But the British Government has rejected the suggestion, saying European Union rules prevent single states from altering Value-Added Tax rates without the consensus of all member states.
Huh?
![[Linked Image]](https://www.electrical-contractor.net/ubb/confused.gif)
I don't think it's any secret that I hate the EU and its bloated, dictatorial bureaucracy, but that doesn't sound right.
As I understand it we're not allowed under the V.A.T. rules to simply
exempt something from the tax, but we can set the actual rate charged at whatever we like.
For example, the U.K. has a standard rate of 17.5%, and a reduced rate of 5% on domestic fuel. Ireland has a higher standard rate of 20 or 21%, but they apply a reduced rate on a much wider range of domestic repairs.
Most EU countries charge a reduced rate on food, but the U.K. and Ireland make no charge. (We weren't allowed to make food exempt as such, but there was nothing to stop us setting the V.A.T. rate at 0%!).
I suspect this one might be another example of a government which doesn't want to lose an opportunity to collect tax and is trying to pass the blame. Unless the V.A.T. rules have changed recently, that is.
