Low value-added tax talks stalled
European Union talks on the use of a low value-added tax (btw) rate have stalled, sources in The Hague and Brussels say in Monday’s Financieele Dagblad.
The Netherlands levies a 6% btw rate on some products and services – such as hairdressers, shoe-makers and house painters – as part of an EU experiment. However the trial is due to end next year.
The European Commission has recommended allowing member states to keep a lower rate, but some countries, including Germany and Denmark, say it is inefficient and leads to unfair competition.
Dutch finance minister Wouter Bos wants to keep the lower rate because it boosts employment in some sectors.
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