxembourg 

105a(1) 

SRR 

3.0% 

23 

Radio broadcasting services 

24 

Supply and construction of non-luxury housing 

25 

Allocation of housing 

26 

Supply and construction of farmers housing 

27 

Construction of certain mixed-use buildings 

28 

Certain facilities in building construction 

29 

Removing architectural barriers 

30 

Food and drinks in canteens 

31 

Housing under public protection 

32 

Care for people in situations of dependency 

Italy 

Italy 

Italy 

Italy 

Italy 

Italy 

Italy 

Italy 

Spain 

Spain 

105a(1) 

SRR 

4.0% 

105a(1) 

SRR 

4.0% 

105a(1) 

SRR 

4.0% 

105a(1) 

SRR 

4.0% 

105a(1) 

SRR 

4.0% 

105a(1) 

SRR 

4.0% 

105a(1) 

SRR 

4.0% 

105a(1) 

SRR 

4.0% 

105a(1) 

SRR 

4.0% 

Luxembourg 

105a(1) 

SRR 

4.0% 

33 

Removing architectural barriers 

Greece 

Italy 

105a(1) 

SRR 

4.0% 

34 

Short-term hiring of transport means 

Malta 

Ireland 

105a(3) 

PR 

12.0% 

15 

 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
Derogation/transaction 

Member 
State 
applying 

Chosen from 
Member State 
Art. 105a(5) 

Article 

Rate 
type 

Rate 

35 

Body care services 

36 

Custody and management of securities 

37 

Management of credits and credit guarantees 

38  Wine supplied by producer 

39 

Table wines 

40 

Agricultural tools and equipment 

Malta 

Malta 

Malta 

Austria 

Portugal 

Portugal 

Ireland 

105a(3) 

Luxembourg 

105a(3) 

Luxembourg 

105a(3) 

105a(3) 

105a(3) 

105a(3) 

41 

Agricultural tools and equipment 

Greece 

Portugal 

105a(3) 

42 

Immovable property for housing 

43 

Immovable property other than housing 

44 

Concrete works 

45 

Photographic and related supplies 

46 

Short-term hiring of transport means 

47 

Repair and related services 

48 

Body care services 

49 

Jockey services 

50 

Services of veterinary surgeons 

51 

Tour guide services 

52 

Driving instructor services 

Ireland 

Ireland 

Ireland 

Ireland 

Ireland 

Ireland 

Ireland 

Ireland 

Ireland 

Ireland 

Ireland 

105a(3) 

105a(3) 

105a(3) 

105a(3) 

105a(3) 

105a(3) 

105a(3) 

105a(3) 

105a(3) 

105a(3) 

105a(3) 

PR 

PR 

PR 

PR 

PR 

PR 

PR 

PR 

PR 

PR 

PR 

PR 

PR 

PR 

PR 

PR 

PR 

PR 

12.0% 

12.0% 

12.0% 

13.0% 

13.0% 

13.0% 

13.0% 

13.5% 

13.5% 

13.5% 

13.5% 

13.5% 

13.5% 

13.5% 

13.5% 

13.5% 

13.5% 

13.5% 

16 

 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derogation/transaction 

Member 
State 
applying 

Chosen from 
Member State 
Art. 105a(5) 

Article 

Rate 
type 

Rate 

53 

Greyhounds 

54 

Insemination of greyhounds 

55 

Mobile home as residence 

56  Wine of fresh grapes 

57  Washing and cleaning 

58 

Printed advertising material 

59 

Heat, cooling and steam 

Ireland 

Ireland 

Ireland 

Luxembourg 

Luxembourg 

Luxembourg 

Luxembourg 

60 

Custody and management of securities 

Luxembourg 

61 

Management of credits and credit guarantees 

Luxembourg 

62 

Supply and construction of non-luxury private dwellings 

Italy 

63 

Renovation works 

64 

Supply of renovated buildings 

Italy 

Italy 

ZR = zero rate / exemption 

SRR = super-reduced rate 

PR = parking rate 

Member States having chosen from the list according to Article 105a(5) 

Member States with derogation for the same transaction 

105a(3) 

105a(3) 

105a(3) 

105a(3) 

105a(3) 

105a(3) 

105a(3) 

105a(3) 

105a(3) 

105b 

105b 

105b 

PR 

PR 

PR 

PR 

PR 

PR 

PR 

PR 

PR 

RR 

RR 

RR 

13.5% 

13.5% 

13.5% 

14.0% 

14.0% 

14.0% 

14.0% 

14.0% 

14.0% 

10.0% 

10.0% 

10.0% 

17 

 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annex 2: Simplified list of derogations by sector 

1 

2 

3 

4 

5 

6 

7 

8 

9 

Policy area 

Derogation/transaction 

Member 
State 
applying 

Chosen from 
Member State 
Art. 105a(5) 

Article 

Rate 
type 

Rate 

Housing, construction 

Self-supply of new and renovated private dwellings 

Luxembourg 

105a(1) 

SRR 

3.0% 

Housing, construction 

Use of new and renovated private dwellings 

Luxembourg 

105a(1) 

SRR 

3.0% 

Housing, construction 

Renovation of private dwellings used by owner 

Luxembourg 

105a(1) 

SRR 

3.0% 

Housing, construction 

Renovation of private dwellings used by others than the 
owner 

Luxembourg 

105a(1) 

SRR 

3.0% 

Housing, construction 

Supply and construction of non-luxury housing 

Housing, construction 

Allocation of housing 

Housing, construction 

Supply and construction of farmers housing 

Housing, construction 

Construction of certain mixed-use buildings 

Housing, construction 

Certain facilities in building construction 

10 

Housing, construction 

Removing architectural barriers 

Italy 

Italy 

Italy 

Italy 

Italy 

Italy 

105a(1) 

SRR 

4.0% 

105a(1) 

SRR 

4.0% 

105a(1) 

SRR 

4.0% 

105a(1) 

SRR 

4.0% 

105a(1) 

SRR 

4.0% 

105a(1) 

SRR 

4.0% 

11 

Housing, construction 

Removing architectural barriers 

Greece 

Italy 

105a(1) 

SRR 

4.0% 

12 

Housing, construction 

Housing under public protection 

13 

Housing, construction 

Immovable property for housing 

14 

Housing, construction 

Immovable property other than housing 

15 

Housing, construction 

Concrete works 

16 

Housing, construction 

Mobile home as residence 

Spain 

Ireland 

Ireland 

Ireland 

Ireland 

105a(1) 

SRR 

4.0% 

105a(3) 

105a(3) 

105a(3) 

105a(3) 

PR 

PR 

PR 

PR 

13.5% 

13.5% 

13.5% 

13.5% 

18 

 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policy area 

Derogation/transaction 

Member 
State 
applying 

Chosen from 
Member State 
Art. 105a(5) 

Article 

Rate 
type 

Rate 

17 

Housing, construction 

Supply and construction of non-luxury private dwellings 

Italy 

18 

Housing, construction 

Renovation works 

19 

Housing, construction 

Supply of renovated buildings 

20 

Culture, Sports, Tourism 

First theatrical performance 

Italy 

Italy 

France 

105b 

105b 

105b 

RR 

RR 

RR 

10.0% 

10.0% 

10.0% 

105a(1) 

SRR 

2.1% 

21 

Culture, Sports, Tourism 

First theatrical performance 

Cyprus 

France 

105a(1) 

SRR 

3.0% 

22 

Culture, Sports, Tourism 

Short-term accommodation 

23 

Culture, Sports, Tourism 

Access to events and museums 

24 

Culture, Sports, Tourism 

Access to sports facilities 

25 

Culture, Sports, Tourism 

Services by writers and composers 

Luxembourg 

Luxembourg 

Luxembourg 

Luxembourg 

105a(1) 

SRR 

3.0% 

105a(1) 

SRR 

3.0% 

105a(1) 

SRR 

3.0% 

105a(1) 

SRR 

3.0% 

26 

Culture, Sports, Tourism 

Short-term hiring of transport means 

Malta 

Ireland 

105a(3) 

27 

Culture, Sports, Tourism 

Short-term hiring of transport means 

28 

Culture, Sports, Tourism 

Jockey services 

29 

Culture, Sports, Tourism 

Tour guide services 

Ireland 

Ireland 

Ireland 

105a(3) 

105a(3) 

105a(3) 

PR 

PR 

PR 

PR 

12.0% 

13.5% 

13.5% 

13.5% 

30 

Public service 

Operation of lightships, lighthouses, lifeboats etc. 

