HC Deb 13 February 1980 vol 978 cc691-2W
Mr. Ralph Howell

asked the Chancellor of the Exchequer if he will publish figures showing the different rates of value added tax which currently apply in each member State of the European Community.

Mr. Peter Rees

Following is the information.

VAT rates (per cent.)
Belgium 6 16 25
Denmark 20¼
France 7 17.6 33⅓
Germany 13
Ireland 0 10 20
Italy 6 14 18 35
Luxembourg 5 10
Netherlands 4 18
United Kingdom 0 15
(1) The standard rate in each case is in italics.
(2) Exports are zero-rated.
(3) In addition certain Member States have various temporary rates or additional rates with minimal coverage.

Mr. Ralph Howell

asked the Chancellor of the Exchequer if he will publish a table comparing the average, overall effective rate of value added tax in each member State of the European Community, taking into account goods and services which are exempt or zero-rated.

Mr. Peter Rees

The information is given in the following table. The average effective rates have been calculated by taking VAT revenue as a proportion of consumers' expenditure, on the basis of published OECD statistics relating to 1977, the most recent year for which comparable figures are available. Since then there have been rate changes in some member States. These have all been of a relatively minor nature except for the increase in the United Kingdom VAT rate to 15 per cent. in June 1979. An estimate of the United Kingdom effective rate since the increase is included in the table.

Effective VAT rate 1977 (Per cent.)
Belgium 11.5
Denmark 14.4
France 13.4
Germany 9.4
Ireland 9.2
Italy 8.5
Luxembourg 8.3
Netherlands 12.6
United Kingdom 5.1
(Post 18 June 1979 8.0 estimate)
Sources: OECD Revenue Statistics 1965–78 (relating to 1977) and OECD National Accounts 1952–77.

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