Proposal of extending minimum VAT rate of 15%

The VAT Directive provides that from 1 January 2006 until 31 December 2010 the standard rate may not be less than 15% in any EU Country and stipulates that the Council shall decide on the level of the standard rate of value added tax (VAT) to be applied after 31 December 2010.

The European Commission has adopted a draft directive stating that the current minimum standard rate of VAT in Member States, set at 15% shall be extended from 1 January 2011 to 31 December 2015.