Ireland 

105a(1) 

ZR 

0.0% 

31 

Public service 

Waste collection and treatment 

Luxembourg 

105a(1) 

SRR 

3.0% 

32 

Public service 

Waste collection and treatment 

Cyprus 

Luxembourg 

105a(1) 

SRR 

3.0% 

33 

Public service 

Sewage disposal and treatment 

Luxembourg 

105a(1) 

SRR 

3.0% 

34 

Public service 

Sewage disposal and treatment 

Cyprus 

Luxembourg 

105a(1) 

SRR 

3.0% 

19 

 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policy area 

Derogation/transaction 

Member 
State 
applying 

Chosen from 
Member State 
Art. 105a(5) 

Article 

Rate 
type 

Rate 

35 

Public service 

Undertaker and cremator services 

36 

Public service 

Heat, cooling and steam 

Luxembourg 

Luxembourg 

105a(1) 

SRR 

3.0% 

105a(3) 

PR 

14.0% 

37 

Food and hospitality 

Restaurant and catering services 

Luxembourg 

105a(1) 

SRR 

3.0% 

38 

Food and hospitality 

Food and drinks in canteens 

39 

Food and hospitality 

Wine supplied by producer 

40 

Food and hospitality 

Table wines 

Italy 

Austria 

Portugal 

41 

Food and hospitality 

Wine of fresh grapes 

Luxembourg 

42 

Financial services 

Custody and management of securities 

Malta 

Luxembourg 

105a(3) 

43 

Financial services 

Custody and management of securities 

Luxembourg 

105a(3) 

44 

Financial services 

Management of credits and credit guarantees 

Malta 

Luxembourg 

105a(3) 

45 

Financial services 

Management of credits and credit guarantees 

Luxembourg 

105a(3) 

46 

Social 

Children’s clothing and footwear 

Ireland 

105a(1) 

ZR 

0.0% 

47 

Social 

Children’s clothing and footwear 

Luxembourg 

105a(1) 

SRR 

3.0% 

48 

Social 

Care for people in situations of dependency 

Spain 

105a(1) 

SRR 

4.0% 

49 

Farmers 

Agricultural inputs 

Luxembourg 

105a(1) 

SRR 

3.0% 

50 

Farmers 

Agricultural tools and equipment 

Portugal 

105a(3) 

51 

Farmers 

Agricultural tools and equipment 

Greece 

Portugal 

105a(3) 

52 

Animals 

Services of veterinary surgeons 

Ireland 

105a(3) 

PR 

PR 

PR 

13.0% 

13.0% 

13.5% 

20 

105a(1) 

SRR 

4.0% 

105a(3) 

105a(3) 

105a(3) 

PR 

PR 

PR 

PR 

PR 

PR 

PR 

13.0% 

13.0% 

14.0% 

12.0% 

14.0% 

12.0% 

14.0% 

 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policy area 

Derogation/transaction 

53 

Animals 

Greyhounds 

54 

Animals 

Insemination of greyhounds 

55 

Broadcasting, Radio 

Broadcasting, Radio 

Member 
State 
applying 

Chosen from 
Member State 
Art. 105a(5) 

Article 

Rate 
type 

Rate 

Ireland 

Ireland 

France 

105a(3) 

105a(3) 

PR 

PR 

13.5% 

13.5% 

105a(1) 

SRR 

2.1% 

56 

Broadcasting, Radio 

Broadcasting, Radio 

Luxembourg 

105a(1) 

SRR 

3.0% 

57 

Broadcasting, Radio 

Broadcasting, Radio 

Ireland 

105a(1) 

SRR 

4.0% 

58 

Other 

Body care services 

Malta 

Ireland 

105a(3) 

59 

Other 

Body care services 

60 

Other 

Photographic and related supplies 

61 

Other 

Repair and related services 

62 

Other 

Driving instructor services 

63 

Other 

Washing and cleaning 

64 

Other 

Printed advertising material 

ZR = zero rate / exemption 

SRR = super-reduced rate 

PR = parking rate 

Member States having chosen from the list according to Article 105a(5) 

Member States with derogation for the same transaction 

Ireland 

Ireland 

Ireland 

Ireland 

Luxembourg 

Luxembourg 

105a(3) 

105a(3) 

105a(3) 

105a(3) 

105a(3) 

105a(3) 

PR 

PR 

PR 

PR 

PR 

PR 

PR 

12.0% 

13.5% 

13.5% 

13.5% 

13.5% 

14.0% 

14.0% 

21 

 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annex 3: Detailed list of derogations by Member State 

Austria 

Number 

Text of main provisions 

Conditions of application 

Rate or exemption 

Legal basis 

105a(1)  105(3) 

105b 

1 

X 

Parking rate (13%) 

a 

Supplies  of  wine  made  from  fresh  grapes  under 
subheadings 2204 21, 2204 22 and 2204 29 of the 
Combined  Nomenclature  and  other 
fermented 
beverages  under  heading  2206  of  the  Combined 
Nomenclature 
domestic 
produced  within 
agricultural  holding,  provided  that  the  producer 
supplies  the  beverages  as  part  of  his  agricultural 
business.  This  does  not  apply  to  the  supply  of 
beverages produced from purchased materials (e.g. 
grapes,  mash,  must,  storm)  or  served  within  the 
including  restaurant 
premises  of  the  holding, 
gardens (Buschenschank). In the case of transfer of 
an agricultural holding as a whole to the spouse or 
registered  partner,  as  well  as  to  descendants, 
stepchildren,  adopted  children  or  their  spouses, 
registered  partners  or  descendants,  the  transferee 
of  the  holding  shall  also  be  deemed  to  be  the 
producer  of  the  beverages  taken  over  within  the 
framework of the transfer of the holding, insofar as 
the  tax  reduction  would  also  have  been  applicable 
to  the  supply  of  these  beverages  by  the  transferor 
of the holding. 

Wine  of  fresh  grapes  (subheadings  2204  21  and 
2204  29  of  the  Combined  Nomenclature)  does  not 
include sparkling wine. 

Other fermented beverages of heading 2206 of the 
for  example, 
Combined  Nomenclature 
cider,  perry,  currant  wine  and  mead.  Distilled 
beverages are not included here.  

include, 

The  prerequisites  for  the  preferential  treatment 
under  § 10  para 3  subpara 11  UStG  1994  are  the 
production  of  the  beverage  from  one's  own  grapes 
or fruit and the supply within one's own agricultural 
business in Austria. 

