VAT on Imported Works of Art

HL Deb 20 April 1999 vol 599 c155WA

Lord Tebbit

asked Her Majesty's Government:

Whether the European Union is empowered to require that VAT on imported works of art be raised from the present level of 2.5 per cent. to 5 per cent. [HL1884]

Lord McIntosh of Haringey

Under the terms of EC law that was agreed by all member states, and which came into effect in 1995, the then United Kingdom Government agreed to raise its rate of VAT in this area from 2.5 per cent. to at least the normal minimum 5 per cent. after 30 June 1999. The present Government are seeking to retain the 2.5 per cent. rate, but we need the unanimous agreement of the European Commission and all other member states to achieve that.

The European Commission has the power to bring before the European Court of Justice any failure by member states to comply with their Community obligations.