British minister ready for fight over ‘green’ VAT

EurActiv reported that the United Kingdom government made it clear it had no intention of raising VAT on energy efficiency products from 5% to 20%, bypassing a ruling of the European Commission in 2012 that urged London to bring its legislation into line or be sued in the EU Court of Justice. Some MEPs were said to be joining the UK in its cause, calling the Commission's ruling 'complete nonsense'.

The European Commission had asked the United Kingdom in June 2012 to amend its legislation which allows a reduced VAT rate for the supply and installation of 'energy-saving materials'. This measure went beyond the scope allowed under the VAT Directive.

European Commission: RAPID: Press Release, IP/12/676: VAT: Commission requests UK to amend its rules on reduced rates http://europa.eu/rapid/pressReleasesAction.do?reference=IP/12/676&format=PDF&aged=0&language=EN&guiLanguage=en

UK: HMRC: Paying reduced rate VAT on energy-saving materials http://www.hmrc.gov.uk/vat/sectors/consumers/energy-saving.htm

BBC News, 10.9.12: UK to fight energy product ruling http://www.bbc.co.uk/news/science-environment-19545185

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