The  sale  by  way  of  a  commercial  enterprise  of  the 
is  also 
same  entrepreneur  (e.g. 
harmful. 

restaurant) 

If  it  cannot  be  determined  whether  and  to  what 
extent  the  wine  sold  by  the  farmer  was  produced 
from grapes harvested by himself or purchased, the 
preferential  treatment  is  therefore  not  completely 
lost.  In  such  cases,  the  extent  of  the  preferential 
treatment  must  be  determined  by  estimation, 
taking into account the additional purchase and the 
usual  yield  rates.  The  transfer  of  business  includes 
the gratuitous inter vivos transfer of business (e.g. 
in  the  course  of  anticipated  succession),  the 
transfer  by  way  of  inheritance  as  well  as  the 
transfer  of  business 
for  consideration.  The 
preferential  treatment  can  also  be  applied  in  the 
case  of  leasing,  provided  that  it  can  be  assumed 
that  the  lessor  will  never  again  manage  the 
business for his own account and risk. 

22 

 
 
 
  
 
 
 
 
 
 
Number 

Text of main provisions 

Conditions of application 

Rate or exemption 

Legal basis 

France 

140 first theatre and circus performances 

Super-reduced rate 
(2.1%) 

105a(1)  105(3) 

105b 

1 

X 

Receipts  from  the  first  theatrical  performances  of 
newly  created  dramatic, 
lyrical,  musical  or 
choreographic works or of classical works that have 
been  re-staged,  as  well  as  on  circus  shows  that 
include exclusively original creations conceived and 
produced  by  the  company  and  that  call  upon  the 
regular services of a group of musicians. 

A  decree  defines  the  nature  of  the  works  and  sets 
the  number  of  performances  to  which  these 
provisions apply. 

These provisions do not apply to receipts from : 

a.  Theatrical  performances  of  a  pornographic 
nature; 

b. (Provision no longer applicable). 

c.  Ticket  sales  taxed  at  the  reduced  rate  of  5.5% 
under  the  conditions  set  out  in  2°  of  F  of 
Article 278-0 bis. 

2 

X 

Public broadcasting contribution. 

Contribution to public broadcasting 

Super-reduced rate 
(2.1%) 

Ireland 

Number 

Text of main provisions 

Conditions of application 

Rate or exemption 

Legal basis 

105a(1)  105(3) 

105b 

1 

2 

X 

X 

Housing 

The supply of immovable goods used or to be used 
for residential purposes. 

Parking rate (13%) 

Non-residential immovable good 

15. (1) The supply of immovable goods, other than 
immovable goods used or to be used for residential 

Parking rate (13.5%) 

23 

 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
3 

X 

Concrete works 

4 

X 

Photographic and related supplies 

purposes. 

(2)  Services  consisting  of  the  development  of 
immovable  goods  (not  being  goods  referred  to  in 
paragraph 9(1))  and  work  on 
those  goods 
(including  the  installation  of  fixtures),  where  the 
value  of  any  movable  goods  supplied  under  an 
agreement relating to the services does not exceed 
two-thirds  of  the  total  amount  on  which  tax  is 
chargeable in respect of the agreement. 

16. (1) The supply of concrete that is ready to pour, 
but  excluding  the  margin  scheme  supply  of  the 
concrete. 

(2)  The  supply  of blocks of  concrete  of  a  kind  that 
comply  with  the  specification  contained  in  the 
Standard  Specification  (Concrete  Building  Blocks, 
Part  1,  Normal  Density  Blocks)  Declaration  1987 
(Irish  Standard  20:  Part 1:  1987),  but  excluding 
the margin scheme supply of those blocks. 

18.  (1)  The  supply  to  a  person  of  photographic 
prints  (other  than  goods  produced  by  means  of  a 
photocopying  process),  slides  or  negatives,  that 
have  been  produced  from  goods  provided  by  that 
person. 

(2) The supply of goods being— 

(a) photographic prints (other than goods produced 
by  means  of  a  photocopying  process)  mounted  or 
unmounted, but unframed, 

(b) slides and negatives, and 

(c) cinematographic and video film,  

that  record  particular  persons,  objects  or  events, 
supplied  under  an  agreement  to  photograph  those 
persons, objects or events. 

(3) The supply by a photographer of— 

(a)  negatives  that  have  been  produced  from  film 
exposed  for  the  purpose  of  the  photographer’s 
business, and 

(b) film that has been exposed for the purposes of 

Parking rate (13.5%) 

Parking rate (13.5%) 

24 

 
 
 
  
 
 
 
 
 
 
the photographer’s business. 

(4)  The  supply  of  photographic  prints  produced  by 
means  of  a  vending  machine  which  incorporates  a 
camera and developing and printing equipment. 

(5) Services consisting of— 

(a)  editing  photographic,  cinematographic  and 
video film, or 

(b) microfilming. 

(6) Agency services relating to a supply specified in 
subparagraph (1). 

5 

X 

Hiring for short periods 

19. Hiring— 

Parking rate (13.5%) 

(a) a vehicle designed and constructed, or adapted, 
for the conveyance of persons by road, 

(b)  a  vessel  designed  and  constructed  for  the 
conveyance  of  passengers  and  not  exceeding 
15 tonnes gross, 

(c) any kind of sports or pleasure boat, or 

(d) a caravan, mobile home, tent or trailer tent, 

of 

the 

kind 

referred 

to  a  person  under  an  agreement  (other  than  an 
in 
agreement 
section 19(1)(c))  for  any  term  or  part  of  a  term 
that,  when  added  to  the  term  of  a  previous  hiring 
(whether  of  the  same  goods  or  of  other  goods  of 
the  same  kind)  to  the  same  person  during  the 
12 months  ending  on  the  date  of  the  beginning  of 
the existing hiring, does not exceed 5 weeks. 

to 

6 

X 

Certain repair and related services. 

20.  (1)  Services,  other  than  those  specified  in 
paragraph 13(2), consisting of— 

Parking rate (13.5%) 

(a) repairing or maintaining movable goods, or 

(b)  modifying  used  movable  goods  (other  than 
contract  work  or  services  of  a  kind  specified  in 
subparagraph (2)),  but  excluding  the  supply  in  the 
course  of  any  such 
repair,  maintenance  or 
modification of— 

(i) accessories, attachments or batteries, or 

25 

 
 
 
  
 
 
 
 
 
 
(ii)  tyres,  tyre  cases,  interchangeable  tyre  treads, 
inner tubes and tyre flaps, for wheels of all kinds. 

(2)  The  following  services  are  specified  for  the 
purposes of subparagraph (1): 

(a)  services  specified 
Schedule 2 (Work on movable goods for export); 

in  paragraph 3(4)  of 

(b)  services  specified 
in  paragraph 4(2)  of 
Schedule 2  (Repair,  etc.  of  sea-going  vessels  or 
aircraft); 

(c)  services  specified 
in  paragraph 4(4)  of 
Schedule 2  (Repair,  etc.  of  equipment  used  in 
international aircraft). 

7 

8 

9 

10 

11 

X 

X 

X 

X 

X 

Services consisting of the care of the human body, 
including services supplied in the course of a health 
studio  business  or  similar  business,  but  not 
including exempted activities referred to in Part 1 of 
Schedule 1  or  hairdressing  services  referred  to  in 
paragraph 13(3). 

21.  (1)  Services  consisting  of  the  care  of  the 
human  body,  including  services  supplied  in  the 
course  of  a  health  studio  business  or  similar 
business,  but  not  including  exempted  activities 
referred  to  in  Part 1  of  Schedule 1  or  hairdressing 
services referred to in paragraph 13(3). 

Parking rate (13.5%) 

Services  supplied  in  the  course  of  their  profession 
by jockeys. 

