HC Deb 23 February 1998 vol 307 cc60-1W
Mr. Alan Simpson

To ask the Chancellor of the Exchequer if he will list the VAT rules charged(a) on energy-saving items in each Northern EU country and (b) domestic energy consumption. [29923]

Dawn Primarolo

In the United Kingdom we have the lowest rate of VAT on domestic fuel of any Northern EU country. We are committed to extending that rate to the installation of energy saving materials, as announced in the Pre-Budget Report.

Table 1 shows the VAT rates applied to domestic fuel in Northern EU countries.

No other Northern EU Country has a specific relief for energy saving materials comparable to the measure we expect to introduce in the Budget.

Some Northern EU countries have a limited relief for the renovation and alteration of social housing which may allow relief for energy saving materials installed as part of such work, as well as applying their standard rate to renovation and alteration of housing. Other Northern EU countries apply their standard rate to all such supplies. Table 2 lists Northern EU countries and the rates they apply to such work.

Table 1: VAT rates applied to domestic fuel
Country Rate (notes) Percentage
Austria 101, 20
Belgium 122, 21
Denmark 25
Finland 22
France 5.53, 20,6
Germany 15
Ireland 12.5
Luxembourg 63, 12
Netherlands 17.5
Sweden 25
UK 5
1 The reduced rate applies to supplies of wood.
2 The reduced rate applies to coal and peat.
3 The reduced rate applies to standing charges only.
4 The 6 per cent. rate applies to gas and electricity; wood, oil and coal are 12 per cent.

Table 2: VAT rates applied to domestic renovation and alteration
Country Rate (notes) Percentage
Austria 20
Belgium 61, 21
Denmark 25
Finland 22
France 20.6
Germany 15
Ireland 12.51, 21
Luxembourg 31, 15
Netherlands 17.5
Sweden 25
UK 52, 17.5
1 Limited reduced rate—exact details vary in each country.
2 Forthcoming reduced rate.