POLAND FACES COURT ACTION OVER LOW CHILDREN’S CLOTHES VAT RATES
January 1st, 2008
BY KEITH NUTHALL
THE EUROPEAN Commission has formally threatened legal action against Poland over its charging of a reduced 7% VAT rate on children's clothes, accessories and shoes which Brussels says breaks European Union (EU) law. Under the EU VAT directive 2006/112/EC, member states are bound to levy standard rate VAT of at least 15% on all products and services, unless they have been given special permission to lower taxes. Said a Commission statement: "Only a limited list [written into the directive] of goods and services may be subject to reduced ...
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