(2)  Services  supplied  in  the  course  of  their 
profession by jockeys. 

Parking rate (13.5%) 

Services  supplied  in  the  course  of  their  profession 
by veterinary surgeons. 

(3)  Services  supplied  in  the  course  of  their 
profession by veterinary surgeons. 

Parking rate (13.5%) 

Services  supplied  in  the  course  of  their  profession 
by tour guides. 

(4)  Services  supplied  in  the  course  of  their 
profession by tour guides. 

Parking rate (13.5%) 

Instruction  in  the  driving  of mechanically  propelled 
road  vehicles,  but  excluding  education,  training  or 
retraining of the kind specified in paragraph 4(3) of 
Schedule 1. 

(5)  Instruction  in  the  driving  of  mechanically 
propelled  road  vehicles,  but  excluding  education, 
training  or  retraining  of  the  kind  specified  in 
paragraph 4(3) of Schedule 1. 

Parking rate (13.5%) 

To Note, paragraph 4(3) of Schedule 1 states 

“The  provision  by  educational  establishments 
recognised  by  the  State  of  children’s  or  young 
people’s  education,  school  or  university  education, 
or  vocational  training  or  retraining  (including  the 
supply  of  goods  and  services  incidental  to  that 
provision,  other  than  the  supply  of  research 
services),  and  the  provision  by  other  persons  of 

26 

 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
education,  training  or  retraining  of  a  similar  kind, 
but  excluding 
the  driving  of 
mechanically propelled road vehicles other than— 

instruction 

in 

(a)  vehicles  designed  or  constructed 
carriage of 1.5 tonnes of goods or more, or 

for  the 

(b)  vehicles  designed  or  constructed  for  the 
carriage  of  more  than  9 persons  (including  the 
driver). 

12 

13 

14 

X 

X 

X 

The supply of live greyhounds 

(3) The supply of live greyhounds. 

Parking rate (13.5%) 

The supply of insemination services for greyhounds 

(4)  The  supply  of 
greyhounds. 

insemination  services 

for 

Parking rate (13.5%) 

Caravan or mobile home for use as residence. 

1. (1) This Order may be cited as the Value-Added 
Tax (Refund of Tax) (No. 12) Order, 1980. 

Parking rate (13.5%) 

(2)  This  Order  shall  be  deemed  to  have  come  into 
operation on the 1st day of March, 1979. 

2.  (1)  In  this  Order  "the  Act"  means  the  Value-
Added Tax Act, 1972 (No. 22 of 1972). 

(2) A reference in this Order to a caravan includes a 
reference to a mobile home or any similar structure 
designed primarily for residential purposes. 

3.  A  person  who  establishes  to  the  satisfaction  of 
the  Revenue  Commissioners  that  he  has  borne  or 
paid  tax  in relation  to  the  supply  to or  importation 
by  him  of  a  caravan  and  who  fulfils  to  the 
the 
satisfaction  of 
conditions which are specified in paragraph 4 of this 
Order shall be entitled to be repaid so much of such 
tax as is specified in paragraph 5 of this Order. 

the  said  Commissioners 

4. The conditions to be fulfilled by a person referred 
to in paragraph 3 of this Order are— 

(a) he shall claim a refund of the tax by completing 
such  claim  form  as  may  be  provided  for  the 
purpose  by  the  Revenue  Commissioners  and  he 
shall  certify  the  particulars  shown  in  such  claim 
form to be correct; 

(b) he shall establish that the caravan in relation to 

27 

 
 
 
  
 
 
 
 
 
 
 
 
15 

X 

Children’s clothing and footwear 

which a claim for a refund of the tax arises— 

(i)  is  used  by  him  as  a  permanent  residence  for 
himself  and  that  neither  he  nor  (if  he  is  a  married 
man  having  his  spouse  living  with  him)  his  spouse 
has  any  other  place  of  abode  within  the  State 
available for his occupation, or 

(ii) is, in the case of a local authority, occupied as a 
residence by a tenant of the local authority; 

(c)  he  shall,  in  the  case  of  a  person  other  than  a 
local  authority,  by  the  production  of  a  certificate 
from  the  appropriate  local  authority  or  such  other 
documentary evidence as may be acceptable to the 
Revenue Commissioners, establish that the caravan 
has been rated under the Valuation Acts; 

10. (1) The supply of articles of children’s  personal 
clothing  of  sizes  that  do  not  exceed  the  sizes  of 
those  articles  appropriate  to  children  of  average 
build of 10 years of age, but excluding— 

(a) articles of clothing made wholly or partly of fur 
skin  other  than  garments  merely  trimmed  with  fur 
skin, unless the trimming has an area greater than 
one-fifth of the area of the outside material, and 

(b)  articles  of  clothing  that  are  not  described, 
labelled, marked or marketed on the basis of age or 
size. 

(2)  The  supply  of  articles  of  children’s  personal 
footwear  of  sizes  that  do  not  exceed  the  size 
appropriate  to  children  of  average  foot  size  of  10 
years  of  age,  but  excluding  footwear  that  is  not 
described,  labelled,  marked  or  marketed  on  the 
basis of age or size. 

(3) In this paragraph, a child whose age is 10 years 
or 10 years and a fraction of a year is taken to be a 
child of 10 years of age. 

Exemption (0%) 

16 

X 

Lightships, 
navigational aids 

lighthouses, 

lifeboat 

services, 

13. (1) Services provided by the Commissioners of 
Irish  Lights  in  connection  with  the  operation  of 
lightships, lighthouses or other navigational aids. 

Exemption (0%) 

(2)  Life  saving  services  provided  by  the  Royal 

28 

 
 
 
  
 
 
 
 
 
 
Lifeboat 

National 
organisation  and  maintenance  of  the 
service. 

Institution 

including 

the 
lifeboat 

Number 

Text of main provisions 

Conditions of application 

Rate or exemption 

Legal basis 

Italy 

105a(1)  105(3) 

105b 

1 

X 

Subscription  fees  for  circular  radio  broadcasting 
services  with  the  exclusion  of  those  broadcast  in 
coded  form;  radio  broadcasting  services  with  the 
form 
exclusion  of  those  broadcast 
involving  primarily  political,  trade  union,  cultural, 
religious,  sporting,  educational  or  recreational 
matters  performed  pursuant  to  Article 19(b)  and 
(c)  of  Law  No 103  of  14 April  1975.  Circular  radio 
the  public 
broadcasting  services 
transport  service  or  to  car  rental  services  from  a 
garage are also included. 

in  coded 

relating 

to 

2 

X 

Supply  and  construction  of  non-luxury  housing 
constituting  the  so-called  ’prima  casa’(primary 
residential  property)  for  the  purchaser,  as  well  as 
the  relevant  appurtenances  (conditions  set  out  in 
Note  II-bis  to  Article 1  on  the  tariffs,  part  one, 
annexed  to  the  Consolidated Text  of  the  Provisions 
by 
approved 
concerning  Registration 
Presidential Decree No 131 of 26 April 1986). 

Tax, 

Applies,  in  essence,  to  the  subscription  fee  for  the 
public  radio  and  television  services.  It  does  not 
apply to pay TV. 

Super-reduced rate 
(4%) 

The radio taxi service is treated as the circular radio 
broadcasting  service  subject  to  the  super-reduced 
rate 4%. 

