91999E1936

WRITTEN QUESTION E-1936/99

by Alexandros Alavanos (GUE/NGL) to the Council

(4 November 1999)

Subject: Reduced rate of VAT for catering services

At the extraordinary Ecofin Council held in September 1999, Member States' Ministers discussed the list of services which would be eligible for a reduced rate of VAT. That list which will apply from 1 January 2000 contained proposals to include catering services, though these did not gain general approval. As the catering sector is important to countries with a developed tourist industry, will the Council say whether it will include that sector on the list of services to which a reduced rate of VAT may be applied and, if not, why not?

Answer

(24 January 2000)

The Council would remind the Honourable Member that when the Directive on the possibility of applying on an experimental basis a reduced VAT rate on labour-intensive services was adopted, the Council noted a Commission statement whereby the Commission undertook to examine in a positive spirit a request from Portugal to apply a reduced rate of VAT to catering services.