The UK will cut VAT on female hygiene products to 0% after the transition period ends. Important to emphasize the EU is changing its VAT rules, so we wouldn't have had to leave in order to do so anyway (though it might have taken a bit longer). #TamponTax
ec.europa.eu/taxation_custo…
ec.europa.eu/taxation_custo…
So it is a significant development, but it shouldn't be held up as "proof" that the UK was right to leave the EU.
EU rules aren't carved in stone for all time. They adapt too. And generally (but not always) for the better, in response to concerns raised by member states.
EU rules aren't carved in stone for all time. They adapt too. And generally (but not always) for the better, in response to concerns raised by member states.
Here's more background to all this. In fact, the UK helped drive the initiative that led the EU to reconsider its VAT rules. Our influence worked!
But then Brexit happened, and our side stopped pushing. The EU slowed off a bit (but has *not* given up).
infacts.org/we-dont-need-t…
But then Brexit happened, and our side stopped pushing. The EU slowed off a bit (but has *not* given up).
infacts.org/we-dont-need-t…
The key takeaway (as their factsheet explains) is that the EU's rule change will be applicable to other categories of products too if countries decide to (they example offered is childrens' clothes). So it's a very flexible solution to a perceived problem.
ec.europa.eu/taxation_custo…
ec.europa.eu/taxation_custo…
The new EU rules will:
1) Ring-fence a short list of product categories to which highest VAT rate must apply
2) Set minimum average VAT rate (i.e. average across all VAT rates)
3) Allow countries up to 4 reduced rates (inc 0%) they can use as long as they stick to rules 1 and 2.
1) Ring-fence a short list of product categories to which highest VAT rate must apply
2) Set minimum average VAT rate (i.e. average across all VAT rates)
3) Allow countries up to 4 reduced rates (inc 0%) they can use as long as they stick to rules 1 and 2.