Super-reduced rate 
(4%) 

Applies under the following conditions: 

−  The  house  is  sold  by  the  enterprise  that  built  or 
renovated  it  within  five  years  of  the  completion  of 
the  works  (or,  if  the  taxable  person  opts  for  full 
taxation,  after  that  period)  or  it  is  intended  for 
social  housing  (the  other  sales  of  private dwellings 
are exempt from VAT); 

−  The  purchaser  does  not  own  in  the  municipality 
where  he/she  resides  (or  in  the  municipality  in 
which  he/she  is  entitled  to  purchase  the  prima 
casa),  any  other  dwelling,  including  pro-rata  or 
houses in common with his/her spouse. In addition, 
the  purchaser  does  not  own  throughout  the  entire 
national  territory,  not  even  pro-rata  or  in  common 
with  his/her  spouse,  any  other  dwelling  purchased 
using  the  rate  reduction.  If  the  purchaser  owns 
another  dwelling,  he/she  may  benefit  from  the 
reduced rate on the purchase of the prima casa on 
condition  that  he/she  sells  the  former  dwelling 

29 

 
 
 
  
 
 
 
 
 
 
 
within one year of the new purchase; 

identified  according 

−  the  house  is  not  a  luxury  house  (luxury  houses 
are 
cadastral 
classification and are: stately homes, villas, palaces 
of  particular  historical  and  artistic  value  and 
castles, under cadastral categories A1, A8 and A9); 

their 

to 

−  the  house  is  located  in  the  municipality  in  which 
the  purchaser  has  his/her  residence  (or  to  which 
he/she  transfers  his  residence  within  18 months) 
or, where different, in the municipality in which the 
purchaser  conducts  his/her  business  or,  if  the 
purchaser  has  moved  abroad  for  work  reasons,  in 
the  municipality  in  which  his/her  employer  has  its 
head  office  or  conducts  its  business  or,  if  the 
any 
purchaser  has 
municipality  of  the  Italian  territory.  Staff  of  the 
armed  forces  and  the  public  security  forces  may 
also  purchase  their  prima  casa  in  a  municipality 
other than the municipality where they reside; 

emigrated 

abroad, 

in 

3 

X 

Allocations,  including  on  the  basis  of  a  lease 
contract for use, of the residential property referred 
to  in  No 21),  made  by  housing  cooperatives  and 
their consortia to their members. 

−  the  reduction  applies  even  if  the  property  is  not 
completed,  provided  that  the  original  intended  use 
is maintained. 

Housing cooperatives may be: 

−  characterised  by  the  fact  that  the  members  are 
allocated  the  house  with  a  view  to  become  its 
actual  owners  (‘cooperative  a  proprietà  divisa’  – 
housing cooperatives with separate ownership); 

−  characterised  by  the  fact  that  the  dwellings  are 
allocated  to  the  members  on  the  basis  of  a  lease 
contract  conferring  the  right  to  use  them,  without 
any  transfer  of  ownership,  which  remains  with  the 
cooperative  (‘cooperative  a  proprietà  indivisa’  - 
housing cooperatives with common ownership). 

the  rate  reduction  under 

Allocations of dwellings by housing cooperatives are 
granted 
the  same 
conditions  as  those  provided for  the  assignment  of 
the 
the  prima  casa:  members  must  meet 
requirements for the purchase of a prima casa and 
the houses must be 'non-luxury' ones and must be 
located  in  the  municipality  of  residence  or  in  any 
other  municipality  where  the  reduced  rate  is 

Super-reduced rate 
(4%) 

30 

 
 
 
  
 
 
 
 
4 

X 

5 

X 

6 

X 

Supply  and  construction  of  rural  houses  intended 
for  residential  use  by  the  owner  of  the  land  or  by 
any  other  person  engaged  in  the  cultivation  of  the 
land or in livestock farming and activities related to 
agriculture,  supplied  by  construction  companies, 
even  if  not  completed,  provided  that  the  original 
intended  use  is  maintained,  in  so  far  as  the 
conditions  set 
in  Article 9,  paragraph 3, 
letters c)  and  e),  of  Decree-Law  No 557  of 
30 December  1993,  converted,  with  amendments, 
by Law No 133 of 26 February 1994, are met. 

forth 

the  buildings  referred 

Services  supplied  under  contracts  relating  to  the 
construction  of 
in 
Article 13  of  Law  No 408  of  2 July  1949,  and 
taxable  persons 
subsequent  amendments, 
for 
engaged 
subsequent  sale,  including  housing  cooperatives 
and 
they  are 
’cooperative a proprietà indivisa’. 

in  the  construction  of  buildings 

their  consortia,  even  where 

to 

to 

Goods,  excluding  raw  and  semi-manufactured 
materials,  supplied  for  the  construction,  including 
'in  economia'  (on  an  in-house  basis),  of  the 
buildings referred to in Article 13 of Law No 408 of 
2 July 1949, as amended, and of the rural buildings 
referred to in No 21-bis) 

allowed (see No 2). 

−  The  houses  are  intended  for  the  dwelling  of 
persons  involved  in  agricultural  activities,  including 
livestock  farming.  Constructions  other  than  private 
dwellings are excluded from the rate reduction; 

−  the  land  on  which  the  building  stands  has  a 
surface  area  of  no  less  than  10,000 square  metres 
and  is  registered  in  the  land  register  with  the 
relevant  agrarian  income  (Article 9,  paragraph 3, 
letter c); 

Super-reduced rate 
(4%) 

− buildings for residential use are required to have 
the 
buildings 
(Article 9, letter e). 

characteristics 

non-luxury 

of 

Applies  to  buildings  that  have  the 
characteristics: 

following 

Super-reduced rate 
(4%) 

−  they  are  non-luxury  residential  buildings  which 
also include offices and shops; 

− if they also include offices and shops, more than 
50%  of  the  total  surface  area  of  the  floors  above 
ground  level must be  used  for residential  purposes 
while no more than 25% of the total surface area of 
the  floors  above  ground  level  may  be  used  for 
commercial purposes.  

The  construction  contract 
is  concluded  with 
companies engaged in the business of construction 
of  buildings  for  subsequent  sale,  including  housing 
cooperatives and their consortia. 

Applies under the following conditions: 

the 

finished  goods 

− 
for  construction  are 
incorporated  into  the  building  without  losing  their 
individual  character.  They  constitute  structural 
and/or  functional  elements  of  the  building,  thus 
becoming  an  integral  part  of  them  (e.g.  sanitary 
ware, piping, boilers, radiator  elements, etc.). Raw 
and  semi-manufactured  materials  (such  as  bricks, 
tiles,  nails,  iron  rods,  lime,  cement,  etc.)  are 
excluded; 

Super-reduced rate 
(4%) 

−  the  finished  goods  for  construction  are  intended 

31 

 
 
 
  
 
 
 
 
 
 
 
 
for  the  construction  of  non-luxury  residential 
buildings  (private  dwellings,  buildings  mainly  for 
residential use, rural buildings, which do not qualify 
as luxury homes); 

−  the  supply  can  be  carried  out  to  construction 
companies,  housing  cooperatives  and  private 
individuals building dwellings 'in economia';  

− the intended use of the finished good is stated in 
the  purchaser's  declaration  and  under  his/her 
responsibility. 

7 

X 

8 

X 

9 

X 

Provision  of  services  pursuant  to  contracts  for 
works  directly  aimed  at  overcoming  or  removing 
architectural barriers. 

Applies  to  works  for  the  removal  of  architectural 
barriers  that  hinder  the  mobility  of  persons  with 
disabilities,  in  private  and  public  buildings  and  in 
buildings of public interest. 

