Value Added Tax (Hansard, 12 May 1986)

§ Mr. Teddy Taylor
asked the Chancellor of the Exchequer if he will publish a table showing the EEC nations which apply value added tax to gas, electricity and food, respectively, and the rates concerned.

§ Mr. Brooke
The latest information available is as follows:

Gas Electricity ^*Food

per cent. per cent. per cent.

Belgium 17 17 6

Denmark 22 22 22

France 18.6 18.6 ^†5.5

Germany 14 14 7

Ireland 10 0 ^‡0

Italy 9 9 ^║2.9

Luxembourg 6 6 ^¶3.6

Netherlands 19 19 5

Portugal^● 8(6) 8(6) ■0.8(6)

Spain 12 12 6

^* Excluding luxury foods.

^† With certain exceptions, e.g. sweets, ice-cream, margarine, which are standard-rated at 18.6 per cent.

^‡ With certain exceptions, e.g. ice-cream, confectionery, chocolate, potato products, salted and roasted nuts, which are standard-rated at 25 per cent.

^║ The lower rate applies to essential foodstuffs such as bread, pasta and fish.

^¶ The lower rate applies to meat, meat products, bread and butter.

^● The rates shown in brackets apply to the autonomous regions of the Madeira and Azores Archipelagos.

■ The zero rate applies to unprepared foodstuffs.

§ Mr. Tim Smith
asked the Chancellor of the Exchequer if any extra Customs and Excise staff have been deployed to investigation work as a result of the implementation of the Keith committee proposals for value added tax; and if he will make a statement.

§ Mr. Brooke
[pursuant to his reply, 2 May 1986, c. 530]: The report of the Keith committee on the enforcement powers of the Revenue departments noted that there was a high resource cost in investigating VAT fraud to a criminal standard and it proposed a civil penalty procedure for the less serious acts of dishonesty. Section 13 of the Finance Act 1985, which allows for the civil treatment of VAT evasion, was enacted for this purpose. A substantial proportion of all evasions will now be investigated under this section and this may result in some reduction in the resources deployed on each such case. The overall staffing effect will not, however, be known until experience is gained of investigating evasions to a civil standard and there is knowledge of the number of appeals to the VAT tribunals.

	Gas	Electricity	^*Food
	per cent.	per cent.	per cent.
Belgium	17	17	6
Denmark	22	22	22
France	18.6	18.6	^†5.5
Germany	14	14	7
Ireland	10	0	^‡0
Italy	9	9	^║2.9
Luxembourg	6	6	^¶3.6
Netherlands	19	19	5
Portugal^●	8(6)	8(6)	■0.8(6)
Spain	12	12	6
^* Excluding luxury foods.
^† With certain exceptions, e.g. sweets, ice-cream, margarine, which are standard-rated at 18.6 per cent.
^‡ With certain exceptions, e.g. ice-cream, confectionery, chocolate, potato products, salted and roasted nuts, which are standard-rated at 25 per cent.
^║ The lower rate applies to essential foodstuffs such as bread, pasta and fish.
^¶ The lower rate applies to meat, meat products, bread and butter.
^● The rates shown in brackets apply to the autonomous regions of the Madeira and Azores Archipelagos.
■ The zero rate applies to unprepared foodstuffs.