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Distance Learning Trade News
EU approves lower VAT for handyman services
Electricians and handymen may soon be able to charge customers lower VAT under new proposals approved across Europe.
The EU Economic and Financial Affairs Council has given its approval for EU member states to be given the option of reducing VAT rates across a range of sectors.
It indicates that reduced VAT rates can have a positive impact in particular circumstances, although suggests that "more efficient" alternatives also be considered.
The council permits VAT reduction to be optional for the residential renovation and repair sector.
However, this would exclude reduced VAT on materials.
Other sectors that fall under the proposal include window-cleaning, minor repairs to clothing, shoes and household linen and restaurant services.
The UK rate of VAT has already been reduced once in the UK.
Chancellor Alistair Darling introduced the reduction on December 1st, cutting the VAT rate from 17.5 per cent to 15 per cent across the country.
The rate is scheduled to return to 17.5 per cent from January 2010.
