91998E3975

WRITTEN QUESTION E-3975/98

by Raphaël Chanterie (PPE) to the Commission

(4 January 1999)

Subject: Value added tax on veterinary services

Further to the European obligation to apply the standard VAT rate to veterinary services, such services appear to be liable to VAT ranging from a minimum rate of 15 % to a maximum of 25 % in certain Member States.

Article 13 of the sixth directive on indirect taxation, directive 77/388/EEC(1), permits Member States to grant exemption for "hospital and medical care" and "the provision of medical care", i.e. not for veterinary services, although annex H provides for a lower rate of VAT for pharmaceutical products for medical and veterinary purposes.

Are there sound reasons for making a distinction in the percentage between pharmaceutical products for veterinary use which attract a lower rate and veterinary services which do not, and is it not possible to revise the existing directive on the basis of the Protocol on the protection and welfare of animals?

Answer given by Mr Monti on behalf of the Commission

(16 February 1999)

Pursuant to Article 12(3)(a), taken in conjunction with Annex H, of the Sixth VAT Directive (77/388/EEC), Member States may, subject to certain conditions, apply a reduced rate of VAT to pharmaceutical products used for health care, prevention of diseases and treatment for medical and veterinary purposes. By virtue of that same Directive, they may also apply a reduced rate of VAT to supplies of goods and services intended for use in agricultural production. These cover animal care provided in the course of the agricultural production process and the corresponding medicinal products. However, the Commission has taken due note of the Honourable Member's observations and will take them into account during the forthcoming work on VAT rates.

(1) OJ L 145, 13.6.1977, p. 1.