Energy efficiency — Lowering VAT rates

21.7.2015

Question for written answer E-011736-15
to the Commission
Rule 130
Jérôme Lavrilleux (PPE)

On Monday, 13 July 2015, Miguel Arias Cañete, EU Energy and Climate Commissioner, revealed to the online magazine Euractiv that the Commission is considering relaxing VAT rules for energy-efficient construction materials because the current arrangements do little to encourage small-scale investments, for example in renovation projects.

The news comes after the Court of Justice of the European Union ruled that the UK Green Deal initiative, cutting VAT on building materials for renovation projects to 5%, was illegal.

1. How exactly does the Commission intend to go about relaxing VAT rules in order to encourage investment in energy efficiency?

2. Might VAT also be reduced in other areas where investment needs to be encouraged?