Super-reduced rate 
(4%) 

The  supply  of  food  and  drink  carried  out  in 
company  and 
inter-company  staff  canteens, 
canteens of schools of all types and levels, and food 
pantries,  even  where  the  supply  is  carried  out  on 
the  basis  of  procurement  contracts  or  special 
agreements. 

This  refers  to  the  supply  of  meals  to  employees  in 
their  scheduled  lunch  breaks  during  working  hours 
and  the  supply  of  meals  to  students  during  school 
hours. The supply of meals may also be carried out 
under contracts or special agreements concluded by 
the employer or with the school. 

Super-reduced rate 
(4%) 

Supply  and  construction  of  non-luxury  private 
dwellings, including those allocated in ownership or 
on  the  basis  of  a  lease  contract  for  their  use  by 
housing  cooperatives  and  their  consortia  to  their 
members, even if not completed, provided that the 
original  intended  use  is  maintained,  where  the 
conditions  referred  to  in  No. 21)  of  Part II  of 
Table A  are  not  met;  buildings  or  portions  of 
buildings,  other 
the  aforesaid  private 
dwellings,  referred  to  in  Article 13  of  Law 408  of 
2 July  1949,  as  subsequently  amended  and 
supplemented, even if not completed, provided that 
the original intended use is maintained, supplied by 
construction companies. 

than 

Applies to the supply and construction of: 

Reduced rate (10%) 

−  non-luxury  private  dwellings.  Non-luxury 
dwellings  are  identified  according  to  their  cadastral 
classification and are: stately homes, villas, palaces 
of  particular  historical  and  artistic  value,  castles, 
under  cadastral  categories A1,  A8  and  A9  (see 
point 4) other than the prima casa (see point 4); 

− non-luxury private dwellings allocated by housing 
cooperatives and their consortia to their members; 

− buildings or portions of buildings, other than the 
prima  casa,  also  if  they  include  offices  and  shops, 
which  do  not  have  the  characteristics  of  luxury 
buildings,  even  if  not  completed,  provided  that  the 
original  intended  use  is  maintained,  supplied  by 
construction  companies  (the  buildings  may  also 
include  offices  and  shops.  In  that  case,  more  than 
50%  of  the  total  surface  area  of  the  floors  above 
ground  level must be  used  for residential  purposes 
while no more than 25% of the total surface area of 

32 

 
 
 
  
 
 
 
 
 
 
 
 
the  floors  above  ground  level  may  be  used  for 
commercial purposes (see point 7)).  

The  immovable  property  is  sold  by  the  enterprise 
that  built  or  renovated  it  within  five  years  of  the 
completion  of  the  works  (or,  if  the  taxable  person 
opts  for  full  taxation,  after  that  period).  The  other 
sales of houses are exempt from VAT. 

Applies  to  the  performance  of  building  renovation 
work  other 
'interventi  di  manutenzione 
ordinaria’  (routine  maintenance  and  repair  works) 
and 
the 
refurbishment of the building). 

(special  works 

‘straordinaria’ 

than 

for 

Reduced rate (10%) 

Applies to the supply of renovated buildings sold by 
the  undertakings  that  carried  out  the  renovation 
work. 

Reduced rate (10%) 

10 

11 

X 

X 

‘Interventi di recupero‘ (renovation works) referred 
to  in  Article 31  of  Law  No 457  of  5 August  1978, 
excluding  those  referred  to  in  letters a)  and  b)  of 
the  first  paragraph  of  the  same  Article,  including 
those  on  buildings  other  than  residential  buildings, 
public buildings or buildings of public interest. 

Supplies  of  buildings  or  portions  of  buildings  on 
which  building  renovation  work  has  been  carried 
out  pursuant  to  Article 31  of  Law  No 457  of 
5 August  1978,  excluding  those  referred  to  in 
letters a) and b) of the first paragraph of the same 
Article, by the companies that carried out the work. 

Luxembourg 

Legal basis 

Number 

Text of main provisions 

Conditions of application 

Rate or exemption 

105a(1)  105(3) 

105b 

1 

X 

Agricultural 
heading 3808 

inputs,  excluding  products  of  CN 

Super-reduced rate 
(3%) 

Live  horses,  asses,  mules  and  hinnies  normally 
intended for use in the preparation of foodstuffs or 
normally  used  by  a  taxable  person  in  connection 
with  his  agricultural  or  forestry  business;  live 
domestic  animals  of  the  bovine  species;  live 
domestic  animals  of  the  porcine  species;  live 
domestic animals of the ovine and caprine species; 
live  fowls  of  the  species  Gallus  domesticus;  live 
ducks,  geese,  turkeys  and  guinea  fowls;  live 
domestic  rabbits;  domestic  bees;  rhizomes  of 
rhubarb  and  asparagus  claws;  chicory  plants  and 
roots (other than roots CN 1212; trees, shrubs and 
bushes,  of kinds which  bear edible  fruit,  grafted  or 
not;  forest  trees;  unrooted  cuttings  and  slips  of 

33 

 
 
 
  
 
 
 
 
 
 
 
 
 
vines;  mushroom  spawn;  vegetable  seedlings  and 
strawberry plants; cereals; oil seeds and oleaginous 
fruits and miscellaneous seeds and fruits for sowing 
and for  animal  consumption; sugar  beet  and  sugar 
cane, fresh or dried, whether or not ground; cereal 
straw  and  husks, whether or not  chopped,  ground, 
pressed  or  in  the  form  of  pellets;  semen,  ova  and 
embryos  of  animals  normally  kept  on  a  holding; 
quicklime  and  slaked  lime; peat  (including peat  for 
bedding), whether or not agglomerated; fertilisers; 
unworked  raw  wool;  agricultural  services  which 
normally  contribute  to  agricultural  or  forestry 
threshing, 
production 
(cultivation,  harvesting, 
pressing,  gathering  and  harvesting, 
including 
sowing and planting); packing and packaging, such 
as  drying,  storing,  transporting  and  storing  of 
foodstuffs,  and  other  services  which  normally 
contribute to the production of food; packaging and 
conditioning,  such  as  drying,  cleaning,  crushing, 
disinfecting  and  ensiling  of  agricultural  products; 
storage of agricultural products; services relating to 
insemination,  collection  of  eggs  and 
artificial 
embryos  and  transfer  of  embryos  from  animals 
normally  kept  on  a  farm;  services  relating  to  the 
improvement  of  the  breeds  of  animals  normally 
reared  on  an  agricultural  holding;  keeping, 
breeding or fattening of animals normally reared on 
an  agricultural  holding;  hiring  out  of  draught 
horses;  pruning  of  fruit  trees;  technical  support 
services  for  agricultural  and  forestry  holdings, 
including  services  relating  to  the  inspection  of 
agricultural  or  forestry  products;  destruction  of 
harmful  plants  and  animals  and  disinfection  and 
spraying  operations  carried  out  in  fields,  woods, 
orchards and vineyards; operation of irrigation and 
drainage installations). 

Excluded  goods:  plant  protection  products  of  CN 
heading 3808. 

Excluded  services:  hire  of  agricultural  or  forestry 
machinery 
of 
felling  and 
agricultural  or 
skidding of timber. 

implements; 
forestry  products; 

transport 

and 

2 

X 

Clothing,  headgear,  scarves,  gloves  and  shoes  for  Clothing,  headgear,  scarves  and  gloves  falling  Super-reduced rate 

34 

 
 
 
  
 
 
 
 
3 

4 

X 

X 

5 

X 

6 

X 

children under 14 years of age 

(3%) 

within  CN  chapters 61,  62  and  65,  insofar  as  they 
are  designed  and  typical 
for  children  under 
14 years  of  age;  boys'  shoes  falling  within  CN 
chapter 64, up to and including size 40; girls' shoes 
falling  within  CN  Chapter 64,  up  to  and  including 
size 35½ (35 if there are no half sizes) in the case 
of  pumps  (light,  open  or  low-cut  shoes  without 
fastenings), and up to and including size 38½ (38 if 
there  are  no  half  sizes)  in  the  case  of  any  other 
type  of  shoe,  provided  that  the  greatest  heel 
height, including the sole, does not exceed 4 cm. 

