EU policy to reduce VAT on renovation work

EU policy to reduce VAT on renovation work

Keywords: Value added tax, Housing

Agreement has been reached on a list of labour-intensive services on which members of the EU could reduce VAT from 1 January 2000. The experimental measure will run for three years and France intends to reduce VAT from 20.6 to 5.6 per cent for building work in private houses. The UK is unlikely to participate in the experiment, however.