14 February 2022

VAT rates – greater flexibility for Member States Factsheet

From 1 January 2025 Member States will have more flexibility to set Value Added Tax (VAT) rates in their country below the standard rate. A wider range of goods and services will be allowed to benefit from reduced rates, if the Member State so wishes. This is to reflect policy areas vital for Europe – the fight against climate change, the digitalisation of the economy and lessons learnt from the Coronavirus crisis.

While this is not likely to create significant distortions of trade between Member States, the EU VAT landscape will become more complex for businesses transacting across multiple Member States. This could particularly impact small and medium-sized enterprises (SMEs).

It is important for accountants to be aware of these potential changes before their introduction and keep up to date with changes in other Member States where their clients may also operate.

Related content

PublicationVAT in the digital age – modernising the European VAT system

14 March 2023

UpdateSME Update

7 March 2023

UpdateTax Policy

3 March 2023

PublicationEU Pillar 2 Directive: impacts on businesses

1 March 2023

EventReinforcing SMEs’ cyber resilience

28 February 2023

Stories from practiceInsight from SME accountants: kicking off the sustainability journey

27 February 2023

UpdateTax Policy

3 February 2023

UpdateSME Update

20 January 2023

UpdateTax Policy

12 December 2022

PublicationFAQs: all you need to know about the Corporate Sustainability Reporting Directive

23 November 2022

UpdateSME Update

17 November 2022

EventSMEs’ sustainable transition: how to support it?

15 November 2022

PublicationSME risk management – cyber risks & resilience checklist

10 November 2022

UpdateTax Policy

4 November 2022

NewsEC’s proposal to ban products made using forced labour

28 October 2022

EventMembers’ Engagement Day

19 October 2022

UpdateTax Policy

14 October 2022

Consultation responseEC’s consultation on tax evasion and aggressive tax planning in the EU

12 October 2022

Stories from practiceInsight from SME accountants: sustainability matters for the new generation

12 October 2022

EventThe impact of bribery and corruption on SMEs

11 October 2022

Sign up for our newsletter

* indicates required
Would you like to subscribe to our newsletter?
On which topics would you like to receive news?