Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The EU Commission published a proposal on the reform of VAT rates in January 2018 which would allow member states more flexibility in how they apply VAT rates. As the compromise text agreed at the meeting of the Economic and Financial Affairs Council, ECOFIN, in December has been amended significantly in comparison to the original proposal, the European Parliament will once again be consulted for its opinion. While not providing for as much flexibility as the original proposal, it still provides greater scope for member states to make changes when it comes to setting VAT rates. Assuming the Parliament issues its opinion on the proposal, the Council will formally adopt the directive. I understand that the Slovenian Presidency wrote to the European Parliament looking for an early response. I expect the response will be due in the coming months. Following the Council formally adopting the directive, it will be published in the Official Journal of the European Union and will enter into force on the 20th day following that of its publication. After that, we will consider what our options are with regard to setting VAT rates. I hope that we will get an answer back from the European Parliament in relation to this proposal in the coming months. After that, I know that the Council will act to try to implement the directive quickly.

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