Restaurant  and  catering  services,  excluding  such 
services  or  the  part  of  such  services  involving 
alcoholic beverages 

Accommodation  on  premises  which  a  taxable 
person reserves for the transient accommodation of 
persons  and  the  letting  of  holiday  camps  or 
camping sites 

Super-reduced rate 
(3%) 

Super-reduced rate 
(3%) 

by 

any 

person 

operating 

Letting  of  furnished  accommodation  or  rooms  by 
the  operator  of  a  hotel  establishment  and,  more 
generally, 
an 
establishment where paying guests are temporarily 
accommodated,  including  the  letting  of  caravans 
set  up  on  the  premises;  the  letting  of  pitches  by 
the  operator  of  a  holiday  camp  or  camping  site; 
operations ancillary to letting, such as the supply of 
water,  electricity  or  heat  and  the  provision  of  the 
facilities  of  the  establishment,  camp  or  site,  to  the 
extent that these operations are not charged for as 
such. 

concerts, 

Granting  of  access 
theatrical, 
to 
choreographic  and  cinematographic  performances, 
shows,  entertainment,  conferences,  courses  and 
other  events  of  a  scientific,  cultural,  educational, 
economic  or  professional  nature,  as  well  as  to 
museums,  archives,  botanical  or 
zoological 
gardens, nature parks and circuses 

Including  ancillary  operations  such  as  cloakroom 
service, programme sales and seat reservations.  

Super-reduced rate 
(3%) 

Does  not  cover  ancillary  transactions  such  as 
deliveries of drinks, food, tobacco or sweets. 

Granting  the  right  of  access  to  and  use  of  sports 
facilities 

Including  ancillary  operations  such  as  seat 
reservations,  cloakroom  services  and  the  provision 
of sporting goods.  

Super-reduced rate 
(3%) 

Does  not  cover  ancillary  transactions  such  as 
deliveries of drinks, food, tobacco or sweets. 

35 

 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
7 

X 

Refuse collection and waste treatment 

8 

X 

Sewage  disposal  and  treatment  and  emptying  of 
septic tanks and industrial tanks 

9 

X 

Services provided by undertakers and cremators 

10 

11 

X 

X 

Services  provided  by  writers,  composers  and 
performers and the royalties due to them 

Reception  of  radio  and  television  broadcasting 
services  other  than  those  with  content  intended 
exclusively  for  adults,  irrespective  of  the  electronic 
communications network used 

12 

X 

Use  of  a  dwelling  as  a  principal  residence  by  the 
owner of the dwelling which has undergone certain 
creation and renovation works 

Including  the  ancillary  operation  of  providing  the 
user with bins or other receptacles for the removal 
of household waste.  

Super-reduced rate 
(3%) 

Does  not  cover  the  delivery  of  goods  recovered 
from the destruction of waste. 

Does  not  cover  the  delivery  of  goods  recovered  in 
connection  with  the  disposal  and  treatment  of 
waste  water  or  the  emptying  of  septic  tanks  and 
industrial tanks. 

Super-reduced rate 
(3%) 

cremators 

Excludes  supplies  of  goods  made  by  undertakers 
and 
connection  with  burials, 
exhumations and cremations, such as the supply of 
coffins, wreaths or flowers. 

in 

Please  note:  LU  applies  Article 14(3)  of  Directive 
2006/112/EC,  and  considers 
the  supply  of 
immovable property to be the performance of work 
on immovable property, including that involving the 
incorporation  of  movable  property  into  immovable 
property,  but  excluding 
routine  maintenance 
operations performed on immovable property. 

Limit:  Invoices  must  individually  be  for  an  amount 
exceeding EUR 1,250 excluding VAT. 

Principle:  The  owner  of  the  dwelling  is  considered, 
for the construction/renovation of the dwelling, as a 
taxable person for VAT purposes; the suppliers and 
providers  of  works  for  the  creation  and  renovation 
of  the  dwelling  apply  the  normally  applicable  VAT 
rate to their operations; once the works have been 
completed,  the  owner  makes  the  supply  of  the 
dwelling to himself at the super-reduced rate of VAT 
and  can  deduct  the  VAT  invoiced  by  the  suppliers 

Super-reduced rate 
(3%) 

Super-reduced rate 
(3%) 

Super-reduced rate 
(3%) 

Super-reduced rate 
(3%) 

36 

 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
and  providers;  no  VAT  identification  number  is 
allocated to the owner of the dwelling, so he cannot 
make intra-Community acquisitions of goods. 

Covered  operations  related  to  "creation",  carried 
out  up  to  the  level  of  the  closed  structural  work 
with finishing stage including the covering of floors, 
ceilings  and  walls  as  well  as  its  connection  to  the 
following  public  infrastructures:  sewerage,  water, 
electricity,  gas,  communications,  district  heating, 
roads: 
the 
conversion into a dwelling of a building or part of a 
building  previously  used  for  other  purposes;  the 
extension of an existing dwelling; the construction, 
conversion  or  extension  of  garages  and  car  parks 
adjoining  or  separate  from  but  located  near  the 
dwelling,  provided  that  they  are  used  with  the 
dwelling by the owner of the dwelling. 

the  construction  of  a  dwelling; 

that  acquisition; 

Operations  covered  in  relation  to  "renovation": 
substantial improvement work carried out following 
the  acquisition  of  a  dwelling  and  completed  within 
substantial 
five  years  of 
improvement  works 
to  a  dwelling  whose 
construction  dates  back  at  least  ten  years  at  the 
start of the said works, completed within two years 
of  their  commencement,  provided  that  they  are 
included  in  the  list  of  operations  covered  under 
"creation",  or  that  they  involve  the  construction  or 
demolition of  internal  partition  walls,  the  drilling  of 
new doors or windows, or the walled up of existing 
doors or windows. 

Assignment  of  a  dwelling  for  use  as  a  principal 
residence  by  a person  other  than  the  owner of  the 
dwelling undergoing certain renovation works 

Same  principle  as  under  point 12a  and  same 
operations covered under "renovation" in point 12a. 

Super-reduced rate 
(3%) 

Limit:  Invoices  must  individually  be  for  an  amount 
excluding VAT exceeding EUR 3,000. 

Certain  creation  and  renovation  works  carried  out 
for  the  benefit  of  a  dwelling  used  as  a  principal 
residence by the owner of the dwelling 

Principle:  Direct  application  of  the  super-reduced 
rate  by  the  supplier  of  certain  creation/renovation 
works  on  the  basis  of  a  provisional  authorisation 
VAT 
competent 
by 
decision 
administration to the owner of the dwelling. 

issued 

the 

Operations  covered:  the  same  as  those  covered  in 

Super-reduced rate 
(3%) 

37 

13 

X 

14 

X 

 
 
 
  
 
 
 
 
 
 
15 

X 

Certain  renovation  work  carried  out  for  the  benefit 
of  a  dwelling  used  as  a  principal  residence  by  a 
person other than the owner of the dwelling 

point 12a. 

Same  principle  as  mentioned  in  13a  and  same 
operations covered under "renovation" in point 12a. 

