PROVIDERS of domestic care services to the young, elderly, sick or disabled, may be offered the chance to cut the VAT they charge their customers in the future, with the European Commission planning to extend a pilot scheme currently operating in Ireland, Portugal, France and Greece.

These countries have exploited an experimental Directive allowing EU countries - including Britain - to apply a reduced rate of VAT as low as five per cent in respect of certain "labour intensive services". These services included the care ...

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