§ Lord Laird
asked Her Majesty's Government:
What latitude they have under European Union regulations to vary Value Added Tax (VAT). HL2780]
§ Lord McIntosh of Haringey:
The European Community's Sixth VAT Directive (77/388) provides the framework for VAT and the rates that may be applied by Member States. The UK is able to decide the domestic application of VAT within that framework. Any changes to the directive are subject to unanimity.