Press Release: VAT – The European Commission refers Poland to the Court of Justice for the application of a reduced rate to certain items

The European Commission decided to refer Poland to the Court of Justice regarding the reduced VAT rate it applies to the supplies of certain children's items. The Commission fully supports social and family friendly policies, as part of the EU’s response to the pressing challenge of demographic ageing. However, it must ensure that the EU VAT binding rules are applied by all Member States. It pointed out that more efficient instruments- such as direct subsidies or personal income tax allowance- can be easily (without the agreement of the 26 other Member States) implemented by Poland to reach its objectives.