EU: publication of council’s decision on reduced VAT rate for services with high labor intensity

This decision allows certain Member States to apply or maintain the reduced VAT rate until December 31st, 2010. The Council's decision implements the provisions of directive 2006/18 allowing a reduction of the VAT rate for certain services. (Ref. 061141)
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The decision of the European Council, adopted at the beginning of November and approving the Commission’s proposal to allow the application of a reduced VAT rate for services with strong labor intensity (see our article n° 06757) is published in the Official Journal of the European Union of November 15th, 2006. It allows 17 Member States to maintain or to apply the reduced VAT rate until December 31st, 2010 to certain services with strong labor intensity (renovation of private accommodation, ha

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