During its meeting of April 5, 2022 the Economic and Financial Affairs (ECOFIN) Council adopted a Council Directive that will give EU Member States more flexibility in setting their VAT rates. The adopted Directive amends the Directives 2006/112/EC and (EU) 2020/285 in such way that the scope of the reduced VAT rates (not lower than 5%) is extended and by introducing a super-reduced VAT rate for basic needs while still being able to deduct input VAT.

It should be noted that the Directive shall enter into force on the date of its publication in the Official Journal of the European Union.

Member States shall adopt and publish, by 31 December 2024, the laws, regulations and administrative provisions necessary to comply with Article 1, points (1), (2), (5), (7), (12) as regards the deletion of Article 103 of Directive 2006/112/EC, and (20) and Article 2. They shall apply those measures from 1 January 2025.

Member States may apply the laws, regulations and administrative provisions regarding Annex III, points (7) and (13), relating to access to the live-streaming of events or visits covered by those points, and point (26), of Directive 2006/112/EC, listed in the Annex to this Directive, from 1 January 2025.

COUNCIL DIRECTIVE (EU) 2022/542 of 5 April 2022 amending Directives 2006/112/EC and (EU) 2020/285 as regards rates of value added tax was published in the Official Journal of the European Union of April 6, 2022. Click here to be forwarded to the text of the Directive as published in the Official Journal of the European Union.

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