During its meeting of May 25, 2016, the Economic and Financial Affairs Council (ECOFIN) adopted a directive maintaining the minimum standard VAT rate at 15% until December 31, 2017.

The minimum standard rate is aimed at preventing an excessive divergence in VAT rates applied by member states, and the structural imbalances or distortions of competition that could arise as a result. A minimum standard rate of 15% was applied until December 31, 2015. The Directive now adopted arranges that the 15% minimum rate is maintained from January 1, 2016 until December 31, 2017. This is done in view of on-going discussions on definitive rules for a single European VAT area. The directive is supposed to extend the minimum standard rate for a period long enough to ensure legal certainty.

According to a press release issued by the Council of the European Union, the directive was adopted without discussion at the ECOFIN meeting.

Click here to be forwarded to a Draft version of the Directive adopted by ECOFIN on May 25, 2016 as made available on the website of the Council of the European Union, which will open in a new window.

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