- European Commission in the UK - https://blogs.ec.europa.eu/ECintheUK -

Express’s “EU £2600 tax bombshell” story completely wrong

Changes to EU VAT rules require a unanimous agreement by all Member States. That is written in black and white in the EU Treaties, which set out and limit the powers the EU has – and also make very clear that the final say on all big political decisions rests with elected ministers and MEPs, not “Brussels” or “faceless bureaucrats”.

The Treaties themselves are drawn up by – and can only be changed by – unanimous agreement of the Member States.

In other words the UK has a veto both on any changes to VAT rules AND on any changes to the way the EU takes decisions in that area.

So despite the various fulminations quoted in the article, the suggestion in the Daily Express on 20 June that “Brussels” could force the UK to raise VAT rates and cause “a £2600 tax bombshell” is completely factually wrong.

Where there IS agreement that the rules will change is that the possibility to zero rate sanitary products will be introduced- EU leaders made that clear at their summit on 17-18 March.

The rationale for having such VAT rules – agreed by all Member States – is that rates that differed too widely within the single market would increase red tape and costs for business and mean consumers paying more for goods and services.