92002E3037

WRITTEN QUESTION E-3037/02

by Glyn Ford (PSE) to the Commission

(24 October 2002)

Subject: VAT on repairs to war memorials

At present, VAT is charged on repairs to war memorials.

What plans does the Commission have to make this type of renovation work zero-rated for VAT, and thus make repair work to our nations' war monuments less costly?

Answer given by Mr Bolkestein on behalf of the Commission

(13 November 2002)

Under Community VAT legislation, Article 12(3)(a) of the Sixth VAT Directive (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)(1) lays down that Member States may apply a reduced VAT rate of no less than 5 % to supplies of goods and services referred to in Annex H of that Directive. As this Annex H does not cover repairs to war memorials, the standard VAT rate should apply to them.

In addition to this, in the course of negotiations of the Directive, or as part of their negotiations for joining the Community, certain Member States have retained separate rules in specific areas, an example in the United Kingdom being the zero rates. These rules set out in Article 28 of the Sixth VAT Directive are transitional, pending the adoption in Council, by unanimous decision, of a definitive VAT system under which far greater harmonisation is required. The Council has to date been reticent to adopt such changes.

Since the zero rates are specific derogations granted only to a few Member States, the Commission has no intention to propose their extension.

(1) OJ L 145, 13.6.1977. Directive as last amended by Directive 2002/38/EC of 7 May 2002, OJ L 128, 15.5.2002.