Press Release: VAT: Commission proposes to allow 17 Member States to apply reduced rates on labour-intensive services until the end of 2010

The European Commission proposes to allow seventeen Member States to either continue or start to applyreduced rates of Value Added Tax (VAT) until 31 December 2010, on some labour-intensive services such as renovation of private dwellings, hairdressing, window-cleaning, domestic cares and small repairs. This proposal implements the provisions of Directive 2006/18/EC that allows Member States that have chosen so to apply a reduction of VAT on these services.