Super-reduced rate 
(3%) 

Limitations:  ●  The  dwelling  element  benefits  from 
the tax measure only if it is used for the purpose of 
a principal dwelling: in the case of "creation", solely 
on  the  part  of  the  owner, 
in  the  case  of 
"renovation", either on the part of the owner or on 
the  part  of  a  person  other  than  the  owner.  ●  The 
cumulative  amount  of  tax  resulting  from  the 
application,  to  the  creation  and  renovation  works, 
of  a  rate  equal  to  the  difference  between  the 
normally applicable rate and the super-reduced rate 
(principle  point 13)  and  of  the  reimbursed  tax 
(principle  point 12)  may  not  exceed,  respectively 
per dwelling created and/or renovated, the amount 
of  EUR 50,000.  ●  A  period  of  two  years  during 
which  the  use  of  a  dwelling  that  enabled  it  to 
benefit 
tax  measure  must  remain 
unchanged. 

from 

the 

16 

17 

18 

19 

X 

X 

X 

X 

Wine  of  fresh  grapes  containing  13°  or  less  of 
alcohol,  with  the  exception  of  fortified  wines, 
sparkling wines and liqueur wines 

Washing and cleaning preparations 

Printed  advertising  material,  trade  catalogues  and 
the like; tourist propaganda publications 

Heat,  cooling  and  steam,  except  heat  supplied  by 
means  of  a  heating  network  as  referred  to  in 
point 3 of Annex A 

Washing  preparations  based  on  surface-active 
agents  (detergents),  in  liquid,  powder  or  paste 
form,  used  for  washing  dishes  or  kitchen  utensils, 
for  household  or  industrial  purposes;  auxiliary 
washing  preparations  for  soaking  (pre-washing), 
rinsing  or  bleaching  laundry;  cleaning  preparations 
for  the  care  of  floors,  windows  or  other  surfaces, 
which  may  contain  very  small  quantities  of 
odoriferous matter 

Parking rate (14%) 

Parking rate (14%) 

Parking rate (14%) 

Parking rate (14%) 

38 

 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20 

21 

X 

X 

Custody and management of securities 

Management  of  credits  and  credit  guarantees  by  a 
person  or  body  other  than  those  who  granted  the 
credits 

Parking rate (14%) 

Parking rate (14%) 

Number 

Text of main provisions 

Conditions of application 

Rate or exemption 

Legal basis 

Portugal 

105a(1)  105(3) 

105b 

1 

2 

X 

X 

Wine (common table wines) 

“Common  table  wines”  exclude  “special  wines”  as 
fortified wines, liqueur wines or sparkling wines.  

Parking rate (13%) 

The  parking  rate  applies  to  the  supply  of  wine, 
irrespective  of  the  status  of  the  supplier  or  the 
acquirer of the product. 

Agricultural  tools  and  equipment,  mobile  silos, 
motorised  cultivators,  powered  pumps,  electric 
pumps,  agricultural  tractors  (classified  as  such  in 
the  respective  owner’s  documents),  and  other 
machines  and  apparatus  exclusively  or  principally 
intended for agriculture, herding or forestry 

Parking rate (13%) 

is  not  subject 

The  application  of parking rate  to  agricultural  tools 
and  equipment 
to  additional 
conditions,  namely  the  nature  or  status  of  the 
acquirer  of  the  goods.  The  parking  rate  does  not 
apply  to  the  mere  supply of parts  and  components 
of those equipment. According to the interpretation 
of 
the  expression 
“exclusively  or  principally  intended  for  agriculture, 
herding  or  forestry”  covers  equipment  whose 
characteristics  imply  their  usage  exclusively  or 
mainly in those activities. 

tax  administration, 

the 

Legal basis 

Number 

Text of main provisions 

Conditions of application 

Rate or exemption 

105a(1)  105(3) 

105b 

1 

X 

The supply of housing classified administratively as 
officially protected. 

Housing  with  public  protection  is  qualified  as  such 
by  law,  taking  into  account  certain  parameters  of 

Super-reduced rate 
(4%) 

Spain 

39 

 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leasing  of  buildings  or  parts  thereof  intended 
exclusively  for  dwellings  classified  administratively 
as officially protected. 

maximum  area,  housing  price  and  income  limit  of 
purchasers or users 

2 

X 

Telecare services, home help, day and night center 
and  residential  care,  for  people  in  situations  of 
dependency 

The services must be provided in arranged places in 
centers  or  residences  or  through  prices  derived 
from  an  administrative  contest  awarded  to  the 
provider companies. 

Law 39/2006, of December 14th, on the Promotion 
of  Personal Autonomy  and  Attention  to  people  in  a 
situation  of  dependency  (BOE  of  December 15) 
defines the content of these services. 

Super-reduced rate 
(4%) 

Legal basis 

Number 

Text of main provisions 

Conditions of application 

Rate or exemption 

105a(1)  105(3) 

105b 

Malta 

1 

2 

3 

4 

X 

X 

X 

Custody and management of securities 

Credit management and credit guarantees 

Pleasure boat lease 

X 

Care of the human body 

Credit  management  and  credit  guarantees  by  a 
person  or  body  other  than  those  who  granted  the 
credit 

A  pleasure  boat  lease  to  a  person  under  an 
arrangement for any term or part of a term which, 
when  added  to  the  previous  lease  term,  of  the 
same or other goods of the same type, to the same 
person  during  the  preceding  twelve  (12)  months 
ending  on  the  date  of  commencement  of  the 
existing lease, does not exceed five (5) weeks. 

Services  consisting  of  the  care  of  the  human  body 
required to be provided by a person in the exercise 
the  Health 
of  any  profession 
Professions  Act  (Cap. 464), 
including  services 
provided  in  the  course  of  a  health  studio  business 
or  similar  business,  but  not  including  exempt 
supplies referred to in item 11 of Section Two of the 
Fifth Schedule. 

regulated  by 

Parking rate (12%) 

Parking rate (12%) 

Parking rate (12%) 

Parking rate (12%) 

40 

 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cyprus 

Legal basis 

Number 

Text of main provisions 

Conditions of application 

Rate or exemption 

105a(1)  105(3) 

105b 

1 

X 

Admission right from the first performance 

2 

X 

Street cleaning, refuse collection and treatment 

Admission  right  from  the  first  performance  of 
theatrics, musicians and dance 

Super-reduced rate 
(3%) 

works or classical projects 

Street  cleaning,  refuse  collection  and  treatment 
services  waste,  excluding  services  provided  by 
public  authorities,  local  authorities  and  bodies 
governed by public law 

Super-reduced rate 
(3%) 

3 

X 

Waste water disposal and treatment 

Waste water disposal and treatment and evacuation 
of septic and industrial tanks 

Super-reduced rate 
(3%) 

Legal basis 

Number 

Text of main provisions 

Conditions of application 

Rate or exemption 

105a(1)  105(3) 

105b 

Greece 

1 

X 

Provision  of  services  relating  to  overcoming  or 
removing architectural barriers 

The  provision  of  services  on  the  basis  of  contracts 
for  works  intended  exclusively  to  overcome  or  cut 
off  architectural  barriers  restricting  the  mobility  of 
disabled  persons  in  public  or  private  buildings  or 
buildings  serving  a  public  interest.  The  rate  of  tax 
for the services referred to in this Decision shall be 
four per cent (4%). 

Super-reduced rate 
(4%) 

2 

X 

Agricultural machinery 

Agricultural 
agricultural machinery, appliances and tools 

forestry 

tractors 

and 

tractors, 

Parking rate (13%) 

41